Choose a home loan to fit your requirements!

To help in the purchase of homes, there are various types of loans available both from commercial banks and private lenders. There are fixed rates, varied rates and introductory rates of interest on these loans and you can have your own choice. The repayment options also differ and you can either pay only towards the interest for a period and then focus on the principal and there is the option to repay both the principal and the interest together. The features of the loans differ and according to your requirements, you can make the choice of the mortgage for your home.

Compare the loan offers by getting quotes from different lenders

Unless you understand the features of each of the available options, the choice might be difficult. The interest rates should suit your financial condition. If you go for a low interest rate, the fee you have to pay might be  higher. Either you might have to pay interest for a long time or you might be required to make more towards the fees. Your financial affordability and your requirements should be understood thoroughly to get the right choice. If you are buying home for the first time, you should be specific about making the repayments manageable, especially in the initial phase of the loan term. Adequate homework is required to make the purchase so that you do not struggle when it comes to repayment.

home loan

If you are willing to obtain a mortgage insurance, you can expect to get almost the entire cost of the property as loan. Otherwise, you will be sanctioned around 80% and it becomes necessary to arrange for 20% of the loan amount to meet the down payment. However, there are lending companies that are willing to loan the entire amount even without the need to take insurance which however comes with either higher interest rate or higher fees. Some of the lenders reduce the cost provided you enable direct transfer of funds every month towards the loan repayment. There are possibilities to refix the interest rate at the discretion of the lenders.

When you decide to go for a home mortgage, the prime factor is to access a genuine and good lender. Online forums and references from friends or relatives can be considered to access one of the right lenders for your needs. You can take time to ask questions to clarify your doubts regarding the offer so that you do not have regrets in future. Unless you are convinced of the reliability of the lenders, it is good that you keep away from the offer. The lenders have the obligation to clarify your doubts regarding the fees that you might have to pay in addition to the fees that you are charged.

When you ask about the exit fees for the offer, the lenders may not mention about the discharge fees or settlement fees. It is suggested that you know about each of these charges before you commit to the offer. Comparing the loan rates from different lenders will help in the decision. When comparing the rates, you have to consider all charges associated with the offer besides the interest rates and loan terms and payable options. A mortgage broker can be approached to know the features of different offers and the sources of these offers. The mortgage brokers can help in reaching the perfect offer for your requirements.

The easiest means to get loans for low interest rates is to wait till the market rates go down. The fluctuating rates can be used for your advantage. However, it should be remembered that low interest rates lead to increase in the prices of loans as the demand increases. Improving the credit report helps to get loans for lower interest rates and reasonable terms. It takes a minimum of two years to improve one’s credit. Credit capacity is the vital factor in maintaining good credit score. Since the current use of credit leads to higher score, it is necessary to keep the current accounts open.

Repayment Mortgages

A repayment mortgage is one where you pay the interest on the loan and repay a portion of the debt each month. This means that you will know, at the end of the month, that you will have enough money to pay back the loan. This can be a great thing as it means that you  have the confidence that you will pay back what you owe.

It can be great, having the peace of mind that you will be able to clear you debt at the end of the period. Those people who have interest only mortgages are not able to do that. They will have to put some money away every month in some sort of investment and hope that they will have enough to pay off their debt when the time comes.

A repayment mortgage is great for those people who are not very good at saving. They will not have to worry about making sure they have enough money put aside. They will just be automatically paying things off. It will mean that they are paying more money each month to their lender than people who have interest only accounts, but at the end of their mortgage period, they will have paid off the loan.

It can be tempting, if you are having to save the money yourself to put towards your mortgage, to borrow a bit every so often. You might need new things or want some spare money. However, if you keep getting used to dipping in to this account, then you could find that the money soon runs out and then you will have nothing left to pay your mortgage. It is really easy to do, but difficult to undo. Therefore deciding whether you want a repayment or interest only mortgage, is very important.

You need to not only think about which seems to make financial sense and will help you be better off, but also which will be best suited to your personality. You may find that the repayment mortgage will not only make sure that you do not spend the money you need to put aside to pay off the mortgage, but it will also give you peace of mind that the debt is slowly being whittled away.

Could downsizing be your answer to debt problems?

For most people, their home is their biggest asset, and the one they are most inclined to hold onto. Yet downsizing a property can be a very efficient way of easing a debt burden, especially for older homeowners who have seen their children fly the nest and may have unused space. While no one should feel pressured into selling their home, it is worth giving downsizing plenty of thought.

If you are thinking of selling up and getting something smaller, you need to be prepared for the fact that a lack of lending from banks has made this something of a buyer’s market. You’ll need to take every advantage you can when marketing your home, so here are a few helpful tips:

Fix up, look sharp

Not all buyers are put off by having to do a little work, but when you’re working with limited options you need to make your house as appealing as possible. Make sure you complete all repairs no matter how minor, and keep your property clean, tidy and clutter free. Your aim is to show your property in the best possible light.

Make improvements

Investing in double glazing or a new kitchen may involve some up-front cost, but you can easily make this back by adding to the asking price. People who want to put their own stamp on a property will not be put off by a nice new kitchen, and you’ll also appeal to those who want to move into somewhere that doesn’t need any work. Adding things such as double glazing and loft insulation are good selling points with regard to energy efficiency, promising the new owners lower utility bills.

Use a good agent, and stay out of the way

Estate agents are the ones who should be selling your home, so find one which is willing to promote the benefits of your home, and leave them to it. Buyers will feel less pressured if the owner is not hovering around them, and will feel free to imagine how they would use the space in your home. Allowing buyers to think this way is an important step.

Consider an alternative

If conditions in the traditional home-sale market are doing you no favours, you might want to think about selling through a property-buying specialist, such as Gateway Homes. While you will receive less than the market value, you get a near-instant decision with no chain to worry about, and a lump-sum payment to reinvest.