The Things To Know About Mortgages While Buying a House

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The Things To Know About Mortgages While Buying a
House
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• As we all know whether we are buying a house for
  the first time or we are doing it for the fifth
  arranging finance is never easy.
• If you are not an investor and just a buyer then
  of course acquiring a loan is your first
  available option for arranging the money to buy
  your house.
• If you want to 3 BHK apartments in Ghaziabad you
  will need to get a mortgage as the prices of the
  property here are premium. Thus it is necessary
  that you know in detail about what a mortgage is
  and what other aspects are related to it.
• As of course the amount will be significantly
  high it is important that you know how the
  mortgage works.

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DEFINING MORTAGAGE
The most basic definition of mortgage is that it
is a loan taken from a bank at some interest to
buy a property. For getting a mortgage the
approval of the lender depends upon your income
level, credit rating and other debts if you have
like may be personal loans, vehicle loan or
education loan on your name.
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KNOW EXACTLY WHAT YOUR FIXED COST IS
Fixed costs you will account your total budget
you require for living and only then you can
decide how much installment you can pay every
month. So, before you decide what you can or what
you shouldspend on a mortgage always calculate
your fixed cost. Be honest with yourself as the
loan for your house would be a long term
commitment. In calculating your fixed cost it is
also important that you know and consider about
your daily habits like you have a habit of eating
out a lot or you cant do without your daily
premium cup of coffee or if you are a shopaholic.
All these thing should be counted in your fixed
cost. 
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CALCULATE YOUR PITH AMOUNT AND ALWAYS PLAY SAFE
According to experts your monthly housing cost
should not be more than 32 of your gross monthly
income. As you will be required to pay off your
PITH or Principle, Interest, Property tax and
Heating bills every month so always calculate
them and then make you spending budget to play it
safe. 
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ONLY GET, WHAT YOU CAN AFFORD
If you do not want to turn your dream house into
a nightmare always get mortgage that you can
pay-off easily. After calculating and passing
the PITH test, now you need to clarify what you
can afford after paying of your car payments,
credit card debts and any other such mortgage
that you have already taken. Your entire
months debt load should not exceed 40 of your
gross monthly income. If you can only afford 3
BHK apartments in Ghaziabad then do not go for a
4 BHK.  
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Paying Off Your Mortgage
When you have finally approved for a mortgage and
bought your home, now you have to start paying it
off. The factors involved in your mortgage
payback structure would be interest rate, your
payment schedule and your payment period or
amortization period i.e. the amount of time
youve selected to pay back the mortgage.
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CHOOSE THE RIGHT INTEREST RATE
Interest is what percentage the lender charges
you for lending the money. In other words the
interest rate is which you select to pay off your
mortgage. Choose a scheme at an interest rate
that you can afford. It will remain fixed for
the term of the mortgage, and is generally a bit
higher however the interest rate can fluctuate
with the market.
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Mortgages are important for you to fulfill your
dream of buying a house so choose them wisely
such that they do not become a burden on you.
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