100% Financing – Advantages and Disadvantages

Have you been working hard all your life yet never got to socking away enough money to pay for a traditional mortgage? Or, do you have money but would rather invest it instead of putting down money for a new home? Whether you are short on cash or have cash but just do not want to spend it on housing, you can get a home thanks to 100% financing. Among all the options open to you, no money down financing is one of the most attractive. It’s quick, it’s easy, and it’s definitely not too good to be true.

The truth of the matter is, 100% financing is not without its disadvantages. It does.

Advantages

1. You don’t have to worry about down payment.
Shop around for the most competitive mortgage rate available. Then, arrange for a lender to provide 100 financing.

Here’s how it works: lenders often require would-be homeowners to make a 20% down payment on the house’s sales price. Now, if your loan exceeds 80% of the house’s sales price, you will be asked to shell out money for PMI or Private Mortgage Insurance. But, you can avoid paying this fee. How? Back your first mortgage with a second mortgage! Your new mortgage is called a piggyback loan, and it takes care of the 20% you do not have the money for. You can repay it much later on using your home equity credit!

2. You save on rent.
As soon as you obtain 100% financing on your new property, you can move into it and save on rent forever.

3. You can use your money in other ways.
Because you’re getting your house using other people’s money, you can make better use of the cash that you did not spend. Invest, it, grow it.

Disadvantages

1. You may still be asked to pay.
Contracts vary. Some may require you to pay closing costs or demand that you make upfront payment on certain fees. To avoid this, sign with the lender offering the most competitive terms for no money down financing.

2. You will be stuck with a higher interest rate.
Even if you have good credit, expect your interest rate to be much higher. This is to be expected because you are after all getting housing under a scheme for 100% financing. Here’s how it works logically: because you are not putting down any cash (cash that normally serves as security on the loan) on your home, you are immediately classified a high-risk borrower. For this reason, you could also be saddled with a repayment period that is longer than usual.

100% financing loans exist, and they exist for a lot of good reasons. Before you take out one for yourself, however, be sure to take the time to weigh the pros and cons of getting such a loan. Also, always read the fine print. You may think you are getting a good deal, only to be hit with over-the-top interest rates much later.

Allegro Mortgages Corp. – Best Broker for All Your Financing Requirements
(416) 987-0008

Unsecured Debt Consolidation Loans Can Help You Get Over Debt Problems Easily!

Having too many debts can be a cause of concern for many people. It can create serious financial problems for people. If you are one such person with financial problem, then you can avail unsecured debt consolidation loan. Are you caught in too many debts? Then you might need these kinds of finances to set things right.

• Running away from debts?
• Need to eliminate creditor harassment?
• Want to eliminate rate of interest?
• Want to get out of debt quickly?
• Pull down your monthly payments to 50%?
• Avoid filing from bankruptcy?
• Save extra interests you pay every month?

Yes, all this is possible with these kinds of finances.

These types of funds are taken out to merge your existing loans and unpaid credit card or store card bills. Like any other unsecured loan it lets you avail them without pledging any collateral.

It serves both a tenant without collateral and a homeowner unwilling to pledge his collateral. Take no risks by pledging your collateral and losing out on them in case of failure to repay your loans on time.

Benefits of personal debt consolidation unsecured loans are:

• Both homeowner and tenant can get rid of debts here

• Involves less risk in contrast to secured consolidation loan

• Approval of loans is quick

• No collateral verification done

Bad consolidation credit debt loan unsecured helps you put all your debts together into one consolidated loan. It can help you make a single lowered bill every month without pledging any collateral. You can easily track your finances and get rid of your debts within a couple of years.

No more juggle around with your multiple debt payments, just seek out for these types of finances. Whatever loans you have pending be it a student loan, holiday loan or loan for wedding, just pool them all together into one consolidated loan and it can be ensured that you will never miss out on the payment dates as it is only one payment date you need to keep track of.

Deal with a single lender as against your multiple ones and reduce or completely freeze your interest rates on loans. All payments you now make towards these types of finances will cover up the principal rather than your interest rates.

So make that extra money you pay as interest rates yours today. Bring down your monthly outgoings to 50% and smartly get out of debts. Help is within your reach. All you need to do is just click and combat your bad debts easily!

Affordable Car Loans

With many consumers out of work, it is no wonder why lenders have tightened up the purse strings on making loans. Consumers that could qualify before for auto financing are now being turned away from conventional lenders. Many are reverting to the internet for research and auto finance options. Online lenders offer a variety of loan options including products allowing you to purchase a new or used vehicle from a dealership and refinance products giving you the opportunity to refinance an existing loan and in many cases, lowering your monthly payment.

Anyone who has purchased a car in the past knows the normal routine. You find a car you really want at a dealership. You complete an application with the salesperson. Then you get carted off to a finance office where the finance manager tells you what your interest rate and payment is, what type of down payment the lender wants and when your first payment is due. In many cases, all are not what you expected. Online car loans put you, the customer in control. From the time you complete a simple application to the time the lender approves you and gives you the funds to purchase a car is short and you are in control. Be aware of some online lenders that “force” you to go to a particular lender. Check around for an online that allows you to shop at whatever dealership you want.

If you have had some credit problems in the past, all is not lost and the internet is a good place for you as well. Even missing or being late on one payment has forced many consumers into a lower credit category with most lenders. One thing is for certain, you need to know how much you can afford and what you are willing to spend before you ever step foot in the dealership. If not, you will end up paying more than you want.

Here are a few things to consider when shopping online for a car loan:

Research: Make sure you do your homework. Many online company look like they can help but make sure you choose an online company that is an actual lender. An easy way to figure this out is if they have the word “lender” or “lending” in their name. You want to deal directly with the lender so you cut out the “middle man” getting you a better deal.

Options: Make sure you deal with a lender that gives you options. Whether that means you can be flexible on the terms (how long you finance it) or you have control on where you can purchase your vehicle, these are all important pieces and ones you will want to control.

Control: Going online and finding your auto loan puts you, the consumer, in control of the car buying process. Financing a vehicle is the second largest finance transaction most of us will conduct (behind only our house) so you owe it to yourself to find the best deal possible.

The internet is a great way to find affordable car loans and gives the consumer total control of the finance process. To find out more information about online auto loans, visit OpenRoad Lending.