Loans Information |
Bridge Loan
A buyer of a new home may find himself or herself in an awkward position when he or she is unable to come up with the promised down payment on account of the existing home not being sold before closing on the new home purchase. This puts the deal to buy the new home in jeopardy. To emerge from this position, the buyer could avail of a bridge loan by which he or she can borrow against the equity in the existing home. The larger the equity in the home, larger can be the amount that you can borrow. The loan can be settled when the existing home is sold. Considering the purpose for which a mortgage bridge loan is taken, the time period for which it is granted generally is short extending from six months to one year. The interest rate as well as the fees for obtaining home mortgage bridge loans is relatively high. This is so due to the short term nature of the loan. You don't have to pay interest until you have sold your existing home. On selling the home, the principal as well as the accrued interest can be repaid using the proceeds from the sale. It should, however, be noted that your gain on the sale is reduced to the extent of the fees paid to obtain the home bridge loan and the interest paid on the loan. Home bridge loan strategies: 1) Borrow only against your current home. The loan can be obtained against the equity in your existing home. 2) Since the interest paid on a home bridge loan is tax deductible, ensure that you claim the deductible in your tax return. 3) It may so happen that you may not be able to sell your home before the loan becomes due. Therefore, ensure that there is a clause in the loan contract which allows you to extent the loan term, if required. 4) Also ensure that there is no penalty clause in the loan contract in case you are in a position to repay the loan before it falls due. This article may be freely distributed providing no alterations are made to the text and the links remains intact. Copyright © www.1st-onlineloans.com - All rights reserved. For online loans & finance please visit us at http://www.1st-onlineloans.com
MORE RESOURCES: Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting |
RELATED ARTICLES
Why Choose a Secured Personal Loan? Listed below are some of the many reasons why you should choose a secured personal loan. A secured personal loan is often referred to as a homeowner loan. Guide to Loan Terms Listed below is a guide to loan terms. It is a useful list of definitions of loan terms that may or may not be familiar to you. Useful Tips On Buying A New Or Used Car Buying A New Car: A new car is second only to a home as the most expensive purchase many consumers make. That's why it's important to know how to make a smart deal. Law Practice Finance How do you finance a growing practice? It is impossible to have a successful practice without good cases and managing good cases to a successful conclusion requires money for working capital. So, how does a growing practice secure the working capital it needs?Historically, growing practices in need of working capital have had limited financing alternatives. What Is A Payment Protection Plan? A Payment Protection Plan is an insurance cover you would normally take out when you apply for a loan in order to have peace of mind because no matter how healthy you feel today, nobody knows what lies round the corner tomorrow. Nobody is immune from unemployment or illness, which is why Payment Protection Plans are offered as a means of protecting loan payments. Quick Cash Advance Payday Loan - Get it Free or Cheap If you are looking at getting a payday loan or a cash advance loan, you probably already know that one of the main drawbacks to getting one of these types of loans is that the fees can be so high.The positive side of getting a payday loan or a cash advance loan is that they are so convenient. A General Discussion about Unsecured Personal Loans in the UK Financial Market Personal loans are offered by lenders such as banks and building societies and are available in a variety of formats, each of which may differ in the possible size, term and purpose of the loan you need. The internet has widened the choice of lenders available supplying personal loans online. Information About Adverse Credit Homeowner Loans While looking for adverse credit homeowner loans it can seem like you're fighting a losing battle. You might think that no lender will want to give you a loan because of your credit? but you'd be mistaken. Holiday Personal Loans - When the Traveller Within You Wants to Break Free If you are a traveller by heart then perhaps every holiday you wait for a chance to fly away somewhere around the world. The world is full of so many cultures and colours. A Secured Loan Could Save You Money What is a Secured Loan?A secured loan is any loan that is secured on your home or property. It is any loan which requires you to provide the lender with some form of security other than just a promise to pay. Online Loans: The Easy Way to Apply The internet is a great place to find the right lender for obtaining a loan. One can apply online by filling out a simple application and submitting it with just a few clicks of the mouse. What is a Secured Personal Loan? A secured personal loan is the generic term for a loan. Essentially, a secured personal loan is one that is secured against your property. Why Choose a Personal Secured Loan? Listed below are some of the many reasons why choosing a personal secured loan makes good sense. Personal secured loans are also commonly known as a homeowner loan. Securing Debt Consolidation Secured Loans If you're like most people, then you've got debt in your life? and if that debt is getting out of hand, you might want to consider debt consolidation secured loans.These loans are designed for people who find themselves in debt beyond their means to reasonably pay it back; the loans pay off either a portion or the total sum of their debts so that there is only a low monthly loan payment instead of the various debts that were consolidated. Finding the Right Online Loan for You If you're looking for an online loan, you might be having problems deciding which type of loan and lender is best for you. While you can get an online loan from several different types of lenders, the interest rates, loan terms, and collateral requirements tend to differ from one to the next. Money With The Click of a Mouse Online payday loans seem to be popping up everywhere. A simple web search will positively crowd your screen with online payday loans sites hoping to get your business. 8 Point Checklist: Evaluating Online Vendors Here are 8 things to consider, when evaluating lenders online:Website DesignPrivacy PolicyAbout UsPopularityReputationShort FormPoints, Fees, Terms and RatesCommunication1. Website Design:The webpage is, in fact, the storefront of the internet. What Type of Loan Do You Need? There are many types of loans available to consumers. There is no shortage of people willing to lend money to qualified individuals. What is a Loan? A loan is money that you borrow and agree to pay back over a set period of time with interest. The amount of money you borrow is called principal, and interest is the cost for borrowing the money. Debunking the FAFSA Myth With the plethora of big-business entities jockeying for the money of students on the path to becoming well-to-do responsible consumers with a house, car, and 1.5 children, it's often missed that the US Government is the first place to start when planning student finances. |
home | site map | contact us |