A home loan, commonly referred to as a mortgage, is a financial arrangement between a borrower and a lender, typically a bank or financial institution, designed to facilitate the purchase of residential property. The primary purpose of a home loan is to provide individuals and families with the means to acquire a home without having to pay the entire purchase price upfront.

There are various types of home loans available to suit different borrower needs and financial situations. Fixed-rate mortgages offer stability with a constant interest rate throughout the loan term, ensuring predictable monthly payments. In contrast, adjustable-rate mortgages (ARMs) have interest rates that fluctuate based on market conditions, potentially leading to varying monthly payments over time.

One of the key components of a home loan is the down payment, which is an initial payment made by the borrower towards the property's purchase price. The loan term, typically ranging from 15 to 30 years, determines the duration over which the borrower will repay the loan amount along with interest. Throughout the repayment period, borrowers make regular monthly payments covering both principal and interest.

Lenders evaluate borrowers' creditworthiness based on factors such as credit score, income, and debt-to-income ratio to determine loan eligibility and interest rates. Prospective homebuyers can seek pre-approval for a home loan, indicating the amount they are qualified to borrow before commencing their property search.

Home loan interest rates are influenced by economic factors such as inflation, government policies, and housing market conditions. Borrowers have the option to refinance their home loans to secure better terms, lower interest rates, or change the loan type.

Ultimately, home loans provide individuals and families with the opportunity to achieve the dream of homeownership by spreading the cost of purchasing a home over an extended period, making it more attainable and affordable.

Types of home loan:

1. Home Construction Loan

2. House Renovation Loan

3. Home Loan

4. Home Extension Loan

5. Plot Loan

6. Balance Transfer Loan