Planning to buy a house? Take a look at the loan options.
Having a roof above your head is your basic requirement.
Everyone needs a house to live in whether rich or poor. A house
not just protects us from the adversities of climate it is a
place where we weave dreams and fulfill them. From the very
beginning of our lives and till the end, our homes serve
uncountable purposes. Our homes stand before us in all good and
bad times. But all of us are not fortunate enough to have our
own homes. There are a good number of people who live in rented
houses and strive to buy their own house. So, if you have plans
to buy a house you should be aware of some of the HOME PURCHASE
LOAN OPTIONS.
Mortgage Home
Loans:
These are those home purchase loans that you take against the
home you are buying. This means that the home you are going to
buy becomes the collateral itself. In case of non payment of the
loan amount your home can be repossessed by the creditor. In
this kind of loan the interest rates are kept low, monthly
installments are small and the repayment duration is long.
Again there are two varieties of mortgage loans. One is fixed
rate loan and the other is variable rate loan. In fixed rate
loans the interest rate once fixed is permanent for the whole
lifespan of the loan. On the other hand variable rate loans are
those loans whose interest fluctuates with the variations in the
base rate of Bank of England.
Home Equity Loans:
Home equity loans can also be used to buy a new house. These are
basically those loans that are taken against the equity tied up
in your house. The equity in your house means the value of your
house that has increased with the passage of time. If you have
sufficient equity in your house you can use it to purchase a new
house.
Home Equity Line of Credit:
This is a variation of home equity loan. In this type of loan
the borrower is allowed to take loan against the equity in his
house upto a restricted limit. The borrower can take any amount
as loan below the credit line and the interest is charged only
on the amount that has been borrowed. This kind of loan can also
be used to purchase a house.
Generally first time home buyers are quite confused about home
purchase loan options. If you are one of them then you should
first of all decide what kind of loan you want to avail. This
depends a lot on your financial condition. If you are a tenant
you can go for mortgage loan. If you already own a home then you
can go for home equity loan options. After deciding this you
need to surf the Internet and find a suitable deal for you. Fill
up an online application form for your deal and half of your
work is done.
For further reference visit:
http://www.home-loans-for-everyone.co.uk