Know About Home Equity Loan And A Low Doc Home Loan?
Home Equity Loan : Known by a number of names, a Revolving Line of Credit, a Line of Credit Home Loan, and a Home Equity Loan, this type of loan has become popular due to its flexibility and features.
The home equity loan has a lot of names like Revolving Line of Credit, a Line of Credit Home Loan, as this type of loan is admired due to its features and flexibility
A Home Equity Loan allocates you a lot of flexible features with your finances.
In order to accomplish renovations, share investment, buy other's investment property or pay your bill you can use this line of credit.
Know about the pros and cons prior you make a decision on a Home Equity Loan:
Pros of a Home Equity Loan
* A home equity line of credit offers a much lower rate of interest than credit cards * Interest paid on your home equity line of credit is tax deductible, a benefit not available with credit cards * Flexible payment options - Some lenders offer interest only equity lines of credit which gives you the option to pay only the interest for a pre-determined amount of time or pay interest plus as much or as little principal as you want * Accessibility - Money is easily accessed by cheque or ATM card linked to this loan * Repayments can be made in full or on a monthly basis * Extra repayments are allowed at any time * Cheque book facilities are available if needed
Cons of a Home Equity Loan
* The interest rate of a home equity line of credit changes with the prime rate. There is also a margin that is added to the interest rate, which is fixed and is determined at the time of application * Typically attracts higher interest rates than your standard variable rate loans
Low Doc Home Loan: If you are self employed and don't have your financials in order, don't scratch your head wondering if you can obtain finance or not.
A Low Doc Home Loan is a very plain and simple fast loan offered to all the self employed borrowers. Since they are not in a position to provide full financial statements and also they cannot present income evidence.
Standard and Premium 'low-doc loans' are offered by many lenders in the market as these large number of lenders are assuming the increasing trend of low doc home loan products with an option of fixed or variable interest rates.
With access to hundreds of lenders and the leading home loans on the market, you can be sure with DirectMoney HomeLoans, we will find the best rate and featured home loan for you.
Depending on the lender, some require you to pay for Lender Mortgage Insurance (LMI) if your loan reaches 80% loan to value ratio (LVR). Due to the risk associated with self employed customers some lenders also charge a higher interest rate for these products. After a period of time, or when customers are able to show their tax assessments, then the lender may reduce the interest rate for you.
The following are the advantages and disadvantages of Low doc home loan:
Pros of Low Doc Home Loans
Financial proofs not needed. Instead of tax returns Simple statement of financials are necessary Non-traditional and irregular income sources are considered
Disadvantages
Higher interest rates and fees are to be paid Appropriate to higher repayments your cash flows might suffer
The home equity loan has a lot of names like Revolving Line of Credit, a Line of Credit Home Loan, as this type of loan is admired due to its features and flexibility
A Home Equity Loan allocates you a lot of flexible features with your finances.
In order to accomplish renovations, share investment, buy other's investment property or pay your bill you can use this line of credit.
Know about the pros and cons prior you make a decision on a Home Equity Loan:
Pros of a Home Equity Loan
* A home equity line of credit offers a much lower rate of interest than credit cards * Interest paid on your home equity line of credit is tax deductible, a benefit not available with credit cards * Flexible payment options - Some lenders offer interest only equity lines of credit which gives you the option to pay only the interest for a pre-determined amount of time or pay interest plus as much or as little principal as you want * Accessibility - Money is easily accessed by cheque or ATM card linked to this loan * Repayments can be made in full or on a monthly basis * Extra repayments are allowed at any time * Cheque book facilities are available if needed
Cons of a Home Equity Loan
* The interest rate of a home equity line of credit changes with the prime rate. There is also a margin that is added to the interest rate, which is fixed and is determined at the time of application * Typically attracts higher interest rates than your standard variable rate loans
Low Doc Home Loan: If you are self employed and don't have your financials in order, don't scratch your head wondering if you can obtain finance or not.
A Low Doc Home Loan is a very plain and simple fast loan offered to all the self employed borrowers. Since they are not in a position to provide full financial statements and also they cannot present income evidence.
Standard and Premium 'low-doc loans' are offered by many lenders in the market as these large number of lenders are assuming the increasing trend of low doc home loan products with an option of fixed or variable interest rates.
With access to hundreds of lenders and the leading home loans on the market, you can be sure with DirectMoney HomeLoans, we will find the best rate and featured home loan for you.
Depending on the lender, some require you to pay for Lender Mortgage Insurance (LMI) if your loan reaches 80% loan to value ratio (LVR). Due to the risk associated with self employed customers some lenders also charge a higher interest rate for these products. After a period of time, or when customers are able to show their tax assessments, then the lender may reduce the interest rate for you.
The following are the advantages and disadvantages of Low doc home loan:
Pros of Low Doc Home Loans
Financial proofs not needed. Instead of tax returns Simple statement of financials are necessary Non-traditional and irregular income sources are considered
Disadvantages
Higher interest rates and fees are to be paid Appropriate to higher repayments your cash flows might suffer
About the Author:
Guy Baldwin is an executive of the website http://www.directmoneyhomeloans.com.au where you can get access to all leading lenders to get a best low ratesof home loan .You can also contact at 1300 882 432 and take their services free of charge.
posted by Debt Consolidation Loan at
2:05 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home