Bank mortgage loans is a common term used in the real estate market. Most people who want to have a home will likely need to borrow money in order to do so. Bank mortgage loans are one of the most accepted mechanisms to do so. The following article discusses mortgage loans and bank lending.

Varieties Of Bank Mortgage Loans

There are different types of bank mortgage loans and they each behave in slightly different ways. These include residential mortgages , which are usually associated with home loans.

On the other hand, commercial mortgages are associated with commercial properties like warehouses, offices, shopping malls, and retail outlets. Other types of bank mortgage loans you may need to know are:

Land Mortgage: Land mortgages are mainly associated with the loan which is taken in order for the purchase of property or land. Acquiring a bank mortgage loan for land can be very difficult because it is a less secure investment than a property from the point of view of banks and lenders. To obtain a bank mortgage loan for land, you are required to pay a substantial downpayment.

Residential Bank Mortgage Loans: this type of mortgage is used in securing home loans for apartments and flats. This type of bank loan is often availed by married couples and individuals. There are different interest rates charged with every loan depending on the mortgage loan amortization period specified by the bank for the mortgage loan.

Commercial Mortgage: Commercial mortgage loans from banks are usually obtained for the purpose of buying commercial properties like offices, shopping malls, shops, warehouses, outlets, retail locations and factories. These types of mortgage loans are usually availed by corporate dealers and business owners.

Banks And Commercial Mortgages

Equity Mortgage: this is the most common type of mortgage loan because this is the kind which is being offered by most banks and financial institutions. With this type of mortgage plan, the lender will offer a favorable interest rate to the borrower. In return, the borrower will then share a part of the profit to the lender after the property is sold. Home equity mortgage loans are usually given to the borrowers against collateral security like a residence, house, property, industrial building and commercial property.

Investment mortgage: This type of loan is typically obtained by people who want to invest money for profitable ends.

The above list some of the more common types of bank mortgage loans that you need to know about. For detailed information about any type of mortgage, contact a suitably qualified independent financial advisor.