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Home Loans For People With Bad Credit – The Essential Basics You Need to Know

Home loans for people with bad credit offer a solution for people who may find it difficult to get loans on account of poor credit ratings.

There are many people who cherish a desire of owning their dream house – and these dreams can now be realized using these mortgage schemes that are targeted at people with poor credit ratings. Today, you can find many lenders and financial institutions that are willing to give these kind of loans.

Using these kind of loans, you can also plan your vacation expenses, pay all your existing debts or even opt for debt consolidation schemes. In case you are planning to buy a home, then you can use the secured loan facility where you need to pledge your house as a security for procuring the loan. There are many options for these kinds of loans which are available today that come with a fixed rate of interest for making monthly payments. These schemes help in managing your finances in a better manner as you can plan in advance.

Your loan can be for a term of 30 years or for 10-15 years. If you prefer a more flexible option, then you can even opt for home loans which provide variable rate of interest that works out to be more affordable with lower interest rates.

Few things to remember while shopping for this type of loan are listed below.

Look for credible agencies and lenders

Today there are plenty of lenders who specialize in providing loans to people who have a poor credit score. However, one needs to be careful before opting for any such services to avoid being duped by unscrupulous brokers who may want to take advantage of borrowers. You can do a research on the companies offering these services and also check for their business reputation by doing an online search. There are numerous customer reviews and ratings, which can help you to decide and choose the best lenders.

Assess the terms and conditions carefully

Make sure that you have read the terms and conditions carefully before signing any document. There could be hidden clauses and additional costs that come with these kind of home loans. Check for the interest rates and any other charges which you have to pay and it is always best to do a comparison of various agencies to find the ones that offer you low interest rates.

Use online resources for gathering relevant information

If you have bad credit, you can get access to a vast amount of information on the Internet on different kinds options which are suitable for your needs. Besides, you can also get a good idea and information about the lending institutions and know the procedure involved in applying for these loans.

Save Thousands Off Your Home Loan – 3 Simple Tips To Save Money On Your Mortgage

There are many issues that home owners come across when paying off their mortgage.

Modern media is bombarding us with the latest tips, tricks and schemes often leaving us confused. The information presented to us either conflict with one another or doesn’t work in practice. People don’t know where to start, or try bad advice and give up.

Another issue is people tend to live above their means and use debt to fund their lifestyle. They are spending more money than what they are earning. It is common for people to use their credit card to buy furniture or a new car. They should instead only use loans to fund investments and a home.

Unfortunately this lifestyle doesn’t help save money on your mortgage and needs to change.

What can people start doing now to save money on their mortgage?

  1. Make Extra Repayments. By paying a little extra off your home loan each month you can save massive amounts on your loan. For example, imagine you have a $500,000 home loan at a 7% interest rate. If you pay an extra $100 a month on your mortgage you will save 2.7 years off your loan, and over $75,100. Small payments now will mean big savings in the future.
  2. Refinance Your Loan. By refinancing your loan to a lower interest rate you can save thousands on your home load. Using the same example as above, imagine you changed to an interest rate of 6.9% on your $500,000 home loan. You still continue to make the old repayments that you made when it was at 7% and, as a result, you save over $38,800. Even 0.1% off your interest rate can make a big difference towards saving money on your mortgage.
  3. Set Up An Offset Account. An offset account is a normal cheque account that is linked to your loan. If you had a $100,000 loan and had $10,000 in offset, then you will only be charged for the $90,000 instead of the full $100,000. Again, if we have an offset account with our $500,000 home loan at 7% interest rate, and had $3000 in an offset account, we could save $7200 over the term of the loan.

    *Please note this may not be available in all countries.

By applying these 3 simple tips to save money on your mortgage you can be sure to save thousands of dollars and cut years off your home loan.

No Money Down Home Loan

Are you in the market to purchase a home but are concerned about not having enough money for the down payment? No down payment home loans or 100% financing for your mortgage loan used to be only advertised during late night infomercials and in obscure real estate publications. The good news is that if you want to buy a house but have little or no money available for the down payment, there are mortgage lenders who are offering no money down home loans in your area. Currently, less than half of all homebuyers put down the standard twenty percent. Among first time homebuyers, less than half put ten percent down, and nearly thirty percent of homebuyers financed the total purchase price of their new home.

Generally speaking, the better your credit the better your chances of getting a zero down payment home loan. Fortunately, mortgage lenders are now offering no money down home loans to homebuyers who have less than perfect credit. You may pay a slightly higher interest rate than those who put down ten percent or more, but you can still get a great interest rate and easy payments when you apply for a no money down home loan. You can expect to pay private mortgage insurance if your pay little or no money down on your new home, but the cost is relatively low and you will be able to drop the private mortgage insurance after you have built a certain amount of equity on your home.

If you do not have the resources to pay a twenty percent down payment, you could opt for a piggyback loan. A piggyback loan is basically a home equity loan that funds part of your down payment. There are several options in obtaining a piggyback loan. Mortgage lenders have a variety of programs and loan products that will help you accomplish your dream of home ownership, even if you have little or no money for a down payment. Your lender can also inform you of various government programs that assist those who qualify with their down payment. Most of these programs consist of basically a low interest loan that you repay along with your mortgage payments. There are some government programs that will not require you to repay any down payment assistance you may receive.

Owning a home is the dream of most people. If you want to purchase a home but are concerned about a lack of money to go towards the down payment, contact a mortgage professional today who can help you in obtaining a no money down home loan.

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