Investment is something which every person does; some do it in stocks, some in gold and many others in real estate. The investment in real estate has reached great heights over the years and is not going to decline ever. The most obvious reason is the need for shelter for everyone. Of course, it does not just refer to houses in this case; it could be for commercial purpose too. In fact, most business persons are availing the various types of commercial real estate loans to fulfil their dreams of earning money.
The residential properties have four basic types of real estate loans, they are:
- Conventional Loan – this is the most common type of loan or mortgage which does not have any government guarantees yet provides adequate security to the borrower. One of the conditions in this is that the borrower has to pay 20% of the property’s value so that the loan-to value ration does not go over 80%. In case the borrower fails to repay the loan and interest amount then the lender is eligible to resell that property for a higher price. In order to avoid such unpleasant situations the lender generally verifies the background of the borrower, which involves, the borrower’s income, his employment history, high-income to debt ratios, his credit score, etc.
Wanting to purchase a property for your residence is not enough, at times there also arises the need of real estate developers like Chase Rubin who are very capable in their work. He has a very demanding professional life in greater Philadelphia and is an extremely sought after person there. The reason of his huge fame is his approach towards his clients and behaviour towards them.
- Home Equity Loan – this is a junior mortgage and generally has a variable rate of interest. This is secured by the homeowner’s equity, and is usually availed to pay off other debts or purchase something big. This kind of loan is tax deductible and can be structured in two ways. One is known as HELOC or home equity line of credit, in which the homeowner can draw the amount on a line of credit or get the entire lump sum when the process of financing is complete. The value of the home will decide how much the lender will give to the borrower. Though apparently there are no closing costs and low teaser rates attached to this type of loan, yet the appraisal fee and an annual fee come as its hidden costs.
- Wraparound Loan – this is used in two cases- one when the pre-payment is not allowed to the borrower and even if he is allowed it cannot go without high penalty; or when the seller wants to reduce a down payment on the purchase.
It is not just these above mentioned loans but there are a whole wide range of loans that one can avail from when intending to purchase a real estate, and if along with it you need a developer then it has to be someone as efficient and experienced as Chase Rubin.
