In the hustle and bustle of life, situations can force you to acquire multiple loans through unique sources. These, inadvertently, come with varying (read – high) interest rates and can drain your savings rapidly.
As you get some time from continually catching up with life, you notice the deep hole in your pocket. You realize you require an overhaul, i.e., debt consolidation. Securing your debt will help you gain an unrestricted view of it and get rid of it comfortably and quickly. It can not only reduce your periodic outflow but can also help you get rid of different dates of payment and the hassles attached to it.
Most people opt for mortgage insurance to consolidate all their dues. Because an asset backs it, it offers several advantages over the other forms of debt consolidation. Use ahome loan calculator to understand the impact better; you can use a home loan eligibility calculator to know if you qualify to get the loan amount you want.
Why Should You Secure Your Debt with Mortgage Insurance
Here are five reasons to secure your debt with mortgage insurance:
- Easy Approval and Disbursal
Lenders, when giving their approval for a loan request, look for risk protection. With mortgage insurance backed by sizable security, they inadvertently approve it after completing their routine processes. It saves you from the hassles of going through multiple rounds of talks to get loans approved.
- Receive a Substantial Loan Amount
The prices of properties and other forms of similar assets are soaring. It also means that you are most likely to get a high-value loan by mortgaging them. Most lenders provide funds equal to up to 95% of the property. It should cover most of your pending loans conveniently.
- Interest Rates on Mortgages Are on the Lower Side
As they are backed by some form of property, lenders find it a low-risk investment and are willing to give you a loan at a lower interest rate. The rates are significantly lower than a personal loan. Moreover, you even get an opportunity to negotiate to secure a better rate.
- Secure Easy Repayment Options
It is a given that mortgage insurance will come with a longer tenure. It will help you with a lower periodic repayment option and ensure that you do not sacrifice other monetary goals. Several lenders offer flexible loan repayment, giving you more leeway to manage your debt.
- Flexible Security
Mortgage insurance is easy to secure. You are eligible to pledge any property, such as your residence, office, or any other property you own. The lender will look for valuation and approve a decent loan amount for you.
Thus, it is a good idea to secure your debt with mortgage insurance.
Use CRED’sHome Loan EMI Calculator to understand the financial impact of your mortgage insurance. More often than not, mortgage insurance includes a home. That makes it a tricky decision. So, CRED has created a home loan eligibility calculator to let you understand the impact of your decision better.