Different Mortgages for first-time home buyers
If it’s your first time to purchase a home, you have several options that you can choose from that will surely fit your needs.
1.Basic Housing Loan. This is the simplest type of mortgage loan. This can be easily comprehended as it doesn’t have extra conditions or features. The principal as well as the interest rates usually go down as years pass by, unlike financial loans.
2.Low Document Housing Loan. People mostly do not like complicated processes, especially when purchasing a home. If you are also not in favor of time-consuming and exhausting processes, the low document house loan is the one that you should avail.
You do not need to provide mortgage providers will all income evidences, only a small percentage of it will do. This is very much recommended for individuals who are managing their own business or for those who are self-employed.
3.Split Rate Housing Loan. With a split rate mortgage loan, a fixed rate and an adjustable interest rate will be applied on your mortgage. A certain part of your mortgage will be computed based on a fixed rate while the remaining part will be based on an adjustable rate. This will be favorable for you if the interest rates will go down as you will be paying less.
4.No Deposit Housing Loan. Mortgage is good, but only for people who have money for down payment. However, first-time home buyers are fortunate that there is a type of loan that does not require down payment - but this definitely has downsides. One, the no deposit house loan entails a much higher interest rate and fees as compared to any other house loans, and two, mortgage providers will need you to produce more documents.
5.Honeymoon Housing Loan. This is probably the most popular mortgage that most first-time home buyers are availing. What makes it attractive is its initial variable interest rate period or also known as the discounted interest rate period. Within such period, the interest rate that is supposed to be applied on your regular monthly payments will be lowered down by 1% for 1 year. This is to make the obligation of mortgagors a bit lighter.
6.Line of Credit Housing Loan. This type of housing loan may be closely compared to that of the policies of a credit card. You are given a credit line that you can withdraw or consume mainly for the purpose of home improvement.
1.Basic Housing Loan. This is the simplest type of mortgage loan. This can be easily comprehended as it doesn’t have extra conditions or features. The principal as well as the interest rates usually go down as years pass by, unlike financial loans.
2.Low Document Housing Loan. People mostly do not like complicated processes, especially when purchasing a home. If you are also not in favor of time-consuming and exhausting processes, the low document house loan is the one that you should avail.
You do not need to provide mortgage providers will all income evidences, only a small percentage of it will do. This is very much recommended for individuals who are managing their own business or for those who are self-employed.
3.Split Rate Housing Loan. With a split rate mortgage loan, a fixed rate and an adjustable interest rate will be applied on your mortgage. A certain part of your mortgage will be computed based on a fixed rate while the remaining part will be based on an adjustable rate. This will be favorable for you if the interest rates will go down as you will be paying less.
4.No Deposit Housing Loan. Mortgage is good, but only for people who have money for down payment. However, first-time home buyers are fortunate that there is a type of loan that does not require down payment - but this definitely has downsides. One, the no deposit house loan entails a much higher interest rate and fees as compared to any other house loans, and two, mortgage providers will need you to produce more documents.
5.Honeymoon Housing Loan. This is probably the most popular mortgage that most first-time home buyers are availing. What makes it attractive is its initial variable interest rate period or also known as the discounted interest rate period. Within such period, the interest rate that is supposed to be applied on your regular monthly payments will be lowered down by 1% for 1 year. This is to make the obligation of mortgagors a bit lighter.
6.Line of Credit Housing Loan. This type of housing loan may be closely compared to that of the policies of a credit card. You are given a credit line that you can withdraw or consume mainly for the purpose of home improvement.
[posted by : OFP on Jun. 02, 2011]
TAGS: debt, loans, mortgage, loan, real estate, home, buyer