Home Loan Insturctions|
by Sam Pestimi
It is not difficult, these days, with the help of an home
loan plan that is available on the market, to own a home.
Be sure to gather all the details in your mind for a
specific home loan plan before you decide on it. Ask
yourself some hard-hitting questions to help yourself awake
from your unknowledgable state.
Do want to have a Variable Rate or a Fixed Rate loan?
Variable rate loans are normally applied in any case. Be
specific, because during the repayment period, the rate of
interest may vary according to the ever-changing policies
of the financial companies.
What's the motive of the floating rate? The lender sets the
lending rate in which the floating rates are in relation
to. The interest rate will usually contain a regular
"extension" to the PLR (Prime Lending Rate).
How often is the peg changed? Make it sure that your PLR is
not changed constantly. If you have any doubts then discuss
it with your lender.
For the whole term of the loan; is there a fixed rate? a
"reset" clause that provides the lender with the right to
revise the interest rate low or high once in 3 or 5 years.
Do I have a substitute opportunity? Be sure whether you
have any option to swap the loan plans or not? Are there
confines on pre-payment? There may be some restrictions on
the number of payments you are paying to the lender, even
if you want to pay more. Is there a capture charge? In
case, if some new lender or the rival company is issuing
your pay checks to repay the loans, then there is capture
or takeover fee will be charged by the old lender.
Are there any extra invisible charges? You should be aware
of any charges that can cause you to loose money; whether
they be visible or invisible.Examples are administrative
fee, sanction fee,processing fee, and late charges.
Am I able to look at the loan agreement? Always read a
document before you sign it. Read every line before you
sign, because, even though it may be a lot to read, you
can't afford to ignore it. If you still feel uncomfortable,
speak with the manager, or someone else who will know the
answers to your questions. don't leave a single detail
Finally, when in doubt, protest. If you find any revision
in interest rates or changes in the terms of your loan,
immediately get in touch with your home loan company to
clarify the issue.
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