What Is A Split Home Loan And Its Advantages?
Buying a house or trying to consolidate debt using the equity in your existing premises can cause a lot of anxiety. Mainly this is due to the array of home loan products on the market. It is incredible that we all have the choices available to us to finance our homes but unless you are a banker they can be very hard to understand. Everybody is keen to get the best deal for them and that may not be the same deal that worked for other people they know. All in all the research that is requires to ensure that the right choice is made can be quite daunting. It is important, however, that you take the time because a bad decision can really affect your monetary future.
One of the individual situations that people encounter is where a bridging loan comes in. Most people have been in a chain for buying a house and know it can be a very tricky position to be in. The timing of selling your house and buying another rarely works out as you would want it to despite your best efforts and organization skills. This is where a bridging home loan product can come in very handy. The way it works is that the bank agrees to cover both sides of your deal for a limited time. The only thing you need to worry about is whether you can afford to pay for your existing mortgage and the interest on the second house for a short period of time. If you can then this type of finance allows you unprecedented flexibility. A bridging home loan usually lasts anywhere from a couple of weeks up to twelve months.
A subsequent option that you may want to consider when it comes time to refinance your home loan is the split rate home loan. This is the mortgage equivalent of sitting on the fence and now and again that is just the right place to be. If, when it comes time to re mortgage you find yourself in uncertain inexpensive time then this may be just the option for you. The bottom line is that it allows you to have both a fixed term mortgage and a variable one by splitting the loan into two separate portions. This could give you a lot of peace of mind.
The last option you might want to consider is the home equity loan, this is also known as a revolving line of credit or a line of credit home loan. This is the home loan that allows you the most amazing flexibility with your finances. It is essentially a credit facility secured against the equity in your home. It allows you to withdraw funds up to that limit at any time you like. This can be very useful if you have ongoing renovations on the house or you are self employed.
If all of this sounds very interesting but you still don't feel you have a solid enough understanding to move forward on your home loan then you need to call in the experts. The people at DirectMoney Home loans are there to help you make a decision.
One of the individual situations that people encounter is where a bridging loan comes in. Most people have been in a chain for buying a house and know it can be a very tricky position to be in. The timing of selling your house and buying another rarely works out as you would want it to despite your best efforts and organization skills. This is where a bridging home loan product can come in very handy. The way it works is that the bank agrees to cover both sides of your deal for a limited time. The only thing you need to worry about is whether you can afford to pay for your existing mortgage and the interest on the second house for a short period of time. If you can then this type of finance allows you unprecedented flexibility. A bridging home loan usually lasts anywhere from a couple of weeks up to twelve months.
A subsequent option that you may want to consider when it comes time to refinance your home loan is the split rate home loan. This is the mortgage equivalent of sitting on the fence and now and again that is just the right place to be. If, when it comes time to re mortgage you find yourself in uncertain inexpensive time then this may be just the option for you. The bottom line is that it allows you to have both a fixed term mortgage and a variable one by splitting the loan into two separate portions. This could give you a lot of peace of mind.
The last option you might want to consider is the home equity loan, this is also known as a revolving line of credit or a line of credit home loan. This is the home loan that allows you the most amazing flexibility with your finances. It is essentially a credit facility secured against the equity in your home. It allows you to withdraw funds up to that limit at any time you like. This can be very useful if you have ongoing renovations on the house or you are self employed.
If all of this sounds very interesting but you still don't feel you have a solid enough understanding to move forward on your home loan then you need to call in the experts. The people at DirectMoney Home loans are there to help you make a decision.
About the Author:
Guy Baldwin is a director of the website http://www.directmoneyhomeloans.com.au. If you'd like to get assistance contact Directmoney at 1300 882 432 and get the best low rate home loans for you, and their services are free of charge.
posted by Credit Counseling at
11:15 AM
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