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Elements of Home Mortgages.
Usually the repayment period would be extended from 10 years to a maximum of 30 years. This could also go down to a minimum of 2 years. Some of the mortgage lenders provide commercial mortgages which offer interest-only payments for the initial 2 years and some type will let you defer it up to 2 payments per year. Whatever may be the plan, mortgages provide critical advantages as against rental property or a land. Thus, one has to consider advantages and disadvantages critically prior to taking this kind of a step forward.

Benefits of commercial mortgages
Your business and the premise on which the business is functional will still be owned by you.
You would be able to get great amount of cash as a result and can be a great boost to you in the long run.
They do not fluctuate as compared to rent paid of residential properties and hence it can give you a standard business planning environment.
Interest payments can be exempted under Tax deductions.
Increased cash flow to let you use it the way you want it.
Critically, low interest rates other than unsecured loans/overdrafts, offer low monthly costs.

Disadvantages of commercial mortgages
you need a decent sized deposit.
if you own the premises or business it can be harder for you to move it. But you can negotiate ending your rental agreement or find another business to take up your tenancy.
you can leave yourself vulnerable to interest rate increases, if you have a variable rate mortgage.
You are responsible for any of your property including maintenance, insurance and security
Losing value on the property may reduce your capital.

You can compare the advantages and disadvantages to know what you actually want as against what you ideally need, one could be getting a new home.

A home mortgage is given by a bank, mortgage company or other financial institution for getting a primary or investment of a residential property. The property owner will give the title to the money lender or institution in agreement that the title will be given back to the owner once the complete payment is made and other conditions are satisfied. It will be flexible or fixed interest rate, which has to be paid in the form of monthly installments, in accordance to the principle loan amount taken.

If you are serious about buying a home, the first item you need to check is to clean your credit. That has to be the first agenda. After going through the report, identifying, paying off and closing most of your credit cards, the next step is to shop for a mortgage. But before that, you have to go over the preliminary steps of getting pre-qualified for a mortgage.

If you want to become eligible for a mortgage, you must give all information such as your assets, income and other liabilities to the lender. Based on these the lender will give you an estimate of how much you can borrow. The whole procedure is informal, the lender does not charge you fee or verify any of the information provided by you and does not guarantee an approval for a mortgage amount applied.

The pre-qualification process does not give you any guarantee loan approval as such; it provides a fair estimate on how much money are the banks or the mortgage lenders ready to offer you. This will give you an estimate to work with and gives you the freedom to choose the type of properties that fall within your range.

If you care about lifetime cost or monthly payment, one of which that can help you with is Mortgage Calculator.

This are designed for individuals who would like to assess how much money they can afford to borrow for the purchase of a property, or to refinance a mortgage. It can also be used for comparing different scenarios for which a potential borrow maybe considering. This type of system may also helps to provide the knowledge of what the monthly payments may be. Consumers also learn any specific rates of interest that may be present within the loan. And finally, mortgage calculator provides an incredible peace of mind to most buyers.

Article by John Hoots of Chicago, who is a specialist in real estate investments. For more information on mortgage brokers in Chicago, visit his site today.


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