All about secured homeowners loans

Written by Peter Parsons


Continued from page 1

Discounted rates are offered by banks and lenders to pull in new customers, although existing customers can sometimes benefit from them too. A discounted rate is a special rate set a certain number of points belowrepparttar standard rate. As a variable rate loan,repparttar 143465 amount you pay will vary of course as interest rates rise and fall, even though you will always be a certain level belowrepparttar 143466 market rate. Some discounted homeowner loans have 'clawback' conditions - if you repayrepparttar 143467 loan early there may be penalties. A 'cashback' loan is exactly how it sounds - on completion ofrepparttar 143468 loan process, you get 'cash back' to spend how you like. The rates charged on homeowner loans of this type tend to berepparttar 143469 least attractive.

A capped loan is a variable rate loan that also promisesrepparttar 143470 rate will not ever go above a certain level of 'cap'. These can be good for you if you want to take advantage of any interest rate falls, yet not expose yourself torepparttar 143471 downside of unexpected interest rate rises, which make them less attractive, at least to staff at www.mortgagedown.com ! Once again, these loans tend to have early redemption penalties or other conditions that compensaterepparttar 143472 lender forrepparttar 143473 generous conditions.

The amount they will lend you will depend on your circumstances, as well asrepparttar 143474 property that will be used to securerepparttar 143475 loan. Your income tends to be less important, asrepparttar 143476 lender has 'secured'repparttar 143477 debt against your home, and will assume that you would not take out a loan you couldn't service, as your home would then be at risk. To apply, you will need paperwork such as bank statements, proof of residence, recent bills and tax returns to get your homeowner secured loan.

So what can you spend it on? Generally anything you like. A new car, home improvements, consolidating credit card bills or even a fancy holiday. Onlyrepparttar 143478 least prudent, of course, would attempt to pay for a 2 week vacation with a 25 year loan!

Peter Parsons writes occasionally for www.mortgagedown.com , the place to get advice your mortgage and home owner loans


What is a Commercial Mortgage?

Written by John Mussi


Continued from page 1

The interest rates on commercial mortgages tend to be lower thanrepparttar interest rates on unsecured business loans andrepparttar 143464 repayment terms are usually longer. This makes them useful for all sorts of business financing requirements.

A commercial mortgage can be a cost-effective way to fund many business activities. They can be used to develop an existing business throughrepparttar 143465 purchase of increased office or factory space.

A commercial mortgage can also provide a way of raising additional business loan finance, ifrepparttar 143466 finance is linked to business activity.

The amount of loan required andrepparttar 143467 level of interest charged will depend on your credit worthiness and an assessment byrepparttar 143468 provider of your ability to repay. If you have an exemplary business record and have other visible business assets which can be used as a guarantee, then you'll have no trouble getting a commercial mortgage at an attractive rate of interest.

A commercial mortgage can be available for almost any period from 12 months to 25 years.

There are generally two types of interest schemes available when you are applying for a commercial mortgage, fixed rate and variable interest rate.

The Lender will usually ask you to provide your last three years of audited financial statements including a Profit and Loss statement, balance sheet and a cash flow forecast.

Commercial mortgages are specialised becauserepparttar 143469 lender has a legal claim overrepparttar 143470 property untilrepparttar 143471 loan has been repaid in full. Inrepparttar 143472 event of non-paymentrepparttar 143473 property can be repossessed and sold to repay outstanding mortgage balance.

You may freely reprint this article providedrepparttar 143474 author's biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.


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