MORTGAGE HOME LOANS
A SMART HOME LOAN
With some creative home financing, lenders offer up to 100% loan to value for buying a home. This is great news if you are looking at buying a home, but your savings balance is lacking a couple of zeros. Also, with this type of home financing, there is no mortgage insurance, which is usually required by the lender when your down payment is less than 20% of the home price.
It works by financing at first and a second mortgage that close concurrently, or at the same time, when you are buying a home. The first mortgage would cover 80% of the home price, while a second mortgage, or a home equity credit line would finance part or all of the remaining amount.
In home financing terminology, the options for a "piggyback loan" for buying a home include: an 80-20 loan, which means an 80% first mortgage plus a 20% second mortgage; an 80-15-5 loan, which requires a 5% down payment; an 80-10-10 loan, which requires a 10% down payment.
In addition to providing an opportunity for buying a home with a limited, or no down payment, another benefit to this combination of home financing, is that interest paid on a second mortgage or equity credit line can be tax deductible, while the payments made for mortgage insurance are not.
100% trust and financing
HOME EQUITY LOANS
Home equity loans are generally termed as second mortgages and have a fixed interest rate. The same payments remains the same each month over term of 5 to 20 years. There is also the unique one-time distribution of the loan. Once you receive the money, no further borrowing is possible.
A home equity line of credit can be re-used and is secured by a second mortgage on your home. It has a variable interest rate, which fluctuates based on the prime rate as published in the Wall Street Journal. There is a draw period of 10 to 15 years, during which you can withdraw the money as you need it, and use it again as you make the repayments. At the end of the draw period, the line of credit either converts to a fully amortized loan or must be repaid.
Ask the re-modeler to provide you with a list of the former customers. This can help you assess whether the a particular contractor is right for you. You may want to ask these questions from the former customers as well:
Ask them if you can visit their home to see the completed job?
Assess the level of satisfaction and inquire about the time the contractor took to complete the project.
Did the contractor gave updates about the status of the project, and any problems along the way?
- • What about the unexpected costs? If so, what were they?
• Did workers show up on time? Did they clean up after finishing the job?
• Would you recommend the contractor?
• Would you use the contractor again?
