Land loans and construction loans are two different financing options when it comes to building your own home. Land loans are ideal if you don't plan to build right away, while loans for construction are suitable for starting building immediately. There are various types of land loans, each with different requirements and interest rates.
As retirement looms, many seniors face financial challenges that demand creative solutions. In recent years, reverse mortgages have emerged as an increasingly popular option for older homeowners seeking to leverage the equity in their homes to improve their financial situation.
A land loan is used to purchase a plot of land. You may want to buy land to build your dream home or start a business. If you are looking at getting a land loan, a lot will depend on what you plan to use the land for.
If you purchased the house with less than a 20% down payment, the lender probably required you to buy private mortgage insurance. This also is true for any refinancing loans with less than 20% equity. Private mortgage insurance protects the lavender from the elevated risk presented by a borrower with a small down payment.
Offset mortgages can save an individual a great deal of money. They can either shorten the term and enable you to be mortgage-free sooner or help you in reducing the monthly payments. But still many of us fail to understand this concept. In fact, some are not even aware of its existence.