we all know that these days everyone can actuate his dreams by
easy finance schemes. As there is cut throat competition in market
among financial services so even we don't have fill much formalities
also and these companies are ready to give us no down payments
loan a big amount as loan on easy installment schemes. But
the problem starts when we come to finalize the formalities required
by these financial institutions. Firstly, they want something
to mortgage for that condition if we are not able to repay the
installments on time. Secondly, they want 12.5 % as earnest money
deposit before issuing us the amount. Thirdly, they want guarantors.
Then slowly you have to re-think on your decision, but at this
span of time you are in a mouth of a crocodile means you cannot
even quit easily.
there somebody who can ask them that if we have something which
they want for a mortgage, then why there is a need to take a loan
and to give them an earnest money, we again have to take a small
loan from some other financial institution. Because taking a no down payments loan means we are not financially
sound but we can repay any big amount in installments as we don't
have capital but our monthly income is big enough to repay a loan.
about Your Options
you're having money problems, consider these options before you
put your home on the loan line.
with your creditors or with representatives of non-profit or other
reputable credit or budget counseling organizations to work out
a plan that reduces your bill payments to a more manageable level.
Contact your local social service agency, community or religious
groups, and local or state housing agencies. They may have programs
that help consumers, including the elderly and those with disabilities,
with energy bills, home repairs, or other emergency needs.
a local housing counseling agency to discuss your needs.
with someone other than the lender or broker offering the loan
who is knowledgeable and you trust before making any decisions.
Remember, if you decide to get a home equity loan and can't make
the payments, the lender could foreclose and you would lose your
you decide a loan is right for you, talk with several lenders,
including at least one bank, savings and loan, or credit union
in your community. Their loans may cost less than loans from finance
companies. And don't assume that if you're on a fixed income or
have credit problems, you won't qualify for a loan from a bank,
savings and loan, or credit union--they may have the loan you
several lenders--and be very careful about dealing with a lender
who just appears at your door, calls you, or sends you mail. Ask
friends and family for recommendations of lenders. Talk with banks,
savings and loans, credit unions, and other lenders. If you choose
to use a mortgage broker, remember they arrange loans but most
do not lend directly. Compare their offers with those of other
wary of home repair contractors that offer to arrange financing.
You should still talk with other lenders to make sure you get
the best deal. You may want to have the loan proceeds sent directly
to you, not the contractor.
Comparing loan plans can help you get a better deal. Whether you
begin you're shopping by reading ads in your local newspapers,
searching on the Internet, or looking in the phone book, ask lenders
to explain the best loan plans they have for you. Beware of loan
terms and conditions that may mean higher costs for you. Get answers
to these questions and use the worksheet to compare loan plans:
Rate and Payments
are the monthly payments? Ask yourself if you can afford them.
is the annual percentage rate (APR) on the loan? The APR is the
cost of credit, expressed as a yearly rate. You can use the APR
to compare one loan with another.
the interest rate change during the life of the loan? If so, when,
how often, and by how much?
many years will you have to repay the loan?
Is this a loan or a line of credit? A loan is for a fixed amount
of money for a specific period of time; a line of credit is an
amount of money you can draw as you need it.
there a balloon payment--a large single payment at the end of
the no down payments loan term after a series of low monthly
payments? When the balloon payment is due, you must pay the entire
will you have to pay in points and fees? One point equals 1 percent
of the loan amount . Generally, the higher the points, the lower
the interest rate. If points and fees are more than 5 percent
of the loan amount, ask why. Traditional financial institutions
normally charge between 1 and 3 percent of the loan amount in
points and fees.
Are any of the application fees refundable if you don't get the
and how much will the the lender or broker be paid? Lenders and
brokers may charge points or fees that you must pay at closing
or add on to the cost of your loan, or both.
What is the penalty for late or missed payments?
is the penalty if you pay off or refinance the loan early (that
is, is there a pre-payment penalty)?
are the fundamental issues which every middlemen has to face in
order to take a no down payments loan . If any financial services wants
to hold a monopoly in their respective field then it has to work
on these fundamental issues.