Learn More About Loan Options

With a range of options available, it’s important for all home buyers to ensure that their home loan is just as suited to their needs as the property they are buying.

Finding the right home is a hard enough challenge, let alone also trying to find the right mortgage. However, this is the reality of the home buying experience, with lenders offering a range of home loan options to entice your business and suit your needs.

Finding the Right Mortgage

If you aren’t sure what type of mortgage options you would like or which lenders you should seek, below are some great tips from Patriot Title Agency to get you started.

Additional Payment Redraw

A popular option among home buyers is the ability to redraw additional payments. Here’s an example:

• If you were to make payments of $1,000 above your scheduled loan repayments, then the amount you owe would lower, which lowers your interest rate as well.
• With a redraw facility, these extra payments are accessible.
• If you needed to access cash in eight months for a financial emergency, you would have access to $8,000 from your redraw account.

It’s worth noting that not only does this feature often come with terms and a fee, but as soon as you withdraw, your owing balance increases, and so too does the interest charged.

Variable vs Fixed Interest Rate

There are two interest type options when choosing your home loan. The first is a fixed interest rate. Just as the name would suggest, a fixed interest rate means that the interest rate agreed upon remains despite any changing market or economic conditions. A fixed rate can often be a great option for those taking on a mortgage when a lender is offering a promotional rate or the market is in a buyer’s favor. When considering this option, it should be noted that there will often be fees and terms which could prevent you from changing the interest rate type during your loan and taking advantage of a lower market rate. The second is a variable interest rate. In contrast to a fixed interest rate, a variable interest rate can and will change depending on economic and market conditions. You will receive notification prior to it occurring, but it can and will happen. While it may not seem as appealing as a fixed interest rate, it’s worth noting that it can often mean that those on a variable interest rate pay less than those who fixed their interest rate when it was higher. Before you sign, make sure that you have title insurance in Canton, OH. Available only prior to settlement, title insurance in Canton, OH provides homeowners with peace of mind. To learn more, speak with Patriot Title Agency today at 1-866-475-3005.

Bonus Payments

If your employer regularly pays you a bonus or you have investments which provide income-bursts throughout the year then making additional repayments could be a benefit to you. However, the ability to make additional payment is different to redraw in two ways:

• There will be a fee charged for each additional payment.
• You will not have access to withdraw your additional payments.

Because of these two points, be sure that the terms of your lender’s additional repayment option are suitable for your needs and additional repayment plans.

Trouble With Documents?

If you work for yourself managing multiple contracts of part-time roles, if you earn an income from investments, or you have just started your own business, then you won’t have a lot of documentation which can easily substantiate your income or your future ability to make your repayments. More and more, lenders are becoming aware that applicants are in a situation like the above and have designed home loans tailored to this situation, requiring fewer documents and proof of income. However, while this may seem too appealing, these loans come with a greater lender risk and, as a result, also come with fewer lender options and a higher interest rate.

Lenders Require Title Insurance in Canton, OH

Your lender takes on a large risk when approving a loan and requires levels of security. One form of this security is title insurance, which can also benefit homeowners. A policy for title insurance in Canton, OH provides homeowners with financial protection against any claims made against the title or ownership of their home. To find out more about situations like these and how title insurance in Canton, OH can protect you, speak with an expert at Patriot Title Agency by calling 1-866-475-3005 before you sign your final paperwork.