Are you still renting your home? If you answered yes, then you are spending your money for nothing. That’s right, for nothing! What if you had the chance to spend that hard earned money on your mortgage for your own home? Why not take it? This is the major problem most people have, and it acts as an obstacle for buying their own property. Well, now there is a way to do this, even without a down payment.

Firstly, you should go shopping. No, not apparel shopping! You should shop around for the best mortgage, especially from a reputable financial company. You should read all our other post to get more information on mortgage rates, mortgage insurance, buying a home and so much more. If you were to build a home, you can still sell it in the end and take your profit and leave, unlike when renting. When renting you do not have anything to sell, this is no return when renting. The problem is the sum of money needed to pay for your initial down payment. This is what we will be talking about below.

COMBINING MORTGAGE LOAN PLAN

For people who do not have enough money for their down payment they can use this method to receive money. This is usually known as an 80/20 option. What the loan lenders do is calculate the total value of the home that is being built. After certain qualifications and formalities, 80% of the total value of the home will be given for a set amount of time. Another portion will be given in correspondence with the remaining 20% of the value. The set amount of time is set by the borrower according to their income level. Also, you have the following combination choices to choose from;

• 80/20 Mortgage Combination
• 70/30 Mortgage Combination
• 80/10/10 Mortgage Combination
• 70/15/15 Mortgage Combination

WHAT ARE THE BENEFITS OF THIS TYPE OF MORTGAGE LOAN

The major benefit is that you do need to make a down payment, due to the fact that the loan will be paying for that. You will be available to get a tax rebate on both the 80% and 20% portion of the loan. This is a great advantage, this will bring you get savings in the long run.

Tools: Best Mortgage Loan Lenders In Canada

5 Comments »

1. 

   I was lucky I had some savings and was able to buy a home with a 10% down payment. It helps when you have some money saved up.

   Comment by Macice — January 11, 2009 @ 5:27 pm

2. 

   [...] you look towards a home purchase, you’ll need to fully understand the interest rates. They are never the same and will vary [...]

   Pingback by Home mortgage basics for new buyers « lagem-ba.com - News — January 20, 2009 @ 2:36 am

3. 

   I hate renting. Every month I think all my money is going down the toilet, excuse my French, and that spear heads me on to work harder to save the money for us to get our own home. Yes it will be nice if I can own a few properties and collect the rent!

   Comment by james — January 20, 2009 @ 11:22 pm

4. 

   I would like to build my own home and a green one at that. I want it filled with all Eco friendly gadgets too. If my dream comes true then I will send you a picture.

   Ellie’s last blog post..Electric Cars and Green technology

   Comment by Ellie — January 20, 2009 @ 11:26 pm

5. 

   Sounds great! Will be waiting for that email from you Ellie

   Mortgage2Nite

   Comment by Mortgage2Nite — January 21, 2009 @ 3:03 am

RSS feed for comments on this post. TrackBack URL

Leave a comment

Name (required)

Mail (will not be published) (required)

Website