Sure Ways to Reduce the Burden of Your Mortgage Loan

Today, you can avail various types of loans for varying circumstances and different reasons. Knowing which loan to apply for and for what purpose will help you in making the most out of it. However, the two loans that generally confuse people are home loans and mortgage loans. So, before we start talking about how to reduce the loan amount, let us understand the basic difference between these two types of loans and find out whether or not the latter can be converted into a home loan.
 

Difference between home and mortgage loans

A home loan is taken to buy or construct a new house when the loan applicant does not own a property. This loan can only be used for the construction of a new house or to buy a ready to move in property.

On the other hand, a mortgage loan is available to those who own a property that can be used as security. It is also known as a loan against property. There is no restriction on how a mortgage loan can be used. It can be used to meet personal and/or business requirements.
 
ALSO READ: Beginner’s Guide For Taking A Loan Against Property