Basic Home Loans

A home loan is a loan secured by the equity value in the borrower's home.

If you are looking to purchase a house or refinance using your home as collateral for a home loan you need to consider all the alternatives available very carefully.

After all, your home is put at risk if you do not keep up the repayments that are secured by it.

Factors such as your current credit situation, how much longer you'll be in the property and how much you can afford each month should guide your decision regarding the term of your home loan.

If your credit history is less than perfect a 2 or 3 year fixed rate mortgage may be ideal

These are 30-year loans that have a fixed rate for the first2 or 3 years and then increase to the current rate after that. If you re-establish your good credit during this initial fixed rate period then you may be able to refinance at the best rates available.

This is a great way to save money and improve your credit rating at the same time.