Category: fast easy installment loans

Providing small mortgage loans at non-subsidized prices affordable to the borrower has always been a challenge. The core problem is that the high cost of originating and servicing a mortgage loan is no smaller for a small loan than for a large one, but the dollar amounts of interest and origination fees received by the lender are smaller on small loans. The obvious remedy, charging a higher interest rate or upfront fees on smaller loans, may make it unaffordable, may be interpreted as “price-gouging”, and may invite the attention of regulators.

Home mortgage lenders prefer to avoid these problems by setting minimum loan amounts, which today are generally in the range of $50,000 to $75,000. Below $50,000, mortgage loans are generally not available. This is a problem for isolated communities in which home prices are very low, and also for borrowers anywhere who are looking to refinance small loan balances.

The Problem of the Small Isolated Town

“In my town, we need mortgage loans from $5,000 to $30,000, and they just arent available. Is there anything that can be done?”

Continue reading “Small mortgage loans, isolated towns, small reverse mortgages, refinancing small loans”

A large deposit and a short repayment period may lower your interest rate. This combination can drive down the cost of borrowing dramatically, and wise old owls advise planning toward that goal. The rest of us, who live in the real world, often begin with the stark reality of a small deposit, potentially as little as 5% of purchase price.

This can be a good idea or a bad idea, depending on the rest of the plan. A mortgage broker at OH Mortgage Solutions can help you work through your options. Having begun with a basic equation, it’s time to walk through the mortgage process from getting your financial house in order to making your mortgage choice.

Three Bits of Preparation Potential Home Buyers Should Do

If you are a first time home buyer, make sure that you take advantage of the incentives that may help you maximize your deposit. The First Home Owners Grant (FHOG) is a tax-free government payment of up to $7,000 to anyone buying a first home in Australia. State and territory governments may offer additional bonuses and tax concessions. If you set up a first home savers account, the government will make a 17% contribution on amounts you deposit, up to $5,500 per year and subject to certain restrictions. Continue reading “The Pros And Cons of Low Deposit Home Loan”