Differences between mortgage and home loan
Housing loans and mortgages - are quite similar concepts. In both cases, there is an allocation of money to the borrower to purchase real estate. And in the case of housing loan money can be spent exclusively for the improvement of living conditions. For example, to purchase housing on the secondary market, individual construction, reconstruction of housing. The mortgage involves a purchase of any property. It can be land, office buildings, and housing.
With both types of loan, the borrower must make a down payment of 10% and confirmed its solvency. The terms on which loans vary between banks and depend on the type of real estate (housing on the secondary or primary market, construction of housing).
The principal difference between these two loans is the collateral and the rights of ownership of housing. The mortgage provides for the pledge of the acquired property. While housing loan, you can pledge another property. Housing loan will be unsecured. But in this case, it will differ less favorable to the borrower interest rate, and a limited amount of credit.
Mortgage the owner of the acquired property till the moment of repayment of the debt is the Bank and when housing directly to the buyer. This is one of the benefits of housing loan. In extreme situations the apartment can be sold to pay off the Bank. And implement the property on their own terms. In the mortgage the apartment to dispose of the Bank directly and regain will not all the money spent.
In which case you should arrange a mortgage
The mortgage is less favorable loan terms interest rates and amount of overpayment. But most of the borrowers opt on this type of lending. The main reasons lie in the fact that the mortgage involves a longer payment deadlines, which can reach 30 years. This makes the monthly payments less expensive for the family budget. Also mortgage allows you to purchase their own homes those who do not have significant amounts of down payment.
In any case, worth a stop for a home loan
Housing loans more favorable to borrowers who have a large part of the cost of housing - up to 70%. These loans are seriously limited in the amount and timing of its provision. But if the financial situation of the borrower and allows him to get a home loan, then, of course, is to stop your choice on it. The amount of overpayment in this case would be much lower.