The mortgage market had advanced and excelled in various areas. Now we can not apply traditionally available mortgages to our modern needs and requirement. As society innovated, various new options were introduced in mortgages to assist consumers and customers. Collectively there are more than eleven mortgage types available in the market for you to choose from, it ranges from residential mortgages to land and construction mortgages. Thus, it is comparatively convenient to buy a house or own particular property and an asset than traditionally.

Before we delve into the mortgage and answer how the procedure of mortgage loan apply online works. You need to understand the terms widely used in the mortgage market. These terms are:

1. EMI is also known as Equated Monthly Instalments: this term is widely used and the most important term in the field of the mortgage. Usually, EMI means how much the borrower has to pay the bank on monthly basses. It includes both the principal amount and the interest rate over the life of a mortgage.
2. LTV or Loan to Value Ratio: this term means how much the amount the borrower had paid the bank as a down payment for acquiring a mortgage. The lower percentage the better. So, when you enquire a bank on how much the loan amount is covered and they reply that you have 40% LTV. It means you have paid the bank 60 percent of the total mortgage and you just have to apply for the loan on the rest 40 percent amount.
3. ERC or Early Repayment Charges: it typically means a penalty in form of additional amount you pay the lender in case you repay the mortgage’s actual termed agreement. It is based on the type of interest system you chose from the fixed or variable mortgage upon your mortgage approval.
4. Re-Mortgage: Routinely, this term is widely used by the borrower. It means paying the initial mortgage on a house with the second mortgage. The reason for remortgage includes release home from the initial lender’s equity, either to pay mortgage early or to get better mortgage interest rates.
5. Reverse mortgage: If you are living in Dubai or any other country. Then you also need to know the term reverse mortgage. It is often suitable for an elderly couple who after retirement requires a stable source of monthly income but does not have children to pass their estate. Then you could request for the reverse mortgage, thus, you won’t be paying the bank. Country to this, the bank will be paying you monthly according to your house value. In return, the bank will obtain the ownership rights of the house and sell the house after your death.

Ultimate verdict:

For the beginner or first-time mortgage acquiring should be familiar with terms stated above before requesting mortgage loan rates Dubai. Repeatedly the interest rate fluctuates but the term in the mortgage market remains the same. Simultaneously, you should also familiarize yourself with the mortgage options and mortgage types available for young people and the elderly to make rational long-term decisions.