Posts Tagged ‘ Home ’

Different Types of Home Loan

By Dilip V Mohan

If you plan to buy your dream home, then many different schemes lead to it:

1. Home-Loan: It is a term loan scheme with Equated Monthly Installments (EMIs) under fixed or floating rate of interest.

2. Overdraft-Loan: It is a home loan in the form of current account overdraft where you can park your surplus funds and thus minimize the interest burden – overdraft limit is reduced every month as per the EMI amount.

3. Flexi-Loan: It is a loan with one portion of fixed interest rate and the other portion with floating interest rate.

4. Realty-Loan: It is to buy a vacant land or plot where you can build your dream home. It helps in beating price rises on realty and build homes later.

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2011
03/26
CATEGORY
Different Types
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The Seven Deadly Sins in Home Loan Lending

By Rony Walker

The seven deadly sins in home loan lending are no different from the seven deadly sins outlined in the Bible. The latter damns your soul; the former can decimate your finances. Whether you’re buying a house by yourself, with your partner, or with a friend, be sure to avoid the following costly mistakes.

1. Thou shalt get your priorities straight.

Unless you are earning the equivalent of three people’s wages, there’s no way you can pay off a house loan, car loan, and a student loan at the same time. In fact, if you’re living on the budget of the recently employed, you have no business setting your sights on that sprawling four-bedroom number in the city’s most exclusive neighborhood. Clearly, you cannot serve two masters at the same time. Before you go home loan lending, separate your needs from your wants. Sort your priorities, and decide whether it’s a house or a new car that you need.

2. Thou shalt not underestimate home loan lending costs.

In home loan lending, costs follow only one trajectory: upward. Downpayment and monthly payments are not the only costs you have to budget. You need to factor in insurance and “start-up” expenses, in the form of furniture purchases and getting the cable TV and the telephone turned on.

3. Thou shalt not get a mortgage without first window-shopping thoroughly.

Home loan lending experts point out the only way to make sure you get the best deal in the market is to see exactly what type of deals are in the market. So, shop around for as long and as often as humanly possible.

4. Thou shalt not sign contracts without reading the fine print.

Home loan lending is no joke. Whatever contract you sign is legally binding between you and your broker. Be sure to pore over the contract and ask questions about the terms you do not understand. A home loan lending contract, no matter how seemingly straightforward, is one document you should not peruse with glazed eyes and a wandering mind. Ask about suspicious-looking clauses. If it reeks of fish, it probably is fishy.

5. Thou shalt not be blinded by exotic-sounding offers and very long-term arrangements.

Many lenders and brokers will always try to foist huge houses on you. After all, the bigger and costlier the house they sell, the chunkier their commission. Be very wary of offers that sound too good to be true. In particular, know that grandfather loans will earn you very small house equity.

6. Thou shalt never go without home insurance.

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2011
03/26
CATEGORY
Home Loan Lending
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Secured Home Loans Are Back

By Ken O Barnes

There was a time when buying your dream home or upgrading your interiors was too expensive and even unimaginable for many but now the scenario has completely changed, thanks to secured home loans! So if you really want to get yourself a new flat that you really love, want to buy expensive decorative pieces or furniture to add zing to your present home or want to altogether start construction on your dream house; you can easily opt for secured loans that will make your dreams into living realities!

A secured loan in UK is easily accessible by all and does not entail going through much of a hassle. These home loans are attractive and can actually empower you to get closer to the abode of your dreams more easily than you can think.

Now many of you may be thinking about the credit crisis that did have an adverse affect on secured home loans. But you need not fear that any longer. These loans are back and lenders are going all out to once again help you achieve what you have always wanted to, a beautiful and comfortable residence for yourself and your family!

It is obviously an expensive affair to make a total down payment or even bear the entire expense of purchasing a house or even household accessories with your monthly income alone. In fact most of us cannot even afford such a luxury! This is exactly where secured home loans come into the picture.

House owners can easily avail of such loans in order to either purchase a new place, or even to build a house of their own. Apart from that if you are too tired with the look of your home, these loans can also help you rejuvenate it and give it a new style!

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2011
03/26
CATEGORY
Fixed Home Loan
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