All about secured homeowners loansWritten by Peter Parsons
The purpose of this home-loan owner's 101 guide is to explain differences between various options available when 'releasing equity' (withdrawing money) against your house. As largest financial commitment average person ever makes, and probably most important investment too, if you intend to start withdrawing cash from equity you have in your home, you better be sure loan is right for you! After all, you wouldn't want to lose your house, would you?More popular now then ever, secured homeowner mortgages have become a vital tool for many homeowners, allowing them to secure their borrowing needs at what is probably lowest interest rate available. Anecdotal evidence suggests that these rates are getting better too, some institutions are offering 'extra' cash withdrawal against your home for as little as 1.5% per annum. By creating a 'secured debt' of this kind, in legal terms what you are doing is giving lender a 'lien' (a priority claim) over asset on which loan is based. Typically this means you must clear these 'liens' before you can sell house. These 'liens' can be attached to other assets too, and your home is not only form of collateral you may wish to secure a loan against (some people effectively 'mortgage' works of art, expensive cars and so on). The lien side of all this is worth stressing - as a priority claim holder, bank has right to repossess your property if you fail to meet payments. Basically, never take on debt you aren't sure you can service! You can get secured homeowner loans that are variable interest rate or fixed rate (the most common until recently). More exotic variations are also available, according to www.mortgagedown.com , including capped, discounted, low-start, cash back and so on. The term of loan can also vary, although most people tend to roll new loan into existing mortgage, and term will therefore be same as term remaining on mortgage itself. Fixing rate means you pay same throughout term of loan. In these times of historically low interest rates, many people think now is a good time to fix rate. Others think rates may fall soon, and thus a variable option is better. If you are kind of person who likes to know what your commitments will be every month, a fixed rate is probably for you. If you have plenty of spare cash-flow (i.e. you earn more each month than you can spend) a variable rate loan my be best bet for you, as any falls in rate will be reflected in your monthly outgoings. You need to be aware that rates can also rise, though, and you must have some headroom in your monthly budget in case your payments suddenly rise.
| | What is a Commercial Mortgage?Written by John Mussi
A commercial mortgage is a loan that uses commercial property as collateral. A commercial mortgage is a business loan which is secured against a commercial property. Commercial mortgages are often used to buy business premises, such as offices, shops, restaurants, or pubs. But they can also be used to buy other business assets such as plant or machinery. A commercial mortgage is a loan for a property that is used for business purposes. It's probably best way to finance purchase of buildings and land for business because it provides a flexible and affordable solution that gives you access to capital. A commercial mortgage is probably best way to finance purchase of buildings and land for business purposes. It provides most flexible and affordable finance solution. Commercial mortgages are specialised due to fact that lender has a legal claim over property until loan has been repaid in full. As well as being a useful way of financing purchase of business premises for a new business, commercial mortgages can also be an excellent way of funding expansion of an existing business. A commercial mortgage gives you access to capital that you would not normally have access to with minimal up-front payments and flexibility to design a repayment plan that suits your needs. The nature of a commercial mortgage requires you to pledge purchased property to lender. If you default on mortgage, lender is able to foreclose property and sell it to repay outstanding money owed to lender. A commercial mortgage can be used to buy most types of commercial buildings, such as shops and offices, for both new and existing businesses. A commercial mortgage can also be used to fund investment in land or property which will be used for commercial purposes.
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