Top things to consider when choosing a Housing Loan

Top things to consider when choosing a Housing Loan

Nov 13, 2018 by Ohood Awayes

There are several reasons why one might need to own a house for life. Some feel more secure financially when they have their own house rather than having to pay a specific amount of rent, which is also subject to increase, on a regular basis. Other people take it as an investment opportunity. Whatever the reason, owning a house is not a simple thing, especially in Jordan where property prices skyrocket. Investors and interested buyers have different options of housing loans to choose from. In this article, we introduce you to the different types of housing loans in Jordan and which one you should opt for depending on your needs.  

The first thing to consider when taking a housing loan is whether you’re looking to use the money to purchase a ready-made house, to finance your house construction, or to improve an already-owned house. The amount of loan, interest rate and the period to pay off the loan varies according to the type of your house loan and the bank you are taking the loan from.

While individuals avoid taking a home loan because they don’t want to keep paying installments for the next ten years, there are many upsides to taking one that are not appreciated!  

1. Rent-free life: Alright, we realize that the payment duration for housing loans spans over a longer than usual period of time, but imagine the benefits you will be getting from it. You can just consider your monthly installment fir the house as your rent, except this time, it will not go forever! Once you are done with the payment, you will be living rent-free for life!  

2. Lower interest rate: This depends on several major factors, however, in general, housing loans have lower interest rates in comparison to other types of loans. Therefore, be careful when taking the loan to check the rates in other banks before you go ahead. We can assist you with that here!

3. Great investing opportunity: Buying a house might be very expensive, but paying rentals is not that cheap as well. Budding investors take this as an opportunity for a new source of income by buying the house and renting it for a decent amount. In most cases, the monthly rental amount covers the installment as well.  

All the same, you are not considered the full owner of the house until all installments are paid in full. This might sound discouraging, but it is a guarantee for the bank that you will pay the installments. As long as you pay on time, you are always on the safe side.  

Taking a house loan is the most serious of all loans. Be mindful that the interest rate is not all that matters. If one bank provides you a low interest rate, it might charge high fees that go with the loan. Visit this link to study your options of borrowing a house loan in Jordan.

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