Category Archives: Mortgages

Mortgage Products

Mortgages

A mortgage is a type of loan used to pay off or buy a property. There are various kinds of mortgages, such as a reverse mortgage or a wholesale mortgage. These mortgages can be secured, unsecured, or an adjustable rate mortgage (ARM). A mortgage can either be taken out for a specific period of time, or it can be a revolving type of loan. You will need to discuss your options with a mortgage lender or mortgage broker.

Mortgages are distinct from other types of loans such as personal loans and credit cards. For mortgage loans, people typically contact, either mortgage brokers or jumbo wholesale lenders, which fund loans and offer them to third parties such as a bank, credit union, mortgage broker, independent mortgage company, or professional. People normally get mortgages to purchase a new home. When the mortgagee buys their home, they take out a mortgage to help fund the down payment. After making the down payment, the mortgagee then takes out another mortgage to pay the outstanding balance on the first mortgage. The mortgagee has now made two payments to the mortgage lender, one in interest and one in principle. They have now converted the initial amount of money from cash into a mortgage. Consider getting in touch with experts from companies like Reali to get a thorough idea about what a mortgage entails and the procedure to obtain it.

Mortgage loans are different from other types of loans because the mortgagee receives one lump sum of money from the creditor, instead of paying interest on it over a long period of time. Because the mortgage is paid off in one lump sum, the creditor feels more comfortable that they are getting some money back from the mortgagee. This is why many mortgage lenders offer a certain amount of flexibility when it comes to paying off a mortgage. The debtor will only receive one set monthly payment and is allowed to make adjustments to the loan if needed.

Mortgage loans can be used for a variety of purposes. There are several types of mortgage that are available to borrowers. These include fixed term mortgages, flexible mortgages, reverse mortgages and interest only mortgages. Fixed term mortgages are long-term loans that provide the borrower with a low interest rate, but they cannot be changed during that time. The only option may be to refinance during this period of time.

Flexible mortgage loans allow the borrower to change the terms of the loan. They are more expensive to get, but allow the borrower to change the interest rate or the amount of the loan. If they need to make changes, they pay the difference. Most mortgage loans have a low-interest rate and this allows them to be affordable to all individuals. They also offer the convenience of only having to pay one monthly payment. Those finding it difficult to secure a mortgage loan can consult mortgage brokers in Red Deer, for instance, if that is where they reside, to get assistance.

Reverse mortgages are a type of mortgage where the mortgagee can choose to receive either the mortgage amount upfront, or the line of credit. When the borrower takes out a reverse mortgage, they agree to pay back the mortgagee either at the end of the term, or over a longer period of time. The mortgagee chooses the amount they would like paid back. During the term, the lender will make the payments either directly, through a collection agency or through a credit service. They will also decide how much they want the borrower to repay each month. This option saves the mortgagee from having to find funds to repay the mortgagee if they run short of money.

As with all types of mortgage, there are different types of mortgages and lenders. Lenders differ in their fees, terms, interest rates and costs. Most conventional loans are fixed term in nature and do not allow the borrowers to change their mortgage repayment terms. There are some lenders who allow the borrowers to change their mortgage structure once they reach the end of the term. These lenders do not provide flexible mortgages.

The advantages of the fixed rate mortgage is that they provide stability and reliability to both the lender and the borrower. Mortgagees also benefit because they are able to charge competitive rates due to the fact that they have large, consolidated, and liquid financial portfolios. They are able to offer competitive rates due to the fact that they have negotiated with large numbers of mortgagees. However, many mortgages also offer flexibility to the borrowers. Many lenders allow borrowers to choose a range of options such as payment options and repayment methods.

Top Spots to Invest in Property in 2021

Mortgages

With the New Year right around the corner, making big plans for 2021 can really give you that Fresh Start feeling, and get you back on track after the year we’ve just had. While it hasn’t been the easiest 12 months, a stable investment in property could really be the change-up your finances need for a far more promising 2021. But where’s best to be putting your money, and what can you do to make moves for a more financially optimistic future in 2021?

Austin, Texas

Austin has emerged as a hot real estate market, with its vibrant culture, thriving job market, and desirable lifestyle drawing new residents. The metro area saw property values increase over 10% in 2020 alone. Strong demand coupled with limited housing inventory makes Austin a lucrative place to invest. Focus on central neighborhoods like South Congress and East Austin where walkability, amenities, and access translate to high rents and impressive returns. Capitalize on the influx of tech companies and young professionals flocking to the “Silicon Hills” by purchasing condos and multifamily properties. With no state income tax and a business-friendly environment, Austin offers long-term growth potential for savvy investors.

Pittsburgh, Pennsylvania

Pittsburgh is emerging as a promising real estate market poised for growth. With top universities and research centers, the city attracts skilled workers, while maintaining affordability compared to other tech hubs. Neighborhoods like East Liberty and Lawrenceville are experiencing revitalization with trendy eateries and shops, making them attractive for rental investments. The robust healthcare, education, and financial services sectors are driving development across the metro area. Look for properties near expanding neighborhoods and commercial corridors where rents and resale potential are on the rise. Apart from Pittsburgh, there are other areas worth considering for homeownership. Working with local home builders like Olde Bulltown (oldebulltown.com) in Chester County, Pennsylvania, allows you to target specific regions. With steady cash flow and appreciation expected in this stable market, investing in properties in these areas can be a wise decision for millennials and families seeking better value and amenities.

East London

If there’s anything we know about London, it’s one of the best places to invest in when it comes to property. You can get a townhouse, either to live in yourself or, for a shared Airbnb Management Fee, turn into a prime area accommodation for tourists. While many are put off by the hefty outgoings that buying your first property here can ensue, there are schemes out there that allow you to cut the complications and get you onto the property ladder in a promising new area. Bow River Village is just one East London development along the river Bow that is a strong investment for the future. Located in the regen area of Bromley by Bow right on the river, this East London apartment complex is a sought-after spot for young professionals with seamless transport connections to the centre and the new amenities that make this a micro-city of its own. With many apartments under the Shared Ownership Scheme, meaning you can buy a share in the property rather than have to pay a deposit on the total value, Bow River Village is a real steal, especially for the first-time buyers among us.

Seattle, Washington

Seattle’s hot real estate market shows no signs of cooling down with its thriving tech sector and constrained housing supply. Rapid population growth coupled with geographic barriers to building makes the metro ripe for investment. Target neighborhoods undergoing transformation like Ballard, Fremont and West Seattle where demand exceeds inventory. Focus on condos, townhomes and multifamily rentals catering to the influx of young professionals flocking here for jobs. Leverage Airbnb rentals in trendy areas where tourism and business travel drive occupancy rates. Seattle offers savvy investors the rare combination of strong long-term fundamentals – economic and population growth – along with wealth creation opportunities from scarcity and gentrification.

Hampstead

If you’re contemplating a wise property investment, Hampstead beckons as an alluring choice uniquely tailored to your discerning taste. Its irresistible charm, merging historic allure, upscale ambiance, and proximity to central London, presents an opportunity unlike any other. The captivating surroundings, complemented by esteemed schools and cultural landmarks, create a magnetic pull specifically designed for families and astute buyers like yourself. Delve deeper, and you’ll find that the real estate market in this area boasts a commendable stability and appreciation potential, catering perfectly to your vision of long-term value. The affluent community, seamlessly connected by excellent transport links and embraced by the natural beauty of Hampstead Heath, further elevates the district’s allure. Amidst this promising landscape, the availability of beautiful family homes for sale in Hampstead stands as a beacon of possibility crafted just for you. This investment prospect not only promises luxurious living but also a cultural richness and the assurance of promising returns, positioning Hampstead as your ultimate destination, where the blend of quality of life and investment potential harmonizes seamlessly.

Charlotte, North Carolina

Charlotte real estate presents tremendous upside as one of the South’s fastest growing cities. Major corporations like Bank of America are headquartered here, with robust job creation fueling the market. Home prices are still relatively affordable compared to other metros, while rents continue rising with population gains. Target turnkey rental properties in hot areas like Uptown, Plaza Midwood, and South End to draw tenants. New construction and gentrification translate to sizable returns on investment. Focus on condos and townhomes which are in high demand with millennials and downsizing boomers. With diversified industries, an international airport, and desirable climate, Charlotte will see property values and investor interest climb over the next decade.

Hackney

While this corner of London has always been flocked to by artists and musicians alike it is the new regeneration of the area that is sending property prices into the heavens. Getting your hands on something quickly in the hotspot of Hackney Wick could be an unbeatable investment for 2021. With the 2012 Olympic Park enriching this area with fantastic sports facilities, landscaped spaces to enjoy the outdoors, and a whole host of restaurants and bars to feed all those post-workout tummy growls this is proving popular for young people looking to make a home for themselves in the metropolis but with a little more space and balance mixed in. With plenty of modern developments like The Refinery, East London living should definitely be on your watch list if not your wish list.

Hove

Described as the new Brighton and delivering on every front, especially the seafront, Hove is a seaside getaway that’s seen growing popularity. With many seaside activities from Wakeboarding to Waterskiing making this a top spot for tourists it’s no surprise many have decided to make properties available through Shared Ownership in Hove their home. But it’s the daily yoga at sunrise on the beach and the vegan cafes and forward-thinking business enterprises that are popping up all around this beachy paradise that is attracting a colourful community of work-from-homers, young entrepreneurs and just-starting-out families. So if you’re looking to put your money into something with a great view as well as a whole host of benefits to your life as well as your finances, Hove is one to watch out for.

Is 2020 a good time to buy a property?

Money Saving Tips, Mortgages

Thinking about buying a home is exciting, and stressful, and daunting all at the same time.

Then you add in 2020 into the mix. The coronavirus pandemic, Brexit negotiations, and ongoing uncertainty has changed the face of the economy.

Surprisingly, the property market has remained remarkably strong in a number of places (visit https://cristalcellar.com/ for some examples). Government stimulus initiatives like a temporary Stamp Duty holiday, alongside a large number of people re-evaluating their living situation, has led to an astonishingly active property market.

But, what does this mean if you’re looking to buy? Will you now get a good deal on a property that is in a good condition–perhaps deemed fit by a building inspection report auckland (or elsewhere)?

Mortgage rates

Unless you’re lucky enough to have a substantial amount of money saved up, knowing what’s going on in the mortgage market is vital if you’re thinking about buying a property.

The best mortgage markets for home buyers are created when there are a lot of mortgage products on the market. This creates the conditions for a large amount of competition between lenders to offer the best deals in order to attract buyers to use their services.

Currently the mortgage market situation is pretty mixed. Many of the mortgages currently available have low interest rates, but there aren’t actually very many products available. It’s also becoming more normal for banks to expect you to have a deposit of at least 15-20% if you want to apply for a mortgage.

This means that it’s still quite appealing for buyers to take out a mortgage if they can afford to. If you’re a second stepper, you might be able to use the equity you’ve built up in your first home towards a deposit. This will let you take advantage of the attractive interest rates currently on offer.

On the other hand, if you’re trying to take your first step onto the property ladder – or don’t have access to a larger deposit – you might find it harder to qualify for a mortgage with the best rates.

Sellers’ market

When you’re looking to buy a property, the other thing to think about is the state of the property market generally.

Are there lots of other buyers looking for homes? Is there a lot of choice of the kind of property you’re after? Are house prices increasing, decreasing, or remaining fairly static?

Currently, the property market is a ‘Sellers’ Market’. This means that those selling property are in a stronger position than those trying to buy.

This is because there are lots of people looking to buy houses currently. This is creating a very competitive environment, and driving up house prices.

But, this doesn’t mean you should immediately write off buying. Most newspaper headlines and indexes look at market trends across the entirety of the country, rather than giving you information on specific local areas or types of homes. They can often give the impression that all homes are getting more expensive, when actually that’s not the case everywhere.

For example, many buyers are looking to purchase properties in commuter towns, suburbs, or countryside areas, at the moment. This means that there’s a lot less competition for homes – particularly flats – in city centres, so prices there are lower.

If you’re curious about the price trends in a particular local market, this tool can show you what’s going on.

Stamp Duty holiday
Part of the reason there are so many people interested in buying a property currently is because of the temporary Stamp Duty Land Tax holiday on properties under 500,000. Announced earlier this year, the Stamp Duty holiday means that buyers can save up to 15,000, if they complete their purchase before 31st March 2021. That’s a pretty enticing reason to buy quickly!

But, the benefit isn’t evenly spread.

First time buyers don’t usually have to pay Stamp Duty if they buy a property that’s worth less than 300,000. This means if you’re buying for the first time, you’ll only benefit from the holiday if you’re purchasing a property worth more than 300,000.

If this is your first time in the market, then it should be your priority to understand the different costs and tax benefits that you may acquire when buying a home. You may need to look for trustworthy residential property solicitors in Yorkshire (or where you are buying the property) so that they can help you through the process of negotiations, payments, contracts, and the other nitty gritty of buying a home.

There are also some pretty confident predictions that many sellers (or their estate agents) will add at least some of the Stamp Duty savings onto their property’s asking price. The Office of Budget Responsibility predicted that the Stamp Duty holiday will increase house prices by at least 0.5%.

So, if you’re considering moving soon, take the time to think carefully before you rush to take advantage of the Stamp Duty holiday. You may find out the benefit is limited.

Personal circumstances

You shouldn’t ever feel pressured to buy just because the market looks ‘right’. It’s just as – if not more – important to consider whether it’s the right time to buy a house for you personally. A house is likely to be one of the largest purchases you’ll ever make, so take the time to ask
yourself the following questions first:

  • Does buying a house fit in with your financial and personal goals?
  • Once you’ve paid your deposit, and legal fees, will you still have ‘buffer’ savings left in case of an emergency?
  • Do you feel secure in your job / are you planning to make a large career change in the next couple of years?
  • Are you ready to commit to the fixed term period of a mortgage?
  • Will you be able to consistently pay your monthly mortgage payments?

    Questions like these should be considered with as much importance as the general conditions of the housing market. If you’re unsure about whether you’re making the right decision, talk to an independent, objective, financial advisor. They will be able to provide advice and support tailored to your personal situation and goals.

A guide to buying your first home without the stress

Finance, Mortgages

With a financial crisis in full whack buying your first home can be a difficult process, but it doesn’t have to be. With plenty of solutions out there, you can get the house you want at a price you can afford in an area that’s right for you. House-hunting should be an enjoyable endeavour in finding the perfect place to set down your roots, which is why you need to use a reputable realtor like this one https://yoursouthtampahome.com in order to get a running start with your house hunting, in addition, knowing you have plenty of options financially will give you that peace of mind to help you get on your way to becoming a homeowner. Continue reading A guide to buying your first home without the stress →

3 bank statement items that can ruin your mortgage application

Banking and Savings, Mortgages

Most people need a mortgage to buy their first home and since the last financial crash, the application process has become increasingly stringent.

If you’re applying for a mortgage, you should be prepared for a forensic examination of your bank statement. Any loans and hire purchases you’ve taken out are considered but you’ll even have to account for your spending on socialising and leisure  – including, for example, restaurant trips and gym memberships.
Continue reading 3 bank statement items that can ruin your mortgage application →

The Best Mortgage Options for House Flippers

Mortgages

Last year, 5.5 billion worth of homes across England and Wales were “flipped,” meaning that they were bought and sold at least twice within one year. Property speculators, or flippers, can make a lot of money by fixing up homes and selling them for a higher price. However, flipping is a serious business. Doing it wrong can cause severe financial consequences for everyone involved. Continue reading The Best Mortgage Options for House Flippers →

Your Guide to Taking out a Mortgage for a House Abroad – and Deciding Where to Obtain It

Mortgages

If you are a UK resident and are planning to purchase a house or property abroad, then you need to do the proper research. With the right know-how, you can make an informed decision that will profit you in more ways than one in the years to come.

Getting a mortgage, for example, is a big decision that cannot be taken lightly. You have to know when, where, and how to take out a mortgage as well as learn what mortgage options are available to you, particularly when it comes to rates. For instance, if you plan on buying an Australian property, the loan offers and related rates that you would get for it would differ from your options for a Tulum Mexico real estate property. After all, your decision can affect your life in the future, and you need to know what you can realistically afford. Real estate can be a lucrative investment, and securing a great mortgage deal is therefore of the utmost importance. In case you wish to seek professional help, there are advisors like Simon Conn with years of experience in overseas property management who might not only provide the information you need but also get the right deals for your mortgage through their various international contacts. They can ease your burden and help you make the right decisions when it comes to overseas property. Continue reading Your Guide to Taking out a Mortgage for a House Abroad – and Deciding Where to Obtain It →

Vital Costs You Need To Cover When Buying A Home

Mortgages

Welcome to our comprehensive guide on the vital costs you need to cover when buying a home. If you’re gearing up to make one of the most significant investments of your life and stepping into the world of homeownership, understanding the financial essentials is critical.

First and foremost, let’s talk about the cost of the property itself. This is undoubtedly the highest expense and the foundation of your home-buying journey. To keep it as low as possible, it is always advised to explore various lucrative deals, such as house in florida keys for sale (or in your desired location), to find a home that fits your budget and requirements. However, purchasing the property is just the beginning. There are several other expenses that you need to be aware of and prepare for. In this blog, we’ll walk you through the key expenses that come with buying a new home.

Survey Fees

You should never buy a home without first paying for some structural surveys. Experts will come to the property and perform an assessment before letting you know their results. Depending on their assessment, you may need to renovate or rebuild the property with the help of a melbourne townhouse builder (or a similar professional in your vicinity). If everything is fine, you can sign the contract and start the purchase process. Just make sure you get quotes ahead of time.

Stamp Duty Land Tax

Stamp duty is a tax imposed on certain instruments, typically involving the transfer of real estate or other assets. As the infographic shows, stamp duty land tax can cost a pretty penny. If you want to understand how much you will have to pay when you buy your new dwelling, just refer to the table below.

Legal Fees

When purchasing a property from a portal like https://lowcountryrealestate.com/properties/sale, a local business, or even through an agent, there will typically be the involvement of a real estate attorney or solicitor who handles the closing process and reviews the paperwork. That means the buyer doesn’t have to file all the paperwork, and everything is kept above board. The cost of legal representation will vary depending on the professional you select. So, make sure you shop around!

Additional Costs

In the excitement of buying a new home, it’s easy to overlook potential unexpected costs. Setting aside a contingency fund is a smart move. Homeownership often comes with unforeseen repairs or maintenance expenses. Having some extra savings in the bank will ensure you’re well-prepared to handle any unexpected setbacks without jeopardizing your financial stability.

Moving and Furnishing Costs

As you plan your budget for buying a home, don’t forget to account for moving and furnishing expenses. Whether you’re hiring a moving company or doing it yourself, moving costs can add up. Additionally, consider the costs associated with furnishing your new space to make it feel like home. While this may not be an immediate expense, having a rough estimate will help you allocate funds accordingly.

Buying a home is a significant life milestone, but it’s essential to approach it with careful financial planning. By understanding and budgeting for the various costs involved, you can avoid unexpected financial strain and ensure a smooth homebuying process. Remember to factor in survey fees, legal fees, SDLT, and keep a contingency fund for unforeseen expenses. With a well-thought-out budget, you can embark on your homeownership journey with confidence and excitement for the future! Happy house hunting!


Infographic Produced By Avant Homes stamp duty infographic