Tag Archives: new home
Financing a new home in Chicago (Page 1 of 2)
Chicago is the largest city in the state of Illinois and also the third most populated city in the United States of America, with almost 3 million people. Chicago is located along the southwestern shore of Lake Michigan and when combined with its suburbs and the nine surrounding counties in Illinois, the metropolitan area known as Chicagoland encompasses a population of 9.4 million. Nowadays Chicago is known as a major transportation, business, and architectural center of the US and it is the economic, business, financial and cultural capital of the Midwest. The Chicago area is moderately expensive; the home price median here is nearer the national median than homes in spots such as New York City. Buyers can probably spend about three times their incomes, depending on the part of the area where they’re house-hunting.
Chicago’s suburban real estate market is as vibrant as the city itself. The suburbs have developed both commercial as well as residential real estate at a tremendous pace. A large number of properties are always available for purchase in Chicago’s suburban areas such as Lake County, Kane and DeKalb counties and DuPage and Will counties. There are real estate firms that specialize in one of the suburbs, while others deal with all of them. When financing a new home in Chicago, have in mind that the real estate prices are high. Northern suburbs are considered “elite”.
There are many ways to finance a new home in Chicago. It all depends on your credit history, the price of the property and your income. The next paragraphs give brief explanations on some of the methods for financing a new home in the city of Chicago.
The first thing to understand is the difference between a variable, or adjustable interest rate mortgage and a fixed rate mortgage. With a fixed rate mortgage, the monthly payments remain the same over the period of the loan. The adjustable rate mortgage has a lower introductory interest rate, but it may vary over the duration of your loan. So depending on the interest rates, whether they are lowered or raised each month, your monthly mortgage payments will also change accordingly.
When financing your new Chicago home through a loan, no matter if it is adjustable or fixed rate, you have to consider the length of the loan, in terms of how long you finance your home. The most common terms are 15, 25, 30, 40 and now even 50 year mortgages in some areas. Of course, the longer the period the more you will pay in interest over the duration of the loan.
With a FHA home loan you can purchase a single family home, condo, house, or apartment in one of the neighborhoods in Chicago. This FHA home loan is mostly used by first time home buyers because it allows the purchase of a home with a lower down payment, in some cases as low as 3%. This form of new home financing requires you to have a good credit history and enough income to cover the loan and your other financial obligations.
The Chicago City Mortgage program offers qualified first-time homebuyers 30-year, fixed-interest mortgages at competitive interest rates and a gift of 4 percent of the mortgage amount to cover down payment and closing costs.
What Is So Personal About A Personal Loan?
When we are asked, “What do you want to see Mr. Jones for?” and you say its personal, you actually mean, “mind your own business”. And personal loans are exactly that: The lender minds his own business: He grants you a loan, no questions asked. Sometimes there is a limited term, some specific interest or condition, but it will give you the freedom of using it for anything at all.
For Example
A new home mortgage is a loan to be used only to buy a new home. The “prize”, so to speak, is a 20 or 30 year term to repay the loan and a very low interest. A car loan is good when you are using it to buy a car. The security becomes the car itself and you dont need to worry about affecting your home, your business, or somebody willing to act as collateral.
Theyre Just So Personal
Personal loans on the other hand are a special kind of their own. The usual terms are between 6 and 36 months and interest rates are also intermediate, between the mortgage rates and credit card rates, which are the highest.
So, APRs usually fluctuate around 6% to 8%. These conditions make personal loans accessible, but not too much and on the other hand, they have a fairly short payback term.
How Do We Know When
to apply for a personal loan and when to go for a different line of credit? Think of it in the following terms: Is there a better option for what you want it? If it is the case of a business you want to develop, then you have special “small business loans” that will get you better conditions based on your business plan, cash flow and market share.
A Car Loan
If it is a car you want, then better go to a car loan broker straight out. Hes got the best conditions as well as insurance and also the possibility to get you a good deal on the purchase itself.
Home Loans
These can be got through the line of mortgage loans and we all know how looooong they are to pay, although the interest is so conveniently low. Then, buying a home is not an option for a personal loan.
So, Theres A Lot To Choose From
Right, there are so many things to use a personal loan for, that the list would exceed the space here. So, to give just a few examples, you can change your furniture, get a whacking holiday, renew your wardrobe and so many other things that just cant be used as collateral.
And Thats The Point, Precisely.
Many times, say, not considering bad credit, personal loans are granted, based on track records, good credit, good job, good bank reports and other good information that the lender can obtain.
The loan conditions are not so great, but you have the advantage of just signing for it and thats it, besides the fact that you can use it for something that you just dont need to declare. No questions asked.
Securities
If a signature is not enough, the lender will ask you for a security, to make sure you will repay. But no one will ever know what you did with the money and no one will ever care. Perhaps you want to pay for something too personal and you dont want your family to know, or even a surprise for your family.
Get One Tailored For You
Check out on-line options. There will be one just right for you, Im sure. Do your homework well and youll be very happy with your decision.