GMAC Home Finance

GMAC Financial Services is an agglomeration of many companies who aim at helping customers by offering them services like span automotive financing, commercial finance, insurance and mortgage products along with real estate services. The GMAC Home Finance is a special wing of the GMAC Financial Services who finance home loans mainly by mortgaging.

GMAC Home Finance for the First Home Buyers For the first homebuyers the following mortgage schemes are made available by the GMAC Home Finance.

Fixed Rate Home Mortgage Finance:

The interest rates for the home mortgage finance may be fixed or floating. Mortgages having fixed rates of interest are known as fixed rate mortgages whereas mortgages with floating rates are called adjustable rate mortgages. Sometimes they are a combination of both. In the fixed interest rate mortgage the interest rate does not fall below the initial level.

Adjustable rate home mortgage finance:

For the adjustable rate home mortgage, the interest rate is fixed for a period ranging from 3 months to 10 years., after which it keeps on adjusting annually, semi annually or monthly.

Home Equity line of credit:

This is basically a simple interest loan applicable only during the drawing period. The borrower can enjoy high levels of savings since he has to pay interest only on the outstanding Home Equity Line of Credit. The borrower has the full liberty to draw the full amount from his credit line or taking only that amount of funds that would be needed. The home equity line of credit serves the following purposes.

1. Debt consolidation
2. Home renovation
3. Education
4. Automobile purchase
5. Investments
6. Vacations
7. Business ventures

Balloon Home Mortgage Finance:

The Balloon Home Mortgage requires monthly payments that would fully amortize at the stated expiry date. The balloon payment is due at the end of the time period. A lump sum of the remaining balance is needed for the balloon payment.

Loans offered with little or no down payments

Homeflex plan:

If one has to buy a home without any initial down payment then he can opt for the Homeflex plan offered by GMAC Home Finance. It is also known as the 80/20 loan. Home Flex uses the first mortgage for 80% of the home finance. A home equity loan is used to cover the remaining 20%.

Home Strength:

The Home Strength program provides a second loan up to 4% of the value of the property.

Pathways:

This enables the purchase of a house with a down payment as little as $500. 3% of the rest of the down payment comes from gifts, grants or secondary finance.

The other schemes available are the Borrower's advantage loan, Federal Housing Administration Mortgage, VA mortgage etc

Loans with Low Monthly Payments

In order to obtain loans with low monthly payments one can avail the interest only loan, the adjustable rate mortgage or the balloon Mortgage as discussed in detail in the preceding sections.

Alternative Mortgage options Expressway For self-employed individuals, getting a mortgage becomes difficult due to lengthy documentation procedures. The Expressway program addresses such problems. In this program, there is no verification of income or assets. More time is available for searching a suitable home instead of drowning oneself in documents.

Solutions

For individuals who are not given loans due credit problems in the past, The Solutions Program help such individuals to choose a suitable loan t5hst would fit their goal. They are also at liberty to refinance at a better rate after the first year.

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