3 lesser known types of home loans you’ve probably not heard of before.
by avni Jadhav
Published Thu, Jan 11th 2018, 07:30 | Finance
For most of us, a home loan is a financial tool we can use to support our homeownership plans. But these days, the housing finances industry has evolved significantly to bring to the table numerous and varied housing finance solutions, some of which you’ve probably not even heard off! Don’t believe us? Then read on, this article will highlight some of the less known home loan products available today.
1. Bridge Loans:
Imagine you’re thinking of selling your current place and upgrading to a bigger, better home. But to buy the new home, you need to sell of the old home and use the funds to fuel the purchase. In this window, the new home could be sold to someone else, leaving you devastated.
Here’s where these types of home loans come in handy. These loans provide you the immediate funds required to purchase a new home while waiting for sale of your existing home. These loans also have convenient repayments through monthly installments of simple interest with lump sum principal repayment at the end of the term.
2. Home Improvement Loans:
With pretty self-explanatory name; this type of loans is perfect if you been thinking of renovating your home with some new tilling or flooring done, maybe you want to re-plaster you walls add a new color to them. Regardless of you renovation you have in mind, home improvement loans can take care of the finance so you can focus on getting the minute details right.
3. Home Extension Loans.
As your family grows, you will see the need for added space in your home. You might consider adding space or a couple of rooms to comfortably accommodate your loved ones. However, home extension is now small matter and normally comes with a sizeable price tag; one that can be covered by a home improvement loan.
These were three of the lesser known types of home loans. We hope that, if you are ever in the mood for upgrading, improving or extending your home, this article will come to your mind and help you make an informed borrowing decision.