When you are getting a home loan from mortgage broker, or from any other mortgage bank, you need to make sure that you know what EVP is. This is the only way that you can really protect you and your family when you are thinking of selling the home again. It is important to make sure that you know more about EVP, so that you can make the best decision for you and your family.
What does EVP stand for?
For those who don’t know what EVP stands for, it simply meansEquity Value Protection. You will need to make sure that you have all the information about EVP before you buy your home loan from a mortgage broker.
When you are buying a home, you are normally paying interests and the repay amount is much higher than the amount that the home is valued. And, if you are going to sell the home and relocate, you might find yourself in trouble, because the amount that you are selling your home isn’t enough for repaying the home loan. EVP is protecting you, so that you don’t have this problem. This will make sure that you are only paying for the amount that you haveselling your home for, and EVP is basically paying the rest.
There are two different types of EVP
Another important thing about EVP is that there are two different types of EVP that you should know, before you subscribe to it.
The first type is EVP-A. This is where the mortgage broker in Melbourne gave consent to getEVP. This can make the whole process easier. So, it might be a good thing to get the consent of your lender towards EVP, before you subscribe to it.
The second one is EVP-B. This is where you didn’t make sure that the mortgage broker has given consent before you subscribe to EVP. You can still make use ofEVP, but the process of selling might just take a little bit longer than with EVP-A.
When can you subscribe to an EVP?
Many people are making the mistake to think that they can only subscribe to EVP when they are getting the home loan for the first time. But, this isn’t the truth.
You can really get EVP anytime. It doesn’t need to be when you are applying for the home loan. You can get it also when you already have your home loan and even start repaying the home loan for a couple of months. More details here: http://www.forbes.com/sites/georgedeeb/2014/03/19/comparing-equity-vs-debt-vs-convertibles-for-startup-financings/#5b509c1c6aa3
Getting an EVP might just be the best option for you to protect you and your family when you are buying a home, and needs to get a home loan. This is to make sure that you can sell the home and not still have some money that you need to repay to the mortgage broker, before you can buy another home.