100 Home Loan Tips
The 100 Home Loan
The 100 percent Home Equity Loan provides at least 3 advantages for borrower. Which are...
Lower interest rates compare to other loans, it is tax deductible and it can grant larger amount of credit. It sound pretty good! Yes, let look at the following :-
In the traditional home loan, lenders establish a maximum loan-to-value (LTV) ratio. Let say, your home value is 100,000 thousand, the maximum LTV the lenders will borrow you is 80% (80,000 thousand).
With This Home Loan (hundred percent home equity loan), you may borrow up to 100% of your home value.
How Does It Work?
Its very simple, Its a second mortgage allow you to borrow up to 100 percent of the home's value. The previous lender borrow you the 80,000 thousand, there is a balance 20,000 thousand as an equity. With this loan, you may access the 20,000 thousand equity.
What is the benefit to get 100% loan. First, it help you no need to come out heavy initial deposit that burden you a lot; then you may able to reserve the deposit funds to buy for your furniture, electronic equipment, etc :)
It will be extremely helpful especially when you wish to buy your dream house, but been block off from the initial heavy 10% deposit of your house value.
To distribute the 10% deposit into your long term home loan tenure will only add small percentage of additional cost into your monthly home loan installment.
At the end you actually borrow 100% of your home's value, end up with more than one loan. In order to get the most benefits from this loan, you shall search more related information from internet or banker. I suggest you to check out the
125% Home Equity Loan instead of 100 Home Loan
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