Many couples and matured singles desire to have a place they can call home, devoid of landlord wahala. In the process of trying to seek out that ideal home that is affordable, the concept of getting a mortgage creeps up.
Everyone knows that building or buying a home is a capital intensive project, which should normally end up with your property becoming an asset in the long run.
A mortgage is a loan in which property or real estate is used as collateral. The borrower enters into an agreement with the lender (usually a bank) wherein the borrower receives cash upfront then makes payments over a set time span until he pays back the lender in full.
Commercial and Mortgage Banks play an active role in lending to people with less access to banking services, such as the unbanked or underbanked or in situations where borrowers do not have good credit history.
Mortgage loans are secured in a nature.
The collateral is held by the lender until full repayment of the loan is done. The loan is repaid through equated monthly instalments or EMIs (EMI is a fixed sum that you need to pay each month to the lender after availing the loan. However, the modalities of repayment can differ).
How Does a Mortgage Loan Work?
When you get a mortgage, your lender gives you a set amount of money to buy the home. You agree to pay back your loan – with interest – over a period of several years. You don’t fully own the home until the mortgage is paid off. The interest rate is determined by two things: current market rates and the level of risk the lender takes to lend you money.
You can’t control current market rates, but you can have some control over how the lender views you as a borrower. The amount of money you can borrow will depend on what you can reasonably afford and, most importantly, the fair market value of the home, determined through an appraisal. This is important because the lender cannot lend an amount higher than the appraised value of the home.
FirstBank offers different mortgage packages like:
- Commercial mortgage
- Joint Mortgage.
The FirstBank Commercial Mortgage empowers small and medium scale enterprises to finance the acquisition of landed property for commercial purposes. While the FirstBank Joint Mortgage loan, enables you and your spouse or business partner to easily buy a property that either party can ordinarily not have been able to purchase as individuals.
Mortgages are instrumental in providing secured homes for millions aroun the world.
You just could be the next property owner through a mortgage. Talk to us today and visit www.firstbanknigeria.com .
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