How to Get Cash to Buy a Home in
Rivers State
A very few people have enough money to pay cash for a
property. Most people have to borrow a good part of a property purchase price.
The usual method is to get a home mortgage loan. Here’s how it works, in simple
terms.
The lender supplies cash to buy the house. You sign a
legal document which obligates and binds you to repay the lender by making
regular payments, including interest, for a specified number of years. The
property and lot are pledged as security and you promise to pay the taxes, keep
the property insured and maintain the property in good condition. If you fail
to make payment (you default), the lender has the legal right to take over the
property and you may lose any equity you have acquired.
Ways to finance a home
Financing a home can be almost as complex as finding the
right home. There’s a bewildering variety of methods to choose from. Here’s a
simple explanation of a way you can get home financing - along with advantages
and disadvantages for each:
Fixed Rate Loan
This mortgage remains the first choice of around 50% of
all homebuyers. It is also the least complicated. How it works: you get a first
mortgage from a bank or Savings & Loan Association for 60% to 80% of your
purchase price (depending on the lender and your ability to make payments). The
mortgage lasts anywhere from 15 to 30 years and is fully paid off at the end of
the term. Each mortgage payment is the same dollar amount.
Advantages and Disadvantages
Big advantage: A fixed rate loan offers you certainty and
security. You know how much you’ll spend on mortgage payment from now until the
mortgage is paid off.
Disadvantages: you may lock yourself into a
high-interest-rate mortgage. And the longer your mortgage runs, the higher your
total bill for interest.
MONEY SAVING TIPS:
put down as much cash as possible to cut down the amount of the mortgage. If
mortgage rates fall substantially during ownership, you may be able to
refinance and get a new first mortgage at a lower interest rate.
Nelson Ogbonda, CEO
Rivers Property Exchange.com
Call: +2347033577278
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