Mika
VIP Contributor
You can get a loan for various purposes. Sometimes, when you get a loan to buy a house or buy a car, it is categorized as a house loan or auto loan, but these loans are basically a personal loan.
When you get a house loan, you can not only use the money to buy a house but also renovate your house, or add a new story to your house. A House loan or mortgage is a popular loan type because it is a long-term loan (up to 25 years), has a comparatively lower interest, and loan processing is comparatively faster. Interestingly, you can use the same house or land that you are buying as collateral.
When you get a house loan and start living in your own house, you will save money on rent, but you will also have to pay the loan installments which might be bigger than the amount you paid as rent. However, there is one major benefit. When you are living in a rented home, it will never be yours, but when you continue to pay back your loan, in 20-25 years, you will become a house owner.
You can also rent your house or have paying guests in your house to generate income that you can use to pay back your loan.
When you get a house loan, you can not only use the money to buy a house but also renovate your house, or add a new story to your house. A House loan or mortgage is a popular loan type because it is a long-term loan (up to 25 years), has a comparatively lower interest, and loan processing is comparatively faster. Interestingly, you can use the same house or land that you are buying as collateral.
When you get a house loan and start living in your own house, you will save money on rent, but you will also have to pay the loan installments which might be bigger than the amount you paid as rent. However, there is one major benefit. When you are living in a rented home, it will never be yours, but when you continue to pay back your loan, in 20-25 years, you will become a house owner.
You can also rent your house or have paying guests in your house to generate income that you can use to pay back your loan.