Sadly, most people are low income earners especially in developing countries like Nigeria. Even getting mortgages here is almost impossible which is why we have so many tenants here. But the case is very different for people in Europe.
What are the advantages of using mortgage to buy a house?
- Thread starter Ralphjoe
- Start date
Sadly, most people are low income earners especially in developing countries like Nigeria. Even getting mortgages here is almost impossible which is why we have so many tenants here. But the case is very different for people in Europe.
When it comes to buying property, the term mortgage is probably much better known today as the housing loan.
In general, it is financed by financial institutions (banks). So the advantages of using a mortgage to buy a house are, long term 3 to 15 years, paid in installments every month with interest, until the debt is paid off, then the house will belong to the mortgage buyer or borrower.
In general, it is financed by financial institutions (banks). So the advantages of using a mortgage to buy a house are, long term 3 to 15 years, paid in installments every month with interest, until the debt is paid off, then the house will belong to the mortgage buyer or borrower.
Using mortgage to own a house is mostly done by average inxome earners who ordinarily could not cough out the entire amount required for an outright house purchase.
It provides easy way with little pressure to become a landlord.However mortgage is sweet so long as you don't default in payments.
It provides easy way with little pressure to become a landlord.However mortgage is sweet so long as you don't default in payments.
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There are two reasons why piling on mortgagedebt to buy a home is actually a bad idea. ... It is lower interest rate debt than credit cards, but it can be dangerous if you're not budgeting correctly. So when mortgage debt is not agood idea is, one, essentially it's your single, largest monthly expense
mortgage payment is advantageous because it is not stressful to the buyer. The money can be paid monthly , quarterly, yearly. Although the payment might take a longer period to complete but it will be convenient for the buyer than paying at once.
The advantage is that it will enable someone to have a property if you ensure it in location, actually the mortgage is a cost effective way of borrowing because the interest rate on mortgages is lower than other form of borrowing,
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There is a great advantage when you buy a house on mortgage expecially if you want to use the house for rent, so that you can be able to pay back on time. But if you have a good job you can also be able to pay instalmentaly for the house, but it's more preferable to buy a house which is for a business.
Buying a house through mortgage is not a bad idea and it is worth trying out, this system has helps so many individual secure a house for themselves under a short period of time. Although you would be indebted to paying the loan back, you till can pay back in certain percentage per month.
It really does have advantage because you will be opportuned to own your own house by doing the payment little by little as agreed. So it also gives room for one not having to face the problem or house landlord and owners frustration. Because you already have yours.
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The only reason why it would be beneficial is if the house they put up the money for turns into an asset and generates revenues to service the mortgage. If not it would be a complete financial mistake. Mortgage is a better loan option..
I don't think there are any. In the event that you choose to buy a house with a credit, ensure that you can undoubtedly bear the cost of the head, premium, local charges, mortgage holders protection, property holder affiliation and different expenses every month or probably paying money is like a putting resources into a Bond.
The burden of saving up to build a house once is avoided when you get a house by mortgage. This is one aspect that the working class enjoy in the arrangement as certain amount of money will always be deducted from their monthly salaries to service the mortgage loan.
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One of the advantages of buying house with mortgage is that it gives you the previlege of paying at an agreed time. If one buy it you will have to discuss how much you pays back and time range to make the repayment.
It enables you to repay your loan over a long period of time. It is beneficial because you pay gradually and not so large amount of money overtime. The average period of time for loan payment is 25 years.
The repayment is sometimes favorable and also it is devoid of fraud. And all the necessary headache that do arise when you buy house from individual, for instance, family problems among the sellers. And it also allows you to get your properties within a short period of time.
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Commercial property mortgages typically have lower interest rates than other unsecured borrowing. Choosing to have fixed monthly repayments means you can accurately use them in your business planning and forecasting, enabling you to structure the finance of your business with a bit more certainty
One of the advantage is that you can build the house very fast and in the shortest period of time, and if the bank is a good one, then the repayment will also be an easy one
Utilizing Leverage: Influence is the point at which the extended profit for your protections reserve is higher than the obligation loan fee. On the off chance that you can reimburse not exactly the cash you can practically expect to acquire by saving the assets all things being equal, so it bodes well to think about the advance. Obviously, deciding if to purchase with money or get a home loan requires in excess of a spread between your expectations and genuine financing costs, however this is an important beginning stage.
Traditionalist borrowers, buyers during seasons of high loan fees, or people seeking after factor rate home loans can think that its more hard to make influence work with some level of reasonable sureness.
Traditionalist borrowers, buyers during seasons of high loan fees, or people seeking after factor rate home loans can think that its more hard to make influence work with some level of reasonable sureness.
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I think if you don't have a solid income there is no need of using mortgage to buy a house, i feel one of the benefit is that within a short period of time like two to three month you own a house and you can also spread it over a year.
The first advantage is that it gives you the opportunity to pay the money back in instalments, thereby giving everyone the chance to become a home owner. Another advantage is that they encourage people to invest for future purpose thereby increasing the amount of money in circulation.
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The first advantage is that it gives you the opportunity to pay the money back in instalments, thereby giving everyone the chance to become a home owner. Another advantage is that they encourage people to invest for future purpose thereby increasing the amount of money in circulation.
Post automatically merged:
The first advantage is that it gives you the opportunity to pay the money back in instalments, thereby giving everyone the chance to become a home owner. Another advantage is that they encourage people to invest for future purpose thereby increasing the amount of money in circulation.
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