Category Archives: Loans

10 Secrets You Should Know When Getting A Home Loan  

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home loans

by Christian Ward

If you are planning to apply for a home loan, there are various types of home loans available in today’s financial market and each one comes with its own rules and regulations. Below you will find the top 10 secrets you should know when getting a home loan.

1.Know About Various Types of Home Loans

The competition in the loan market is rising day by day. Nowadays there are numerous loan packages which suit almost every budget.

2.Select the Right Home Loan for You

What a customer needs to do is to research various home loans and know the benefits, interest rates and repayment schedules for individual loan institutions. Make sure you select the right home loan for you as there are so many home loans available on the market today. Don’t apply for a home loan from the first loan company you meet, thinking that they are offering the lowest interest rates. Before applying for a loan, make sure that the loan is appropriate for you needs.

3.Down Payment

As a general rule of thumb, the majority of the loan providers will be seeking contributions from borrowers around 3% to 6% of the total loan value. Make sure that you are selecting the right one. As the competition in the home loan sector is increasing day by day, you can easily negotiate and get the right package for you.

4.Fixed Interest Rates Versus Adjustable Interest Rates

Fixed interest rates means that your interest rates will be fixed until the end of the loan period. On the other hand, adjustable interest rates (also known as variable interest rates), means that your interest rates for home loans will vary (increase or decrease) depending on the existing interest rates in the financial market. Before you apply for a home loan decide on which interest rate is the best one for you, that is whether you need a fixed rate or one which may decrease or increase each month.

5. Annual Percentage Rates (APR)

Annual percentage rates (APR) consist of principle, interests, fees, and all other costs related with the loan. Comparing the APR of various loan providers will help you to select the loan which best suits your budget.

6.Compare Home Loan Features

The majority of home loan customers exclusively compare interest rates, it is essential to compare home loan features as well. Keep in mind that, the more flexible your home loan is the higher the interest rates. A variable interest loan permits one to withdraw against repayments or offset savings against the loan, will also have a higher interest rate when compared with a standard home loan. So make sure that you have compared the home loan features.

7.Think Whether You Need a Redraw Facility

A redraw facility allows borrowers to make additional repayments on a home loan, and then have access to the additional repayments they paid earlier. However, these facilities are normally available only on Standard Variable loans which feature a higher interest rate than ordinary home loans. Think twice before applying for a loan with redraw facility as it is a little more expensive.

8.Loan Amount Qualification (Income)

This can differ according to you, your loan provider, and several other variables. However, as a baseline to decide on how much you can afford to borrow, have a look at two or three times your current household income. This will tell you how much of a loan you qualify for.

9.Loan Amount Qualification (Expenses)

This is another important category which changes from one loan provider to the other. However there are several factors to look at such as housing expenses, like insurance, property taxes, and mortgage and long term debt, like auto loans and credit cards. To decide upon the loan amount expenses, take the sum of all of the housing expenses and long term debt. Make sure that the expenses don’t exceed 33% to 36% of your total household income. The next step is to examine your housing expenses. Make sure that the expenses do not exceed 25% to 28% of your total household income.

10.Employment

The majority of loan providers need to take a look at your employment history so as to make sure that you have a steady and stable income. If you have a stable income then there will not be any problems in getting the appropriate loan amount.

About the Author

Christian Ward is an author of several articles pertaining to Secured Loans. He is known for his expertise on the subject and on other Business and Finance related articles.

The Nitty Gritty Of A Home Loan Loan Refinance  

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loans

by Rony Walker

Once you borrow money, you assume a big responsibility. Whether you get a loan from family and friends or a formal lender, you take on the burden of paying back the cash within a timeframe. A home loan loan refinance is more than a responsibility, and how you manage this loan also dictates your and your family’s future.

Responsibility Plus

The manner you take on your responsibilities at home or at work gives you an idea how you handle crucial matters. If you are conscientious, consistent, and know when to delay gratification, you are the best candidate for a home loan loan refinance. Chances are your credit score is good and your home is in top condition. You may also have some stash, no matter how little, in the bank.

Not all people can say this of themselves. They give a litany of excuses – hospital bills, children’s college tuition, rising cost of gas and food, growing needs of the family, numerous credit card bills, and more. The situation is understandable, but you have nobody to blame but yourself if you’re facing money problems. If you’re mulling the idea of a home loan loan refinance, you’ll be biting off more than you can chew, unless you’re ready for it.

So proceed with caution when you’re borrowing large sums of money and using your home as a collateral. The whole idea may sound oh so easy, but when the first monthly bill arrives and you’ve haven’t been careful with your budget, you’ll be having more money problems.

Your Equity and Refinance

One advantage of refinancing your mortgage is the extra cash you can get from your home’s equity and the relief of lowered monthly mortgage bills. When you go for refinancing, you’re paying the first loan to get a second loan.

The value of your home is based on the comparative market analysis (CMA), and if the CMA is high and your mortgage balance is low, the equity of your home is increased. When you get a home loan loan refinance, you can get the cash equivalent of your equity in accordance to the existing policies of the lending company. At the same time, you are able to switch to a better mortgage rate.

Your equity increases as the values of real estate properties increases, and in conjunction with regular payment of the loan, your debt deceases. But if your equity is not that much and you’re only on the fourth year of your mortgage, your chances for a bigger cash equity is doubtful.

When you’re getting a home loan loan refinance, you will be paying off the old mortgage and getting a new one, which means you’ll be adding more years to repay another loan. Add it all up – kids going to college, retirement contributions, household expenses, monthly mortgage bills. If you can leave on what is left from your paycheck, the refinance is advisable.

Start building your home equity by paying a higher down payment, give that extra principal payments, consider a shorter mortgage term, and continue to make home improvements.

Tackling a Refinance

Like any business transaction that spells YOUR MONEY, consider the following before you get a refinance:

* Determine the amount saved on interest balances* Determine the amount of fees payable* Get an accurate appraisal value of your home

After weighing all these considerations and have assessed the nitty-gritty of a refinance and your eligibility for a home loan loan refinance, start putting up a rigid a foolproof plan to comfortably survive years of payback time.

About the Author

Get a home loan loan refinance or a Florida mortgage now that mortgage rates home deals are at their lowest. Visit WhatAboutLoans.com today.

Who is SA Home Loans  

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home loans

by Dawie Bester

SA Home Loans was launched in South Africa in February 1999 and is like a short with a kick next to the big beer of the financial world some of the top-rated banks have been operating since the 1800′s but SA Home Loans is new, young, funky and fresh very fresh.

So why choose an SA Home Loans? In the company’s own words: ‘… against formidable competitors, we have grown to become the country’s fifth largest home loans provider.” That’s impressive by anyone’s standards, if you’ll excuse the subtle pun.

SA Home Loans is not a bank and not a mortgage originator. A mortgage originator sources home loans from various financial companies and get paid a commission. But SA Home Loans is a specialist mortgage provider. So, what’s the difference? Well, you go to your GP for your annual check-up and then he sends you to a specialist – SA Home Loans is the specialist. And it’s proudly South African.

Now, let’s take a longer look at some of SA Home Loan’s wide range of competitive home loan offerings, add-ons, insurance and equity access products. These include:

- Variable Home Loan- Super-Lo- Interest Only- Interest Only- Quick Cash- Further Loan- Rapid Re-Advance- Further Re-Advance- Cap Rate- Home Owner’s Cover- Bond Protection Plan

Variable Home LoanThis loan has a variable rate and can be tailored to suit your personal needs. The huge benefit in selecting a Variable Home Loan is that you can switch to another home loan option instantly free of charge. Its flexibility makes this the mother of all home loans. Switch to SA Home Loans and you can get R75,000 in cash within 72 hours immediately after you’ve signed the mortgage agreement.

Super-Lo Home LoanThis home loan option is based on a cash-back incentive programme. You will receive interest refunds into your home loan during the first five years which lower your mortgage balance so you ultimately pay less interest.

South Africa’s unique Only Interest Home LoanWith this exclusive home loan option you get to pay ONLY the interest on your home loan. You can choose to include a capital pay-off, a portion thereof, or not. Once again, you can also switch loan options free of charge.

Varifix Home LoanSA Home Loans lets you fix the interest rate on your home loan for up to 20 years. The benefit of the Varifix Home Loan is that you get to choose the portion of your home loan to fix the rest remains variable. Best of all, you can revert at any time to a standard variable interest rate loan.

Quick CashAllows you to access up to R75,000 in cash within 72 hours and spend the money on anything you like.

Further LoanThis is an option to borrow money against the increased value of your property. If the market is booming and your house becomes a property gold mine, you can borrow money against the increased value. The fact is that borrowing against your home loan is usually the cheapest credit you can get. Take advantage of it.

Rapid Re-advanceThis option secures cash when you have paid more than your agreed installments.

Further AdvanceFurther Advance lets you borrow funds over and above your original loan as long as it’s an amount less than the original registered loan amount.

Cap RateProtect yourself against rising interest rates with insurance that allows you to cap your interest rate for two years so you are never faced with monthly repayments that are burgeoning out of control. With the Cap Rate option your home loan rate is guaranteed not to rise about your cap.

Home Owner’s CoverDon’t go anywhere without Home Owner’s Cover to protect your property against unexpected disasters, like fires or floods.

Bond Protection PlanEver tossed and turned wondering what would happen if you were disabled or died? You, and more importantly your family, are protected against the possibility of repossession when you take out a mortgage protection plan.

SA Home Loans is South Africa’s largest non-bank mortgage lender. The primary benefit in taking out an SA Home Loan is knowing it can accommodate you – first-time home buyer or weary over-extended family man.

About the Author

The author provides home loans for all South African individuals in seek of a mortgage. To read more on SA Home Loans visit SecureBonds.co.za

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