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FIRST TIME HOMEOWNER LOANS.
Buying a home is an important step in building a secure
financial future.
Homeowner Loans: Facts And Benefits
- In the past buying a home required a 20% down payment,
but today the whole scenario has changed and there
are a number of companies that require a down payment
of 10% or less. The lending firms have loan programs
that help a customer to buy a home without a lot of
cash or any at all.
- A less than perfect credit history doesn’t
have to stand in your way of reaching your home ownership
goals. Nowadays the lenders are not worried that much
about the credit history of the customer. Timely mortgage
payments can contribute to a positive credit history.
- The interest you pay on your mortgage is usually
tax deductible which leads to significant tax savings.
Unlike rental costs, your monthly principal and interest
payments will stay the same for the life of a fixed-rate
mortgage. You’ll be building wealth as your
home equity grows.
- The lenders are on the way of making the lending
procedure easy and for the same they provide a consultant
to the customer. Home consultants provided by the
financers help the borrower through each step of the
financing process.
- The time a borrower approaches a lender, they search
for appropriate loan options and help the customer
to choose the loan that suits him, fitting his budget
and financial goals. Home proves to be a powerful
tool in building a secure future.
- The landlords hassles are eliminated, as the customer
no longer have to fear non-renewed leases and rent
hike.
Home Owner Loans: Types And Interest Rates
Offered By Chase
Most home loans fall into two general categories- Fixed
Rate and Adjustable Rate Mortgages (ARMS).
- Fixed rate mortgages are the most popular type
and have interest rates that stay the same for the
entire life of the loan. You will have predictable
monthly payments throughout the life of the loan,
and be protected from rising rates, your principal
and interest payments can never increase, no matter
how high interest rates rise.
- Adjustable rate mortgages have interest rates that
adjust periodically based on market conditions. The
initial rate is fixed for an introductory period (usually
one to ten years) and is typically lower than for
a fixed-rate mortgage, so due to this factor some
borrowers may be eligible for a larger loan amount.
After that rate adjusts annually or semi-annually
based on the market index, but it can’t go above
a predetermined adjustment cap.
- Apart from the above two, Special Mortgage Programs
is for unique borrowing needs for customers with special
considerations. These may include special credit needs,
FHA, low down payment options or affordable home loan
programs.
- Interest only Mortgages. It means that during the
agreed upon period of time your monthly payment will
consist only of interest and will not include any
repayment of the principal portion of the loan.
Interest rate is 12.9% approx. typical (variable).
Closing Of The Home Owner Loan
The closing is when the finalised loan documents are
signed, and the mortgage funds are paid out. Once your
loan is approved and cleared for closing, you and the
sellers agree upon a mutually convenient date to meet
and officially transfer ownership of the home to you.
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