Due to more flexible features in the loan, a Revolving Line of Credit, a Line of Credit Home Loan, and a Home Equity Loan got more famous by a lot of people now a days.
The home equity loan has a lot of names like Revolving Line of Credit, a Line of Credit Home Loan, as this type of loan is admired due to its features and flexibility
Maximum flexibility with your finances is allowed by a home equity loan.
With an intention to carry out renovations, invest in shares, or purchase other’s investment property or bill payments you can utilize this line of credit.
Consider the following pros and cons before you decide on a Home Equity Loan:
Advantages of a Home Equity Loan
* A home equity line of credit offers a much lower rate of interest than credit cards * Interest paid on your home equity line of credit is tax deductible, a benefit not available with credit cards * Flexible payment options – Some lenders offer interest only equity lines of credit which gives you the option to pay only the interest for a pre-determined amount of time or pay interest plus as much or as little principal as you want * Accessibility – Money is easily accessed by cheque or ATM card linked to this loan * Repayments can be made in full or on a monthly basis * Extra repayments are allowed at any time * Cheque book facilities are available if needed
Home Equity Loan Cons
The interest rate of a home equity line of credit alters with the prime rate. There is also a border that is added to the interest rate, which is set and is determined at the time of application Higher interest rates are attracted than your standard variable rate loans
Low Doc Home Loan: Are you scratching your head wondering whether you can attain finance or not if you are self employed and you don’t have your fiscal conditions in place.
A Low Doc Home Loan is a very plain and simple fast loan offered to all the self employed borrowers. Since they are not in a position to provide full financial statements and also they cannot present income evidence.
Standard and Premium ‘low-doc loans’ are offered by many lenders in the market as these large number of lenders are assuming the increasing trend of low doc home loan products with an option of fixed or variable interest rates.
With access to hundreds of lenders and the leading home loans on the market, you can be sure with DirectMoney HomeLoans, we will find the best rate and featured home loan for you.
If your loan arrives at 80% to value ratio(LVR), based on the lender you are required to pay for Lender Mortgage Insurance (LMI). Some lenders charge more interest rate for these products because the risk connected with self employed customers is high. The lender will reduce the interest rates when the customer is ready to show their tax assessments after some time.
Consider the following pros and cons before you decide on a low doc home loan:
Advantages
Financial proofs not needed. Instead of tax returns Simple statement of financials are necessary Non-traditional and irregular income sources are considered
Disadvantages
Higher interest rates and fees are to be paid Appropriate to higher repayments your cash flows might suffer