1. Refinance mortgage- It is the basic mortgage that can be utilized for consolidating your debts, take the funds out to renovate or add to your house. This is a great loan product if you are interested in saving money and want to avail a much lower rate of interest.
2. Second mortgage- You can use second mortgage on your existing mortgage for renovating your house or for other purposes, but you will have to pay slightly higher rate of interest. This is also a mortgage, but is much lesser than your previous one. As the lender providing you the loan takes the second position on the deed, so they usually charge you a much higher rate of interest.
3. Line of credit- This home loan comes with the revolving interest rates. The interest rates of such house loans keep on moving up or down depending upon the mortgage rates and one can easily avail more money after clearing the earlier loan amount. This money can be used for fixing your house, starting a new business, investing in an existing one or for various other needs.
4. Home loan without any income proof- This home loan is mainly for the tipped employees or self employed people. You will have to pay a much higher rate of interest than your first mortgage. However, you won’t have to provide income proof about your monthly earnings. This home loan is good under certain circumstances but if you can qualify quality for a traditional home loan, you should never opt for this loan.
You should do adequate research before settling down for a specific home loan so that you secure the best possible rates and charges from amongst the major home loan providers. You should study the loan documents with care and must consult your lawyer, as they can help you in choosing the best possible offer and can also scrutinize the documents before you sign them.