HOME LOAN WITH NO INTEREST MORTGAGE WITHOUT INTEREST HOME FINANCING WITH NEGATIVE INTEREST RATE
A mortgage without interest is defined by a type of loan that's used to finance a property acquisition to a borrower and future real estate owner without requiring the payment of any interest rate.
A mortgage with no interest applies to home loans which are secured through the pledge on the property which oblige the borrower to provide with this collateral to the lender in the event that he or she is not able to make payments.
3 TYPE OF MORTAGES WITHOUT INTEREST RATE
An interest free mortgage is apparently utopic itself, however the option to finance a home acquisition is real and is offered through 3 realistic situations.
1. COUNTRIES WHO PROMOTE HOME CONSTRUCTION THROUGH SUBSIDIES TO THE INTERESTS.
1. A home loan without interest is existing in areas where state institutions are encouraging housing construction homeownership, subsidize interest rates under certain conditions such as income must not exceed a certain limit and the home purchase is made specific residential areas.
2. ETHICAL FINANCE SOLUTIONS WHERE INTEREST RATES ARE NOT APPLIED.
2. An interest free mortgage applies also to certain types of ethical funding instruments which include the Islamic real estate loan which by definition by financing granted to meet the needs of a Muslim who wishes to acquire real estate property without paying an interest rate (Riba) which is haram and not halal.
3. MORTGAGE WITH NEGATIVE RATES IN THE EURO ZONE.
3. A negative rate mortgage is a third type of home loan with no interest, where the borrower of a property purchase repays less than he has borrowed (this is true!) given that the lending banks borrow money from the central banks on a negative rate base.