Second bonds might be the solution for some homeowners. Being a homeowner leads to a great many expenses, both expected and unexpected ones. In most cases, new homeowners calculate the expected costs into their budget so they understand how much house they can afford to purchase while still having some money to play with.

Unfortunately, those unexpected costs can add up and lead to spiralling debt and a life of stress-related days. Maybe you think you can handle it on your own and you are doing great until the unexpected repairs seem to come on a regular basis, knocking at your door and depleting your wallet every month instead of every year. Then, you suddenly realize that this is what they don’t teach you about either in school or at home.

Perhaps it’s time to do something sensible about it instead of using the credit cards to pay for the necessary repairs or borrowing payday loans to pay off the servicemen and equipment. After all, a second bond is going to have lower interest rates than either your credit card account or a payday loan.

Plus, in most cases, the interest charges are tax deductible and can lead to added savings for your bank account at income tax time. Better still, since you can select a term of 10 or even 15 years, the monthly payments might not even be that large. But just what is a second bond?

Second bonds are simply loans that are taken out after the first or primary bond. They are often referred to as second mortgage loans and are often placed on a home while the primary mortgage is still in existence. Although the homeowner will need to make the same type of decisions with a second mortgage as with a first mortgage, the expense is considerably less.

The homeowner who is interested in a second mortgage bond will need to determine the type of loan they want to obtain such as variable rate or fixed rate. Plus, he will also need to submit an application, similar to the one he submitted for his first bond, as well as prove that he is capable of repaying the bond. Additionally, he should calculate how much money he would need to borrow in order to cover all of the new expenses.

Once you have acquired a second mortgage bond, revamp your budget to include your new payments. You can use the proceeds to pay for the new repairs, pay off existing credit card debt, and possibly have some money leftover for any new repairs that happen to arise in the near future.

To apply for a second bond you will have to fill out a short application form. You will then receive a FREE quote from well established, nationally recognized lenders. You do not need to decide now whether a second bond is for you.

Just apply and compare the repayments to your current situation. There is no obligation on your part. If you decide that it is not for you, you simply do not have to accept the offer. You have nothing to lose and everything to gain.

Please Phone us on (011)327-4489 for more info. www.mortgagepluscc.co.za

Lenders will take the following into account with every mortgage application.

INCOME

When applying for a mortgage, lenders will look at your total income before any deductions (gross income) to access if you would be able to afford the mortgage payments. Lenders will consider the following as income:

-Salaries & Wages
-Regular Incentives
-Investment Income
-Retirement Income
-Regular Commissions
-Rental Income

CREDIT HISTORY

To qualify for a mortgage it is vital that you a satisfactory record of paying all your accounts on time. This can affect your credit score substantially. A credit score is a summary of a number of positive and negative factors, such as the information on your credit report that aims to predict how likely you are to honor your credit commitments in future. This rating is often used by lenders to identify the risk in offering you credit.

If you experienced problems in the past, and if you have a good explanation it can be taken into account. Make use of an experienced mortgage broker to assist you when applying for a mortgage.

TOTAL DEBT

The amount of debt you have will play a significant role in qualifying for a mortgage. Most South Africans have debt in the form credit cards, store cards, personal loans etc. As a rule of thumb lenders require that the total off all your monthly debt payments may not exceed 80%-85% (depending on the lender) of your nett income.

MORTGAGE QUALIFICATION CRITERIA

Before the introduction of the New Credit Act (NCA) lenders used the 30% rule as qualifying criteria. Now, after implementation on 1 June 2007, you have to qualify on affordability. In other words, they will look at your NETT salary, and deduct all your monthly expenses to ensure you can still afford this amount.

If you already own property and would like to apply for additional finance on your home loan, the same rule applies. One advantage, though, is if you will be consolidating debt, because some banks will take into account the debt you will be settling and looking at your improved cash flow when calculating your affordability.

PROPERTY VALUATION

Your lender will do a valuation on the home to determine its value, before granting a mortgage.

The value of the property must be in line with the purchase price. If this is not the case, the bank may approve a lower bond amount.

If you’re already own property and would like to apply for additional finance on your home loan, you need to have sufficient equity in the property to qualify. Equity is calculated by taking the market value of the property and deducting what you owe. This difference is the equity. In certain suburbs the banks will allow you to apply up to the full value of the property.

To apply for a loan you will have to fill out a short application form. You will then receive a FREE quote from well established, nationally recognized lenders. You do not need to decide now whether the loan is for you.

Just apply and compare the repayments to your current situation. There is no obligation on your part. If you decide that it is not for you, you simply do not have to accept the offer. You have nothing to lose and everything to gain.

Click Here – to get your free Quote!