Best Mortgage

Buying a home is probably the largest single purchase you’ll make in your entire life. There a numerous banks which can offer you a deal. Here we’ll try to give some information about the American City Bank and The bank of Switzerland for comparison. City bank is a huge organization known all over the world and it offers an extensive variety of mortgage programs, as well as competitive rates and terms. It comprises large national mortgage companies and local loan brokers. Here are the main City Bank options:
Secondary Market Fixed-Rate Programs offer a fixed-rate mortgage. It assures that your monthly principal and interest payment will remain the same over the term of the loan. If you’re planning to stay in your new home for many years, a fixed-rate mortgage makes a lot of sense. (30-year fixed rate =7.125%)
First-Time Home Buyer Programs are created for people looking to purchase their first home who have a limited down payment.
Adjustable-Rate Mortgages (ARM’S) offer lower interest rates and lower initial payments. Rates and payments adjust during the term of the mortgage. Interest rates will never exceed a pre-established ceiling. If you’re planning to stay in your home only for a few years, an ARM can get you more home and lower your monthly payments. 
Balloon Mortgages have easier qualification requirements. It starts out at a fixed-rate for a preset term. Although the term of the loan is shortened, monthly payments are based up to a 30-year schedule. But you must refinance your loan at the prevailing interest rate. Balloon mortgages are suitable if you expect to sell your home within 5 to 7 years. (7 year Balloon Rate=7.000%).
Swiss banks are also world famous. So, the Bank of Switzerland offers repayment or interest only for purchase or re-mortgage. Purchaser can be either Swiss or foreign borrowers domiciled in Switzerland. Non-resident foreigners can also purchase property, subject to federal law. Minimum loan must not exceed 80% of mortgage valuation or purchase price (whichever is lower). The term is 5 to 30 years up to age 70 while in the US the minimum term is 1 year and people after 60 get a reverse mortgage. Swiss bank fees vary but you should expect to pay around CHF500 (Swiss Franks). The cost of the mortgage valuation depends on the size and location of the property. You should also allow for notary fees of up to 5% of the purchase price. There are also two main lending criteria for determining how much you can borrow: the value of the property and your financial situation. Most Swiss lenders take into account your existing liabilities, including mortgage/rent payments, personal and bank loans, and maintenance payments. When these are added to your proposed Swiss mortgage payments, the total must not exceed 30% of your gross income (33% of net income). These percentages can vary. Proof of income is required in all cases. This can be made up of earned income, pension, investment, or rental income. However, not all lenders take all of these into account when determining how much you can borrow. Interest rates in Swiss banks vary for different countries. For example, a 30-year fixed mortgage for Florida (the US) equals 7,3% and a 35-years(semi-exclusive) mortgage for Switzerland equals 2,75% (3,68% 10 years variable) variable. Normally, countries territorially close to Switzerland have lower interest rates.

This entry was posted on Thursday, July 20th, 2006 at 10:05 am and is filed under Main. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.