100% Financing Home Loans

Mar 21

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What do 100% Financing Home Loans Mean?

These loans refer to the loans that do not require borrowers to provide for a down payment.

The usual down payment of a house is five to ten percent of the actual amount. As such, if you are planning to get a mortgage loan for a house that amounts to five hundred thousand dollars, you ought to prepare to provide a down payment between twenty five thousand to fifty thousand dollars.

However, if you avail of a mortgage loan that provides 100% financing- that means that you won’t have to prepare any down payment fees. But you ought to keep in mind that even if you are availing of a 100% financing loan, you will still have to pay some extra cash for the application and security purposes of this kind of loan.

100% financing home loans are abundant these days. You can easily find one in the Internet. Note that there are also many kinds of no deposit home loans. Among the most prominent of these types are the mortgage loan which also covers the cost of closing on the property, and the mortgage loan that provides the borrower extra cash for furnishing and/or repairing the home.

The Pros and Cons of a No Deposit Home Loan

A No deposit home loan or one that provide 100% financing is applicable for people who are not capable of raising a down payment of five or ten percent of the mortgage loan, but nevertheless, needs to buy a home as soon as possible. This is especially the case for newly wed couples or those who have suffered from losing their homes due to natural disasters or accidents. 100% home financing is also recommended for people who plan to invest in real estate properties.

Among the many benefits of getting 100% financing in home loans is the fact that you can quickly purchase the home of your choice without worrying for the expenses. Also, you won’t need time to prepare money for the necessary down payments. With a no deposit home loan, you can invest in a home and not worry about the possibility that you won’t be able to afford it later when the price of real estate increases. To add to that, some no deposit home loan packages offer financing for other expenses associated with purchasing the house like retrofitting.

However, 100% home loan financing also have some drawbacks. Among these is the fact that this kind of mortgage offers a higher interest rate than the normal mortgage loans. This is primarily because the more money being lent to you, the higher the interest in the long term. Another is that some banks charge extra closing fees such as Higher Lending Charge. Also, you have to know that it is far more difficult to obtain a 100% home financing loan that getting a normal mortgage loan due to the stricter lending criteria.

Last but not the least, getting a no deposit home loan puts you at risk of negative equity. This happens when the value of the home you have purchased decreases after your lender has given you full financing on it. In such cases, the bank or the lending company will request additional fees from you.

Budget Insurance home insurance

Feb 04

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We know what you’re thinking. Ashton Kutcher looks nothing like Charlie Sheen, but also how home insurance should be cheaper. That’s why Budget Insurance home insurance cuts the cost and not the cover, helping your premiums to lose a bit of that holiday weight and fit back into your budget.

Budget Insurance home insurance is buildings insurance, which covers the actual structure of the home and outbuildings. (For the movable possessions within the home, check out their home contents insurance.) This covers the structure from loss or damage caused by fire, lightning, explosion, storms, floods and earthquakes, even though we don’t get them in South Africa.

What is included in the policy is not just the structure of the home, but fixtures such as geysers, driveways, swimming pools and some other unmovable possessions on the property.

Should your geyser burst or overflow, it is covered under your policy. More than just protection from natural disasters though, Budget Insurance Brokers protect your home from impact with movable items such as cars, falling trees and animals, as well as malicious or intentional damage. They also provide:
Rent

Should the property you own be occupied by a tenant who has to vacate the premises as a result of fire, explosion, storms, floods, earthquakes, malicious damage, and moving vehicles, trees and animals, then Budget Insurance Brokers home insurance will pay out the rent that you lose from the tenant. (Note: this is not landlord insurance for tenants who default on payments.)

You are also covered should you require, rent.

That is, if your home is uninhabitable as a result of the above mentioned damage, your insurance policy covers rent to relocate elsewhere while reconstruction begins.
Liability

If your home is a very bad home and injures others, the legal and medical fees are covered under this policy too. This covers third parties (which includes anyone living in the home or anyone who visits you) as well as domestic employees who may be injured on the job.

Budget Insurance home insurance also includes the cost to remove rubble, fire brigade charges, television aerials, power supplies and professional fees, for example, plumbers and electricians.

For more information on their home insurance policy, visit their policy book.

Originally posted at:  insurance.co.za

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