What is a Home Loan?
It's a safe bet that anyone reading this article is familiar with the concept of a mortgage. A mortgage is a loan given by a financial institution to purchase a home. The lender will take the title of the property in exchange for the loan, and when the homeowner pays off their debt, they regain ownership of both the home and any equity they have built up. In most cases, if you default on your loan, you risk losing your property.
In other words, in the mortgage industry, a home loan is a contract between you and your bank to purchase your chosen property. The main purpose of this contract is to secure the financing of your dream home.
The rate at which interest rates are changed on all types of mortgage loans can be very different. This is because the market itself changes with every passing day, so it's difficult to predict what will happen in any particular case, especially when it comes to short-term loan contracts.