Buying a home can be a daunting experience; especially if you have never bought a home before. However, there is currently an option available that some are not familiar with and that is the 95% mortgages option. This kind of mortgage gives new home buyers the option of only putting down five percent of the value of the home they want to buy. Then, they can finance the remainder of the home loan.
The interest rate on this kind of loan is variable but usually, it is a fixed rate. In addition, this kind of loan is used more often in countries like the United Kingdom and this is because housing in that area of the world is often more expensive.
Of course, the advantages of becoming a homeowner in a timely fashion has its advantages such as not worrying if a landlord sells the property and allows a person to begin building up equity in his or her home and thus, increasing their wealth. Also, buying a home is much more advantageous than renting. Should you want to add on to your home or remodel several rooms in their home, they can do it without the help or supervision of another person.
With the 95 percent mortgage, the home buyer will need to purchase a private insurance policy. What this means is that there will be an additional monthly expense. This amount would be added to the mortgage, insurance, and taxes paid. Even though this is a good option for new buyers, it is important to assess if you can make the monthly payments. It is also important to only deal with a dependable loan service provider.
For more information on buying a home, check out 95% Mortgages.