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mortgage

Debt

Am I Eligible For A Home Loan?

It’s now harder than ever for young people to get on the property ladder. House prices are rising astronomically. They’re far outstripping the increase in wages. That means the gap is getting wider and wider for first-time buyers. It’s a difficult time to invest in property, and that’s why home loans are more important than ever.

The only question is, do you qualify for a home loan or mortgage? To answer that question, there are lots of factors to consider. You income, credit history, and your location all determine your eligibility. We’ll start by running through the basic questions that all mortgage lenders will ask. It should give you a rough idea of whether you could qualify for a loan.

Do you have a deposit saved up?

To purchase any property on the market, you need a deposit. Mortgage lenders unfortunately won’t even consider your application without a deposit. Typically, you’ll need between 5% and 20% of the house value just to get started. Many brokers ask for 10% minimum. This minimised the lender’s risk slightly, and proves that you can afford a substantial portion of the property. So, before you approach a mortgage advisor, make sure you know how much deposit you can afford.

September 8, 2015

Debt

What You Need To Know About Variable Home Loans

Variable loans are one of the most common types of mortgage loans offered today. The variable home loans are not like fixed loans. If you opt for variable loans, the rate of interest on your loans will vary with the market index. Thus, with these loans, you have the opportunity of paying lower rates when the market rates go down. However, you have to be prepared to pay higher rates of interest when the rates goes up. These loans add a lot of flexibility to the deal. You do have the option of paying lower introductory rates and additional payments. If you want you can pay off extra as an advance towards the loan.

What’s the difference between fixed and variable home loans?

If you are applying for a mortgage loan you should consider the differences between choosing the fixed and variable home loans. With the fixed loans you are not required to worry about the increase in rates. The rates on the loan taken by you will be locked for the entire loan tenure. It makes budgeting way easier since you are completely sure of what you are repaying. However, one of the biggest problems of fixed home loans is that you are not able to make the most of the lower rates of interest in accordance with a rate drop. Another important factor to note is that you are often not allowed to make additional payments with a fixed rate without a fee or without limitations. As already mentioned above, variable home loans allow you to make extra payments without paying a fee, as well as without limitations. As well, if you are fortunate enough to see a drop in market rates during your own loan tenure you can save up a lot of money in interest.

June 15, 2015

Household

4 Things That Can Earn You Long Term Savings On Your Home

Buying and maintaining a home costs a lot of money; that’s why you need to think about how you can make long-term savings on the property. Here are 4 ideas to help you out.

1. Avoiding a Mortgage

For a lot of people, mortgages seem like the only realistic way into the inflated property market, which now seems like a realm reserved for the rich and their offspring. There are ways around the mortgage trap though. And by avoiding a mortgage you’ll make major savings in the long-term.

One way to buy a home without a mortgage is to lower your aims and buy a more modest home after saving up your money for a while beforehand. Alternatively, you could group together with some friends or like-minded people and spread the costs of home ownership between you.

May 22, 2015

Debt

4 Ways To Pay Your Mortgage Off Quickly

If you want to reduce your interest costs, a great way is to concentrate on paying down your mortgage more quickly. Above and beyond making your regular mortgage payments, here are some things you can do to pay down your mortgage quickly:

Double up your payments. Most lenders offer the option to double up your mortgage payments as often as you like. That way if you have some extra cash, you can pop it onto your mortgage. Your lender may even give you flexibility with this option, allowing you to add an extra $100 to your payments from time to time as you see fit. I like this option better than permanently increasing your payment because then the ball is in your court – you can pay more when you can afford to.

February 28, 2014

Debt

What Is A Mortgage Calculator?

House hunting can be a lot of fun and you may get caught up in the excitement of looking at a variety of homes and dreaming about what your life could be like if you owned one of them. Before you get too excited, though, it is important to do some number crunching to see how much house you can really afford. Forexample, the Halifax mortgage calculator is worth taking a look at. It is quick and easy to use and within a couple of minutes you will have a better understanding as to what types of mortgages are available to you. It will also help you to discover what type of mortgage you want.

Things to pay attention to when using a mortgage calculator:

Fixed or Variable Rate

Remember, not all mortgages are the same. There are many different types available to suit various needs. For instance, you may decide you want a fixed rate mortgage so you don’t have to worry about interest rate fluctuations. Alternatively, you may decide a variable rate works better for you because you predict interest rates will be low for a long time.

Length of Term

How long do you want your mortgage for? Do you want a 5 year term or just a 1 year term because you think you might be selling and moving within a short time of purchasing the home? A very popular term length is 5 years but people have their reasons for going for shorter terms such as if there is a much better rate for a shorter term, etc.

July 10, 2013

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