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BEST MORTGAGE RATES; COMMERCIAL BANK VERSUS FEDERAL MORTGAGE BANK

When you are thinking of that beautiful house you want to buy, you want to seek the best home equity loan rates you can get. The lower the interest rate you have to pay to secure a home mortgage, the less the amount you will need to pay to your bank. In fact, the higher the amount of money you can collect from your bank.
Now The Question Is Where Can You Get The Best Home Equity Loan Rates?
No doubt you are familiar with the home loan interest rates in Nigeria. Commercial banks typically charge two digit interest rates for home mortgage.
Recently a friend of mine who was trying to get a mortgage to buy his dream home approached his commercial bank and they offered him home equity loan rate of 17 percent. In addition they also required that he would pay the following:
• 2 percent management fee charged quarterly
• 20 percent home equity contribution
• Legal fees charged by the real estate attorney recommended by the bank and
• All title registration fees required by the Lagos state government.
Note that the bank will not grant you a loan if your annual income is checked and cannot cover the charges yearly.
The federal mortgage bank of Nigeria still offers the best mortgage rates in Nigeria.
As at 2011, the home equity loan rate for home mortgage, offered by the federal mortgage bank under the National Housing Fund (NHF) was 7 percent.
How Do You Access The Mortgage Loan Offered Under The National Housing Fund?
You start by opening a mortgage account with a recognized and reputable mortgage institution like those run by banks (e.g. GT Homes, Intercontinental Homes, e.t.c). Then you fund your account through regular deposits, month after month.
After operating the account for a minimum of six months, you can then apply for a mortgage loan under the National Housing Fund Scheme through the mortgage institution. You can choose to go for the nearest mortgage institution, your preferred mortgage bank or the federal mortgage bank.
Having said all that, some people work in institutions whereby they are entitled to a mortgage loan.
So it depends on what category you fall in, you can purchase that dream house, just as long as you go for the mortgage plan that suits you best.

Eazyhomes Company

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