The Basic Facts About Home Loans

If you live in New York, home loans are something that you may currently be considering. The decision to go ahead with a home loan needs to be based on solid fact. In other words, before you make up your mind to apply you have to do your research. If you are not diligent in this aspect, the possibility exists, what you thought could get you what you want will turn into a heavy financial burden.

What is a Home or House Loan?

At its basics, home loans are secured loans. In simple turns, a home loan has collateral in case payment is not met in accordance with the agreement. The collateral or security in this case is either property or the home/house. The bank or the individual in control of the loan has the right to get the money back by selling off the property used as security. Yet, even though the property or home is used, there are actually more than one type of home loans.

Types of Home Loans

Home loans in New York are available to satisfy specific needs of the owner. Among the different types you can find the following:

1. Home Purchase Loan: This type of loan is usually equated with a mortgage. Its purpose is to buy a home for the borrower.

2. Home Improvement Loan: If you want to improve or upgrade your current home through, you can take out this kind of loan.

3. Home Extension Loan: If the work you want done on your current home includes expansion up, down to the sides, you will apply for this type of loan. 

4. Home Conversion Loan: When you already have a loan out on the current home but wish to move to another one that requires further financial investment, you will see if you can get this type of home loan. It will abet in the transfer of the existing loan to the new home as well as add any extra monies required in the purchase of the new home. 

5. Bridge Loan: Home loans of this nature are generally perceived as being short term. They are there to act as a bridge in the period covering the sale of the old home and the purchase of the new one.

6. Home Construction Loan: If you plan to build a new home and not buy one, you need to have a home construction loan.
 
7. Land Purchase Loan: This form of home loans is not for the purchase of a built property. Its intended purpose is to buy land for construction and/or investment purposes. 

In New York, home loans can generally mean one of several things. While it traditionally refers to a mortgage, this does not exclude it being applied to other matters. While all are related to home and property, they are not all the same thing. Keep this in mind when you are considering home loans now and in the future.

A Calculated Risk: Using A Mortgage Calculator

If you plan to buy a home or are currently in the process of purchasing one, it is important to understand all the risks involved. The majority of people will not be purchasing their homes outright. They will be relying on obtaining a mortgage. For many this is the only way they can afford to buy a home. In order to make sure they do it right, some turn to a mortgage calculator. In New York, with prices being what they are, it is very important to understand the risks involved, using more than one type of calculator can help reveal the monetary risks clearly.

Mortgages and Life’s Expenses

Buying a home is a complex financial investment. It means you will be tied up with payments for a lengthy period of time. During this, you will have to continue to pay all your other bills, make credit card payments and maintain the home. Life does not stop when you buy a home. It begins and adds other expenses.

Using a Basic Mortgage Calculator?

Before you sign on any dotted line; even prior to talking to a New York mortgage specialist such as Members Mortgage Corporation, you need to get all your financial ducks in a row. Before you visit a potential lender you need to compile your financial information. You have to be able of providing a list of your qualifications including:

1. Wages
2. Investments/dividends
3. Alimony received or other sources of income

In addition to these, you need to look at your expenses. These will consist of such things as

1. Car payments
2. Alimony payments
3. Credit card loans/debt
4. Child support payments

You will need these when you approach a lender. You will then add them to the proposed costs for financing and maintaining your potential home. For these facts, you will need to have the exact data for the particular home or a potential home if you are hoping to prequalify. For this, include:

1. The down payment
2. The loan/mortgage sum
3. The term of payment
4. The interest rate
5. Home owners’ insurance costs
6. Property taxes
7. Monthly expenses to operate the home

You can see the result of these figures by inputting them into a mortgage calculator. It will be able to help you determine the size of mortgage you can actually afford. There are also calculators to determine specifics like Mortgage payments on a monthly and yearly basis as well as a mortgage calculator that will provide you with the interest only payments.

Calculators are useful tools. A mortgage calculator in New York can be a beneficial tool in providing you with specific information on the size of the mortgage. At the Members Mortgage Corporation, a mortgage calculator can help you decide on whether you can be financially responsible in the purchase and ongoing cost of a home.