Mortgage loan is often defined as a person who uses his real estate, or other physical assets, securities and contracts with real value as a collateral. Therefore, he obtains the loan from the bank and signs a contract with the bank to repay the interest and principal in installments according to the contract. The bank will return the collateral after the lender finishes the repayment.
Mortgage loan in a general sense mainly refers to the provision of real estate mortgage in a general form to the debtor without changing the possession right.
And the chivalrous mortgage loan is more defined as a mortgage loan for the purchase of a house. The purpose of the loan is to buy a real estate such as a house.
Not all mortgages with real estate as collateral can be called mortgages. So what are the ways of mortgage loan? Generally, there are two ways: equal principal or equal principal and interest.
If the loan is repaid with equal principal and interest, it means that the borrower repays the same amount to the bank every month. The loan interest of each month is calculated based on the principal of the remaining loan at the beginning of each month and is settled monthly. Over a long period of time, the proportion of principal in the monthly repayment amount will become higher and higher, so the proportion of interest will decrease. On the whole, the interest will be much higher than the equal amount of principal.
Another way is to wait for payment, which is also called unequal interest payment. The borrower shall amortize the principal within each month, and finally pay the interest between the last trading day and the current repayment day. Compared with the above mentioned equal principal and interest method, the total interest of this method will be lower, but more principal and interest will be paid in the early stage of the loan, and then the monthly repayment will be less and less.
So, what's the difference between mortgage loan and collateral loan?
First, the purposes of these two kinds of loans are different. mortgage loan refers to that, when applying for a loan from the bank, one uses the house he has not yet bought as collateral, and then repays the loan to the bank every month, and finally obtains the ownership of the house after repayment. The collateral loan refers more to the mortgage of the house you have purchased and the loan from the bank for your own entertainment activities, such as tourism.
Second, in the case of mortgage loan, the borrower may first apply to the bank for loans before obtaining the certificate of real estate property rights. However, in the case of collateral loans, it is necessary for the borrower to provide the land trial right certificate and house ownership certificate of the real estate as collateral, and then use these certificates to apply for other property rights certificates, and finally apply for completing the loan.
Third, the repayment period of mortgage loan is generally 20-30 years, while that of collateral loans is generally 10 years at most.
Fourth, the interest rates of these two types of loans are inconsistent. Generally speaking, the interest rates of mortgage loan are lower than those of collateral loans.
