Purchasing a house is a positive step to settle down. Staying in own home can be the dream of every person. Every people see visions of having a home of their choice, but not everybody able to afford that. Nowadays, money is not at all a barrier of purchasing a home. Because there are lots on finance companies, credit unions, banks, mortgage brokers and individual lenders in the market who offer a wide variety of home loans for the consumers.
The home loans covers up to 90 percent of the purchased property cost. There are a large variety of loans available that suit the different prospective buyer's. Some of these home loans include home equity loans, mobile home loans, home improvement loans, manufactured home loans, interest free loans, interest only home loans and home construction loans.
As the name suggests, interest only home loan is a loan that offers an option of paying the interest of the home loan each month through the EMI (Equated Monthly Installment). A consumer can pay the loan's major balance whenever he fells financially comfortable. Interest only home loan have a fixed or variable interest rates. Depending on a consumer's first choice he can take for any one of them. In the fixed rate home loan a consumer pays the interest rate that remains the same through the entire loan period. While, in the variable interest rate home loans the interest rate of the home loan is changed in accordance with the changes that are made in the finance or loan market. So, before taking up a variable interest rate home loan, a consumer must find out and understand properly the details of the interest rate.
An interest free home loan may be a wise option for a borrower whose income changes each and every month or people with no fixed income. In an interest free loan, a borrower has to pay the payment of the interest only for a specific time such as for five to ten years. First time home buyers often get advantage from this loan. An advantage of taking this loan is also that the consumer has to pay low initial payments and thus allows making them eligible for some other big loans.
Before obtaining any home loan from a lender of finance providers a borrower must be careful. A simple mistake on behalf of the borrower can lead to various major problems. Before taking a home loan a firstly a consumer have to figure out how much amount of money he can pay on every month as a housing loan after other expenses. On the internet a consumer can find lots of real estate as well financial company's sites who offer different types of home loans. These financial companies also offer online home loan or mortgage calculators. Filing the desired details and borrower can make a comparison of mortgage rates offered by these companies, a consumer can easily able to find out that which home loan suits him most and also can avail. To avoid any further complications, choose a flexible loan that fulfill needs and keep all proofs and documents of all the payments made by you to the lender.
William K. Black, the former litigation director of the Federal Home Loan Bank Board who investigated the Savings and Loan disaster of the 1980s, discusses the latest scandal in which a single bank, IndyMac, lost more money than was lost during the entire Savings and Loan crisis. He will examine the political failure behind this economic disaster, in which not only massive fraud has taken place, but a vast transfer of wealth from the poor and middle class continues as the federal government bails out the seemingly reckless, if not the criminal. Black teaches economics and law at the University of Missouri, Kansas City and is the author of The Best Way to Rob a Bank Is to Own One. Video Rating: 4 / 5
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