Home loans refer to financial assistance provided by lending institutions, such as banks or mortgage companies, to individuals who want to purchase a home. These loans allow borrowers to secure funds for buying a house and repay the amount borrowed over an agreed-upon period of time.
Related terms
Mortgage: A mortgage is a specific type of home loan in which the borrower offers their property as collateral. If the borrower fails to repay the loan, the lender has the right to take possession of the property.
Down Payment: The down payment refers to an initial upfront payment made by the borrower when purchasing a home. It is typically expressed as a percentage of the total purchase price and reduces the amount that needs to be borrowed through a home loan.
Interest Rate: The interest rate is the cost or fee charged by lenders for borrowing money through a home loan. It represents a percentage of the principal amount borrowed and determines how much extra money must be paid back in addition to repaying the actual loan amount.