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Some Home Loan Information You Might Not Know

Anyone who has bought a home will have done some home loan research. They will have found that all mortgages that are worth your time come from banks. Each of these has a number of different options, let us look at the ABSA home loan as an example.

The first options involve the interest rate. On an ABSA home loan you can choose either a variable or a fixed interest rate. The variable interest rate is exactly that, it changes with the prime lending rate. However, it is possible to change this to a different type of interest rate at any time. The fixed interest rate remains the same for a pre-determined period of time, after which it reverts to a variable interest rate. You cannot change this before the time is up, but your repayments are not affected by a volatile prime lending rate.

The ABSA home loan also has a option called a “FastForward”. This allows you to change the installments you make each month or the interest rate. This means that you can make your home loan affordable and save yourself from a blacklisting. Mostly this is to shorten the time period of your repayment, but should also be able to be used to make the repayments a little lower so that you can get by if you hit a difficult patch financially.

This “FastForward” innovation allows you to have access to something called a “FlexiReserve”. This amounts to the funds over and above what should be repaid on the mortgage. So if you have paid more than you actually needed to, you can withdraw this money if you need it for something. This money can be used for anything that you need and is available at very short notice. However, if you do withdraw this money, it will mean that the amount repaid into your loan has decreased and you will be liable for the full amount again.

The ABSA home loan has also a further advance feature. You become eligible for this if your property has increased in value to a sufficient level so as to cover the additional amount required. This money can be used in the purchase of other things like cars and renovations. Of course renovations will further increase the value of your home and allow you access to yet more funds. Sounds good? Be careful not to overextend yourself. Whilst the mortgage interest rate is less than other interest rates, you will still have to repay the amount over a longer period of time which may cost more in the long run.

Getting a bond is the only way to buy a house for most people and having all these options and many others available makes it even more affordable for those who struggle to then get a car or to do repairs once they have already bought their home. When you are getting a home loan, take the time to compare all the banks’ options and choose the one that suits you best and has the most options you will actually use.

How to Find the Best Home Loan

Back when the real estate market was booming, you didn’t have to go far to find a great mortgage. Practically all of the lenders were eager to loan money for home purchases. Now that the real estate market has dramatically changed, the easy mortgage money is history. If you are in the market to make a home purchase, it is still possible to find a mortgage, but you are going to need to recognize that the avenues available for best home loans have dwindled and restrictions for home loans have increased.

Lenders today have become far more wary when it comes to making home loans and with good reason. Given the number of mortgage defaults, it only makes sense that most banks today have decreased their mortgage loans as well as tightened lending restrictions. There are even some banks that will no longer consider working with mortgage brokers, making it even more difficult to locate a mortgage loan in today’s market. So, what do you need to do to find a mortgage loan in spite of these problems?

Internet

The first step is to turn to the Internet. Shopping online has become quite commonplace today and that includes shopping for a mortgage. Browsing the web will provide you with some crucial information regarding current home mortgage rates. You should keep in mind that many of the mortgage sites you will come across actually act as a referral service and or not actual mortgage brokers or banks, but still, it’s a good way to become informed before you actually begin the process of shopping for a mortgage. Just make sure that you keep your confidential information private when you are in the early stages of research. You shouldn’t supply your social security number or any other confidential information until you are actually ready to apply for a mortgage.

When submitting information to receive mortgage loan quotes, make sure you enter only accurate information. Avoid the temptation to guesstimate when it comes to your credit score or income. If you aren’t sure about something, wait until you have the accurate information before you enter all of the data. Otherwise, the rate you are quoted could end up being much different than your actual rate based on your verified information. Get your free and best mortgage rate quotes here!

Banks

Keep in mind that if you are refinancing or if you are looking for a loan less than $417,000 then contacting your bank may be the best option for finding a loan. Sometimes banks are more willing to make a loan to an existing customer, whom, they already know. The key is to make sure that you’re working with a loan officer who truly understands the new regulations. The last thing you want is for your loan to fall out in the middle of the process because your loan officer was less than informed about changing underwriting regulations.

Mortgage Broker

Working with a mortgage broker can also still be a good option. If you are a first-time home buyer, a broker can actually be an excellent asset. If you are trying to go it on your own and shop online there will not be a lot of support available. Working with a mortgage broker can provide you with the crucial support you need during the process. Also, a mortgage broker may be able to provide you with more mortgage options than you would be able to find on your own.

If you are planning to finance investment property or you are looking for a jumbo mortgage, typically more than $417,000, then it can also be a good idea to use a mortgage broker, who can help you look for lenders who will underwrite loans that are less conventional. Keep in mind that the more unique your loan needs, the more difficult it may be locate a mortgage at the current time, especially if you are trying to do it on your own. This is where a mortgage broker really excels.

Finally, when you do find the mortgage and rate you are looking for, make sure you exercise the option to lock it in, if the lender offers that capability. Remember, loan rates do not remain static. They can and will change from one day to another. Do not make the mistake of assuming that a loan rate will remain available. The best option is to make sure that you are ready to take advantage of a good mortgage deal when you find one, because they are definitely not as plentiful as they once were.

FHA Loan Information You Need to Get a FHA Housing Loan!

Purchasing a home can be the one of the most important decision in a person’s life. FHA Loan Information is very important when making this big step because there are so many advantages to buying your home with a FHA Housing Loan.

Why Do You Need FHA Loan Information?

The reason being, many types of protection and benefits are attached to these types of loans. One important benefit is the interest rates are very competitive and are insured by the Federal Government. The insurance is the reason most lenders are willing to provide the loan to people who are unlikely to qualify for other type loans, because it minimizes the risk of default.

What Are Some Advantages Of A FHA Housing Loan?

1. FHA loan requirements to secure a home loan are very lenient compared to conventional loans. Knowledge on FHA Loan Information can be very a very valuable tool when considering your options.

2. It is a lot easier to get qualified with less than perfect credit than other type of home loans. It is even possible to get qualified with a bankruptcy on your record. They tend to believe that people at times experience financial difficulties that are beyond their control, and everyone deserves a chance to own a home. So, imperfect credit should not be a determining factor in applying for a home loan.

3. FHA also features a low down payment rate of 3.5, which can be gifted to you. No other mortgage loans permits money to be gifted to use as a down payment.

4. There are no minimum income requirements to obtain a loan of this type. Although FHA has set limits on how much the will lend on a home, they are within reason. Many factors were considered when setting these limits and they can be reviewed in FHA Loan Information pamphlets located in many lender locations or you can also search the Internet. The pamphlets can provide answers to many of your questions.

The task of securing a home loan can be very confusing. This is a major commitment and the choices made could cause a lifetime of happiness or a lifetime of heartache.

For this reason, it is of the utmost importance to get FHA Loan Information to get valuable insight on the benefits that this type of loan can provide. Everyone has the great American dream of owning a home, and FHA is major factor in making that happen.