Buying a home with the house foreclosure unit to start you first property investment. House foreclosure is what happens when the home owner failed to pay back the money that they borrowed to buy the house. Lender can take away someone’s property if there are no longer affordable to pay for the home loans. When house foreclosure happens, particular property gets repossessed for the amount that could not be paid on the home loans.

At the point of house foreclosure, the bank mortgage loan or financial institution has possession of the property and usually deals with it. Ownership is moved to the lender. Most of the time, when the lender takes the property their intent is to sell it in the open market. This can happen by either making an agreement with the borrower in pre-foreclosure or they can buy it back at a public auction held by the county.

Home loans lender own those properties that are re-possessed. In other word, bank owned the foreclosure units. Other times the borrower can get out of losing there home when the government gives them a certain allotted time to pay off the remainder of the home loans.

Another option for the buyer is that when they go into foreclosure they sell the home to a 3rd party buyer who then pays the remainder of the loan and it saves the borrower from getting the bad credit. One other option is that a home-buyer buys the home at a public auction. Read more »

Mortgage APR or the Annual Percentage Rate helps you in finding out the actual cost of the loan you are taking out. When you calculate the mortgage APR, there are various other factors that are taken into account. When you apply for mortgage, you will come across 2 numbers. They are the note rate that helps you in calculating the monthly payments. The other is the mortgage Annual Percentage Rate.

With the help of APR, you will be able to compare rates offered by the different lenders. The following costs or fees are included in the Annual Percentage Rate –

•Fees for underwriting
•Points that include discounts and origination points
•Fee for processing the loan
•Prepaid interest
•Fee for preparing document
•PMI or private mortgage insurance

Why shouldn’t mortgage APR be considered as the sole factor for comparing loans?
The Annual Percentage Rate assumes that there is zero inflation as a result of which the dollar value will not change for the next 10 to 20 years. However, this is a utopian concept, it does change with time. And when lenders calculate the mortgage Annual Percentage Rate, it is assumed that the borrower will not pay back the mortgage within the next few years. However, it may be so that the borrower is able to pay back the mortgage loan or at least the major portion of the loan much before the loan term ends. It has been observed in majority of the cases; borrowers tend to pay back their mortgages within 7 years to 9 years of the loan term. Read more »

Many people asking about what is a home equity loan? Home equity loan are a way of using your property equity value to loan money against. Essentially, home equity loan is a ‘second mortgage’ – a mortgage loan secured by your property.

What Is Equity Value?
Equity value of your property mean the difference between the value of your home and the mortgage balance. An example, the value of your home/property is $150,000 and the mortgage balance is $50,000. The equity value of your home is $150,000. In other world, your home equity loan available up to $150,000.

Kind of Home Equity Loan
There is 2 types of home equity loan, Traditional home equity loan and home equity line of credit. Traditional home equity loan or called second mortgage loan: lender/bank provides a lamp sum of cash and you must pay back bank over a period. Hence, interest directly in calculation on the first day the bank gives you money. Don’t matter you are keep in you saving account or the monies has been use.

Home equity line of credit: lender/bank offers home equity loan with provide a credit card or chequebook for borrower. While borrower need money, they can access the “line of credit” through credit card or just bank in cheque. Interest starts only after you make use of the money. Read more »

IJM Land Bhd is launching projects Light Linear & Light Point. Penang property are attractive and it’s high demanding. Penang International Property Expo showcase showing good responded.

IJM Land Bhd was launched penang property recently, Summer Place condominium project (IJM’Condo) located at the Jelutong Expressway. IJM Land Bhd located RM174mil for this property investment. About 40% of the 531 condominiums in Summer Place condominium project was taken up on the first two days of the recent soft launch.

Light Linear & Light Point are high end sea fronting projects by IJM Land Bhd and comprising the RM200mil Light Linear, RM102mil Light Point, and the RM48mil Lots 28 located near the Jelutong Expressway.

The Light Linear consists of two 17-storey block of 328 condominiums on a 7.6 acre land, while the Light Point is a 28-storey block of 88 condominiums on a 2.8 acre site, and Lots 28 comprises 28 units of two and three-storey commercial and shop offices on a 2.6 acre site.

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