If you are looking for home loan finance you might think that the easiest course of action is to apply to your own bank. Well, it might be the easiest but it may not be the best or cheapest home loan available. Some borrowers don’t enjoy the prospect of applying for a new home loan directly with their bank. They don’t always have their financial papers in order, they are uncertain as tom what exactly is required for home loan finance. This is where a good mortgage broker makes it so much easier and delivers so much more to you.
A fixed rate housing loan is also suitable for a person who is going to retire soon. Unless you have a lot of cash waiting for you, retirement requires careful planning. To ensure your finances do not deviate too far from your planning, it is better to fix your rates and know the exact amount of installment to work with every month. It is no joke missing out on your installments when you are in your retirement age. You risk having the bank foreclosing on your house and even if you declare bankrupt, it is pretty useless too. A housing loan does not get wiped out when you declare as a bankrupt.
Some people do not mind paying slightly more on their monthly installment as long as they have the certainty of having a set payment. If you feel you belong to these group of people, consider a fixed rate housing loan.
Types of Housing Loans
Lending institutions like banks and housing finance companies offer different types of home loans for a wide gamut of housing activities. Some of the popular housing loans are:
Home Purchase Loans: There are the basic home loans for the purchase of a new home.
Home Improvement Loans: These loans are given for implementing repair works and renovations in a home that has already been purchased by you.
Home Construction Loans: These loans are available for the construction of a new home.
Home Extension Loans: Are given for expanding or extending an existing home. For example addition of an extra room, etc.
Land Purchase Loans: These loans are available for purchase of land for both home construction or investment purposes.
Bridge Loans: Bridge Loans are designed for people who wish to sell the existing home and purchase another. The bridge loan helps finance the new home, until a buyer is found for the old home.
Balance Transfer: Balance Transfer loans help you to pay off an existing home loan and avail the option of a loan with a lower rate of interest.
Refinance Loans: These loans help you pay off the debt you have incurred from private sources such as relatives and friends, for the purchase of your present home.
Stamp Duty Loans: These loans are sanctioned to pay the stamp duty amount that needs to be paid on the purchase of property.
Finding the right lenders for housing loans may take some time and effort on the part of a borrower. Yet, if you are a would be borrower you should always bear in mind that the time and effort that you spend researching and learning the different services offered by banks and lending institutions are time well spent. If you are able to get good terms and conditions for your housing loan, you could easily save hundreds and even thousands of dollars on amortization cost.