100% Free Mortgage!

Are you thinking of buying a home and are worried you do not have your own part of the equity contribution? There is little reason to worry because there are certain mortgage services that make 100% equity contribution- only that they charge a higher interest rate on your mortgage. This means that you can move into your dream house without making any down payment.

The conventional mortgage contract requires that the potential home owner makes at least 20% equity contribution, while the mortgage firm contributes the 80% cost of the property. Most young couples or potential home owners usually have difficulty coming up with their 20% equity contribution, so some mortgage firms have come up with the creative solution of solving this difficult financial hurdle. The potential home owner only needs to pay the closing cost which is actually a fee paid to the seller for processing the buyer’s request. This cost varies from one seller to another, but may also depend on the cost of apartment. It is sometimes up to 3% the total cost of the property.

As simplified as this method of purchasing a new home may appear, it is still a huge challenge for most aspiring home owners to come up with even the closing cost To this end, some mortgage financiers have come up with an all in one package for the buyer- they offer mortgage loans of up to 103% cost of the property to be purchased! This means that the 3% closing cost has been built into the loan package, so the buyer makes no single down payment before moving into the apartment. The beautiful thing is that there is no discrimination even against new home owners, and there are no income limits on the part of the applicants.

Most banks and mortgage companies only work with a select few lenders and this makes it difficult to get the loan that best suits a potential homeowner, because few lenders mean mortgage firms have a narrow spectrum of choices. This is as compared to the broader spectrum of choices that are available to all shades of aspiring home owners mentioned above. This is a high-risk high-return mortgage venture and the relatively higher interest rates are justified. The risks are well covered in the initial credit appraisal and approval process, so all parties- lenders or financiers, the mortgage houses, sellers and buyers are all protected. Another key factor here is that there is a flexible repayment plan, which is unique to the new home owner’s income flow and other possible existing obligations.