American Loan Guide

Home Loan,Home Improvement Loan,Home Equity Loan,California Home Loan

A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower.

Home Loan

As the name suggests its the loan taken from bank or any institution for purchasing or constructing a home

Every year, misinformed homebuyers, often first-time purchasers or seniors, become victims of predatory lending or loan fraud

Where to find home loans

There are so many home loans on the market these days with an increasing variety of rates, fees and features that it really bewilders the borrower to decide upon so many factors before applying for a home loan but somewhere there is a loan that best suits your circumstances on which one has to really work hard.
The main challenge is to look beyond interest rates to the features that a home loan offers. Often there is a trade off between interest rate and flexibility. Make sure the loan suits your circumstances and the way you want to pay it off:

When you get a home loan, you should try to pay off that loan as early as possible. Obviously, you don't have any real equity in the house as long as you're just paying interest. These loans are set up in these ways , that you're paying little more than interest for the first several years. In other words, if you get a 30-year loan, you can make three or four years of payments and end up only having a few hundred dollars worth of equity in your house. That's the way the loans are designed. These loans are designed to extract as much money as possible from your pocket over the life of the loan.

What you should do is start paying off this loan early. You can do that by sending extra money to the mortgage company, or by making your payments with greater frequency. For example, instead of sending $500 once a month to your mortgage company, you might send $250 every two weeks. It does makes a lot of difference because you're avoiding interest on the money for that additional two weeks.

If You are far better off, of course, making a payment that is larger than $1000. So, if you can afford to, send in $1200. Or maybe even like $2000. This additional $1000 payment may probably save you $20,000 over the life of the loan. This way you can save a lot on paying extra interests on your Home loans

Beware of cheats:-
Some people may not be aware of the extremely dishonest practice by mortgage companies. Here's how they trick consumers and take their money without paying down the actual principle balance of the loan:

Let's say your monthly payment amount is supposed to be $2000. And suppose that's $1800 of interest and $200 of principle. But instead of sending $2000, you think of sending $2500. to save some money down the road. In a normal sane world, you would suppose that $1800 goes to pay interest, $200 goes to principle, and then the extra $500 that you sent should also go to pay down the principle. But that's not the way that mortgage companies think about these things. That would be too unprofitable for the mortgage companies. They devise a system to extract more money from you even though you're trying to pay down the balance. They will take that extra $500 you've paid, and instead of applying that to your principle, they apply it as a pre-payment of your next month's interest.

Instead of using that $500 to pay down your principle, they will it as a prepayment against the next month's interest. In other words, even if you've sent them a $2500 check, you haven't gotten any real credit whatsoever for the extra $500 you've sent in terms of principle. According to their books, you've just prepaid part of next month's payment. And of course, if you pay extra the next month, they will apply that to the subsequent month.

To sum up ,It's possible to get home loans with interest rates discounted by up to half a percentage point lower than the standard variable rate. The big banks and some smaller lenders offer a package of discounts and bonuses to those who conduct all their banking with them.


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