Secured homeowners loans – in case you thought a home is worth few dollarsWritten by Maria Smith
Money is like music, if managed well, produces a good symphony. One wrong note – one wrong decision – it produces a jarring sound. A homeowner knows what an important investment home is. And he or she can’t probably go wrong with this kind of investment. If you are intending to draw money on this investment, it better be a good decision. And it would be called – secured loans for homeowners. Secured homeowner loans are also called mortgages. Their popularity is escalating perpetually. Homeowner secured loans have always been made available with low interest rate. Homeowner secured loans are forever bettering their own record in terms of interest rates. The latest report on homeowners secured loan tells that homeowner secured loans is offered to homeowners for as low as 5.1% interest rate. There is logic behind low interest rate on homeowner secured loans. Secured debts require you to place collateral in attached to them in form of a lien. A lien is a monetary claim against a property to be fulfilled before repeat ownership can take place. In other words, it means that right to take other person's property if an obligation is not discharged. In homeowners secured loan collateral is your home. The loan lender will hold claim for your home until you repay your mortgage. This implies that in case you don’t make repayments on your loan your property is liable to confiscation by loan lender. This is only road block in this otherwise smooth ride. Homeowner secured loans have various modifications with respect to interest rate and loan term. Homeowner secured loans is offered to homeowners in packaging of fixed, variable, capped, discounted, cash back. Fixed interest rate on homeowner secured loans implies that rate of interest would remain same throughout whole loan term. The only drawback is that if interest rates fall in meantime, you would still be paying more interest rate. With variable interest rate on secured homeowner loans, interest rate would rise and fall according to loan market. A variable rate secured homeowner loans is meant for you only if you can afford an increase in your monthly payments. A capped rate mortgage is variable rate will not allow mortgage to go above a certain limit which is called ‘ceiling’. This homeowner secured loan may be beneficial in case interest rates rise. Discounted rate homeowner loans imply that your payments are based on discounted rate rate set at a certain level below variable rate for a specific period of time. This means that your payments can fluctuate. Such a homeowner secured loan will permit you with lower payments in early years in case you want to set up a new home. In case interest rates rise while you are on discount your payments will increase. With a cashback, you receive a lump sum or cash back which depends on amount of loan you take. This is given on time you take out loan. This connotes that you will have money when you need it. However, interest rate on this homeowener secured loan might not be as attracitve. In Tracker homeowner loans interest rate is linked to an independet rate such as Bank of England. The only impediment is that if independent rate rises your rate of interest will increase and you will be paying more than variable interest rate.
| | How much is that house in the window?Written by Richard Green
With recent release from UK's biggest mortgage lender, Halifax, of its latest house price report for May 2005, showing that prices fell by 0.6% last month, and prices falling just 0.1% since start of year, bank said that market is broadly flat. Nationwide however released its survey last week, showing a 0.3% rise in May. Commenting on figures for March, Nationwide confirmed that 0.6% fall in property values was steepest monthly fall they had seen for nearly 10 years, however, just a few days after Nationwide released its survey, Halifax reported a 0.5% rise in March prices. Mortgage comparison site Moneynet reported a slight increase in March, primarily for high income homeowners. The diversity of house price surveys dilutes consumer recognition of trustworthy media; where should you look for accurate and up to date information?Land registry reports ( http://www.landreg.gov.uk/propertyprice/interactive/ ) All property sales from England and Wales are logged by Land Registry, and so this report provides an extremely comprehensive source for residential property sales. The land registry reports can provide useful information for both for national and local comparisons. One drawback however is that report is only compiled every three months, making figures out of date even before they are released. For a small fee, a similar survey is available for properties within Scotland at Registers of Scotland Executive Agency (http://www.ros.gov.uk/index.html) Government house price index This is a recently launched government survey into house price index, reported on a monthly basis. Using lending information from about 50 lenders, this includes a first-time buyers index, as well as former owner occupiers, regional, and UK indices. Unfortunately, like Land Registry reports, there is at least a two month arrears in statistics being released. While government is trying to improve this survey, it is hampered by limits on information provided by lenders, and has been described to BBC by a government spokesperson as "The slightly less than definitive index". The implementation of National Property Database, which is currently under development, should help to provide better information about property types, and expansion on information available for geographic areas such as commuter belts.
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