Tag Archives: ownership

Are you ready to be a homeowner?

June 28, 2020   Loan Tips

There is certainly no doubt that everybody wants to own a home. To not have to pay rent, to have some equity, and, hopefully, to have something that actually builds value over time, perhaps providing you with a sufficient fund for when you reach retirement. Perhaps most importantly, however, is that it is a home that you own.

Home ownership is a dream for most people, there is no doubt about that. Today, that dream is more accessible to more people than it has typically been in the past. However, not everybody is ready to own a home.

There are a lot of things to consider before taking that first step towards home ownership. Buying a home can be a great experience, but it is always a large responsibility, so you really need to stop and consider whether or not it’s a responsibility that you’re willing to take on right now.

In an effort to help you reach that decision carefully, we’ll provide you with a simple checklist for the potential new home owner. Consider these to be some basic questions to ask yourself:

1. Am I ready and able to settle down?

“Settling down” might not mean “permanently”. It’s certainly possible to buy a home, sell it, and move within a few years time. However, you need to consider whether or not your lifestyle really accommodates home ownership. Do you spend most of the year travelling for work? If so, buying a home might not be top priority. Rather, it may be wiser to start saving and investing so that you can afford a home when you’re ready.

2. Do I want the added responsibility of paying off a mortgage?

To be perfectly frank, it is possible to arrange a mortgage deal that will have you paying less per month than many people pay simply to rent an apartment. However, the consequences for failing to make mortgage payments on a timely, regular basis can be more severe than the consequences for being late making rent on an apartment. Simply put, a home owner’s credit is on the line.

3. Can I afford a home?

The recession and the housing crisis have been difficult on everyone. If you are one of the many struggling to make ends meet, then we refer to point two: Taking out a mortgage will only compound your problems, not solve them.

We don’t mean to scare anyone away from pursuing the dream of buying their first home, we simply want to make clear the weight of the responsibilities home ownership carries.

All of this considered, if you are in fact ready to become a home owner, then by all means, do a little research and find a home loan deal that will work for you. Just bear in mind that the key word there is ‘research’. Once you’ve decided to become a home owner, you still have a number of decisions lying ahead of you, so make sure to educate yourself and make the choices that will help you achieve your goals.

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Homeowner Personal Loan – The Advantages Of Ownership

January 15, 2020   Auto Loans

When you are looking for finance to fulfill your personal needs, the main problem is to get the amount of money you need. However, you probably want to pay the least possible amount of interests for that money too and you will also want to have low monthly installments and as much time as possible to repay the loan. Being a home owner will guarantee that you get the best terms on personal loans. Let’s analyze how:

Ownership

Even though we are talking about home ownership, it does not hurt to give a wider idea of what ownership implies as a legal and economic term. Ownership refers to possession of an asset, any asset. Legally speaking, there is a distinction between movable property and immovable property. The first category constitutes personal assets and the second one, real assets (better known as real estate). Furthermore, there is another distinction between non-registered movable property (i.e. computers, house appliances) and registered movable property (i.e. Cars, Vans, Yachts).

Some personal assets (especially registered personal property) and real assets can be used as collateral to secure a loan. This entitles the lender to take legal action directly against the property and recover his money from the selling of the asset in a short term legal process. This greatly reduces the risk of lending money and thus, the interest rate charged for these loans is considerably lower.

Benefits Of Home Ownership

However, owning any asset (especially real estate) contributes to getting lower interest rates not only when applying for secured personal loans, but when applying for unsecured personal loans too. Ownership is generally a guarantee for the lender because it implies solvency (the ability to meet financial obligations on time.) in many ways. For starters, maintaining a property is not cheap, and thus, it shows the lender that you have been able to administrate your finances properly. But it also implies that in case you cannot afford the monthly payments and the lender has to resort to legal means to recover his money, there are more probabilities he will be able to get enough money from your assets to recover the amount owed and any legal fees he might incur in.

Lower rates are not the only benefit you can get from home ownership. The amount of money you can request is also an important factor. Home owners, due to how the property contributes to his solvency, can get higher loan amounts either with secured personal loans or unsecured personal loans. It really depends on how many assets you have and the value of each one whether you can get a higher loan amount with a secured loan or an unsecured loan. This is due to the fact that secured loans can offer as much money as the property’s value while the amount of money you can request on an unsecured loan is related to the whole value of all the debtor’s assets.

Furthermore, homeowners will also get longer repayment programs. Since the length of the loan is linked directly with the risk involved for the lender in the financial transaction and given that homeowners imply a considerable lower risk, homeowner personal loans have extended repayment plans with more flexible terms. And as a consequence of lower rates and longer repayment programs, homeowners also get lower monthly payments that are easily afforded.

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