Everyone have their own dreams in their life. However, I think we all sharing a same thought here…Having our very first own house (no matter it is permanent or not; land based or caravan) must be one of our life’s goal.
Wait first! Did you know, according to the latest calculation from the Hong Kong specialists, if you want to raise a child from giving born to 18 years old, you must at least have HKD$ 5 million for your child’s education insurance. Yes, you did not read it wrongly, is HKD$ 5 million (about USD$ 834,000) just for ONE child only!
Unbelievable but it is a fact! If you have two or three children, this will be a great headache for sure. You not only need to spend some of your budget in the expenses for the children, you also must think for the new house loan as well.
So, many of the parents right now will try to find home loan to overcome the financial problem. It is not an easy task to find the reliable home loan as we thought here.
First, we need to know what types of home loans we want to involve ourselves in it; it is because they have their pros and cons conditions. For your information, there are two types of home loans and they are:
1) Open end home equity loan
It is also referred as a “home equity line of credit (HELOC)”is a revolving credit loan. When you are not too sure how much home loan will be enough for you, or maybe you want to borrow more in the future, you had better consider the closed end home equity loan.
Pros: This acts like large credit cards.
Cons: The borrowers will need to pay back according to the current rate that fluctuated from time to time.
2) Closed end home equity loan
If you the person that clearly know, how much money you might be need and never have a second thought about refinance in the near future, this open end home equity loan will be a good solution for you.
Pros: Fixed rate; mostly can be due in fifteen years instead of thirty years.
Cons: Should be aware of the “Balloon Payment”.
Beside that, the home loan borrowers also need to understand, that there are fees for the Home loan equity and they are:
Wait first! Did you know, according to the latest calculation from the Hong Kong specialists, if you want to raise a child from giving born to 18 years old, you must at least have HKD$ 5 million for your child’s education insurance. Yes, you did not read it wrongly, is HKD$ 5 million (about USD$ 834,000) just for ONE child only!
Unbelievable but it is a fact! If you have two or three children, this will be a great headache for sure. You not only need to spend some of your budget in the expenses for the children, you also must think for the new house loan as well.
So, many of the parents right now will try to find home loan to overcome the financial problem. It is not an easy task to find the reliable home loan as we thought here.
First, we need to know what types of home loans we want to involve ourselves in it; it is because they have their pros and cons conditions. For your information, there are two types of home loans and they are:
1) Open end home equity loan
It is also referred as a “home equity line of credit (HELOC)”is a revolving credit loan. When you are not too sure how much home loan will be enough for you, or maybe you want to borrow more in the future, you had better consider the closed end home equity loan.
Pros: This acts like large credit cards.
Cons: The borrowers will need to pay back according to the current rate that fluctuated from time to time.
2) Closed end home equity loan
If you the person that clearly know, how much money you might be need and never have a second thought about refinance in the near future, this open end home equity loan will be a good solution for you.
Pros: Fixed rate; mostly can be due in fifteen years instead of thirty years.
Cons: Should be aware of the “Balloon Payment”.
Beside that, the home loan borrowers also need to understand, that there are fees for the Home loan equity and they are:
- The appraisal fees,
- The originator fees,
- The title fees,
- The stamp duties,
- The arrangement fees,
- The closing fees,
- The early pay-off and
- Other loans related costs.
Before you doing the home loan, you must properly choose and calculate the type of home loan that might suit you. As you know, after you have started the loan, you no only pay in a few short monthly instead of years of paying back…
That is why, you need to research you option carefully, before you executed it.
Always remember this quote, “We better equipped with an umbrella, no matter today is a sunny day or not!”
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