Category Archives: Home Loans

Mortgage calculator

A mortgage calculator can be defined as a system or tool that people use to calculate any possible changes that are bound to happen when the variables that attached to a mortgage loan changes. A mortgage can be defined as a loan that people and businesses use to finance property purchases; this loan is a long term loan therefore a person needs to use a mortgage calculator for them to be able to understand any implications that mortgage variables can have on the monthly payment that the mortgage holder has to pay.

Mortgage calculators are used to calculate mortgage payment when the interest rate changes, the mortgage payment that a person pays for a mortgage loan increases when interest rates increases. Financial institutions use mortgage calculators when they are determining the monthly installment that mortgage holders would be required to pay every month. There are very variables that affect the monthly payment that a person pays for a mortgage and most of these variables are not fixed variables therefore they are subject to change.

A mortgage calculator is not only used to determine the monthly payment that would be made by a certain mortgage holder it is also used to determine the number of years that it would take a person to pay back the mortgage plus interest. People that specialise in calculating mortgage payments for loan seekers use mortgage calculators to get accurate figures.

Home loan interest rates

Home loan interest rates vary depending on the institution you have borrowed money from. Other financial institutions are very expensive as compared to others and as such it is a necessity that before you apply for a loan you should do some research. Home loan interest rates are largely based on the amount the borrower wants to have and the more the money borrowed the more the interest rate.

Financial institutions such as banks normally have fixed interest rates they offer to borrowers, for instance, a bank can require 10 percent of every amount borrowed. Whilst in other institutions the interest rate may fluctuate because of the changes in the economy, for instance when there is high inflation rate in the country the interest rate will also rise and comes back to normal after things have cooled off. Home loan interest rates are calculated by the creditor but it is very important that you know the amount you’re supposed to pay so that you are not cheated upon.

Home loan interest rates differ in a number of ways and people who have houses in low density areas have higher rates than people in medium and high density areas. Finance companies also gauge their interest rates basing on the borrowers financial situation so that he or she is left with money to cater for other living expenses.

Home loans

Home loans are finances that are given to people who want to purchase a flat or house to stay in. There are requirements that people are supposed to meet for them to qualify for a home loan, for instance, the individual should be in possession of the proof of income, proof of residence, proof of identification and should be over 18 years.

The monthly income of the borrower will determine the amount in which he qualifies for, for example, people who have low income can get money enough to purchase houses in high density suburbs whilst people who have high income can qualify for huge loans to purchase homes in low residential areas. Home loans can either be secured or unsecured; the former is whereby the financier is given collateral or warranty which allows to repossess the borrowers property when they fail to repay the money back as stated on the agreement. Unsecured loans do not offer the financier a warranty and they are largely small.

Home loans can be applied online using electronic gadgets such as computers and mobile phones without people having to travel to the financiers premises. Many financial institutions in South Africa if not all have websites online pregnant with all the information and steps for people to follow when applying for home loans. Original documents can be faxed or scanned and emailed to the financier.