The Lowdown on Home Loans

What is a Home Loan?

The purchase of a property might represent the single most valuable asset a person acquires in their lifetime. If that property is a home, then it is highly likely that a home loan will be needed to make the investment possible. Loans are not unfamiliar territory – finance is often needed for the purchase of vehicles or business equipment, for example, so how do home loans vary from other kinds?

The key difference between home loans and other sorts of loans is the terms and conditions that are attached to a home loan, or mortgage, arrangement. Usually a home loan is repayable over a fairly lengthy timescale – traditionally somewhere between 15 and 30 years. A deposit has to be paid in order to secure a loan, and this is normally a percentage of the value of the property; in different neighborhoods, cities or states this could be anywhere between 5% and 20% of the property value. Interest rates and types of mortgages vary considerably, but the bottom line is that the borrower commits to repaying the loan over the term, or the number of years agreed, and at the end of that term the property is free of debt – the owner’s home is their castle.

Understanding Terms and Conditions

Very few people can afford to buy their home outright, and home loans often make it possible to get started on the property ladder, or to upgrade when a growing family demands more space. Sometimes a property is in need of a bit of fixing up; extending an existing home loan, instead of taking out a new loan with a bank or finance company, can help with this too.

With so much choice available, the terms and conditions attached to home loans are very important. For example, a conventional mortgage might have a slightly higher rate of interest than a flexible one, but the monthly funds required will stay the same throughout the repayment period of the loan. Flexible, or adjustable-rate mortgages (ARMs) generally have lower introductory rates of interest fixed for maybe five or seven years. After this, the rate will fluctuate every year during the rest of the repayment period.

There are also government-insured home loans via the Federal Housing Administration (FHA) or the Veterans Administration (VA), serving buyers of more modest means and properties, and jumbo loans for high-flyers in a high-priced property market.

Finding the Right Home Loan

Standard mortgages are a safe bet – they suit people who have a good credit rating and do not mind slightly higher interest rates because they are comfortable with payments that will remain fixed and steady over the years.

ARMs have variable rates after the initial fixed period but – unless interest rates soar unexpectedly – generally a lower cost overall. They are useful for homeowners who plan to move on within reasonably short time periods, say five years.

FHA and VA loans have a low interest rate and a low down payment, and are most suitable for cheaper properties and buyers who have a medium credit rating.

1,271 Responses to The Lowdown on Home Loans
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    October 19, 2016 | 3:58 pm

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Trackback URL http://mynextbuck.com/the-lowdown-on-home-loans/trackback/

The Lowdown on Home Loans

What is a Home Loan?

The purchase of a property might represent the single most valuable asset a person acquires in their lifetime. If that property is a home, then it is highly likely that a home loan will be needed to make the investment possible. Loans are not unfamiliar territory – finance is often needed for the purchase of vehicles or business equipment, for example, so how do home loans vary from other kinds?

The key difference between home loans and other sorts of loans is the terms and conditions that are attached to a home loan, or mortgage, arrangement. Usually a home loan is repayable over a fairly lengthy timescale – traditionally somewhere between 15 and 30 years. A deposit has to be paid in order to secure a loan, and this is normally a percentage of the value of the property; in different neighborhoods, cities or states this could be anywhere between 5% and 20% of the property value. Interest rates and types of mortgages vary considerably, but the bottom line is that the borrower commits to repaying the loan over the term, or the number of years agreed, and at the end of that term the property is free of debt – the owner’s home is their castle.

Understanding Terms and Conditions

Very few people can afford to buy their home outright, and home loans often make it possible to get started on the property ladder, or to upgrade when a growing family demands more space. Sometimes a property is in need of a bit of fixing up; extending an existing home loan, instead of taking out a new loan with a bank or finance company, can help with this too.

With so much choice available, the terms and conditions attached to home loans are very important. For example, a conventional mortgage might have a slightly higher rate of interest than a flexible one, but the monthly funds required will stay the same throughout the repayment period of the loan. Flexible, or adjustable-rate mortgages (ARMs) generally have lower introductory rates of interest fixed for maybe five or seven years. After this, the rate will fluctuate every year during the rest of the repayment period.

There are also government-insured home loans via the Federal Housing Administration (FHA) or the Veterans Administration (VA), serving buyers of more modest means and properties, and jumbo loans for high-flyers in a high-priced property market.

Finding the Right Home Loan

Standard mortgages are a safe bet – they suit people who have a good credit rating and do not mind slightly higher interest rates because they are comfortable with payments that will remain fixed and steady over the years.

ARMs have variable rates after the initial fixed period but – unless interest rates soar unexpectedly – generally a lower cost overall. They are useful for homeowners who plan to move on within reasonably short time periods, say five years.

FHA and VA loans have a low interest rate and a low down payment, and are most suitable for cheaper properties and buyers who have a medium credit rating.

1,271 Responses to The Lowdown on Home Loans
  1. New Homes Winter Garden
    October 19, 2016 | 3:58 pm

    Very good site you have here but I was curious about if you knew of any forums that cover
    the same topics discussed here? I’d really like to be a part
    of community where I can get opinions from other knowledgeable people that share
    the same interest. If you have any recommendations,
    please let me know. Cheers!

  2. twat
    October 21, 2016 | 5:14 pm

    In fact, Social Signals although not a direct ranking factor have been proven to rank websites very rapidly.
    You will see a chunk of codes, this is called HTML.

    One popular example of a gray hat technique is link buying.

  3. front
    October 26, 2016 | 8:21 pm

    After I initially commented I appear to have clicked the -Notify me when new comments are
    added- checkbox and from now on each time a comment is added I get 4 emails
    with the exact same comment. There has to be a means you are able
    to remove me from that service? Thanks a lot!

  4. John
    October 27, 2016 | 5:25 am

    whoah this weblog is excellent i like reading your articles.
    Stay up the good work! You already know, a lot of individuals are searching around
    for this information, you could aid them greatly.

  5. Não sei se será possível, mas como estuda sistemas de informação,gostaria
    que visse minha página e opinasse.

  6. live intercourse
    November 2, 2016 | 1:43 pm

    Thank you for another great post. Where else could
    anyone get that type of information in such a perfect approach of
    writing? I have a presentation next week, and I’m on the
    search for such info.

  7. como criar um blog passo a passo
    November 2, 2016 | 5:39 pm

    Na aba Layout” é possível alterar a ordem dos seus gadgets, ou seja,
    dos complementos da barra lateral do seu blog.

  8. infoprodutos o que é
    November 3, 2016 | 12:01 pm

    E informação é conhecimento, ou seja, são
    produtos que te proporcionam conhecimento em determinada área ou
    mercado.

  9. EMAIL MARKETING
    November 3, 2016 | 1:45 pm

    My programmer is trying to convince me to move to .net from PHP.
    I have always disliked the idea because of the costs.
    But he’s tryiong none the less. I’ve been using Movable-type on several websites for about a year and am worried about switching to another platform.
    I have heard very good things about blogengine.net. Is there
    a way I can transfer all my wordpress content into it?
    Any kind of help would be greatly appreciated!

  10. Bernie
    November 8, 2016 | 10:03 pm

    I relish, result in I found exactly what I was having a look
    for. Yoou have ended my 4 day long hunt! God Bless you man. Have a nice day.
    Bye

  11. www.aliancaproject.com.br
    November 15, 2016 | 5:46 am

    Colocação de preços mínimos, ajuda a manter alto valor do pacote para que ele não se torne apenas eBook ou outro lixo com direitos de revenda”.

  12. www.evernote.com
    November 20, 2016 | 11:17 am

    The herpes virus, however, is not too particular about the mucous membrane it calls house and will gladly reside in either the mucous membranes of the mouth and lip location or the reproductive system.

  13. chaussure lumiere led
    November 22, 2016 | 10:13 pm

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  14. Encanador em Jardim ngela
    November 26, 2016 | 2:33 am

    Having read this I thought it was very informative. I appreciate you spending some time and effort to
    put this short article together. I once again find myself spending a lot of time both reading and commenting.
    But so what, it was still worthwhile!

  15. Dr. Joseph Jensen
    November 26, 2016 | 6:14 am

    Your style is very unique in comparison to other people I’ve read stuff from.
    Thanks for posting when you have the opportunity, Guess
    I will just bookmark this page.

  16. hospedagem de sites brasil
    November 26, 2016 | 10:26 am

    Se a sua vontade é criar um Blog, no website você irá encontrar a melhor
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  17. Christmas
    November 27, 2016 | 5:48 am

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    It was truly informative. Your website is very helpful.
    Thanks for sharing!

  18. Existem muitas possibilidades de como ganhar dinheiro
    na world wide web prestando serviços.

  19. 2017 Cars Performance Blog
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Leave a Reply


Wanting to leave an <em>phasis on your comment?

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