Facts and Tips about New Construction Home Loans

New construction home loans are not the same as your typical, everyday home loans. They tend to have different requirements and adhere to different rules. If you wish to know more about new home construction loans, read on. You just might find an easier way to own your dream home.

The Definition of New Construction Home Loans

When you ask for this type of loan, you're asking the mortgage provider to give you the money you need to build your own home.

The Basis of Approval

First and foremost, your mortgage provider would require a detailed explanation as well as accounting on the estimated costs for your home-building project. They'd want to know how much experience you have in the field of construction, how much you estimate you're going to spend on your house and how it's going to look in the end.

Only after you've passed the initial screening, they ask you to submit the usual documents that would enlighten them about your earning capabilities and credit reputation.

The Types of Construction Loans

There are different types of construction loans.

A construction to permanent loan is a two-in-one loan ideal for most people since it would only require you to submit documents and pay closing costs once. This type of loan is a combination of a construction loan and permanent financing. Rather than applying for a construction loan initially, then following it up with a typical home loan, an approved CTP loan can help you save money and time.

A remodeler loan is a second mortgage that's designed to provide financing for a home improvement or remodeling project.

A bridge loan allows you to use the equity on your present home as down payment for your new home.

Lastly, a lot/land loan gives you the resources to buy land instead of building a home.

Home Loans [http://www.WetPluto.com/A-Guide-To-Home-Equity-Loan-Rates.html] provides detailed information on Home Loans, Home Equity Loans, Home Improvement Loans, Home Equity Loan Rates and more. Home Loans is affiliated with Home Improvement Loans Info [http://www.i-homeimprovementloans.com].

Article Source: http://EzineArticles.com/expert/Kent_Pinkerton/44498

Mortgage Reducing Term Assurance (MRTA)

How much should I pay for insurance?

That's exactly how much you need to find out - The MRTA calculator gives you the figure you need to calculate your mortgage reducing term assurance or MRTA. First, the definition of MRTA.

MRTA is defined as Mortgage Reducing Term Assurance; reducing term life assurance specially designed to protect a loan borrower against death or TPD (total permanent disability) due to natural or accidental causes.

>> Firstly, check your MRTA Premium and how much you should pay for your insurance.

MRTA is very often a lump sum and the lending institution will arrange fire and Mortgage Reducing Term Assurance of insurance cover. Should anything happen to you during the period of the loan requested/applied, the Insurance Company which issued the policy will pay the outstanding balance of the repayment to the bank/finance institution.

How will MRTA benefit you? 

1. Premium financing Pay a small sum to accumulate over with the plan. It's affordable and reliable.
2. Single premium payment Full protection for a one-time fee. For life.
3. Liberal TPD explanatory If you cannot perform your regular work for six (6) consecutive months, TPD benefits will be feasible. Some packages offer only permanent disability.
4. Guaranteed acceptance Acceptance is guaranteed for loan borrowings up to RM150,000 and entry ages up to 50 years next birthday. Subject to other terms and conditions.
5. 24 hours worldwide coverage Anywhere in the world you're covered, not only in the respective country you apply.
6. Guaranteed benefit to settle your balance mortgage The repayment of your housing loan will be settle should there be any causes of death of TPD.

>> Get the MRTA Calculator here [http://www.fiscal-wise.com.my/FiscalWiseWeb/FinancialTool/MRTA.aspx].

Written by John of Fiscal

http://malaysiahomeloan.blogspot.com/

Article Source: http://EzineArticles.com/expert/John_Li/222723

What to Know Before Getting a Reverse Mortgage

After living in a home for years and years, many people consider using the equity in the home as a resource for financing other expenses, such as tuition or to pay down debt. A reverse mortgage is one option for those who have owned their home for a long time. Senior citizens primarily utilize them. The process is not more difficult than a traditional home mortgage, but there are many differences that the applicant must know about before moving forward.

Definition

This is a special loan that provides homeowners with the opportunity to use part of their home equity as a liquid asset. This essentially turns part of the home's value into tangible cash that can be used for other expenses. The accrued equity can be paid out to the homeowner to use as they see fit. While this sounds much like a home equity loan, there are some substantial differences. This type of arrangement does not require repayment until or unless the homeowner is no longer using the house as his or her primary residence.

Significant Differences in Home Equity Loans

There are some additional differences between a reverse mortgage and a home equity loan. Standard equity loans require a regular monthly repayment on the principal and interest on the loan. The reverse mortgage pays the homeowner rather than making payments to the bank. Utility payments, insurance, and any taxes will have to be paid, however.

Home Loans That Are Eligible

Not all housing situations are eligible for this type of specialized loan. The home must be a single-family house with the owner living in it. Any house that meets FHA standards is also approved for these loans, including condos and manufactured dwellings.

Questions About Inheritance

A common question that comes up when someone inquires about a reverse mortgage is how the house will be dealt with after they pass away. Many homeowners want to leave a home behind as an asset for family members to utilize. These specialized loans do not cause debt to be passed to the estate. Instead, any money paid to the owner, along with finance charges and interest, will have to be repaid to the bank. If it is sold and the profit is greater than the selling price, the extra money will be provided to the estate to be distributed among heirs.

Cancelling the Loan

While some find this arrangement appealing, others may decide to change their mind and cancel the loan. The owner has three calendar days to cancel the process. Different lenders will have varied approaches with how they handle this process, which is referred to as a three-day right of rescission.

Before jumping into a reverse mortgage, be sure to fully review the information provided by the lender in order to fully understand the process. If there are any questions, it is best to ask them well in advance of moving forward with the lending process.

When looking for a reverse mortgage, homeowners visit FirstBank Mortgage. Learn more at http://firstbankreversemortgage.com/.

Article Source: http://EzineArticles.com/expert/Andrew_Stratton/83489