When you’re searching to buy your first home, or you want to be able to get a loan at a great rate, you’re looking at home loans. These are fully collateralized loans with the best rates.
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Typically, the lowest rates for any type of conventional loan as the home is offered as collateral. |
A great way to build out generational wealth is as you’re paying off a mortgage to grow your asset instead of paying rent. |
Use a home loan to finance with the best rates
You’ve spent a lot of time, energy, and resources building up your home asset. You should be able to use the asset to secure a low-interest rate loan.
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Mortgage Loan If you’re purchasing your first or next home, enjoy some of the lowest rates out there as you build out your wealth with each payment. |
Home Loan Get some of the lowest fixed or variable rates possible by leveraging a portion of your home’s value into a loan amount. |
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Lines of credit Do you want to have low-interest rate liquidity but don’t need to access it immediately? Open up a line of credit to have access and pay only on what is used. |
A tool to refinance It’s always possible to quickly refinance any type of home loan to a lower rate when applicable. Maybe the LTV has improved, or interest rates have gone down. |
What are some of the features of a home loan?
There are many things to do with a home loan, depending on the type you actually are getting.
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Build wealth When you have a traditional mortgage on your home, each payment helps lower your debt and increase your own wealth. |
Expand your investment Utilize the funds from your home loan or line of credit to finance investments into additional real estate. |
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Use for renovations. Instead of paying everything out of pocket and upfront, get yourself a home loan to pay for any major renovations such as the kitchen or bathroom. |
Always on your terms. Home loans can come either fixed or variable, with long repayment schedules (mortgages are up to 30 years) to help keep your monthly payments manageable. |
Home Loan eligibility
Generally, you’ll need to have decent proof of income and show the ability to repay the loan.
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Age There’s a range between 21 and 65 usually. Those starting at 62 or older can consider a reverse mortgage. |
Down payment and credit score To secure the best rates, you’ll want the highest credit score and a minimum of 20% ready to pay for the home. Some options with lower credit scores (at least 620) and smaller down payments. |
Income and references You will need extensive income proof and savings to get a proper mortgage. Also, there may be a requirement for references. |
FAQ
Can I pay off any home loan early?
Recently yes, it’s ok to pay the mortgage and other types of home loans off earlier, unless it’s a reverse mortgage. Then, there’s usually no penalty but check with your lender.
When should I get a home loan or mortgage?
As soon as you’ve got the funds for a down payment and a salary to handle the monthly expenses. This gives you time to grow your wealth.
What about refinancing?
To secure more favorable rates, there are times to refinance (when rates are low or your home has increased in value).