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Loans

Failed To Pay Your Personal Loan EMI? Here’s What You Need To Do

We’re going to look at what you can do if you fail to pay your personal loan EMI. However, for those who are unfamiliar with personal loans, what they are, and why they are the way they are, let’s introduce them first.

What Is a Personal Loan?

A personal loan is an unsecured loan. What this means is that there is no “backup plan” for the lender in the form of an asset that it can recover. A secured loan is a loan that has something of value as collateral against the applicant defaulting. Examples of secured loans are home, car, or gold loans. The risk for the lender is higher with unsecured loans, which is why personal loan interest rates differ from secured loans.

What Happens if You Default on a Personal Loan?

Lenders usually offer a grace period after the original due date—if you make your EMI payment during this period, you will merely have to pay a late fee. The grace period and late fee for personal loan EMIs will differ from lender to lender, so make sure you know what they are as early as possible. If you miss just one EMI, the lender will not report you as a defaulter; however, if you miss at least a few EMIs, your lender will report you as a defaulter to CIBIL, the authority that tracks an individual’s credit history and gives a score that reflects the individual’s creditworthiness. This will lead to you getting a low credit score. You can open up a dialogue with your personal loan lender to try and negotiate a new payment plan that will allow you to repay the loan, and the lender to recover their investment. If this can be done before you’re reported as a major defaulter, it will be beneficial to both parties.

What You Can Do to Avoid Defaulting on a Personal Loan?

Make sure you can pay the personal loan EMIs consistently. A good rule of thumb is to never go for an EMI that is more than half of your take-home salary. The lower the percentage it occupies of your salary, the less likely you are to default on it. If you’re unsure about how much an EMI will work out, you can use tools like a personal loan EMI calculator that are available on lender websites to help you make your decision more easily.

That said, the pandemic has shown us that we can never predict our financial situation with 100% accuracy. So, if you realize that you cannot make an EMI payment, you can always talk to your lender and let them know of your difficulty and work out a solution to ensure that you do not get reported as a defaulter. The solution can be one of several things: an extra, catch-up EMI somewhere down the line with a late fee, just a late fee and adding an extra month to the loan tenure, or a full-blown renegotiation of the loan with reworked EMIs, all are possible.

The important takeaway is that if you miss more than a couple of EMIs on your personal loan, your lender will report you to CIBIL as a defaulter, which will then give you a low credit score. A low credit score will simply make it more difficult for you to obtain a loan in the future—you will get high interest rates, lower loan amounts, and shorter tenures until you rebuild your credit score to the level that marks you as a low-risk individual. If your loan has guarantors, they become liable to repay your loan amount. Obtaining a personal loan online is a smooth, hassle-free affair; hence, there is no reason why a single missed payment should be more trouble than that!

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Loans

Is it convenient to request a pawn loan?

There are numerous pawnbrokers Melbourne to visit. If you are ever in a situation of needing money and have visited one, you might be wondering whether to pawn items of value like a gold bracelet or your Apple Laptop. Or what does the terminology mean?

This article is meant to clarify most of your doubts regarding pawnbrokers in Melbourne. Let’s start by defining some common terms

What are the pawn shops?

Pawnbrokers are private companies based on loaning money immediately to their clients. Customers are required to bring an item of value such as gold jewellery which will work as collateral for the loan. This action is known as “pawning.”

The pawn shop will then keep your item as security until you pay the loan back within the agreed timeframe. If you do not repay the loan, the pawn shop will keep the item you gave and sell it to recover their money.

Should I pawn or sell an item?

Pawning

Pawning is an excellent choice for those who need money right at this moment but want their item back. Remember that you will be given a timeframe, usually around thirty days to repay the loan. If you’re able to do so, you will get your item back. If not, your credit rating will not be affected in any way, but obviously you won’t be able to get your item back as it will be sold.

Overall, the only worry you will have after you pawn your item is that you may not be able to get it back if you don’t make the monthly interest payments. However, you will end up getting less for your item than what you would have done by selling that item due to the interest charges.

Most of the time, people tend to pawn items that hold a sentimental value, and that’s why they often get them back. It is not the best idea to pawn something you don’t really want, so in this situation you’re left with another option: selling it.

Selling

Although both options are hugely different, they have in common the same outcome: getting quick cash. Sometimes, selling an item can be more convenient than pawning it as you will get paid more money upfront and won’t have to pay interest.

Sometimes, you can walk into a pawn shop with old gold jewellery you don’t want or don’t find attractive anymore, and leave with some cash in your pocket.

Selling an item is another good choice. It doesn’t have any cons if you don’t need or want that particular item anymore especially if its broken. Most pawnbrokers Melbourne will still purchase broken gold jewellery as it’s something they can get melted down. so if you have something laying around in your jewellery box that’s old or broken then you should consider selling it for cash.

Just remember that you will get more for your items selling it than pawning It. This is because the pawnbroker doesn’t have to worry about covering his interest charges in the event of a default. So this might be the best option for you if you are in need of quick cash.

 

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Loans

Things You Can Purchase Using Consumer Durable Loan

Getting new electronic appliances and furniture for their home is on everyone’s wish list. But the tight monthly budget often makes people delay their plans of getting a new consumer durable. If you are one such person who wants to get the latest electrical appliances but are short of funds then a consumer durable loan is the best option available to you. With the help of a consumer durable loan, you can get multiple consumer durables immediately without having to wait any further. The option of flexible repayment tenure will give you the options to choose the timeframe within which you would want to repay the loan. So you can have the appliances of your choice without needing to put any stress on your wallet. 

What Things Can You Buy With A Consumer Durable Loan?

The good thing about consumer durable loans is that they cover a large number of electronic products you can finance. Here is the list of products you can get with this loan:

  • Computers – includes both desktops and laptops. 
  • Washing Machine- all categories of washing machines whether they are automatic or semi-automatic.
  • Refrigerators – whether they are of single, double or four doors.
  • Mobile Phones/Tablets – Both smartphones and regular phones. 
  • Air Conditioner – includes both window and split air conditioner. 
  • Televisions – includes all types of smart TVs, LED, LCD, etc.
  • Microwave Ovens – covers all the major brands in both convection and combination types.
  • Home Theatre System – all categories are included in it, even the additional DVD player. 
  • Vacuum Cleaners and other such electrical appliances.

There are various online options like Navi loan from where you can easily get the loan sanctioned for any of the above-mentioned products. 

Advantage Of Consumer Durable Loans

Consumer durable loans come with numerous advantages. Some of them are as follows.

Range Of Loan Amount

You can expect a loan amount of anywhere between Rs 10,000 to Rs 5 lakh. Depending on the product you want to buy, you will get the window to get your desired loan amount.  Although, it is recommended not to get a loan amount for more than you need as it can destabilize your monthly budget. First, determine what you want to buy and only then proceed with the required loan amount.

Instant Disbursal

The loan amount can instantly be transferred to your bank account once the basic documentation process is completed. This is especially the case if you apply through the online medium. 

Online Facility

You can get the consumer durable loan approved without needing to leave your home. All you have to do is just download the mobile app of the lender and fill in the requisite details. Even document verification can be done online. Through this method, you can not only get the loan without any hassle but also the loan amount will be credited to your bank account in a matter of minutes. 

Minimal Documentation

The documentation required for a consumer durable loan is very minimalistic. You will only have to provide relevant information like income proof, age proof, address proof, and of course your identity proof. Just keep these documents handy while applying for the loan and it will not take long for the details to be processed and verified. 

Moderate Credit Score 

You do not have to maintain a high credit score in order to get a consumer durable loan. If you have a credit score of 650 it would be more than enough for you to get the loan.

Flexible Repayment Tenure

Based on your convenience you can choose the tenure for the repayment of your loan amount. This period can range anywhere between 12 months to 60 months.  

With these benefits, you can easily avail a consumer durable loan and can get any listed appliances of your choice. 

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Loans

How to Find the Right Mortgage Refinance Lender for You

Refinance loans are the best option for the loan payer. It lowers the interest rate on the existing loan and replaces the old loan with a new one. The reduction in interest varies from company to company. The reduced interest rate helps save money and also decreases the monthly payments. Initially, people considered refinancing when the interest rate was reduced to at least 2%. But, now the lenders believe that even 1% saving is a good idea in refinancing the loan.

 There can be several reasons to refinance a loan:

To obtain a reduction in interest rates.

To shorten their mortgage term.

To convert mortgage rates from fixed-rate to an adjustable rate or vice versa.

To deal with consolidated debt, finance some large purchases or financial emergencies by raising funds through home equity.

Here are a few tips to help you find the best refinance lender:

Check the credit score and get prequalified rates for free – credit score determines the rate of interest. If the credit scores are high the interest rate is lowered. If refinancing with a partner, the lender will consider the lower middle score of the two.  Every lender has a different method of pricing the loan.

Compare the interest rates of multiple lenders for the best refinance – when lenders have competitors and the client is looking for the best, they are likely to provide the best deal. Thus, choose the most beneficial lender and loan product.

Lowest lender fee negotiation– you can try negotiating with the lender, however, it is harder to negotiate with appraisals.

Understand the difference between payment rates and adjustable-rate – the rate of interest might confuse borrowers sometimes. A reliable lender can help you evaluate the relationship between the rate of interest and adjustable rates so you can better understand.

Upload documents and get updated – you just need to upload the documents and they will automatically do all the document processing for you and update you from time to time regarding the status of the application. 

The complete process of refinancing can be made online. Let’s say you want to refinance a 30-year mortgage, you can either opt for a 15-year fixed refinance loan or a 10-year fixed refinance loan. But let’s explore the reasons to go with the 10-year refinance loan:

Save more with a low-interest rate. The 10-year refinance rate is currently much lower than other mortgage rates.

In remortgaging, clients pay additional fees in other mortgage finances, however, with a 10-year mortgage refinance, this extra fee is avoided.

If you have 15-30 years of a mortgage, take advantage of a 10-year fixed mortgage refinance loan. This option means an early date of payoff. You can pay back the loan in half the time, making it the best deal in comparison to others.

By getting out of debt sooner, you can enjoy real peace of mind.

Comparing different lenders is important before deciding to get a mortgage to refinance a loan or any other loan so you can choose the best deals and save money. Interest rates and terms differ for each lender, so make sure to shop around and don’t just settle with the first one you find. Also, some finance jargons are hard to understand, and the process may seem confusing, but a reliable lender will always help you through it all and not just let you decide without fully understanding every detail.

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Loans

Things you must know about Home Loan Prepayment

A home loan is a long-term commitment, and thus the interest outgo towards the payment of home loan puts a significant burden on the borrower’s pocket. It is because of the same reason that borrowers opt to repay the loan before the tenure of the loan. The question, however, is should a borrower always prepay the home loan if they have surplus funds or are there certain circumstances under which one must avoid prepayment of home loan.

These are some of the factors that one must consider before deciding about home loan payment.

  1. Analyzing financial requirements: Before deciding about utilizing your surplus money to prepay the loan amount, you must examine the current financial obligations. If you have enough funds for a medical emergency and everyday household activities, you can prepay the loan. However, it would not be a wise day to prepay the loan if you don’t have enough liquid funds.
  2. Age: Age is an essential factor to decide about home loan prepayment. If you have reached near the age of retirement, you must prepay the loan because it would become challenging to make the home loan payment when you don’t have a source of income. Also, the need for funds for emergencies rises in the retirement phase. Thus you must repay the loan before retirement.
  3. Stage of home loan: The EMI component of home loan is significantly higher in the initial stages of tenure of the loan. Thus, if you have ample funds to prepay the loan in those stages, you can save a lot of money. On the contrary, you would not be able to have substantial savings in the later stage of a home loan as EMI is low.
  4. Home Loan Tax Benefits: There are various home loan tax benefits available to home loan borrowers. Under Sec 24 C of the Income Tax Act, you can get tax deductions upto Rs. 2 Lakhs on the home loan interest. Also, you can save taxes upto Rs—1.5 Lakhs on the principal component of home loan. Additionally, borrowers can also avail home loan tax benefits on stamp duty and registration charges of house.
  5. Investment of money: The surplus money can also be used for investment in various investment schemes such as PPF, Mutual Funds etc. Thus, it is significant that you weigh down the pros and cons of prepayment and investment based on your financial goals, current financial scenario etc.
  6. Prepayment Charges: Banks and Non- Banking Financial Institutions also charge a penalty fee in case you decide to prepay the home loan. It is thus crucial that the cost of prepayment charges does not exceed the savings of interest outgo when you prepay the home loan.

Salient points for consideration to prepay the home loan in COVID 19

  • The economic crisis in the past, along with the predictability of recession in the economy in the future demands that you have an emergency kit ready for any unforeseen circumstances.
  • In such a scenario, thus it would not be a good idea to use your surplus money to prepay the home loan.
  • If you have enough liquidity in your hands, you can utilize a part of your savings for prepayment, and the remaining can be invested in investment schemes as per your investment goal.

Conclusion: The prepayment of a home loan significantly reduces a considerable burden. However, it is important to weigh down the benefits of utilizing those surplus funds in different schemes given that the borrower can also tax benefits on a home loan.

Summary: Things you must know about Home Loan Payment.

A home loan is a long-term commitment, and thus the interest outgo towards the payment of home loan puts a significant burden on the borrower’s pocket. It is because of the same reason that borrowers opt to repay the loan before the tenure of the loan. The question, however, is should a borrower always prepay the home loan if they have surplus funds.

Factors one must consider before deciding about home loan payment.

  1. If you have enough funds for a medical emergency and everyday household activities, you can prepay the loan. However, it would not be a wise day to prepay the loan if you don’t have enough liquid funds.
  2. If you have reached near the age of retirement, you must prepay the loan because it would become challenging to make the home loan payment when you don’t have a source of income.
  3. The EMI component of home loan is significantly higher in the initial stages of tenure of the loan. Thus, if you have ample funds to prepay the loan in those stages, you can save a lot of money.
  4. There are various home loan tax benefits available to home loan borrowers on home loan interest and principal amount of home loan.
  5. It is significant that you weigh down the pros and cons of prepayment and investment based on your financial goals, current financial scenario etc.
  6. It is crucial that the cost of prepayment charges does not exceed the savings of interest outgo when you prepay the home loan.
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Loans

Things to Consider When Shopping for Personal Loans

There are times when a personal loan can be a useful tool. They can be used to pay off high-interest balances, start a new business, or make home improvements. Here are some things to consider if you are shopping around for a lender.

The secured selection of long-term loans qualifies only once the borrower pledges an expensive asset as security contrary to the amount you borrow. He can provide property, vehicle or stock as collateral. The lender would verify the value of the identical and when at par with the amount you borrow, however approve the borrowed funds application. On the other hand, the unsecured various these long-term loans no credit check is only the opposite. You do not need to offer any to safeguard the same. So, these Long-Term Loans No Guarantor are best for all sorts of people including tenants and non-house owners. The people who don’t want to risk their valuables will also have benefited with a similar.

These loans can be a model selection for people who wish to procure finances for a short moment of your energy. You can utilize this loan sum for different reasons like investing in a auto, residence and settling debts. These loans set a credit limit for its recipient that determine when and how much should an individual lend, so when whether it is repaid.

Inquiries Can Impact your Credit

When you apply to qualify for a loan, lenders will usually make a hard inquiry against your credit report. The more you have, the more it affects your credit score. Simple Path Financial is one of a growing number of lenders who will offer pre-approval based on a soft inquiry that won’t impact your credit.

Your Credit Score Affects Your Rate

That is important because your credit score directly affects the rate that lenders offer you. Order a free copy of your credit report before you start looking for loans. This way you have time to correct any errors that might impact the score.

Borrow on Your Terms

With an increase in internet banks, the industry has moved away from being a nine to five business. Lenders like Simple Path Financial offer flexibility that meets you where you are. Expect to see online applications, quick turnaround and funding, and mobile banking to manage your loan.

No matter why you are seeking a personal loan, you can take steps to better your chance of approval and a lower rate. Giving yourself time to get things in order before reaching out to lenders can pay off in the end. He can provide property, vehicle or stock as collateral. The lender would verify the value of the identical and when at par with the amount you borrow, however approve the borrowed funds application. On the other hand, the unsecured various these long term loans no credit check is only the opposite. You do not need to offer any to safeguard the same.

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Loans

How do Subprime Mortgages Work? Will I Qualify?

Subprime mortgages have become indispensable financial products for thousands of borrowers across the UK. Major banks and High Street lenders continue to scrutinise almost all applications based on credit scores alone. This even applies to secured loans where viable assets are used to cover the loan balance and all associated borrowing costs.

Getting by with a poor credit score has never been easy. This is why subprime specialists are playing an increasingly important role on the UK financial scene. Rather than immediately and automatically excluding poor-credit applicants, subprime specialists consider all applications by way of individual merit.

What follows is a brief FAQ covering some of the most important questions on subprime mortgages and their respective answers:

What Is a Subprime Mortgage?

A subprime mortgage is simply a home loan that’s been designed specifically for an applicant (or joint applicants) with a poor credit history. Increasingly, the UK’s more dynamic lending community is acknowledging the fact that maintaining a flawless credit report is almost impossible. Subprime mortgages target those who fulfil all other lending criteria for a home loan other than unblemished credit. Subprime mortgages therefore open the door to homeownership for those who would otherwise never set foot on the property ladder.

How Does the Application Process Work?

The subprime mortgage application process works in exactly the same way as a traditional mortgage application. Subprime mortgages are secured loans that are issued against the value of the property being purchased. This is the primary factor that determines eligibility, alongside the overall financial status of the applicant. Credit checks may still be carried out as part of the process but by no means exclude those with a flawed credit history. As subprime mortgages are scarcely available on the High Street you may need the support of an independent broker.

Will I Qualify for a Subprime Mortgage?

Eligibility for a subprime mortgage is established on the basis of two things – your financial status and the value of the property. You are likely to qualify for a subprime mortgage if you are able to provide evidence that you can comfortably cover the subsequent repayments. The lender will also organise a formal evaluation of the property to ensure it covers the total costs of the loan. If you are self-employed or cannot provide an extensive proof of income, it may be beneficial to speak to an independent broker or adviser beforehand.

How Can I Make Sure I Get a Good Deal?

The key to getting a good deal on a subprime mortgage lies in sourcing the right help from the start. Working with an independent broker makes it quick and easy to compare subprime mortgage deals from dozens of specialist lenders across the UK. You can also count on an independent broker to provide the honest and impartial advice you need to make the right decision. Subprime mortgages typically attach slightly elevated interest rates and borrowing costs but can still represent outstanding value for money.

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Loans

Things to Keep in Mind for Quick Approval of Your Pre-Owned Car Loan

The used car market is huge due to several reasons. Many new drivers prefer buying a pre-owned car to hone their driving skills. Another reason is that the price of used vehicles is lesser than a new car. Moreover, the segment is organized with several certified dealers offering excellent deals on used vehicles.

Buying a car today is become simpler due to the availability of loans from banks and Non-Banking Financial Companies (NBFCs). The financial institutions allow you to apply for the loan online, which makes the entire procedure quick and seamless.

Here are a few things to keep in mind to ensure that your loan application is approved without any delay:

Research the available options

Today, many dealers offer certified pre-owned vehicles. It is recommended that you visit the dealer outlets and check the different models that are available. If you are buying the car directly from the owner, it may be beneficial to have a mechanic check out for any issues. This ensures that you do not have to pay huge maintenance expenses or repair costs later, which effectively increase the price of the vehicle.

Check your eligibility

When you apply for a loan, you need to meet certain car loan eligibility criteria. Some of the common eligibility norms include your age, income, credit score, and the make, model, and age of the vehicle. You may use an online calculator to determine your eligibility and to know the approximate Equated Monthly Installment (EMI) that you will have pay towards the loan repayment.

Keep the necessary documents ready

When you apply for a used car loan, the financial institutions require some basic documents, which primarily include know-your-customer (KYC) and income proof. It is recommended that you keep documents such as your Permanent Account Number (PAN) copy, salary slips (if you are salaried) or income tax returns (if you are a self-employed professional), bank statement, and residence proof. The lenders may also require the used car valuation report. If you have the documents ready while submitting your application form, the procedure is completed without any delays or trouble.

Calculate the estimated EMI

The EMI schedule primarily depends on the loan amount, second-hand car loan interest rate, and the chosen repayment tenure. An online calculator is beneficial in estimating the EMI that you will have to pay during the loan duration. It also helps in calculating the total interest outflow, amortization details, and total repayment amount. Having these details beforehand will help you to make an informed decision, and thereby, prevent any financial difficulties during the repayment tenure. Additionally, it helps you manage your finances to prevent any liquidity crises while paying the EMIs.

You may also procure pre-approval for used car finance. It provides you with a greater bargaining power with the dealer as you do not have to worry about the finances. Moreover, if you have the pre-approval, you know the amount available for the purchase, thereby helping you make the right decision by eliminating vehicles that are not within your budget. Having a pre-approval does not mean that there is a commitment. If you are able to procure a better deal, you may opt for the dealer’s financing option to maximize your benefits.

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Loans

All You Need to Know About Loan Against Property Eligibility Criteria

If you have a low CIBIL score, it can mean one of two things:

  1. Your credit record does not reflect the true picture as your lenders have made a mistake in the information shared with the credit bureau
  2. You have not been able to service the loans you have taken as per the agreed repayment schedule

If it is the first case, you don’t have much to worry. Just talk to your lenders and ask them to send an update to the credit bureau. Your CIBIL score will get updated to reflect the correct information, and you will not have to worry about your creditworthiness.

If it is the second case, your aim should be to fix your credit score. Now, it may take a few months for your efforts to bear fruit, but getting the loan you require will make the wait worthwhile. An improved score may also translate into a lower interest rate.

So, let’s dive right in to look at some of the steps you should take to get a personal loan with a low credit score.

Show that your income can support EMI payments

Your loan against property eligibility depends on the ratio of your monthly fixed obligations to your monthly income. If there is an additional income you can show to the lender apart from the one you already have, chances are your loan will get approved despite the low score. That said, you may have to pay a higher interest rate.

Apply with a co-applicant

Another way to improve your loan against property eligibility is to apply with a co-applicant. It could be your spouse or someone from your family who has a good credit score. You can also apply for a higher loan amount as both your incomes will be considered to calculate the loan eligibility.

Present a guarantor in your loan application

You can improve your loan eligibility by securing a guarantor for the loan. A guarantor will have to pay back the loan in case you default. of course, if you have a steady income, you may never have to depend on the guarantor for the actual payment.

Apply for a collateral loan

Lenders are usually willing to overlook your CIBIL score if you apply for a collateral loan. As the loan is secured, the risk is considered lower than unsecured personal loans. That said, only agree for EMIs that you can comfortably servicing. In case of repeated default, the lender has the legal right to sell the collateral to get the dues. Additionally, defaulting on your EMIs will further lower your credit score.

EndNote: Ideally, you should not take any other debts until you can service the ones you have comfortably. As your net worth grows, and your credit history improves – so will your CIBIL score. But, if you need the loan, follow the above steps. It is also a good idea to approach the lender and ask for details. Most customer care executives can help you with a viable option and solution.

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Loans

What’s the difference between an FHA loan and a conventional loan and which one is best?

When it comes to financing your home, you have a lot of options. Choosing the right equity loan can save you time, money and stress — but how do you know which one to choose

A home equity loan is a great option to start with. It’s a fixed-term loan that borrows from the equity in your home. The funds come in a lump sum, which makes this loan ideal for major expenses. Home equity loan rates are often lower than personal loan rates, so this loan is also useful for debt consolidation.

Two of the most common home equity loans are FHA and conventional loans.

According to FHAHandbook.com, a conventional mortgage product is originated in the private sector and is not insured by the government. An FHA loan is also originated in the private sector, but it gets insured by the government through the Federal Housing Administration. This insurance protects the lender, not the borrower.

So how do you choose? Here are a few different things to consider:

How much can you afford to put down?

First things first, you’ll need to look at your finances and determine how much house you can afford. A mortgage calculator can help you figure out how much you can afford for a down payment.

If you can afford to put down between 5 per cent and 20 per cent, a conventional loan is your best bet. If you can only afford to put down 5 per cent or less, an FHA loan is a great way to minimize upfront costs.

How’s your credit score?

Credit scores play a huge role in deciding what type of loan you’re likely to be approved for.

Those with credit scores above 620 will usually be approved for a conventional loan and can expect lower monthly payments. Those with a credit score between 580 and 620 can expect to be approved for an FHA loan. Those with FICO scores under 579 may still qualify for an FHA loan, but will likely be asked to pay 10 per cent of the home’s value for a down payment.

Can you afford to pay mortgage insurance?

Mortgage insurance is intended to ensure the lender gets paid — even if the borrower defaults on the loan. It’s not always a requirement, but you should be prepared to pay it before you apply for a loan. The cost of mortgage insurance varies among lenders.

If you’re applying for a conventional loan and can pay 20 per cent as a down payment, you won’t have to pay mortgage insurance. If you put less than 20 per cent down, you’ll need to pay mortgage insurance until your loan-to-value ratio dips below 78 per cent.

If you’re applying for an FHA loan, expect to pay mortgage insurance for the entire length of your loan if you put down 10 per cent or less.

What kind of house do you want?

Now for the fun part. You know what you can afford, and you know your credit score. So now you have to decide: What kind of home do you want?

If you’re planning on purchasing a primary residence — either a home or an apartment — both conventional and FHA loans can help you. If you’re purchasing a vacation home or a property to plan to rent out, you’ll need to apply for a conventional loan.

With a diverse offering of mortgage products, Mountain America Credit Union is your guide through the process of purchasing a new home or refinancing an existing mortgage.