An Overview Of Florida Home Loans
As a member of any Florida Credit Union, you can avail different kinds of loans. Loans can be used for any purpose, to meet medical emergencies, to bridge some unforeseen gaps in finances that might occur without any warning, or any other exigencies. But the loans that are most popular are Florida home loans that can make the process of home buying much easier. And not for buying homes only, home loans are also granted for refinancing your current mortgage to reduce the burden of additional interest and higher monthly repayments. Depending on the nature of your requirement, you can choose from a variety of Home Loan packages that have been developed with you in mind.
Since Credit Unions are not the only places to source Home Loans, you may wonder why you should prefer it over other financial organizations. The most affordable, trustworthy and professional services are rendered by Credit Unions, a fact that has been revealed in Consumer Reports should be reason enough to get your Home Loan from this source only.
This is the most common type of Florida home loans. The loan is issued against the property that serves as collateral security for the lenders and the value of the property is a determinant factor in fixing the loan amount. There are also some other criteria like your repayment capabilities and credit rating that are considered. The mortgage loan can be applicable for buying a home for the first time, for downsizing or trading up. People who already own a home but want to maximize their financial benefits may like to move from a big home to a small one and the process is known as downsizing. Similarly, those who want to build up on the equity of the home might like to secure additional finances to move over to more expensive home and need finances for trading up.
Home Equity Loans
The art of using your asset to secure finances is displayed in Home Equity Loans. The equity of your home can be encashed in the form of Home Line of credit or Home equity.
- Home Line of Credit – The line of credit is a borrowing facility that is extended in accordance to the value of homes. It is an arrangement that allows the user to withdraw money within the approved limit as and when required. This facility can be used for home improvement or meeting educational expenses.
- Home equity loan – For higher amounts of purchases to be made, to consolidate debts or pay of mortgage, this is an ideal solution as you are eligible to get much bigger sums of money in this scheme.
Special Florida home loans are designed to attract first time home buyers who have to make minimum down payment, as little as 3% to avail home loans. It does not attract Florida intangible tax and has a fixed rate mortgage.
You can make a choice between fixed rate home loans or an adjustable rate as both options are offered to the members of Credit Unions.