Let's Talk About Home Equity Loans

A home equity loan allows you as a homeowner to get a loan by using the equity in your home as collateral. The equity consists of whatever funds you have invested in your property in order to own it or improve it.

Since it is a debt against your own property, which you are in actual possession of, a home equity loan is a secured debt. The property can be required to be sold if the creditor wants the money back that you have borrowed.

Home Equity Loan Helps Prepare for Sale

Realtors refer to a home's ability to make a great first impression as "curb appeal." When people view a handsome house from the street, they're enticed to go in and have a look. Spending money to improve property always increases the chances of getting a higher price in a shorter amount of time. Getting those results is especially important now that the housing market has begun to cool off.

Best results for home equity upgrades

Three of the most productive, market-tested places to invest when doing a makeover are:

1. The kitchen: Money spent on kitchen upgrades returns a high yield, often more than dollar-for-dollar. If you can't afford, or don't need, a complete overhaul, concentrate on specifics like new appliances, flooring, and attractive, functional lighting.
2. The bathroom: If you can create another bathroom-or half bath-without disrupting the floor plan, this is a solid investment. When Realtors search for homes on behalf of buyers, they limit the search according to the number of bedrooms and bathrooms. By adding a full or half bath, you may automatically double the number of potential buyers.
3. Paint and trim: A relatively inexpensive approach for a home makeover is to concentrate on freshening it up with a good paint job in neutral colors that have wide aesthetic appeal. Not only does this make the house look better while protecting it from the elements, it also expresses a sense that you take pride in home ownership. Buyers and their building inspectors feel more confident about homes that are well maintained, and a freshly painted home conveys that attitude.

Home equity loans: convenient and easy

To pay for such makeover projects as landscaping, painting, upgrading kitchen appliances, or refinishing hardwood floors, a home equity loan is an easy and convenient option. These loans have low closing costs and can be processed quickly. And if you're planning to sell, you can choose an interest-only loan and enjoy inexpensive monthly payments. Since you'll pay off the balance at closing, the out-of-pocket cost of borrowing the money will be minimal. Many homeowners who use a home equity loan to spruce up a house for sale don't make any monthly payments, because the house typically closes before the first installment comes due.

There is one catch, however: Because lenders will not let you borrow money against a house that's already for sale, you need to plan ahead and secure the home equity loan before you list the property. Once you have the cash in hand, you can fix up the house and call the realtor.

Home equity loan vs. Home equity line of credit

A home equity loan can be obtained in a lump sum or used as a revolving home equity line of credit. (HELOC)

A home equity loan can be either of the following:

• A fixed rate mortgage
• An adjustable rate mortgage

A homeowner who requires more money in large amounts usually applies for a home equity loan. Some expenses that make a home equity loan useful are:

• Debt Consolidation
  
• Home repairs
• Medical bills
• College tuition for family members

Tax benefits of home equity loans

A home equity loan is also beneficial because the home equity loan rate charged is usually tax deductible, as the loan is used for its primary functions. You can use a home equity loan calculator to check what various home equity loan rates will mean for your monthly payments.

More information on home equity loans

If you would like more information on home equity loan rates, and how to find the best home equity loan, please go through our relevant Google Ads on this page. Home equity loan specialists will get in touch with you to consider your options and see how a home equity loan can help you make the most of what you have.

There are several choices available for homeowners to free up the equity they possess in their homes.

We would be glard to know if this information was of help to you.

(c) MortgageLoan.com, 4721 E. Moody Blvd. Unit # 101 Bunnell, FL 32110

Home loans in Nigeria

Source your home loans from within-

Nigeria.

Zenith Bank Plc Nigeria is partnering with United States Agency for International Development (USAID) to make available mortgage loans to middle and low income Nigerians for the purchase of primary residence in Nigeria.

Apply and submit request online


To enable the bank access your eligibility for the loan, check below for:
Checklist for Mortgage Loan Application
Eligibility Criteria


Checklist for Mortgage Loan Application

• 
  Completed Mortgage Loan Application Form
  
• Offer Letter from Landlord/Agent
  
• Copy of Title Document of Property to be Purchased
  
• Reference Letter from Current Employer [ Indicating Status, Annul Salary and Existing Loans(if any) ]
• 
  Copy of Drivers Licence or National ID card and office ID card
  
• Pay Slip for the Last 6 Months
  
• Copy of your Bank Account Statement for the Last 6 Months (if not a Zenith Bank account holder)
• 
  Updated Resume
• 
  2 Passport Photographs (photo page only)
• 
  Copy of Spouse’s Letter of Employment Indicating Salary (If Applicable)
• 
  Opening of Salary Account in Zenith Bank
• 
  Copy of Tax Clearance Certificate for the Last two (2) Years
• 
  Sworn Affidavit that combined household income is below N8m (or $62,000.00).
• 
  Copies of Paid Utility Bills (Electricity/Telephone) for the Past Six (6) Months
• 
  Copy of Rent Receipt for Current Year.
  
  
  NB: These documents should be submitted with the application form, after you have been pre-qualified by the Bank.
  
  THIS MORTGAGE LOAN IS FINANCED BY ZENITH BANK PLC IN PARTNERSHIP WITH THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID).
  
  
  Eligibility Criteria
  
  Facility Type: Adjustable Rate Mortgage
  
  Maximum Loan per Individual:
  N8m
  
  Maximum Cost of House:
  N10m
  
  Combined Household Gross Income:
  N8m max
  
  Equity Contribution:
  Minimum 20%
  
  Tenor:
  3-12 Years
  
  Principal Repayment:
  Monthly, Quarterly, Half-Yearly or Yearly
  
  Security:
  Clean Title Document of Property
  
  Target Customers:
  Economically engaged Nigerian residing in Abuja, Lagos, Port Harcourt and Kano Areas.
  
  Purpose:
  To purchase "completed" housing unit only
  
  Use of Property:
  Primary Residence (i.e. Owner-occupier)
  
  
  
  THIS MORTGAGE LOAN IS FINANCED BY ZENITH BANK PLC IN PARTNERSHIP WITH THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID).
  
  Apply and submit request online
  -------------------------------------------------

Like other banks and financial services rendered by the banking industry and mortgage institutions, First bank of Nigeria has some good things to offer as you source you HOME LOANS.

U-First is a suite of retail and consumer loan products designed for individuals and small businesses to enable them meet their business and personal needs. Repayment structure is flexible and in sync with the best global practices. Below is a listing of all the products contained in the suite:


C0nsumer products (For individuals)

Household Equipment Loans View Brochure *
Personal Home Loans View Brochure *

First bank also have a provision for loans such as:

• 
  owner-occupier property
• 
  commercial residential property

Application Requirements:

• 
  Ownership of plot of land to be developed, or Identification of an already developed property to be acquired
• 
  Evidence of income from employment or business adequate to service the loan
  
• Bill of quantity/Valuation report in case of outright purchase
  
• Plot of land/property must be in an urban location

See:http://www.firstbanknigeria.com/prodserv/CI/psci_mort.asp




Mortgage Finance in Nigeria



ASO SAVINGS AND LOANS

Some ASO Products

• 
  ASO Target Savings Account Allows a customer to save towards specific targets such as the purchase of land, property renovations, furniture, electrical appliances, office equipment, etc.
• 
  
• Social Mortgage Account Accounts that enable customers benefit from the National Housing Fund - NHF Scheme Loan administration and management
• 
  
• ASO Commercial Mortgage Account Securing mortgages to buy properties Securing mortgages to develop properties Attractive interest rate Loan administration and management. Our Services Commercial Real Estate Advisory Issuance of Bonds Issuance of Bank Guarantees LPO Financing Contract Financing Funds Management Financial Advisory and Consulting Services.

For more information on ASO services and products, visit:ASO SAVINGS AND LOANS LIMITED


Others are:

SSL PROPERTIES LIMITED

UNION HOMES

For information on loan and mortgages also see: My lot

Note: These information is just to give you an idea of what HOME LOANS and MORTGAGE services that are obtainable within. Do take your time to study and be sure of who you are dealing with, better still, consult your local professionals.

abagwo@gmail.com

Home Loans

Your Home loans guide

See: Tips on shopping for home loans!

The range of loans available for home financing is enough to cause anyone to give up. But take heart – if you follow these tips, you will find the process far less difficult than you thought!

People are often misled by myths that state that it is almost impossible to get a mortgage, or that all mortgages are about the same with lender's rates being almost identical. In actuality, most people just don't get the right information before they jump into the mortgage pool. Educate yourself before your next loan.

Be prepared.

It is important to know how much you can afford to spend before you even begin your search. Research your credit history by requesting a copy of your credit report from an auditing firm. Your lender will base your loan on your FICO Score - a mathematical model created by the Experian credit bureau as a tool for lenders to use in evaluating the risk associated with lending you money. Your FICO Score is compiled from a series of questions based on your credit report and your debt-to-income ratio. It is helpful to have both on hand before you apply for a loan. To figure out your Debt-to-Income Ratio divide your monthly payment obligation on long term debts by your gross monthly income.

Know what things affect your loan.

As stated above both your credit history & debt-to-income-ratio affect the terms of your loan through your FICO Score. If you have good credit & your monthly income far surpasses your monthly debt obligations you most likely will get approved at a lower interest rate. However, if your monthly income barely covers your minimum debt obligations, even if you have good credit, you may not walk away with the lowest interest rate around.

The other important factor to consider is what you can afford as a down payment, if you are buying a new house... and/or how much equity you have in your existing home, if you are refinancing.

Shop, Shop, Shop!

One of the biggest mistakes that most consumers make when shopping for a loan is to only contact one lender. Consider this - would you only go to one dealership if you were buying a new car? Mortgages, like car prices, are negotiable. The best way to shop for a mortgage is to request comparable quotes from several brokers in your area. Mortgage brokers can do this for you. By shopping your loan with dozens of lenders and negotiating the rate, they can get you the best possible loan. Below are a few links to help you better understand the process:

Glossary of Mortgage Terms

Loan Types

Customize Your Loan

Know which loan is best for you.

There are advantages & disadvantages to every loan. Make a point to find out what they are before applying. Visit our page on loan types to find out the advantages & disadvantages to each type of loan.

Determine the total loan costs.

To get the best loan, look at the annual percentage rate (APR). Many people make a mistake by thinking that the lower the interest rate the better the loan. This is not always the case. The lender usually charges an initial fee for processing your loan - this is called "points." Don't be confused by a low interest rate if the points are high. It could turn out that your total cost may be more than you anticipated.

When selecting a fixed-rate loan, the best way to determine which terms are better is to add up the dollars you will pay for interest and fees, including points, over the life expectancy of the loan.

Points - good or bad? It really depends on if you are looking at the short term or the long term. The longer you plan to stay in your home, the more points you can afford to pay to "buy down" the interest rate. Points are deductible, and the lower interest will more than pay for the points over time. For more information on points: Points or No Points

Know the ups & downs of lock-ins.

A lock-in is a lender's written promise to hold a set rate for a specified time period until the loan is completely processed. The upside is that this locks in a lower rate when rates are changing daily. The downside is that lock-ins often cost extra and if rates go down you are locked into the higher rate.

Be comfortable with your mortgage broker.

The most common mistake that people make is that they don't spend enough time choosing their mortgage broker. Mortgage brokers are not all equal in expertise, experience, training & trustworthiness. When speaking with a mortgage broker for the first time ask yourself the following important questions:

	Do I feel comfortable with this person?
	Do they take time to fully answer my questions?
	Do they appear to know what they are doing?
	Do they seem to want my future business?

These tips should help you find the right loan for your needs.