Home Loan

Home Loan is a most popular variety of Loan. In USA, since last so many decades Home loan is so much popular that people are using home loans to fund their various personal needs.

Definition: -

- a loan secured by equity value in the borrower's home.

- Home Loan is a property backed (Your Home) Loan. It is commonly known as ‘Mortgage’. A mortgage is the transfer of an interest in property (or the equivalent in law - a charge) to a lender as a security for a debt - usually a loan of money. While a mortgage in itself is not a debt, it is the lender's security for a debt. It is a transfer of an interest in land (or the equivalent) from the owner to the mortgage lender, on the condition that this interest will be returned to the owner when the terms of the mortgage have been satisfied or performed. In other words, the mortgage is a security for the loan that the lender makes to the borrower.

- A mortgage is the pledging of a property to a lender as a security for a mortgage loan.

- A home loan requires you to pledge your home as the lender's security for repayment of your loan. The lender agrees to hold the title or deed to your property until you have paid back your loan plus interest.

Explanation: -

A Home Loan is a very powerful tool to build Wealth if used properly. However, according to Finance Gurus, Home Loan/Mortgage is a Double Edged sword. Because if used properly, it can make you Rich, Ultra-Rich but if it works against you, it can make you poor or even Bankrupt.

Some people take Home Loans to fund their property Investments. And this use makes them rich in the long run. But some people use it to fund their personal needs. And this is very dangerous and risky. Many people became Bankrupt by doing this. So Financial IQ is the key to success in using this tool in favour of you….!!!!