100 MORTGAGE LENDERS REQUIRES NO DEPOSIT

2007-03-08 10:33:40

( Financial )



Some people find it difficult to come up with cash as down payment for mortgage. Thus, they refer to 100 mortgage lenders who lend them the full amount of the value of the property they want to mortgage.

Interest Rate and Insurance Premium

100 mortgage lenders charge an above average interest rate and a premium for mortgage indemnity. Interest rates from 100 mortgage lenders can either be fixed or variable. The premium for mortgage indemnity is actually a mortgage insurance that borrowers pay to protect 100 mortgage lenders in case borrowers default on their mortgage repayments. The cost of the insurance varies on the amount of the mortgage. Borrower will pay it until enough equity has been build up on the mortgage.

Substitute for Mortgage Insurance Premium

You can avail of a mortgage known as 80/20 where you can borrow two loans. One loan will allow you to avail of an amount which is up to 80% of the value of the property while the second loan allows you to avail of the remaining 20% of the amount of the mortgage which u can use as a deposit. Using this option will help you avoid paying for a mortgage insurance premium which only benefits 100 mortgage lenders.

Dangers of 100% Mortgage

Borrowing from 100 mortgage lenders can risk you with a negative equity once real estate prices dropped in the market. You might end up paying more for your mortgage while having a lower value on the property that you mortgaged.

Shop Around First for 100 Mortgage Lenders

It is better for mortgage applicants to shop around first for 100 mortgage lenders to compare rates and make sure that they are getting a better deal for their 100% mortgage. Try shopping around first from the top 10 mortgage lenders in the market. Rates among 100 mortgage lenders vary and this can make a difference on the cost of your mortgage. Thus, choose well and ensure you are getting the most from your mortgage.


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