To begin with, it should be stated that the issues of home loans are among the most troublesome matters in the realty trade. Originally, numerous additional issues arise if the fact of a home loan appears. Thus, the paper is aimed to regard several most widely spread troubles and matters closely linked with the issues of home loans.
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Interest Rates and Sale
First of all, it should be stated that the Home Equity Loans and Home Equity Line of Credits are often regarded as the solutions for achieving the access to available equity that is often achievable on the home. Originally, this equity may be applied and resorted to with any purpose. Thus, there is a clear opportunity to perform home improvements and consolidate the debt. (Faulstitch, 2007)
This equity could be used for any purpose such as making home improvements or consolidating debt. Call today for a free consultation from a home loan expert or visit our Home Equity section online to utilize mortgage calculators and home loan rate tools. Originally, the interest rate is aimed to decrease the sale, as the price of the realty increases, as the consumer will have to pay these rates. Consequently, if there is a strong necessity to sell a house or an apartment, the loan should be paid off. (Faulstitch, 2007)
Customer awareness is the factor that impacts essentially the issues of further sales. If the potential customers are aware of the home loan, the sales will be essentially decreased, as no one will want to have additional troubles with paying off the loan. Taking into account the rates of customer awareness (85%) and the rates of home loans taken (34%), and their comparison with the yearly realty sales, it should be stated that still, there is the strong necessity of paying off the loan before selling a house or an apartment. Thus, it is necessary to mention that the customer awareness issues decrease the sales. (Home Loan Banks… 2005)
Service by Bank
Initially, the services of home loans are offered by banks; consequently, they can not increase the sale. On the other hand, if the banks are interested in offering the loans, the interest rates will be essentially decreased, and the sales will be higher. The fact is that these services often require some additional conditions of providing such discount, and, the fact is that there is a possibility to exceed the required limit and pay not only the rates but the fines as well.
The economic situation of the world
The current economic situation is featured with the world crisis and there is a tendency for the increased unemployment and income shortages. Thus, the sales of the home loans are increased, as numerous people aim to take a loan for buying realty in installments, paying off the loans for an extended period of time. (Home Loan Banks… 2005)
Increase in house price
The growth of the prices for the houses only encourages people for taking house loans. Originally, these growths only increase the rate of the loans, thus, the banks benefit independently from the economic situation. The loss of trust credit is the only obstacle that may provide the decrease in home loans sales. (Home Loan Banks… 2005)
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Faulstitch, James R. “Banks Get More Adept at Using Home Loan Bank Funding.” ABA Banking Journal 89.6 (2007): 79.
“Home Loan Banks Seek Bank Business with Some Success.” ABA Banking Journal 83.3 (2005): 28.