by Terry Edwards
Today, home refinance has been a hot area for lenders and homeowners alike. With much lower interest rates, it only makes sense to refinance a home mortgage that you've been paying on at 10% interest. These lower rates are also ideal for many to refinance a second mortgage. Here are some tips and things to consider with a second mortgage refinance.
Why Consider Refinancing a Second Mortgage?
Of course, getting a lower interest rate is a big part of it, but there is another important reason as well. You will find that in most instances you can refinance your second mortgage for the same monthly payment you currently have, but for a much shorter loan period.
Getting a 10 year second mortgage for what you were paying on a 15 year loan makes good financial sense. Refinancing a high interest rate second mortgage will save you a lot of money over time.
One of the keys in to successfully refinance a second mortgage is finding the right lender or mortgage broker. Look for a lender that will take the time to explain all the details to you. This is in addition to finding a lower interest rate and much more favorable loan terms.
Finally, know upfront what you can expect in refinance closing costs. The last thing you want at your loan closing is a huge surprise in unexpected fees or costs. A good lender will go over all costs with you before closing. And if they don't, start looking for a new one.
You can find lenders who specialize in second mortgage refinanc
http://www.HomeRefinancingA-Z.com
2007-11-15
Refinance or Use Home Equity for a Reverse Mortgage?
Samantha Taylor
Scenario:
I am considering pros and cons of taking a reverse mortgage or refinancing my existing mortgage. I will be 70 in September, and the social security income is one source that I primarily rely on. I do have some savings which I’d like to keep intact in case I need it for medical purposes and the like. Now as I found out a few days ago, if I go for a reverse mortgage, that is going to cost me a lot compared to what I paid for an existing loan. The outstanding balance on the existing loan is around $25000. So which will be the best way to go for – Do a refinance or take out a reverse mortgage?
Solution:
At your age of 70 years, you may find it difficult to qualify for a refinance loan. This is so because the lender or the mortgage company would require you to have a steady flow of income along with a sound credit payment history. And, considering your income source, I guess it’s the social security income that you’re currently relying on.
However, when you go for a reverse mortgage, make sure that you’re paying off any old debt against your home or else you’ll have to pay it down with the proceeds obtained through the loan itself. Moreover, you cannot borrow beyond a certain level of your home equity if you’re going to take a reverse mortgage. This is because the lender offers a loan amount such that the interest on the loan can be included into the value of home equity.
Now, instead of taking a reverse mortgage or a refinance loan, you can also look out for a home equity line of credit that will allow you to withdraw cash as and when required within an allowable credit limit. But here again you will be required to have a certain income limit to get qualified for the loan. So, when it comes to qualifying for a loan, I think a reverse mortgage is the best option for you.
You can select an FHA-insured loan (HECM), a lender-insured or even an un-insured reverse mortgage. It is better that you do some loan shopping in order to compare the costs required for each type of mortgage offer that you are likely to qualify for. However, before you decide to choose a loan program, consider your monthly expenses and any investment option that you’ve been interested in. This will help you to decide whether you can afford to pay off the loan in case it becomes callable.
If you wish to discuss on reverse mortgage and related issues, feel free to ask questions and get the right suggestions through our community forums.
http://www.articlesbase.com/mortgage-articles/refinance-or-use-home-equity-for-a-reverse-mortgage-213931.html
Scenario:
I am considering pros and cons of taking a reverse mortgage or refinancing my existing mortgage. I will be 70 in September, and the social security income is one source that I primarily rely on. I do have some savings which I’d like to keep intact in case I need it for medical purposes and the like. Now as I found out a few days ago, if I go for a reverse mortgage, that is going to cost me a lot compared to what I paid for an existing loan. The outstanding balance on the existing loan is around $25000. So which will be the best way to go for – Do a refinance or take out a reverse mortgage?
Solution:
At your age of 70 years, you may find it difficult to qualify for a refinance loan. This is so because the lender or the mortgage company would require you to have a steady flow of income along with a sound credit payment history. And, considering your income source, I guess it’s the social security income that you’re currently relying on.
However, when you go for a reverse mortgage, make sure that you’re paying off any old debt against your home or else you’ll have to pay it down with the proceeds obtained through the loan itself. Moreover, you cannot borrow beyond a certain level of your home equity if you’re going to take a reverse mortgage. This is because the lender offers a loan amount such that the interest on the loan can be included into the value of home equity.
Now, instead of taking a reverse mortgage or a refinance loan, you can also look out for a home equity line of credit that will allow you to withdraw cash as and when required within an allowable credit limit. But here again you will be required to have a certain income limit to get qualified for the loan. So, when it comes to qualifying for a loan, I think a reverse mortgage is the best option for you.
You can select an FHA-insured loan (HECM), a lender-insured or even an un-insured reverse mortgage. It is better that you do some loan shopping in order to compare the costs required for each type of mortgage offer that you are likely to qualify for. However, before you decide to choose a loan program, consider your monthly expenses and any investment option that you’ve been interested in. This will help you to decide whether you can afford to pay off the loan in case it becomes callable.
If you wish to discuss on reverse mortgage and related issues, feel free to ask questions and get the right suggestions through our community forums.
http://www.articlesbase.com/mortgage-articles/refinance-or-use-home-equity-for-a-reverse-mortgage-213931.html
Mortgage Holders 'Face Rise In Financial Pressures'
by Abbi Rouse
Moves by the Bank of England's monetary policy committee (MPC) to increase the base rate of interest over the course of the summer led to a fall in lending for property purchase in September, new research indicates.
According to a study conducted by the Council of Mortgage Lenders (CML), the impact of the higher cost of repayments on personal loans and other types of borrowing resulted in some 12.7 billion pounds for the purposes of home buying to be issued in September. Consequently this figure was down on the 16.2 billion pounds noted during the previous month and the 13.9 billion pounds from September 2006.
The study also revealed that homeowners are coming under increasing financial pressure as the typical mortgage rate rose from 5.91 to 6.02 per cent from August to September. In turn this caused the CML to assert that the affordability of property has "worsened" for both first-time buyers and those already on the housing ladder, which in turn could impact upon their capacity in making repayments on secured loans and utility bills. Over the course of September, mortgage interest payments accounted for 20.4 and 17.5 per cent of income for people making their initial steps on to the housing ladder and existing homeowners respectively.
In addition, the company pointed out that borrowing from both groups fell during September, as some 28,400 loans were issued to first-time buyers during the month, down from the 34,800 recorded in August. Meanwhile, those already on the property sector took out some 52,400 loans, in comparison to the previous month's total of 68,000.
Such financial difficulties were attributed to the eventual impact of the MPC's decision to increase interest rates in both May and July. However, the effects of the recent credit crunch and stricter lending criteria by loan lenders were not due to impact home lending figures until October.
Overall, home loans for all purposes accounted for 30.6 billion pounds this September, up by 800,000 pounds from the 29.2 billion pounds recorded from the corresponding month last year. However, in August 2007 a grand total of 34 billion pounds was taken out. Meanwhile, other forms of lending, including buy-to-let, remained consistent over the course of August to September standing at 6.8 billion pounds - up by 5.3 billion pounds recorded during September 2006.
Commenting on the statistics, Michael Coogan, director general for the CML, said: "The data shows that higher interest rates are now beginning to slow the housing market, in line with our recently published forecasts. Looking forward, we expect remortgaging to continue to hold up as borrowers coming off fixed-rate deals look to refinance. However, market conditions may mean that mortgage customers see an increase in costs and the Bank of England's decision not to reduce rates earlier this month will have disappointed many borrowers. Looking forward, affordability is likely to continue to constrain buying activity, which we expect to remain subdued."
However, Mr Coogan asserted that the base rate has now reached its "peak", while any moves by the MPC to lower interest rates "will help ease some of the pressure on household finances". One way consumers could reduce levels of financial strain is by taking out a debt consolidation loan, in which money owed to numerous creditors and companies can be reduced into a single monthly amount. Earlier this month, James Caldwell, director of Fairinvestment, reported that those developing money management problems should be proactive in terms of getting back on their fiscal feet and reducing their expenditure.
http://www.allaboutloans.co.uk/
Moves by the Bank of England's monetary policy committee (MPC) to increase the base rate of interest over the course of the summer led to a fall in lending for property purchase in September, new research indicates.
According to a study conducted by the Council of Mortgage Lenders (CML), the impact of the higher cost of repayments on personal loans and other types of borrowing resulted in some 12.7 billion pounds for the purposes of home buying to be issued in September. Consequently this figure was down on the 16.2 billion pounds noted during the previous month and the 13.9 billion pounds from September 2006.
The study also revealed that homeowners are coming under increasing financial pressure as the typical mortgage rate rose from 5.91 to 6.02 per cent from August to September. In turn this caused the CML to assert that the affordability of property has "worsened" for both first-time buyers and those already on the housing ladder, which in turn could impact upon their capacity in making repayments on secured loans and utility bills. Over the course of September, mortgage interest payments accounted for 20.4 and 17.5 per cent of income for people making their initial steps on to the housing ladder and existing homeowners respectively.
In addition, the company pointed out that borrowing from both groups fell during September, as some 28,400 loans were issued to first-time buyers during the month, down from the 34,800 recorded in August. Meanwhile, those already on the property sector took out some 52,400 loans, in comparison to the previous month's total of 68,000.
Such financial difficulties were attributed to the eventual impact of the MPC's decision to increase interest rates in both May and July. However, the effects of the recent credit crunch and stricter lending criteria by loan lenders were not due to impact home lending figures until October.
Overall, home loans for all purposes accounted for 30.6 billion pounds this September, up by 800,000 pounds from the 29.2 billion pounds recorded from the corresponding month last year. However, in August 2007 a grand total of 34 billion pounds was taken out. Meanwhile, other forms of lending, including buy-to-let, remained consistent over the course of August to September standing at 6.8 billion pounds - up by 5.3 billion pounds recorded during September 2006.
Commenting on the statistics, Michael Coogan, director general for the CML, said: "The data shows that higher interest rates are now beginning to slow the housing market, in line with our recently published forecasts. Looking forward, we expect remortgaging to continue to hold up as borrowers coming off fixed-rate deals look to refinance. However, market conditions may mean that mortgage customers see an increase in costs and the Bank of England's decision not to reduce rates earlier this month will have disappointed many borrowers. Looking forward, affordability is likely to continue to constrain buying activity, which we expect to remain subdued."
However, Mr Coogan asserted that the base rate has now reached its "peak", while any moves by the MPC to lower interest rates "will help ease some of the pressure on household finances". One way consumers could reduce levels of financial strain is by taking out a debt consolidation loan, in which money owed to numerous creditors and companies can be reduced into a single monthly amount. Earlier this month, James Caldwell, director of Fairinvestment, reported that those developing money management problems should be proactive in terms of getting back on their fiscal feet and reducing their expenditure.
http://www.allaboutloans.co.uk/
2007-11-14
The loan calculator has become an important tool for home buyer
by Vicky Edema
A number of excellent resource tools are now available on the internet for people in Australia seeking a loan to finance the purchase of a property or refinance an existing mortgage.
One of the most useful and user friendly tools is a loan calculator. Before going too far in the purchase and /or borrowing process it is a worthwhile exercise to quickly gauge your borrowing capacity and also determine how your new mortgage repayments will impact on your personal cash flow.
Establishing your borrowing capacity can be approached in a number of ways and is a relatively quick and simple process using a good loan calculator
For example, most loan calculators will allow you to enter your net income and your current liabilities such as a car loan or credit card debt and will then quickly give you an idea as to the amount you can borrow. In the same calculation you will see your monthly instalment amount for the proposed mortgage which will enable you to determine what surplus income will continue to be available to meet your general cost of living expenses and the repayments on any other debts you may have. Although a loan calculator can give you a guide to your borrowing capacity there are other things that a lender will take into consideration when you apply for a loan. For example the number of dependent children you have will impact on your borrowing capacity.
You can play around with the loan calculator, in that if you feel the monthly repayment is too high you can increase the loan term from the standard 25 years to 30 years (being the maximum generally available in today's market). By increasing the loan term you reduce the monthly repayment amount. A number of borrowers choose to make interest only payments in the first 5 years of their loan to reduce their monthly commitments while they are getting themselves established. You must remember however that by taking an initial interest only period you increase the amount of the principal and interest instalments when they kick in because the loan is being amortised over the remainder of term only.
With the loan calculator you can also compare the difference in your monthly outgoings under your existing situation (for example your new mortgage, a car loan and current monthly credit card repayments) with the repayments that would apply if you combined all your personal debt into your home mortgage. You will invariably improve your cash flow by doing this as the interest rate on car and credit card loans is usually higher than home loan rates. However you should also realise that by including say your car loan with you're your home mortgage you are in effect now paying the car off over 25 or 30 years as opposed to perhaps a 5 year personal loan or lease with nominal residual. If you decide to sell the car after 3 years you will not have built up the same equity in it as you would have under the shorter term financing.
If you are considering a refinance the loan calculator has a feature which enables you to compare the interest rates of your existing lender with those of a new proposed lender. It will show you the amount of interest you will pay under each loan. The comparison loan calculator is quite sophisticated in that it has provision for a number of variables. For example you may compare your existing loan which may have an initial fixed rate term for 3 years @ 8.20% reverting to a 7.75% variable rate at the end of that 3 year period with a proposed loan which may have an initial 5 year fixed period @ 7.95% reverting to a 7.65% variable rate for the remainder loan term. The loan calculator will calculate the fixed interest payable for the first 3 or 5 years plus the interest for the remaining term at the variable rate and give you the total interest amount that you will pay for the full loan term on each mortgage. The loan calculator will also often summarise this in graph form and advise the amount you will save or lose by staying with your existing lender.
When using the loan calculator one should remember that it is only interest rates that are being compared. You may have special features that you wish to include within your mortgage for which you are prepared to pay a small premium in interest rate.
In fact, you may well be better off with a lender who charges a marginally higher interest rate but also offers a 100% offset account with your loan. Such a feature allows you to place any surplus funds you have in your offset account and with 100% offset these funds earn you the same rate of interest as that which you are paying on your mortgage. In other words if you have a loan of $250,000 and a $50,000 balance in your offset account your monthly interest is calculated on $200,000 only. Example: Mortgage: $250,000 paying 8% (interest only) = $20,000 p.a. Offset: $50,000 earning @ 8% = $4000 p.a. Nett result: $200,000 @ 8% (interest only) = you pay $16,000 p.a
Compare this with $250,000 at a lower rate of interest, again on an interest only basis for simplicity:
$250,000 @ 7.75% = $19,375 $250,000 @ 7.50% = $18,750 $250,000 @ 7.00% = $17,500
In reality you would need to have an interest rate of 6.40% (that's 1.6% below the mortgage loan with 100% offset) to have an equivalent rate of the offset package.
In Australia, a loan calculator is a good resource and you should certainly check them out to be confident that you are on the right track in relation to your estimates on borrowing capacity.
http://www.australmortgage.com.au/
A number of excellent resource tools are now available on the internet for people in Australia seeking a loan to finance the purchase of a property or refinance an existing mortgage.
One of the most useful and user friendly tools is a loan calculator. Before going too far in the purchase and /or borrowing process it is a worthwhile exercise to quickly gauge your borrowing capacity and also determine how your new mortgage repayments will impact on your personal cash flow.
Establishing your borrowing capacity can be approached in a number of ways and is a relatively quick and simple process using a good loan calculator
For example, most loan calculators will allow you to enter your net income and your current liabilities such as a car loan or credit card debt and will then quickly give you an idea as to the amount you can borrow. In the same calculation you will see your monthly instalment amount for the proposed mortgage which will enable you to determine what surplus income will continue to be available to meet your general cost of living expenses and the repayments on any other debts you may have. Although a loan calculator can give you a guide to your borrowing capacity there are other things that a lender will take into consideration when you apply for a loan. For example the number of dependent children you have will impact on your borrowing capacity.
You can play around with the loan calculator, in that if you feel the monthly repayment is too high you can increase the loan term from the standard 25 years to 30 years (being the maximum generally available in today's market). By increasing the loan term you reduce the monthly repayment amount. A number of borrowers choose to make interest only payments in the first 5 years of their loan to reduce their monthly commitments while they are getting themselves established. You must remember however that by taking an initial interest only period you increase the amount of the principal and interest instalments when they kick in because the loan is being amortised over the remainder of term only.
With the loan calculator you can also compare the difference in your monthly outgoings under your existing situation (for example your new mortgage, a car loan and current monthly credit card repayments) with the repayments that would apply if you combined all your personal debt into your home mortgage. You will invariably improve your cash flow by doing this as the interest rate on car and credit card loans is usually higher than home loan rates. However you should also realise that by including say your car loan with you're your home mortgage you are in effect now paying the car off over 25 or 30 years as opposed to perhaps a 5 year personal loan or lease with nominal residual. If you decide to sell the car after 3 years you will not have built up the same equity in it as you would have under the shorter term financing.
If you are considering a refinance the loan calculator has a feature which enables you to compare the interest rates of your existing lender with those of a new proposed lender. It will show you the amount of interest you will pay under each loan. The comparison loan calculator is quite sophisticated in that it has provision for a number of variables. For example you may compare your existing loan which may have an initial fixed rate term for 3 years @ 8.20% reverting to a 7.75% variable rate at the end of that 3 year period with a proposed loan which may have an initial 5 year fixed period @ 7.95% reverting to a 7.65% variable rate for the remainder loan term. The loan calculator will calculate the fixed interest payable for the first 3 or 5 years plus the interest for the remaining term at the variable rate and give you the total interest amount that you will pay for the full loan term on each mortgage. The loan calculator will also often summarise this in graph form and advise the amount you will save or lose by staying with your existing lender.
When using the loan calculator one should remember that it is only interest rates that are being compared. You may have special features that you wish to include within your mortgage for which you are prepared to pay a small premium in interest rate.
In fact, you may well be better off with a lender who charges a marginally higher interest rate but also offers a 100% offset account with your loan. Such a feature allows you to place any surplus funds you have in your offset account and with 100% offset these funds earn you the same rate of interest as that which you are paying on your mortgage. In other words if you have a loan of $250,000 and a $50,000 balance in your offset account your monthly interest is calculated on $200,000 only. Example: Mortgage: $250,000 paying 8% (interest only) = $20,000 p.a. Offset: $50,000 earning @ 8% = $4000 p.a. Nett result: $200,000 @ 8% (interest only) = you pay $16,000 p.a
Compare this with $250,000 at a lower rate of interest, again on an interest only basis for simplicity:
$250,000 @ 7.75% = $19,375 $250,000 @ 7.50% = $18,750 $250,000 @ 7.00% = $17,500
In reality you would need to have an interest rate of 6.40% (that's 1.6% below the mortgage loan with 100% offset) to have an equivalent rate of the offset package.
In Australia, a loan calculator is a good resource and you should certainly check them out to be confident that you are on the right track in relation to your estimates on borrowing capacity.
http://www.australmortgage.com.au/
2007-11-13
Tips for Bill Consolidation Loans
by Macky May
Think you already know what this subject is all about? Chances are that you don't, but by the end of this article you will!
Proposal consolidation finances can slash duty and help you pay of your debt sooner. However, you want to be surely that you feature in the figure of fees, find low duty, and prize concise phrase finance. These tips will guarantee that you don't end up overheads more by consolidating.
Reason in Fees
Depending on the class of finance you desire, fees can adjust from thousands to nothing. Refinancing a home finance and with the fairness to pay off bills is appealing to many. But the thousands that it figures to refinance should be considered, especially if you aren't receiving a better figure on your finance.
From now until the now until the end of this article, take the time to think about how all of this information can help you.
Home fairness finances and defenses of belief can be worn with little or no fees. Their duty is advanced, but for slighter amounts they can still be cheaper. Private finances are also a decision while they still beat high curiosity belief licenses.
Make duty Pay
Before consolidating your bills, make surely that your finance figure will be slash that what you are presently paying. This might mean that you don't consolidate all your finances. For example, scholar finances regularly have the lowly duty likely, better than a finance figure.
If you can only consolidate part of your debt, pay off the accounts with the peak curiosity duty for the most savings.
Go abrupt on language
Choosing concise phrases on your finance will bank you money on curiosity figures. While slighter payments are tempting, the long phrase curiosity payments can clearly be more than what you pay now. Believe license payments are set to pay off your weigh in five existences. So if you can financially lever your stream payments, prize five phrase finance.
Store Online
Store ping online for finance can also help you bank money in curiosity and finance figures. Many financing companies suggest more competitive duty online than in their conventional offices. Appeal quotes from numerous lenders and look at their phrases. Even a difference as little as an eighth of a percent can financially make a big difference.
Close salaried Accounts
To shield your belief slice, make surely to close accounts once they are rewarded off. This discount in your unfilled belief will set you up for better duty when you do desire to open a new account, such as finance.
Seeing believes, but sometimes we can't all experience every subject in life. This article hopes to make up for that by providing you with a valuable resource of information on this topic.
www.billconsolid.com
Think you already know what this subject is all about? Chances are that you don't, but by the end of this article you will!
Proposal consolidation finances can slash duty and help you pay of your debt sooner. However, you want to be surely that you feature in the figure of fees, find low duty, and prize concise phrase finance. These tips will guarantee that you don't end up overheads more by consolidating.
Reason in Fees
Depending on the class of finance you desire, fees can adjust from thousands to nothing. Refinancing a home finance and with the fairness to pay off bills is appealing to many. But the thousands that it figures to refinance should be considered, especially if you aren't receiving a better figure on your finance.
From now until the now until the end of this article, take the time to think about how all of this information can help you.
Home fairness finances and defenses of belief can be worn with little or no fees. Their duty is advanced, but for slighter amounts they can still be cheaper. Private finances are also a decision while they still beat high curiosity belief licenses.
Make duty Pay
Before consolidating your bills, make surely that your finance figure will be slash that what you are presently paying. This might mean that you don't consolidate all your finances. For example, scholar finances regularly have the lowly duty likely, better than a finance figure.
If you can only consolidate part of your debt, pay off the accounts with the peak curiosity duty for the most savings.
Go abrupt on language
Choosing concise phrases on your finance will bank you money on curiosity figures. While slighter payments are tempting, the long phrase curiosity payments can clearly be more than what you pay now. Believe license payments are set to pay off your weigh in five existences. So if you can financially lever your stream payments, prize five phrase finance.
Store Online
Store ping online for finance can also help you bank money in curiosity and finance figures. Many financing companies suggest more competitive duty online than in their conventional offices. Appeal quotes from numerous lenders and look at their phrases. Even a difference as little as an eighth of a percent can financially make a big difference.
Close salaried Accounts
To shield your belief slice, make surely to close accounts once they are rewarded off. This discount in your unfilled belief will set you up for better duty when you do desire to open a new account, such as finance.
Seeing believes, but sometimes we can't all experience every subject in life. This article hopes to make up for that by providing you with a valuable resource of information on this topic.
www.billconsolid.com
2007-11-12
What Are The Basics Of Home Refinancing?
by Alan Lim
The decision to take out a second mortgage to refinance your home should never be a frightening resolution to any mortgage holder. Home refinancing is worth the decision if and only if you follow the proper line of investigation. Here are some guidelines to take you through the transaction:
Carry out extensive research
Home refinancing is not just all about taking out a second loan with the mortgaged property as security. It goes beyond that to selecting the best deal that would not weigh on your ability to pay. The route to this is to shop extensively. All lenders are not the same. Do a lot of comparison shopping. Through this you might be able to come out with one or two deals that may prove advantageous to you than a prior transaction. Investigate on the current rates. At times it may be prudent to wait till rates fall particularly if your current rate is equal to or higher than the existing market rate, before resorting to home refinancing.
Deciding on a home refinancing lender
Most people are also not decided on what lender to look forward to home refinancing. As there are so many bad deals out in the market, so too there are mischievous lenders. If you are not inconsistent with your previous lender, the best choice will be to go back to that lender. He is best to understand your situation and you may work out a special deal with him which takes account of your particular needs. If you decide on taking an entirely new lender, make an appraisal of more than two lenders. Keep in mind that your present tight spot might have been as a result of the unfruitful deal that you entered into.
Honesty pays
Home refinancing may sometimes mean moving from a worst to a best situation. Therefore, it is wisdom to know your monetary habits. Keep in mind that home refinancing is not only meant for those who have a good financial record. The fact that your finances are in the red still qualifies you for refinancing. With this in mind, personally lay your problem to the lender. There are and will always be solutions carved out for people of your type. Hiding a poor record to him might lead you thinking of the feasibility of the existence of a third mortgage.
Are you refinancing for the first time?
If you are into home refinancing for the first time, I would advocate you to be cautious and reflect only on investment. The best solution for new comers will be to use the refinance to invest on the existing mortgage. This is one of the fastest ways to build up valuable equity in your home. Equity in the property always gives you an edge over the lender when thinking of home refinancing.
If you are still in doubts, do not hesitate to visit the link below for more information as we as the expert in this area could give you good advic
http://www.goarticles.com/cgi-bin/showa.cgi?C=679608
The decision to take out a second mortgage to refinance your home should never be a frightening resolution to any mortgage holder. Home refinancing is worth the decision if and only if you follow the proper line of investigation. Here are some guidelines to take you through the transaction:
Carry out extensive research
Home refinancing is not just all about taking out a second loan with the mortgaged property as security. It goes beyond that to selecting the best deal that would not weigh on your ability to pay. The route to this is to shop extensively. All lenders are not the same. Do a lot of comparison shopping. Through this you might be able to come out with one or two deals that may prove advantageous to you than a prior transaction. Investigate on the current rates. At times it may be prudent to wait till rates fall particularly if your current rate is equal to or higher than the existing market rate, before resorting to home refinancing.
Deciding on a home refinancing lender
Most people are also not decided on what lender to look forward to home refinancing. As there are so many bad deals out in the market, so too there are mischievous lenders. If you are not inconsistent with your previous lender, the best choice will be to go back to that lender. He is best to understand your situation and you may work out a special deal with him which takes account of your particular needs. If you decide on taking an entirely new lender, make an appraisal of more than two lenders. Keep in mind that your present tight spot might have been as a result of the unfruitful deal that you entered into.
Honesty pays
Home refinancing may sometimes mean moving from a worst to a best situation. Therefore, it is wisdom to know your monetary habits. Keep in mind that home refinancing is not only meant for those who have a good financial record. The fact that your finances are in the red still qualifies you for refinancing. With this in mind, personally lay your problem to the lender. There are and will always be solutions carved out for people of your type. Hiding a poor record to him might lead you thinking of the feasibility of the existence of a third mortgage.
Are you refinancing for the first time?
If you are into home refinancing for the first time, I would advocate you to be cautious and reflect only on investment. The best solution for new comers will be to use the refinance to invest on the existing mortgage. This is one of the fastest ways to build up valuable equity in your home. Equity in the property always gives you an edge over the lender when thinking of home refinancing.
If you are still in doubts, do not hesitate to visit the link below for more information as we as the expert in this area could give you good advic
http://www.goarticles.com/cgi-bin/showa.cgi?C=679608
Are You Thinking Of Home Refinancing? What You Need To Know
by Alan Lim
Recourse to home refinancing may sometimes be the last resort. But when such a situation arises, must you be desperate and go at all lengths? It may be wise to take the following tip to avoid falling into further trouble; it is said that, to be forewarned is to be forearmed.
Focus on the deal
There are varieties of reasons why people seek home refinancing. Yours may be worse than theirs. The essential thing should be to develop a calm mind and get a good deal. Directing your focus more on your plight than of the method of solving it may lead you into more problems. Thus when you meet a home refinancing lender or his agent, behave as if there is no problem. You may equally behave as if you are in no financial dilemma. When your mind becomes clouded with the complexities of your problems; or you are overtaken by the anxiety of getting more money, you may not see the trap. Keep in mind that there may be certain indiscernible technicalities in the document that you may not be able to see. Take note that the lender may not have the duty of care to explain them to you. He is equally seeking to have a better deal.
Must it be home refinancing?
It is rational to measure if refinancing would be the only resort to what you need. Thus, pay particular attention not on your present position, but to your future capacity to use the money wisely and to repay the loan. What do you intend to do with the money? Can it be possible that this new route will lead to a betterment of your situation? Will you eventually redeem the refinancing on time? These are all considerations you must bring to mind to determine if you must resort to home refinancing.
When is it best for home refinancing?
Refinancing your home should be done in a timely manner. Thus reflect on home refinancing when there is a wide-ranging increment in the worth of properties. Refinance when the rates of interests are at their barest. When rates fall, you equally pay smaller rates. Also refinance if this is the only avenue to consolidate your debts. While thinking of this, make sure you refinance for something more than the existing debt. This may possibly leave you with something at hand. Refinance when you think you no longer want to make use of the home. This is especially true to those who may be making a significant migration in their lives or who are in possession of more than one home. Whatever the case, I think yielding to the demands of necessity should be the ultimate reason and time for home refinancing.
What next?
If you are unable to redeem the home refinancing, what do you think will be the outcome? The best answer to this is to make sure there is enough equity in the value of your home.
If you are still in doubts, do not hesitate to visit the link below for more information as we as the expert in this area could give you good advice.
http://www.homemortgageloan-refinance.com/
Recourse to home refinancing may sometimes be the last resort. But when such a situation arises, must you be desperate and go at all lengths? It may be wise to take the following tip to avoid falling into further trouble; it is said that, to be forewarned is to be forearmed.
Focus on the deal
There are varieties of reasons why people seek home refinancing. Yours may be worse than theirs. The essential thing should be to develop a calm mind and get a good deal. Directing your focus more on your plight than of the method of solving it may lead you into more problems. Thus when you meet a home refinancing lender or his agent, behave as if there is no problem. You may equally behave as if you are in no financial dilemma. When your mind becomes clouded with the complexities of your problems; or you are overtaken by the anxiety of getting more money, you may not see the trap. Keep in mind that there may be certain indiscernible technicalities in the document that you may not be able to see. Take note that the lender may not have the duty of care to explain them to you. He is equally seeking to have a better deal.
Must it be home refinancing?
It is rational to measure if refinancing would be the only resort to what you need. Thus, pay particular attention not on your present position, but to your future capacity to use the money wisely and to repay the loan. What do you intend to do with the money? Can it be possible that this new route will lead to a betterment of your situation? Will you eventually redeem the refinancing on time? These are all considerations you must bring to mind to determine if you must resort to home refinancing.
When is it best for home refinancing?
Refinancing your home should be done in a timely manner. Thus reflect on home refinancing when there is a wide-ranging increment in the worth of properties. Refinance when the rates of interests are at their barest. When rates fall, you equally pay smaller rates. Also refinance if this is the only avenue to consolidate your debts. While thinking of this, make sure you refinance for something more than the existing debt. This may possibly leave you with something at hand. Refinance when you think you no longer want to make use of the home. This is especially true to those who may be making a significant migration in their lives or who are in possession of more than one home. Whatever the case, I think yielding to the demands of necessity should be the ultimate reason and time for home refinancing.
What next?
If you are unable to redeem the home refinancing, what do you think will be the outcome? The best answer to this is to make sure there is enough equity in the value of your home.
If you are still in doubts, do not hesitate to visit the link below for more information as we as the expert in this area could give you good advice.
http://www.homemortgageloan-refinance.com/
Get the Best Home Mortgage Home Loan Refinance Rate
by Steve Faber
The Fed's interest latest rate cuts have ensured you can once again get a low interest rate on your home mortgage loan. The problem is that the fed's rate cut came at the same time as the problems in the bad credit mortgage market. These credit woes spilled over into the middle end of the market as well. Now it's not only the people with bad credit that are having problems getting a mortgage. Because of the credit industry shakeup, almost anyone may have some difficulty getting a mortgage loan unless they have very good credit or really have their ducks in a row.
If you can get a loan to refinance your existing mortgage, here are some tips to help you get the best home mortgage loan rate. Just a few tenths of a point lower n your interest rate will save you 10's of thousands over the life of the loan, and really help your monthly cash flow situation.
Here are some ways you can get the best mortgage loan refinance rate:
Raise Your Credit Score- The interest rate reflects your perceived risk to the lender. They have developed detailed formulas to assess this risk. One of the largest determinants of your interest rate will be your credit score, also called the FICO score. It is a picture of your credit risk. The ability distill much of your credit details into a single 3 digit number is one way that loans are approved so quickly these days. Raise your credit score, and you'll normally lower your interest rate. You should aim for a score of at least 720, higher is better. The top score is 850, and unless you are in jail or something else is terribly wrong, anything over 800 should let you get a good rate on your mortgage.
Improve your debt to income ratio - This is very often looked at when you've applied for a refinance. If you have many cars, a large house payment, and ample credit card bills, you must find a way to rid yourself of some of it. One key here; if you own a business and have some of the company vehicles or other assets in your name, they will show up when your credit report is pulled. Any such debt will severely limit your chances of getting the lowest possible loan rate.
Negotiate - When you are talking to your lender, there's nothing wrong with trying to negotiate a better deal. You can possible get a better interest rate, lower loan fees, or both. The key is that you'll never know if you don't try..
Get multiple offers - Even with the shakeup in the home mortgage industry, there are still many lenders to choose from. Do that. Check out different lenders and get multiple offers for your refinance business. Compare not just the rate, but the fee structure as well.
These pointers should help you get a better rate on your home mortgage refinance loan.
http://www.opportunitiesaplenty.com/bad_credit_refinance.html
The Fed's interest latest rate cuts have ensured you can once again get a low interest rate on your home mortgage loan. The problem is that the fed's rate cut came at the same time as the problems in the bad credit mortgage market. These credit woes spilled over into the middle end of the market as well. Now it's not only the people with bad credit that are having problems getting a mortgage. Because of the credit industry shakeup, almost anyone may have some difficulty getting a mortgage loan unless they have very good credit or really have their ducks in a row.
If you can get a loan to refinance your existing mortgage, here are some tips to help you get the best home mortgage loan rate. Just a few tenths of a point lower n your interest rate will save you 10's of thousands over the life of the loan, and really help your monthly cash flow situation.
Here are some ways you can get the best mortgage loan refinance rate:
Raise Your Credit Score- The interest rate reflects your perceived risk to the lender. They have developed detailed formulas to assess this risk. One of the largest determinants of your interest rate will be your credit score, also called the FICO score. It is a picture of your credit risk. The ability distill much of your credit details into a single 3 digit number is one way that loans are approved so quickly these days. Raise your credit score, and you'll normally lower your interest rate. You should aim for a score of at least 720, higher is better. The top score is 850, and unless you are in jail or something else is terribly wrong, anything over 800 should let you get a good rate on your mortgage.
Improve your debt to income ratio - This is very often looked at when you've applied for a refinance. If you have many cars, a large house payment, and ample credit card bills, you must find a way to rid yourself of some of it. One key here; if you own a business and have some of the company vehicles or other assets in your name, they will show up when your credit report is pulled. Any such debt will severely limit your chances of getting the lowest possible loan rate.
Negotiate - When you are talking to your lender, there's nothing wrong with trying to negotiate a better deal. You can possible get a better interest rate, lower loan fees, or both. The key is that you'll never know if you don't try..
Get multiple offers - Even with the shakeup in the home mortgage industry, there are still many lenders to choose from. Do that. Check out different lenders and get multiple offers for your refinance business. Compare not just the rate, but the fee structure as well.
These pointers should help you get a better rate on your home mortgage refinance loan.
http://www.opportunitiesaplenty.com/bad_credit_refinance.html
2007-11-11
Home Refinancing For People With Bad Credit - Why Refinance Online
Carrie Reeder
With bad credit, refinancing your home online will help you find better quotes, service, and application process. With hundreds of sub prime lenders to choose from, you can be sure to find the lowest rates. You can also enjoy service that can be customized around your schedule, getting an answer almost any time of day. And of course, online loan applications will speed processing.
Online Offers Better Mortgage Refinancing Quotes
With thousands of lenders online, financing companies secure your business by offering competitive rates. Even with adverse credit, you can find refinancing rates only a couple of percent higher than the average loan. All it takes is a few minutes asking for loan estimates.
To save even more time, you can start with a mortgage broker site. By partnering with dozens of lenders, one site can offer you several side-by-side quotes. Most sites will also list closing costs and points required. Of course, you also have the choice of going to individual sites to collect quotes.
When you ask for a refinancing rate estimate, be as accurate with your information as possible. Enter a realistic credit score to get rate quotes that won't jump after your information is verified.
Find Better Mortgage Refinancing Services Online
Online lenders also strive to give you better service. Most companies offer a variety of means to connect with a service representative. You can usually call or email outside of business hours and still get a response. A lender's website is also filled with a wealth of information, answering the most common questions.
After your loan is completed, you will most likely be able to set up an online account to monitor your loan's repayment. You can check the status of your balance, interest rate, and even your payment status.
Better Refinancing Application Process
Once you have selected an online lender, you can submit your application online by entering your basic information over a secure connection. Or if you prefer, your application can be sent by mail for your completion.
With many lenders, final paperwork can be notarized at your home or workplace. A notary will arrive as scheduled so you don't have to make any special trips.
http://www.abcloanguide.com/lessthanperfectcredit.shtml for
With bad credit, refinancing your home online will help you find better quotes, service, and application process. With hundreds of sub prime lenders to choose from, you can be sure to find the lowest rates. You can also enjoy service that can be customized around your schedule, getting an answer almost any time of day. And of course, online loan applications will speed processing.
Online Offers Better Mortgage Refinancing Quotes
With thousands of lenders online, financing companies secure your business by offering competitive rates. Even with adverse credit, you can find refinancing rates only a couple of percent higher than the average loan. All it takes is a few minutes asking for loan estimates.
To save even more time, you can start with a mortgage broker site. By partnering with dozens of lenders, one site can offer you several side-by-side quotes. Most sites will also list closing costs and points required. Of course, you also have the choice of going to individual sites to collect quotes.
When you ask for a refinancing rate estimate, be as accurate with your information as possible. Enter a realistic credit score to get rate quotes that won't jump after your information is verified.
Find Better Mortgage Refinancing Services Online
Online lenders also strive to give you better service. Most companies offer a variety of means to connect with a service representative. You can usually call or email outside of business hours and still get a response. A lender's website is also filled with a wealth of information, answering the most common questions.
After your loan is completed, you will most likely be able to set up an online account to monitor your loan's repayment. You can check the status of your balance, interest rate, and even your payment status.
Better Refinancing Application Process
Once you have selected an online lender, you can submit your application online by entering your basic information over a secure connection. Or if you prefer, your application can be sent by mail for your completion.
With many lenders, final paperwork can be notarized at your home or workplace. A notary will arrive as scheduled so you don't have to make any special trips.
http://www.abcloanguide.com/lessthanperfectcredit.shtml for
2007-11-10
A Guide To Adjustable Rate Mortgage Terms
Terry Parker
An adjustable rate mortgage, ARM, is a mortgage that has a varying interest rate on the note. The interest rate on the mortgage periodically adjusts based on an index. Because of the varying interest rate, borrowers may notice their payments changing over time.
Adjustable rate mortgages are sometimes confused with graduated payment mortgages. With a graduated payment mortgage the interest rate remains fixed while the payment amounts change.
With adjustable rate mortgages much of the interest rate risk is transferred from the lender to the borrower. Borrowers benefit when interest rates on the mortgage fall. On the other hand, borrowers lose out when interest rates rise. Usually the loans are available when fixed rate mortgages are more difficult to obtain.
Index is the guide used by lenders to measure changes in the interest. Each adjustable rate mortgage is linked to an index.
Margin is the part of the interest rate from which the lenders profits. The margin plus the index rate is the total interest rate. While the index will change throughout the duration of the adjustable rate mortgage, the margin will not.
Adjustment period is the period between interest rate adjustments, usually denoted in the format of 1 to 1. The first number is the initial period of the loan for which the interest rate will remain the same. The second number is the adjustment period. It shows denotes the frequency at which the interest rate can be adjusted.
The index is one of the most important considerations in choosing an adjustable rate mortgage. Even though you don't have control over the specific index that is used by a particular lender, you can choose a loan and lender according to the index that will apply to the particular loan in which you are interested.
A lender you are considering can give you an indication of the performance of the loan in the past. The ideal loan is one that has an index that has historically remained stable. As you consider loans and lenders make sure you also consider the margin rate that the lender offers.
Many borrowers wonder about the benefits of an adjustable rate mortgage since the payments can increase over time. In most cases, the benefit of an adjustable rate mortgage comes into play when the interest rate of the ARM is lower than the fixed rate mortgage. The possibility of a payment increase is sometimes inconsequential. This is true if you do not plan to occupy the house for an extended period or if you expect your income to increase over the life of the loan.
Negative amortization is a key. Watch out when you are choosing an adjustable rate mortgage. This can occur when a particular loan as a cap on payments that keeps them from covering the amount of interest on the mortgage. As a result, unpaid interest is added to the loan, causing the amount of the loan to increase, even though you are making payments.
You can start out with a positive amortization on your adjustable rate mortgage but end up with a negative one due to interest rate increases. The best way to avoid negative amortization is to avoid adjustable rate mortgages that have a payment cap.
http://www.goldcrownmortgage.com/
An adjustable rate mortgage, ARM, is a mortgage that has a varying interest rate on the note. The interest rate on the mortgage periodically adjusts based on an index. Because of the varying interest rate, borrowers may notice their payments changing over time.
Adjustable rate mortgages are sometimes confused with graduated payment mortgages. With a graduated payment mortgage the interest rate remains fixed while the payment amounts change.
With adjustable rate mortgages much of the interest rate risk is transferred from the lender to the borrower. Borrowers benefit when interest rates on the mortgage fall. On the other hand, borrowers lose out when interest rates rise. Usually the loans are available when fixed rate mortgages are more difficult to obtain.
Index is the guide used by lenders to measure changes in the interest. Each adjustable rate mortgage is linked to an index.
Margin is the part of the interest rate from which the lenders profits. The margin plus the index rate is the total interest rate. While the index will change throughout the duration of the adjustable rate mortgage, the margin will not.
Adjustment period is the period between interest rate adjustments, usually denoted in the format of 1 to 1. The first number is the initial period of the loan for which the interest rate will remain the same. The second number is the adjustment period. It shows denotes the frequency at which the interest rate can be adjusted.
The index is one of the most important considerations in choosing an adjustable rate mortgage. Even though you don't have control over the specific index that is used by a particular lender, you can choose a loan and lender according to the index that will apply to the particular loan in which you are interested.
A lender you are considering can give you an indication of the performance of the loan in the past. The ideal loan is one that has an index that has historically remained stable. As you consider loans and lenders make sure you also consider the margin rate that the lender offers.
Many borrowers wonder about the benefits of an adjustable rate mortgage since the payments can increase over time. In most cases, the benefit of an adjustable rate mortgage comes into play when the interest rate of the ARM is lower than the fixed rate mortgage. The possibility of a payment increase is sometimes inconsequential. This is true if you do not plan to occupy the house for an extended period or if you expect your income to increase over the life of the loan.
Negative amortization is a key. Watch out when you are choosing an adjustable rate mortgage. This can occur when a particular loan as a cap on payments that keeps them from covering the amount of interest on the mortgage. As a result, unpaid interest is added to the loan, causing the amount of the loan to increase, even though you are making payments.
You can start out with a positive amortization on your adjustable rate mortgage but end up with a negative one due to interest rate increases. The best way to avoid negative amortization is to avoid adjustable rate mortgages that have a payment cap.
http://www.goldcrownmortgage.com/
Second Mortgage for Home Improvement
Jay Conners
Now that you have been in your home for a few years and you have established some equity, you may be considering doing some home improvement with a second mortgage.
Home improvement comes in many forms. Such as a new kitchen, bathroom, roof, siding, etc.
You can acquire a home improvement loan or second mortgage through one of three ways. Refinancing with cash out, a home equity loan, or a home equity line of credit.
My suggestion to you would be, a home equity line of credit. (HECL)
The HECL is a very convenient loan for a home owner because it is not mandatory that you use the funds right away. And when you do decide to use the money, you only use the amount you need.
Lets suppose you have a home equity line of credit for $25,000.00. The lender will give this money to you as a line for you to use, only when you choose to do so. The line also comes with a check book so you can write checks at your convenience.
A refinance with cash out, or a standard home equity loan is given to you in the form of a lump sum, and you begin paying the interest and principal immediately.
On the HECL you only pay interest and principal when you use the money, and only on the amount you use.
So lets suppose you hire a contractor to put a new bathroom in your house for fifteen thousand dollars. Upon completion of the project, you would than write a check from your HECL check book, it’s that simple.
At this time, your monthly payments would begin to kick in.
Most HECL’s are amortized over twenty years, and the payment is interest only for the first ten. So make sure you are aware of the payment schedule before you close.
Home improvement is a great step to take with your home. It not only adds value to your house, but it also improves the quality of your life. And the interest is tax deductible.
As always, continue to educate yourself, and make sure you shop around for the best deal.
http://www.explainingmortgages.com
Now that you have been in your home for a few years and you have established some equity, you may be considering doing some home improvement with a second mortgage.
Home improvement comes in many forms. Such as a new kitchen, bathroom, roof, siding, etc.
You can acquire a home improvement loan or second mortgage through one of three ways. Refinancing with cash out, a home equity loan, or a home equity line of credit.
My suggestion to you would be, a home equity line of credit. (HECL)
The HECL is a very convenient loan for a home owner because it is not mandatory that you use the funds right away. And when you do decide to use the money, you only use the amount you need.
Lets suppose you have a home equity line of credit for $25,000.00. The lender will give this money to you as a line for you to use, only when you choose to do so. The line also comes with a check book so you can write checks at your convenience.
A refinance with cash out, or a standard home equity loan is given to you in the form of a lump sum, and you begin paying the interest and principal immediately.
On the HECL you only pay interest and principal when you use the money, and only on the amount you use.
So lets suppose you hire a contractor to put a new bathroom in your house for fifteen thousand dollars. Upon completion of the project, you would than write a check from your HECL check book, it’s that simple.
At this time, your monthly payments would begin to kick in.
Most HECL’s are amortized over twenty years, and the payment is interest only for the first ten. So make sure you are aware of the payment schedule before you close.
Home improvement is a great step to take with your home. It not only adds value to your house, but it also improves the quality of your life. And the interest is tax deductible.
As always, continue to educate yourself, and make sure you shop around for the best deal.
http://www.explainingmortgages.com
2007-11-09
Got A Haunted Home With Your Refinance Home Mortgage?
Rony Walker
You just settled into your new home bought from refinance home mortgage. On the first night, you heard things up in the attic. You shrug it off, thinking it's only your imagination. The bumps in the night grew louder and things start flying off the wall. You're living in a haunted house! What to do?
Friendly and unfriendly ghosts
Unlike some home buyers, you see the house first before buying it to check if indeed the house is in good shape. But there are things agents will not tell you because you might back off the deal. Of course, it will depend on your taste - if you don't care a bit or if you are squeamish about ghostly sightings.
A haunted house does have to be Victorian mansion. It can be a townhouse in a posh village or a condo in upscale Manhattan. But the difference lies in what kind of ghosts are around. If the ghosts have been there before the American Civil War, they're "house-broken", but if you got a house where murders or mass suicides were committed, then that is a different story.
With your refinance home mortgage already signed, sealed and delivered, you can do little if you are denied a cancellation of the purchase. So you either learn to live with the ghosts and turn into a profitable bed and breakfast for rabid ghost hunters, or wait out the first year of the mortgage before you can sell. That is, if there are buyers.
Why they don't tell
Homeowners selling houses with a complete package of ghost sightings and flying objects are not telling. Haunted houses don't sell or are sold at low prices so sellers keep mum hoping to get a fair deal and get rid of their property in no time.
If you found a beautiful old house selling for a pittance, be suspicious - there could be ghosts around. Spooks aside, there are other things to watch out for before you plunk in your earnest money into a refinance home mortgage.
Check if the house is on an earthquake belt or on contaminated soil. You'll be smart too to check the foundation of the house and smoke out the presence of asbestos and radon. Do not always rely on the agent's pronouncements, even if she or he is your brother. Get an independent appraiser rather than be a scrooge. This investment will save you the sleepless nights ruing your mistake.
But if you know what it takes for a home appraisal, then get the home appraisal guide, and go over the house inch by inch from top to bottom.
Before you sign the deeds and agreements
In your enthusiasm, do not forget to ask how you can cancel should things go wrong. Ask a lawyer to review the contract or the agreement and get his advice on cancellation matters.
You have all the right to be careful. Isn't it your money that'll pay for the refinance home mortgage? So ask about cancellation upfront. Talk to the agent's broker if he refuses to a cancellation. If he also refuses, ask for another agent. If things are still sticky, then get a real estate lawyer to get you out of the pickle.
If you're happy living with ghosts
If you're clairvoyant, you might as well enjoy your house. A bed and breakfast and a crystal ball will auger well for your chances with a haunted house bought with your refinance home mortgage.
http://www.articlesbase.com/real-estate-articles/got-a-haunted-home-with-your-refinance-home-mortgage-247809.html
You just settled into your new home bought from refinance home mortgage. On the first night, you heard things up in the attic. You shrug it off, thinking it's only your imagination. The bumps in the night grew louder and things start flying off the wall. You're living in a haunted house! What to do?
Friendly and unfriendly ghosts
Unlike some home buyers, you see the house first before buying it to check if indeed the house is in good shape. But there are things agents will not tell you because you might back off the deal. Of course, it will depend on your taste - if you don't care a bit or if you are squeamish about ghostly sightings.
A haunted house does have to be Victorian mansion. It can be a townhouse in a posh village or a condo in upscale Manhattan. But the difference lies in what kind of ghosts are around. If the ghosts have been there before the American Civil War, they're "house-broken", but if you got a house where murders or mass suicides were committed, then that is a different story.
With your refinance home mortgage already signed, sealed and delivered, you can do little if you are denied a cancellation of the purchase. So you either learn to live with the ghosts and turn into a profitable bed and breakfast for rabid ghost hunters, or wait out the first year of the mortgage before you can sell. That is, if there are buyers.
Why they don't tell
Homeowners selling houses with a complete package of ghost sightings and flying objects are not telling. Haunted houses don't sell or are sold at low prices so sellers keep mum hoping to get a fair deal and get rid of their property in no time.
If you found a beautiful old house selling for a pittance, be suspicious - there could be ghosts around. Spooks aside, there are other things to watch out for before you plunk in your earnest money into a refinance home mortgage.
Check if the house is on an earthquake belt or on contaminated soil. You'll be smart too to check the foundation of the house and smoke out the presence of asbestos and radon. Do not always rely on the agent's pronouncements, even if she or he is your brother. Get an independent appraiser rather than be a scrooge. This investment will save you the sleepless nights ruing your mistake.
But if you know what it takes for a home appraisal, then get the home appraisal guide, and go over the house inch by inch from top to bottom.
Before you sign the deeds and agreements
In your enthusiasm, do not forget to ask how you can cancel should things go wrong. Ask a lawyer to review the contract or the agreement and get his advice on cancellation matters.
You have all the right to be careful. Isn't it your money that'll pay for the refinance home mortgage? So ask about cancellation upfront. Talk to the agent's broker if he refuses to a cancellation. If he also refuses, ask for another agent. If things are still sticky, then get a real estate lawyer to get you out of the pickle.
If you're happy living with ghosts
If you're clairvoyant, you might as well enjoy your house. A bed and breakfast and a crystal ball will auger well for your chances with a haunted house bought with your refinance home mortgage.
http://www.articlesbase.com/real-estate-articles/got-a-haunted-home-with-your-refinance-home-mortgage-247809.html
Be Sure You Have The Right Reason To Get A Home Refinance
Rony Walker
"Come into my parlor", said the spider to the fly. "We've got the lowest interest only loan. Just put up your house as equity." The fly immediately put up his house and went into the parlor, only to be devoured as a savory dinner. Are you that unfortunate fly?
Why are you getting a home refinance?
There are many reasons to get a home refinance, and 99.9% of these reasons are to pay off debts. Experts would advise to consider carefully your reason to refinance and stake your home.
Another reason to refinance is to get investment money for a business. This sounds good, but the risk is great. Would you dare navigate un-chartered depths at the risk of losing your home?
Perhaps you've got this zany idea to earn tax deductions so you took out a home refinance loan. In principle, you are paying a dollar to earn 30 cents, and for this you put your home.
Not all these reasons for home refinance are recommended. Your house is the biggest investment of your lifetime and putting it up for these flimsy reasons is nothing to crow about.
Better reasons to home refinance
Just because everybody has lined up for a home loan does not mean it will work according to your expectations. Loans have to be paid back. To be able to do so on the same amount of cash inflow for a number of years means changing your lifestyles and spending habits. Or like the fly, you will be dinner for the spider.
It is not easy to lose a home. Apart from destroying your credit score, you'll have to uproot your family from all that is dear. So play smart when you are getting a loan.
A bankable reason to home refinance is to get additional cash flow for your business expansion or fund a wife's last year in college. Both ways you see an end goal towards increased revenues and income.
How to get a better deal
Depending on your financial motivation like cash flow flexibility, you are looking at more savings in a year's time from a lowered monthly payments compared to your current mortgage.
Remember that the longer the loan term, the lower the monthly payment. If you add up all your expenses in 30 years time, you'll have paid more than double the loan amount. So get a lower interest rate and be sure there are no additional or hidden costs.
If you have a $200,000 30-year mortgage loaned on an interest rate of 8%, you'll have paid $440,400 at $1,468 a month. If you refinance at 6% you will be paying $1,199 a month or a total of $359,700. But wait, there's more. Depending on the closing costs, it will take months before you can break even.
If you are staying in the house for more than 10 years get the fixed rate but if you are going to sell the house in five year's time better get the adjustable rate mortgage.
Never rush into a home refinance. Take your time until you have understood all the workings of your target refinance program. Read the contract carefully.
Be ready to pay and change your lifestyle. No matter the advantages of your home refinance, if you fail keeping up with the payments you'll get the short end of the stick.
http://www.whataboutloans.com/mortgage/mortgage-refinance-loans.html/
"Come into my parlor", said the spider to the fly. "We've got the lowest interest only loan. Just put up your house as equity." The fly immediately put up his house and went into the parlor, only to be devoured as a savory dinner. Are you that unfortunate fly?
Why are you getting a home refinance?
There are many reasons to get a home refinance, and 99.9% of these reasons are to pay off debts. Experts would advise to consider carefully your reason to refinance and stake your home.
Another reason to refinance is to get investment money for a business. This sounds good, but the risk is great. Would you dare navigate un-chartered depths at the risk of losing your home?
Perhaps you've got this zany idea to earn tax deductions so you took out a home refinance loan. In principle, you are paying a dollar to earn 30 cents, and for this you put your home.
Not all these reasons for home refinance are recommended. Your house is the biggest investment of your lifetime and putting it up for these flimsy reasons is nothing to crow about.
Better reasons to home refinance
Just because everybody has lined up for a home loan does not mean it will work according to your expectations. Loans have to be paid back. To be able to do so on the same amount of cash inflow for a number of years means changing your lifestyles and spending habits. Or like the fly, you will be dinner for the spider.
It is not easy to lose a home. Apart from destroying your credit score, you'll have to uproot your family from all that is dear. So play smart when you are getting a loan.
A bankable reason to home refinance is to get additional cash flow for your business expansion or fund a wife's last year in college. Both ways you see an end goal towards increased revenues and income.
How to get a better deal
Depending on your financial motivation like cash flow flexibility, you are looking at more savings in a year's time from a lowered monthly payments compared to your current mortgage.
Remember that the longer the loan term, the lower the monthly payment. If you add up all your expenses in 30 years time, you'll have paid more than double the loan amount. So get a lower interest rate and be sure there are no additional or hidden costs.
If you have a $200,000 30-year mortgage loaned on an interest rate of 8%, you'll have paid $440,400 at $1,468 a month. If you refinance at 6% you will be paying $1,199 a month or a total of $359,700. But wait, there's more. Depending on the closing costs, it will take months before you can break even.
If you are staying in the house for more than 10 years get the fixed rate but if you are going to sell the house in five year's time better get the adjustable rate mortgage.
Never rush into a home refinance. Take your time until you have understood all the workings of your target refinance program. Read the contract carefully.
Be ready to pay and change your lifestyle. No matter the advantages of your home refinance, if you fail keeping up with the payments you'll get the short end of the stick.
http://www.whataboutloans.com/mortgage/mortgage-refinance-loans.html/
Why Debt Consolidation Refinance Is Good For You
If you are like some individuals who are currently living from one paycheck to another and – though with a regular salary – can't seem to remember how they spent their last salary, then you may need a financial makeover. Better yet, maybe it is time for you to consider a debt consolidation refinance.
It gets rid of annoying phone calls
A debt consolidation refinance helps in eliminating harassments creditors make just for you to fork up that credit card payment. Also, a debt consolidation refinance basically consolidates every bill that you have and are paying for into one payment, usually per month, in an amount that is quite lower than what you used to pay. This is in order to alleviate any stress brought about by financial pressures.
Saves you from bankruptcy
Believe it or not, debt consolidation refinance helps keep your finances from going bankrupt thereby helping you save your image as a consumer that is worth a credit.
When do you need a debt consolidation refinance?
It is time for a debt consolidation refinance the moment you feel the economic crunch weighing on you, in the sense that the bills that come every month seem to becoming more difficult to pay.
A debt consolidation refinance saves you from having to pay high, if not outrageously ridiculous rates of interest and fees for late payment. These additional and truly unnecessary factors only add to your current difficult financial state.
Another sign that it may be a good idea to consider debt consolidation refinance is if the amount due you get to pay every month seem to always be the minimum that your monthly bills never seem to change much less decrease.
Why home-owners can get out of the debt consolidation refinance
There are benefits that debt consolidation refinance provide homeowners. One is that they have the fortunate opportunity to apply using their homes equity. Through this way, discipline is established in paying monthly consolidated bills, thereby avoiding new unnecessary bills from incurring.
Be aware though that using your house as a collateral isn't advisable, unless there is an intention that payments will be made using the new debt loan consolidation.
All in all, debt consolidation refinance is a good option when you seem to think you are running out of one. It saves you time, money and the stress of thinking up of ways to pay up without losing your shirt.
http://www.freearticles.com/article/Why-Debt-Consolidation-Refinance-Is-Good-For-You/1715
It gets rid of annoying phone calls
A debt consolidation refinance helps in eliminating harassments creditors make just for you to fork up that credit card payment. Also, a debt consolidation refinance basically consolidates every bill that you have and are paying for into one payment, usually per month, in an amount that is quite lower than what you used to pay. This is in order to alleviate any stress brought about by financial pressures.
Saves you from bankruptcy
Believe it or not, debt consolidation refinance helps keep your finances from going bankrupt thereby helping you save your image as a consumer that is worth a credit.
When do you need a debt consolidation refinance?
It is time for a debt consolidation refinance the moment you feel the economic crunch weighing on you, in the sense that the bills that come every month seem to becoming more difficult to pay.
A debt consolidation refinance saves you from having to pay high, if not outrageously ridiculous rates of interest and fees for late payment. These additional and truly unnecessary factors only add to your current difficult financial state.
Another sign that it may be a good idea to consider debt consolidation refinance is if the amount due you get to pay every month seem to always be the minimum that your monthly bills never seem to change much less decrease.
Why home-owners can get out of the debt consolidation refinance
There are benefits that debt consolidation refinance provide homeowners. One is that they have the fortunate opportunity to apply using their homes equity. Through this way, discipline is established in paying monthly consolidated bills, thereby avoiding new unnecessary bills from incurring.
Be aware though that using your house as a collateral isn't advisable, unless there is an intention that payments will be made using the new debt loan consolidation.
All in all, debt consolidation refinance is a good option when you seem to think you are running out of one. It saves you time, money and the stress of thinking up of ways to pay up without losing your shirt.
http://www.freearticles.com/article/Why-Debt-Consolidation-Refinance-Is-Good-For-You/1715
2007-11-08
Refinance Your Home Mortgage: How to Avoid 5 Costly Mistakes
by BLAKE BALLEW
Warning: Do Not Refinance Your Home Until You Read This Report! Mistake
#1 – Refinancing only to obtain a lower interest rate So why are you refinancing your mortgage loan? Are you trying to save money through a lower monthly payment? Are you trying to reduce your interest rate? Are you hoping to combine your refinance with a cash-out equity loan? If you’re simply trying to find a lower interest rate, make sure you calculate the related fees and closing costs. These fees might make you rethink the process. Unless you can save enough money to easily cover these costs, refinancing may not be right for you. Mistake
#2 – Cash-Out Refi to Pay off Unsecured Credit Card Debt Many people opt for what’s called a cash-out refi. This not only can save you money on your monthly mortgage payment, but can provide you with cash to pay off high-interest credit cards. We recommend that you review all of your options before choosing this path. Are you really desperate enough to get rid of your unsecured debt that you would consider putting your home on the line? Review other options first, like calling your creditors and asking them to reduce your interest rates and save your home equity for a rainy day. Remember, you can always refinance without having to touch your home equity. Mistake
#3 – Not Asking About Points In their simplest form, Points are up-front mortgage interest fees paid on a loan to reduce the initial interest rate. Points are fees the borrower pays the lender at the time of loan closing. If you pay one point (1%) on a $100,000 loan, then you will pay the lender $1,000 at loan closing, but will reduce your long-term interest rate, which will save you money throughout the life of your loan. Some loan rates have points already built-in, so you need to make sure the lender is very clear on how many points are being charged. Mistake
#4 – Refinancing into an ARM or Interest-Only Loan In some cases, it makes sense to refinance into an Adjustable Rate or Interest-Only loan. But be aware of the ramifications. While you might refinance into an ARM and initially save money; over the years, your interest rate may creep up and end up eating-up the refinance savings. Interest-only loans are another popular option, but they’re not right for everyone. Interest-only loans are actually only “interest-only” for a short period of time, like 5-10 years. This means that eventually, your payment will start to include principal again, and if you can’t afford to pay the principal at that time, you might be forced to refinance again! Always plan long-term. Mistake
#5 – Not getting a Guaranteed Lowest Bottom-Line Cost All lenders are required by law to provide what is called a Good Faith Estimate of Closing Costs. Use this “Good Faith Estimate” as a tool to find the lowest price. You should ask any lender you speak with for a guarantee that clearly states, in writing, that they have the lowest bottom-line closing cost. If they can’t provide you such a guarantee, in writing, you should find another lender.
Warning: Do Not Refinance Your Home Until You Read This Report! Mistake
#1 – Refinancing only to obtain a lower interest rate So why are you refinancing your mortgage loan? Are you trying to save money through a lower monthly payment? Are you trying to reduce your interest rate? Are you hoping to combine your refinance with a cash-out equity loan? If you’re simply trying to find a lower interest rate, make sure you calculate the related fees and closing costs. These fees might make you rethink the process. Unless you can save enough money to easily cover these costs, refinancing may not be right for you. Mistake
#2 – Cash-Out Refi to Pay off Unsecured Credit Card Debt Many people opt for what’s called a cash-out refi. This not only can save you money on your monthly mortgage payment, but can provide you with cash to pay off high-interest credit cards. We recommend that you review all of your options before choosing this path. Are you really desperate enough to get rid of your unsecured debt that you would consider putting your home on the line? Review other options first, like calling your creditors and asking them to reduce your interest rates and save your home equity for a rainy day. Remember, you can always refinance without having to touch your home equity. Mistake
#3 – Not Asking About Points In their simplest form, Points are up-front mortgage interest fees paid on a loan to reduce the initial interest rate. Points are fees the borrower pays the lender at the time of loan closing. If you pay one point (1%) on a $100,000 loan, then you will pay the lender $1,000 at loan closing, but will reduce your long-term interest rate, which will save you money throughout the life of your loan. Some loan rates have points already built-in, so you need to make sure the lender is very clear on how many points are being charged. Mistake
#4 – Refinancing into an ARM or Interest-Only Loan In some cases, it makes sense to refinance into an Adjustable Rate or Interest-Only loan. But be aware of the ramifications. While you might refinance into an ARM and initially save money; over the years, your interest rate may creep up and end up eating-up the refinance savings. Interest-only loans are another popular option, but they’re not right for everyone. Interest-only loans are actually only “interest-only” for a short period of time, like 5-10 years. This means that eventually, your payment will start to include principal again, and if you can’t afford to pay the principal at that time, you might be forced to refinance again! Always plan long-term. Mistake
#5 – Not getting a Guaranteed Lowest Bottom-Line Cost All lenders are required by law to provide what is called a Good Faith Estimate of Closing Costs. Use this “Good Faith Estimate” as a tool to find the lowest price. You should ask any lender you speak with for a guarantee that clearly states, in writing, that they have the lowest bottom-line closing cost. If they can’t provide you such a guarantee, in writing, you should find another lender.
Ways to Get the Best Home Mortgage Refinance
by ALAN LIM
At one stage during the life span of a mortgage, the idea of a home mortgage refinance may prop up. When this situation is laid open to you, the most excellent concern should be getting the most out of the transaction.
Consider the services of an agent
This may be your first ever options of thinking of a home mortgage refinance. It may be puzzling to some people that it should not be worthwhile using their services because they have to be paid for. This is true; but the benefits of making use of their services should outweigh the disadvantages. These home mortgage refinance agents are more proficient than you and may know all the ins and outs of the market forces. Take note that a good agent is not just there to work for pay, but he can equally give you a series of advices that could influence your decision. They know every potential lender. With information about your situation at hand, they know to whom you can be recommended to.
Consider comparison shopping
It may be worthy to seek for refinance from your current lender. Where this is not possible, seek the services of more than two mortgagors. Through this, you can be able to come across one that will offer a home mortgage refinance deal that will be beneficial than the other. At times you make even bring to the knowledge of a lender that you are also working with another potential lender. The truth is that no prudent lender may want to let you go back with your money if he is really sure he can offer you a home mortgage refinance.
Be conversant with market trends on home mortgage refinance
Whether you consider the services of broker or agents, it may still be wise to get a glimpse of what the market situation is. You may employ an agent today and market forces change tomorrow. It will be expensive to retain the services of an agent. What you need to do is do the research in person. Know everything about home mortgage refinance. Take note that an agent may be liable to errors which you will be able to pick out. Think of the outcome if both of you make a common mistake on a point of law. Remember that ignorance will not be taken to relieve you of performing your own part of the bargain.
Use your ability to bargain
A home mortgage refinance deal should involve a lot of bargaining. This is where your personality must be put into practice. I do not suppose you may want to leave this action to someone else. Take note that it is your personal finances that are at stake and not those of others. You may leave everything to your agent, but not the final decision. The ability to make an outright declaration of a yes or no to a home mortgage refinance transaction, stems from your sense of self and not from someone else acting on your behalf.
http://www.homemortgageloan-refinance.com/
At one stage during the life span of a mortgage, the idea of a home mortgage refinance may prop up. When this situation is laid open to you, the most excellent concern should be getting the most out of the transaction.
Consider the services of an agent
This may be your first ever options of thinking of a home mortgage refinance. It may be puzzling to some people that it should not be worthwhile using their services because they have to be paid for. This is true; but the benefits of making use of their services should outweigh the disadvantages. These home mortgage refinance agents are more proficient than you and may know all the ins and outs of the market forces. Take note that a good agent is not just there to work for pay, but he can equally give you a series of advices that could influence your decision. They know every potential lender. With information about your situation at hand, they know to whom you can be recommended to.
Consider comparison shopping
It may be worthy to seek for refinance from your current lender. Where this is not possible, seek the services of more than two mortgagors. Through this, you can be able to come across one that will offer a home mortgage refinance deal that will be beneficial than the other. At times you make even bring to the knowledge of a lender that you are also working with another potential lender. The truth is that no prudent lender may want to let you go back with your money if he is really sure he can offer you a home mortgage refinance.
Be conversant with market trends on home mortgage refinance
Whether you consider the services of broker or agents, it may still be wise to get a glimpse of what the market situation is. You may employ an agent today and market forces change tomorrow. It will be expensive to retain the services of an agent. What you need to do is do the research in person. Know everything about home mortgage refinance. Take note that an agent may be liable to errors which you will be able to pick out. Think of the outcome if both of you make a common mistake on a point of law. Remember that ignorance will not be taken to relieve you of performing your own part of the bargain.
Use your ability to bargain
A home mortgage refinance deal should involve a lot of bargaining. This is where your personality must be put into practice. I do not suppose you may want to leave this action to someone else. Take note that it is your personal finances that are at stake and not those of others. You may leave everything to your agent, but not the final decision. The ability to make an outright declaration of a yes or no to a home mortgage refinance transaction, stems from your sense of self and not from someone else acting on your behalf.
http://www.homemortgageloan-refinance.com/
2007-11-07
Seven Ways to Flip a Property
by Attorney William Bronchick
Flipping" is the buzzword of the year in real estate - flipping books, flipping articles in the newspaper, and even flipping shows on TV! What is flipping, how does it work and how you can profit?
Flipping simply means buying a property and reselling it quickly, as opposed to holding on to a property long term as a rental. Flipping comes in several varieties, most of which are legal and profitable, some of which are not.
Flip Strategy #1: Buy, Fix and Flip
Let's start with the most common form - the good, old "fix 'n flip". This process involves buying a property that needs work, fixing it up, then selling on the "retail" market, that is, to a person who will live in the property. This method is tried and true, and works very well. You can easily make $15 - $50k on one deal, depending on your market and how good you are at finding bargains.
The danger in fix and flips is either paying too much or underestimating repairs. Be very conservative in your fix-up costs and length of time it may take to resell. Also, make sure you include in your analysis the cost of paying a real estate agent to sell the property.
Flip Strategy #2: Buy, Refi & Lease/Option
Rather than sell the fixed up property for all cash, sell for terms. Once you have completed the rehab, refinance the property at its new appraised value. If you did the math correctly, you should have little or no money in the deal. Sell the property on a lease with option to buy. The rent payment from your tenant/buyer should cover your mortgage payment (if not, consider an interest-only or adjustable rate loan that is fixed for 3 years). When your tenant exercises his option to purchase, you reap a larger profit, since you don't have to pay a broker's fee. If the tenant exercises his option after 12 months, you benefit from a lower capital gains tax rate.
Flip Strategy #3: Buy & Flip "As Is"
Don't like to do fix-up work? Consider selling the property "as is" as a light fixer upper. If the local real estate market is hot, you should be able to sell the property in poor condition just a little below market. This is especially the case with houses in "transitioning" neighborhoods. Make sure, of course, that you acquire the property sufficiently cheap enough that you can sell it below market quickly and still profit.
Flip Strategy #4: Wholesale
Strategy #1, the fix and flip, is very popular, which means there are a lot of investors looking for rehabs. You can buy the property cheap and sell it for just a few thousand dollars more to another investor without doing any work. You won't make nearly as much as the rehabber, but you will realize your profit quickly.
Flip Strategy #5: Pre-Construction
In very hot real estate markets, prices are appreciating as much as 2% per month. If you time things right, you can put a contract on a pre-construction house or condominium, then flip it to someone else when the development is complete. If it takes 12 months for the development to be complete, and the condo price is $500,000, you could make $100,000 or more in one year! Of course, the opposite is also true - you could end up losing money if the local economy tanks and you end up with a worthless condo that you can't sell for more than you paid. Use this approach very carefully...
Flip Strategy #6: Scouting
The Scout is an information gatherer, so not technically a property flipper. He is the "bird dog" who finds potential deals and sells the information to other investors. Many people get started as a Scout for other investors because it does not take any cash or prior knowledge to look for distressed properties. The Scout finds a property for sale, gathers the necessary information, and then provides this information to investors for a fee. The fee will vary depending on the price of the property and the profit potential. The Scout can expect to make five hundred to one thousand dollars each time he provides information that leads to a purchase by another investor.
Flip Strategy #7: Illegal Flipping
OK, I am not advocating this approach, because it is illegal. Illegal property-flipping schemes work as follows: unscrupulous investors buy cheap, run-down properties in mostly low-income neighborhoods. They do shoddy renovations to the properties and sell them to unsophisticated buyers at inflated prices. In most cases, the investor, appraiser and mortgage broker conspire by submitting fraudulent loan documents and a bogus appraisal. The end result is a buyer that paid too much for a house and cannot afford the loan. Since many of these loans are federally insured, the government authorities have investigated this practice and arrested many of the parties involved. As a result, the public perceives is flipping to be illegal.
The fact is, "flipping" - as I described in the beginning of this article - is NOT illegal. Loan fraud in the process of flipping is what is illegal, so don't confuse the two. The other six ways to flip are very legal, very ethical and very profitable!
http://phorcys.goarticles.com/cgi-bin/showa.cgi?C=673884
Flipping" is the buzzword of the year in real estate - flipping books, flipping articles in the newspaper, and even flipping shows on TV! What is flipping, how does it work and how you can profit?
Flipping simply means buying a property and reselling it quickly, as opposed to holding on to a property long term as a rental. Flipping comes in several varieties, most of which are legal and profitable, some of which are not.
Flip Strategy #1: Buy, Fix and Flip
Let's start with the most common form - the good, old "fix 'n flip". This process involves buying a property that needs work, fixing it up, then selling on the "retail" market, that is, to a person who will live in the property. This method is tried and true, and works very well. You can easily make $15 - $50k on one deal, depending on your market and how good you are at finding bargains.
The danger in fix and flips is either paying too much or underestimating repairs. Be very conservative in your fix-up costs and length of time it may take to resell. Also, make sure you include in your analysis the cost of paying a real estate agent to sell the property.
Flip Strategy #2: Buy, Refi & Lease/Option
Rather than sell the fixed up property for all cash, sell for terms. Once you have completed the rehab, refinance the property at its new appraised value. If you did the math correctly, you should have little or no money in the deal. Sell the property on a lease with option to buy. The rent payment from your tenant/buyer should cover your mortgage payment (if not, consider an interest-only or adjustable rate loan that is fixed for 3 years). When your tenant exercises his option to purchase, you reap a larger profit, since you don't have to pay a broker's fee. If the tenant exercises his option after 12 months, you benefit from a lower capital gains tax rate.
Flip Strategy #3: Buy & Flip "As Is"
Don't like to do fix-up work? Consider selling the property "as is" as a light fixer upper. If the local real estate market is hot, you should be able to sell the property in poor condition just a little below market. This is especially the case with houses in "transitioning" neighborhoods. Make sure, of course, that you acquire the property sufficiently cheap enough that you can sell it below market quickly and still profit.
Flip Strategy #4: Wholesale
Strategy #1, the fix and flip, is very popular, which means there are a lot of investors looking for rehabs. You can buy the property cheap and sell it for just a few thousand dollars more to another investor without doing any work. You won't make nearly as much as the rehabber, but you will realize your profit quickly.
Flip Strategy #5: Pre-Construction
In very hot real estate markets, prices are appreciating as much as 2% per month. If you time things right, you can put a contract on a pre-construction house or condominium, then flip it to someone else when the development is complete. If it takes 12 months for the development to be complete, and the condo price is $500,000, you could make $100,000 or more in one year! Of course, the opposite is also true - you could end up losing money if the local economy tanks and you end up with a worthless condo that you can't sell for more than you paid. Use this approach very carefully...
Flip Strategy #6: Scouting
The Scout is an information gatherer, so not technically a property flipper. He is the "bird dog" who finds potential deals and sells the information to other investors. Many people get started as a Scout for other investors because it does not take any cash or prior knowledge to look for distressed properties. The Scout finds a property for sale, gathers the necessary information, and then provides this information to investors for a fee. The fee will vary depending on the price of the property and the profit potential. The Scout can expect to make five hundred to one thousand dollars each time he provides information that leads to a purchase by another investor.
Flip Strategy #7: Illegal Flipping
OK, I am not advocating this approach, because it is illegal. Illegal property-flipping schemes work as follows: unscrupulous investors buy cheap, run-down properties in mostly low-income neighborhoods. They do shoddy renovations to the properties and sell them to unsophisticated buyers at inflated prices. In most cases, the investor, appraiser and mortgage broker conspire by submitting fraudulent loan documents and a bogus appraisal. The end result is a buyer that paid too much for a house and cannot afford the loan. Since many of these loans are federally insured, the government authorities have investigated this practice and arrested many of the parties involved. As a result, the public perceives is flipping to be illegal.
The fact is, "flipping" - as I described in the beginning of this article - is NOT illegal. Loan fraud in the process of flipping is what is illegal, so don't confuse the two. The other six ways to flip are very legal, very ethical and very profitable!
http://phorcys.goarticles.com/cgi-bin/showa.cgi?C=673884
Refinancing Facts - Tips For Bad Credit Borrowers
by Michael Benifez
Bad credit refinance is the process of taking out a new loan in order to cover the cost of a previous loan. Bad credit refinance is most beneficial when the first loan is taken during a period of high interest rates. Before opting for bad credit refinance, compare lenders and interest rates.
The second loan should have a lower rate of interest or a lower monthly payment. Interests have been declining, so that the second loan should have a lower rate. If it doesn't, refinancing to solve bad credit is not a logical choice. Also, the difference in interest rates should be significant enough to cover additional fees required by some lenders. The amount of time that has passed since you took your first loan impacts a refinance loan.
You can save a lot of money from your first loan payment schedule. You can also change the amount of your monthly payments or try out a new bank. Bad credit loans often come with various promotional offers, such as lower interest rates or longer terms. These benefits may not have been available at the time you took out your first loan.
Timing is essential when you opt for bad credit refinance. Be patient, and research the loan market thoroughly to find out the rate of interest and terms that make sense for you. Your options will depend on your credit history and the amount of time you have made payments on your current loan.
Get a Bad Credit Mortgage Loan
A bad credit mortgage loan is a loan based on the equity in your home. This loan can help you lower your overall interest and monthly payments. It can also help you consolidate all your debts. A bad credit mortgage loan can be very helpful in repairing your credit.
By taking out a bad credit mortgage loan, you can make all the payments you can afford. Cash-out refinance and home equity loans are the most popular options for people with bad credit. Both allow you to rely on the equity that you've paid on your home. They allow you to use your home's value as a tool to get out of debt.
Using home equity for debt consolidation mortgage loans can help you move all your high-interest credit card payments into a single lower monthly payment. Payment of bills is simplified, monthly payments are less, and your credit status increases. You will eventually even notice an increase in your credit score.
Lenders agree to provide you with a bad credit mortgage loan if you increase your down payment and cash reserves. The lower your credit score, the larger is the down payment required on the bad credit mortgage loan. A credit score of 580 requires a down payment of about 5%. Higher cash reserves convince lenders that you will be able to continue making payments if an emergency should happen.
Bad credit mortgage loans can also be taken through online mortgage brokers. Thoroughly check loan market rates before choosing a specific lender to be sure you get the most favorable terms possible.
http://www.everlife.com/debt-consolidation-loans.php
Bad credit refinance is the process of taking out a new loan in order to cover the cost of a previous loan. Bad credit refinance is most beneficial when the first loan is taken during a period of high interest rates. Before opting for bad credit refinance, compare lenders and interest rates.
The second loan should have a lower rate of interest or a lower monthly payment. Interests have been declining, so that the second loan should have a lower rate. If it doesn't, refinancing to solve bad credit is not a logical choice. Also, the difference in interest rates should be significant enough to cover additional fees required by some lenders. The amount of time that has passed since you took your first loan impacts a refinance loan.
You can save a lot of money from your first loan payment schedule. You can also change the amount of your monthly payments or try out a new bank. Bad credit loans often come with various promotional offers, such as lower interest rates or longer terms. These benefits may not have been available at the time you took out your first loan.
Timing is essential when you opt for bad credit refinance. Be patient, and research the loan market thoroughly to find out the rate of interest and terms that make sense for you. Your options will depend on your credit history and the amount of time you have made payments on your current loan.
Get a Bad Credit Mortgage Loan
A bad credit mortgage loan is a loan based on the equity in your home. This loan can help you lower your overall interest and monthly payments. It can also help you consolidate all your debts. A bad credit mortgage loan can be very helpful in repairing your credit.
By taking out a bad credit mortgage loan, you can make all the payments you can afford. Cash-out refinance and home equity loans are the most popular options for people with bad credit. Both allow you to rely on the equity that you've paid on your home. They allow you to use your home's value as a tool to get out of debt.
Using home equity for debt consolidation mortgage loans can help you move all your high-interest credit card payments into a single lower monthly payment. Payment of bills is simplified, monthly payments are less, and your credit status increases. You will eventually even notice an increase in your credit score.
Lenders agree to provide you with a bad credit mortgage loan if you increase your down payment and cash reserves. The lower your credit score, the larger is the down payment required on the bad credit mortgage loan. A credit score of 580 requires a down payment of about 5%. Higher cash reserves convince lenders that you will be able to continue making payments if an emergency should happen.
Bad credit mortgage loans can also be taken through online mortgage brokers. Thoroughly check loan market rates before choosing a specific lender to be sure you get the most favorable terms possible.
http://www.everlife.com/debt-consolidation-loans.php
2007-11-06
Cash Out Refinance Loans At 16-Year High
Homeowners continue to prefer cash out refinance loans to other forms of borrowing. Frank Nothaft, Freddie Mac vice president and chief economist, says,
“Mortgage borrowers continue to refinance their mortgages at a higher frequency than historically would have occurred given the rise in mortgage rates over this year. But the wide proliferation of adjustable-rate mortgages (ARMs) originated in the past few years that are nearing their first interest-rate adjustment provides borrowers an incentive to refinance into a lower-cost ARM or fixed-rate mortgage. In addition, borrowers who might have considered a prime rate home equity loan for a home improvement or other need are turning to cash out refinance options now that the prime rate is above 8 percent.”
Beyond just converting an adjustable-rate loan to a fixed-rate loan, borrowers are also cashing out their equity. Almost 90 percent of Freddie Mac refinance loans are for amounts at least 5 percent higher than the original mortgage. The most recent Cash Out Refinance Report from the mortgage giant shows that homes refinanced during the third quarter of 2006 had experienced a median price appreciation of 33 percent since the original loan was made. The median age of the original loan was 3.4 years.
It is this accrued equity that homeowners are tapping into to pay off high-interest credit cards, to fund home improvement projects, or to finance their children’s college education. An added benefit is that interest paid on a mortgage is tax deductible (usually up to $100,000 for taxpayers filing jointly).
Since a cash out refinance loan results in a new mortgage, it incurs closing costs, filing and legal fees, and other expenses that can add up to thousands of dollars. This makes refinancing unwise for people planning to move in the next few years as they will not have time to recoup their refinancing costs.
Bad Credit Refinancing
For borrowers with less than perfect credit, a refinance loan is the smartest way to get needed cash. Bad credit usually means a FICO score below 620. This FICO number reflects credit-worthiness based on borrowing habits, payment history and other financial factors. Creditors use it when deciding whether to make a loan and what interest rate to charge. The lower the credit score, the higher the risk for the lender. But since a refinance loan is secured by real property, the risk is minimized and the interest rate is better.
According to Steven Frank, Senior Vice President at FlexPoint Funding,
“A ‘subprime’ borrower can expect to pay between 1.5 percent and 2 percent higher interest for a mortgage, but there is no shortage of money in the subprime loan market. Most subprime borrowers won’t qualify for a second mortgage or a home equity line of credit. They will have to refinance their first mortgage if they want to cash out some of their equity. Depending on their personal situation, a homeowner may be able to borrow up to 95 percent LTV (loan to value). More likely, it will be in the 80 percent range.”
http://www.amazines.com/Finance_and_Investment/article_detail.cfm/168546?articleid=168546
“Mortgage borrowers continue to refinance their mortgages at a higher frequency than historically would have occurred given the rise in mortgage rates over this year. But the wide proliferation of adjustable-rate mortgages (ARMs) originated in the past few years that are nearing their first interest-rate adjustment provides borrowers an incentive to refinance into a lower-cost ARM or fixed-rate mortgage. In addition, borrowers who might have considered a prime rate home equity loan for a home improvement or other need are turning to cash out refinance options now that the prime rate is above 8 percent.”
Beyond just converting an adjustable-rate loan to a fixed-rate loan, borrowers are also cashing out their equity. Almost 90 percent of Freddie Mac refinance loans are for amounts at least 5 percent higher than the original mortgage. The most recent Cash Out Refinance Report from the mortgage giant shows that homes refinanced during the third quarter of 2006 had experienced a median price appreciation of 33 percent since the original loan was made. The median age of the original loan was 3.4 years.
It is this accrued equity that homeowners are tapping into to pay off high-interest credit cards, to fund home improvement projects, or to finance their children’s college education. An added benefit is that interest paid on a mortgage is tax deductible (usually up to $100,000 for taxpayers filing jointly).
Since a cash out refinance loan results in a new mortgage, it incurs closing costs, filing and legal fees, and other expenses that can add up to thousands of dollars. This makes refinancing unwise for people planning to move in the next few years as they will not have time to recoup their refinancing costs.
Bad Credit Refinancing
For borrowers with less than perfect credit, a refinance loan is the smartest way to get needed cash. Bad credit usually means a FICO score below 620. This FICO number reflects credit-worthiness based on borrowing habits, payment history and other financial factors. Creditors use it when deciding whether to make a loan and what interest rate to charge. The lower the credit score, the higher the risk for the lender. But since a refinance loan is secured by real property, the risk is minimized and the interest rate is better.
According to Steven Frank, Senior Vice President at FlexPoint Funding,
“A ‘subprime’ borrower can expect to pay between 1.5 percent and 2 percent higher interest for a mortgage, but there is no shortage of money in the subprime loan market. Most subprime borrowers won’t qualify for a second mortgage or a home equity line of credit. They will have to refinance their first mortgage if they want to cash out some of their equity. Depending on their personal situation, a homeowner may be able to borrow up to 95 percent LTV (loan to value). More likely, it will be in the 80 percent range.”
http://www.amazines.com/Finance_and_Investment/article_detail.cfm/168546?articleid=168546
2007-11-05
To Finance an RV Means So Much More
by Seth McCash
RV owners and prospective buyers have the same questions in mind. Especially when it comes to financing an RV. Questions such as, where to go for financing, how to obtain a good interest rate, and what do to if you have less than good credit. The list can go on, so the best place to start is at www.getrvfinancing.com. This is Get RV Financing's web site. Here they have listed many resources and popular links to help you begin the purchase or refinance of your motor home. The links listed on their web page talk about the great interest rates being offered right now, how to find the perfect RV lender, as well as tools for shopping and convenient online applications.
How to Finance an RV after Bankruptcy
You can still finance an RV even with a poor credit history. It may take more work and additional time for the financing to complete, but it is often worth it because then you have a second chance to improve your credit. It is important to talk directly to a lender to get the best advice for this type of lending. They will guide and direct you through the process and so you will avoid delays common in the process.
How to Begin the Financing Process
If you have declared bankruptcy, you probably are aware of the importance of having accurate financial records and budgeting. If you are applying for a loan to finance an RV of any kind, you will need to gather all of this information and get it in order. Get an up to date credit report if you haven't gotten one in the last few months so that you can check it for any errors. Draw up a budget with all of your monthly expenses and debts as well as your income. This will give you a basic idea of how much you can afford for your monthly payment when you finance an RV. Make sure that you also factor in the cost of gas, maintenance and insurance costs on the recreational vehicle.
If you are lucky enough to have some savings or the resources to put a down payment on your RV purchase that will be another bonus when you apply to finance an RV. A large down payment will not only prove the seriousness of your intentions to the dealer or seller, but it will also give you an advantage when you start the process to finance an RV. You may qualify for better interest rates and better loan terms. Many of the larger RVs require a down payment of 10 to 20 percent of the total cost.
Your decision to finance an RV can help you build your credit
As you make payments on your RV you will begin to establish your good credit rating again. This is why it is so important that you get good financing on your RV that you can afford and that you are comfortable with. Check you www.getrvfinancing.com which is the Get RV Financing web site and you will find a lot of information about how to finance your RV, what you can afford for a monthly payment and even RV listings and owner tips and suggestions.
http://www.goarticles.com/cgi-bin/showa.cgi?C=671244
RV owners and prospective buyers have the same questions in mind. Especially when it comes to financing an RV. Questions such as, where to go for financing, how to obtain a good interest rate, and what do to if you have less than good credit. The list can go on, so the best place to start is at www.getrvfinancing.com. This is Get RV Financing's web site. Here they have listed many resources and popular links to help you begin the purchase or refinance of your motor home. The links listed on their web page talk about the great interest rates being offered right now, how to find the perfect RV lender, as well as tools for shopping and convenient online applications.
How to Finance an RV after Bankruptcy
You can still finance an RV even with a poor credit history. It may take more work and additional time for the financing to complete, but it is often worth it because then you have a second chance to improve your credit. It is important to talk directly to a lender to get the best advice for this type of lending. They will guide and direct you through the process and so you will avoid delays common in the process.
How to Begin the Financing Process
If you have declared bankruptcy, you probably are aware of the importance of having accurate financial records and budgeting. If you are applying for a loan to finance an RV of any kind, you will need to gather all of this information and get it in order. Get an up to date credit report if you haven't gotten one in the last few months so that you can check it for any errors. Draw up a budget with all of your monthly expenses and debts as well as your income. This will give you a basic idea of how much you can afford for your monthly payment when you finance an RV. Make sure that you also factor in the cost of gas, maintenance and insurance costs on the recreational vehicle.
If you are lucky enough to have some savings or the resources to put a down payment on your RV purchase that will be another bonus when you apply to finance an RV. A large down payment will not only prove the seriousness of your intentions to the dealer or seller, but it will also give you an advantage when you start the process to finance an RV. You may qualify for better interest rates and better loan terms. Many of the larger RVs require a down payment of 10 to 20 percent of the total cost.
Your decision to finance an RV can help you build your credit
As you make payments on your RV you will begin to establish your good credit rating again. This is why it is so important that you get good financing on your RV that you can afford and that you are comfortable with. Check you www.getrvfinancing.com which is the Get RV Financing web site and you will find a lot of information about how to finance your RV, what you can afford for a monthly payment and even RV listings and owner tips and suggestions.
http://www.goarticles.com/cgi-bin/showa.cgi?C=671244
2007-11-04
Sub-Prime Mortgage Crisis & Chapter 13 Filings
by David Siegel
In recent months, the amount of foreclosures filed throughout the country has more than doubled from the same time period last year. The reasons for such high percentage of filings are numerous. Primarily, the sub-prime mortgages have landed in the hands of individuals who most likely did not qualify for convention financing. Thus, the interest rates on the loans remain higher than other conforming loans. Additionally, many of the sub-prime loan products involved adjustable rates (ARMS) which typically re-set within the first few years of the loans inception.
As sub-prime loans relate to Chapter 13, the typical scenario is as follows: The homeowner qualifies for the loan without a substantial down payment and without significant income documentation. The monthly payment is a stretch for the homeowner; however, it is temporarily manageable. Depending upon the type of ARM, the loan may reset in one, two or three years. It is at that point in time that the homeowner may not be able to make the new, higher mortgage payment. The homeowner is also unable to refinance the debt on the property since the type of loan products needed to accomplish that task no longer exists. Thus, the homeowner is in quite a tough situation. The current real estate market would make it nearly impossible for the homeowner to sell the property and pay off the mortgage. Chapter 13, known as the home saver case, would not be practicable in the case of adjusting ARMS.
The idea behind Chapter 13 bankruptcy is to allow a homeowner to catch-up on whatever mortgage arrears have arisen in addition to making the current mortgage payment on time. As rates adjust and loans reset, the homeowner simply cannot make the current mortgage payment, let alone a partial payment to catch-up. The situation is basically a doomsday for both the homeowner and the mortgage company. The homeowner was banking on the ability to make the payments and/or refinance the outstanding debt at a later date. The lack of real estate appreciation has led to the inability on the part of the homeowner to do just that.
What we are likely to see is a large number of homes on the market for sale. Many of the borrowers will file for Chapter 7 bankruptcy and not Chapter 13 bankruptcy. I believe that the market will take five to seven years to begin to show some signs of appreciation. It will be interesting to see if Congress amends the bankruptcy code to allow mortgage debts to be adjusted. If not permanently, then for a short time frame of three to five years.
www.chapter7success.com
In recent months, the amount of foreclosures filed throughout the country has more than doubled from the same time period last year. The reasons for such high percentage of filings are numerous. Primarily, the sub-prime mortgages have landed in the hands of individuals who most likely did not qualify for convention financing. Thus, the interest rates on the loans remain higher than other conforming loans. Additionally, many of the sub-prime loan products involved adjustable rates (ARMS) which typically re-set within the first few years of the loans inception.
As sub-prime loans relate to Chapter 13, the typical scenario is as follows: The homeowner qualifies for the loan without a substantial down payment and without significant income documentation. The monthly payment is a stretch for the homeowner; however, it is temporarily manageable. Depending upon the type of ARM, the loan may reset in one, two or three years. It is at that point in time that the homeowner may not be able to make the new, higher mortgage payment. The homeowner is also unable to refinance the debt on the property since the type of loan products needed to accomplish that task no longer exists. Thus, the homeowner is in quite a tough situation. The current real estate market would make it nearly impossible for the homeowner to sell the property and pay off the mortgage. Chapter 13, known as the home saver case, would not be practicable in the case of adjusting ARMS.
The idea behind Chapter 13 bankruptcy is to allow a homeowner to catch-up on whatever mortgage arrears have arisen in addition to making the current mortgage payment on time. As rates adjust and loans reset, the homeowner simply cannot make the current mortgage payment, let alone a partial payment to catch-up. The situation is basically a doomsday for both the homeowner and the mortgage company. The homeowner was banking on the ability to make the payments and/or refinance the outstanding debt at a later date. The lack of real estate appreciation has led to the inability on the part of the homeowner to do just that.
What we are likely to see is a large number of homes on the market for sale. Many of the borrowers will file for Chapter 7 bankruptcy and not Chapter 13 bankruptcy. I believe that the market will take five to seven years to begin to show some signs of appreciation. It will be interesting to see if Congress amends the bankruptcy code to allow mortgage debts to be adjusted. If not permanently, then for a short time frame of three to five years.
www.chapter7success.com
Are you thinking of home refinancing? What you need to know
by Alan Lim
Recourse to home refinancing may sometimes be the last resort. But when such a situation arises, must you be desperate and go at all lengths? It may be wise to take the following tip to avoid falling into further trouble; it is said that, to be forewarned is to be forearmed.
Focus on the deal
There are varieties of reasons why people seek home refinancing. Yours may be worse than theirs. The essential thing should be to develop a calm mind and get a good deal. Directing your focus more on your plight than of the method of solving it may lead you into more problems. Thus when you meet a home refinancing lender or his agent, behave as if there is no problem. You may equally behave as if you are in no financial dilemma. When your mind becomes clouded with the complexities of your problems; or you are overtaken by the anxiety of getting more money, you may not see the trap. Keep in mind that there may be certain indiscernible technicalities in the document that you may not be able to see. Take note that the lender may not have the duty of care to explain them to you. He is equally seeking to have a better deal.
Must it be home refinancing?
It is rational to measure if refinancing would be the only resort to what you need. Thus, pay particular attention not on your present position, but to your future capacity to use the money wisely and to repay the loan. What do you intend to do with the money? Can it be possible that this new route will lead to a betterment of your situation? Will you eventually redeem the refinancing on time? These are all considerations you must bring to mind to determine if you must resort to home refinancing.
When is it best for home refinancing?
Refinancing your home should be done in a timely manner. Thus reflect on home refinancing when there is a wide-ranging increment in the worth of properties. Refinance when the rates of interests are at their barest. When rates fall, you equally pay smaller rates. Also refinance if this is the only avenue to consolidate your debts. While thinking of this, make sure you refinance for something more than the existing debt. This may possibly leave you with something at hand. Refinance when you think you no longer want to make use of the home. This is especially true to those who may be making a significant migration in their lives or who are in possession of more than one home. Whatever the case, I think yielding to the demands of necessity should be the ultimate reason and time for home refinancing.
What next?
If you are unable to redeem the home refinancing, what do you think will be the outcome? The best answer to this is to make sure there is enough equity in the value of your home.
http://www.homemortgageloan-refinance.com/
Recourse to home refinancing may sometimes be the last resort. But when such a situation arises, must you be desperate and go at all lengths? It may be wise to take the following tip to avoid falling into further trouble; it is said that, to be forewarned is to be forearmed.
Focus on the deal
There are varieties of reasons why people seek home refinancing. Yours may be worse than theirs. The essential thing should be to develop a calm mind and get a good deal. Directing your focus more on your plight than of the method of solving it may lead you into more problems. Thus when you meet a home refinancing lender or his agent, behave as if there is no problem. You may equally behave as if you are in no financial dilemma. When your mind becomes clouded with the complexities of your problems; or you are overtaken by the anxiety of getting more money, you may not see the trap. Keep in mind that there may be certain indiscernible technicalities in the document that you may not be able to see. Take note that the lender may not have the duty of care to explain them to you. He is equally seeking to have a better deal.
Must it be home refinancing?
It is rational to measure if refinancing would be the only resort to what you need. Thus, pay particular attention not on your present position, but to your future capacity to use the money wisely and to repay the loan. What do you intend to do with the money? Can it be possible that this new route will lead to a betterment of your situation? Will you eventually redeem the refinancing on time? These are all considerations you must bring to mind to determine if you must resort to home refinancing.
When is it best for home refinancing?
Refinancing your home should be done in a timely manner. Thus reflect on home refinancing when there is a wide-ranging increment in the worth of properties. Refinance when the rates of interests are at their barest. When rates fall, you equally pay smaller rates. Also refinance if this is the only avenue to consolidate your debts. While thinking of this, make sure you refinance for something more than the existing debt. This may possibly leave you with something at hand. Refinance when you think you no longer want to make use of the home. This is especially true to those who may be making a significant migration in their lives or who are in possession of more than one home. Whatever the case, I think yielding to the demands of necessity should be the ultimate reason and time for home refinancing.
What next?
If you are unable to redeem the home refinancing, what do you think will be the outcome? The best answer to this is to make sure there is enough equity in the value of your home.
http://www.homemortgageloan-refinance.com/
What Are The Basics Of Home Refinancing?
by Alan Lim
The decision to take out a second mortgage to refinance your home should never be a frightening resolution to any mortgage holder. Home refinancing is worth the decision if and only if you follow the proper line of investigation. Here are some guidelines to take you through the transaction:
Carry out extensive research
Home refinancing is not just all about taking out a second loan with the mortgaged property as security. It goes beyond that to selecting the best deal that would not weigh on your ability to pay. The route to this is to shop extensively. All lenders are not the same. Do a lot of comparison shopping. Through this you might be able to come out with one or two deals that may prove advantageous to you than a prior transaction. Investigate on the current rates. At times it may be prudent to wait till rates fall particularly if your current rate is equal to or higher than the existing market rate, before resorting to home refinancing.
Deciding on a home refinancing lender
Most people are also not decided on what lender to look forward to home refinancing. As there are so many bad deals out in the market, so too there are mischievous lenders. If you are not inconsistent with your previous lender, the best choice will be to go back to that lender. He is best to understand your situation and you may work out a special deal with him which takes account of your particular needs. If you decide on taking an entirely new lender, make an appraisal of more than two lenders. Keep in mind that your present tight spot might have been as a result of the unfruitful deal that you entered into.
Honesty pays
Home refinancing may sometimes mean moving from a worst to a best situation. Therefore, it is wisdom to know your monetary habits. Keep in mind that home refinancing is not only meant for those who have a good financial record. The fact that your finances are in the red still qualifies you for refinancing. With this in mind, personally lay your problem to the lender. There are and will always be solutions carved out for people of your type. Hiding a poor record to him might lead you thinking of the feasibility of the existence of a third mortgage.
Are you refinancing for the first time?
If you are into home refinancing for the first time, I would advocate you to be cautious and reflect only on investment. The best solution for new comers will be to use the refinance to invest on the existing mortgage. This is one of the fastest ways to build up valuable equity in your home. Equity in the property always gives you an edge over the lender when thinking of home refinancing.
http://www.homemortgageloan-refinance.com/
The decision to take out a second mortgage to refinance your home should never be a frightening resolution to any mortgage holder. Home refinancing is worth the decision if and only if you follow the proper line of investigation. Here are some guidelines to take you through the transaction:
Carry out extensive research
Home refinancing is not just all about taking out a second loan with the mortgaged property as security. It goes beyond that to selecting the best deal that would not weigh on your ability to pay. The route to this is to shop extensively. All lenders are not the same. Do a lot of comparison shopping. Through this you might be able to come out with one or two deals that may prove advantageous to you than a prior transaction. Investigate on the current rates. At times it may be prudent to wait till rates fall particularly if your current rate is equal to or higher than the existing market rate, before resorting to home refinancing.
Deciding on a home refinancing lender
Most people are also not decided on what lender to look forward to home refinancing. As there are so many bad deals out in the market, so too there are mischievous lenders. If you are not inconsistent with your previous lender, the best choice will be to go back to that lender. He is best to understand your situation and you may work out a special deal with him which takes account of your particular needs. If you decide on taking an entirely new lender, make an appraisal of more than two lenders. Keep in mind that your present tight spot might have been as a result of the unfruitful deal that you entered into.
Honesty pays
Home refinancing may sometimes mean moving from a worst to a best situation. Therefore, it is wisdom to know your monetary habits. Keep in mind that home refinancing is not only meant for those who have a good financial record. The fact that your finances are in the red still qualifies you for refinancing. With this in mind, personally lay your problem to the lender. There are and will always be solutions carved out for people of your type. Hiding a poor record to him might lead you thinking of the feasibility of the existence of a third mortgage.
Are you refinancing for the first time?
If you are into home refinancing for the first time, I would advocate you to be cautious and reflect only on investment. The best solution for new comers will be to use the refinance to invest on the existing mortgage. This is one of the fastest ways to build up valuable equity in your home. Equity in the property always gives you an edge over the lender when thinking of home refinancing.
http://www.homemortgageloan-refinance.com/
Overcoming Real Estate Fears: 4 Techniques for Calling Home Sellers Confidently
Danny Welsh
Calling home sellers can be a scary idea--or it can be a lot of fun. I have a question for you...When you have got a prospective seller's phone number and you're picking up the phone to call and "test the waters" for a first contact or to present a verbal offer, does it sometimes bother you? Do you get freaked out? Try this...
What do I mean by overcoming real estate fears?
Calling home sellers can be a scary idea--or it can be a lot of fun.
I have a question for you...
When you have got a prospective seller's phone number and you're picking up the phone to call and "test the waters" for a first contact or to present a verbal offer, does it sometimes bother you?
Do you get freaked out?
Do you start thinking about exactly what you're going to say, how you're going to say it, how to deal with any and every possible contingency, how to "convince" or "sell" the seller on doing a creative real estate deal with you... etc.?
Do you ever get NERVOUS when you're dialing the phone?
You know that feeling when you just start getting anxious for no logical reason, and you just CAN'T control it?
Have you ever had to actually HANG UP because you were so darn freaked out... and you just couldn't follow through with it?
OK, now another set of interesting questions...
Have you ever called a seller back after a first chat/offer, and started talking to the person, only to realize that he/she was in a COMPLETELY different mood from the last time?
Have you ever had a seller "turn cold" on you all of a sudden and be "not interested" in your creative real estate offer?
It's almost like you're talking to a different person from the person you built rapport with-- hopefully ;)-- and it makes no sense to you... right?
And finally...
Despite some weird feelings, have you ever worked up the nerve to call a difficult prospective seller, gotten the seller on the phone, had a great conversation full of all kinds of possibilities...but when it came time to get some agreement over something hammered out, you froze up because you didn't know what to say?
Or even worse, have you ever gotten to the end of a conversation on the phone or at the house, after a long time investment of exploring the seller's needs and the house itself... only to have him/her answer with:
"Well, maybe... call me Friday afternoon... OK?"
or...
"That really doesn't sound like what I want to do, but thanks for asking... (silence)"...?
Have you ever had one of those conversations where you could just TELL that something wasn't right... and that, even though the SELLER had a problem you were offering to help SOLVE, he/she wasn't going to be taking you up on your creative real estate offer, or calling you back at all anytime soon?
Me too.
So why all the problems?
What is it about these particular few minutes just getting the information and finding out the motivation of the seller that constantly ends in problems for beginning real estate investors?
I mean, you are calling someone who wants to sell their house about SELLING their house! Hello, where does all this anxiety come from?
I personally think that this issue comes down to a few key DEEPER ISSUES.
And I think that if you don't have these other issues "handled", you're going to keep running into problems... and NEVER even know WHY...
...which sucks.
I mean, it's bad enough to keep having a particular problem and not figure out how to solve it... but the idea that the solution is in doing something you would never think of is a little bit maddening.
In other words, I think that this is all about understanding the problem, and actually PREVENTING it from coming up... rather than trying to "solve it" in the moment.
Let me put it this way...
If you're dialing the phone, and you're starting to feel nervous, then it's already too late to solve the problem.
No quick fix will help you.
Or if you're on the phone with him/her and you have just fired across the bow with something like, "Well, Susie...I understand all that you're saying, but if I were to pay cash and close quickly what is your bottom line to sell this house?"
OR
"Well, Susie, now that you understand what an Option Agreement is and we've established that you no longer want to be a landlord but ALSO want to get full retail value selling your house, and want to do it yesterday with no headaches and no real estate commissions...I think I can help-- do you now feel ready to make a deal with me?
and she says "Um, well Mr. Investor, I do need to sell the house BUT...X,Y,Z...let me call you back in a few days/weeks/next Christmas and tell you my answer then"...
And you start to get that sinking feeling that what should be a GREAT deal because you KNOW you can help her out and get this thing done, is dead in the WATER because you know she's blowing you off.
You confused the seller or worse you sounded so "slick" she was ready to run for the hills.
At this point IT'S TOO LATE.
There's no "magic pill" now.
The answer is PREVENTION.
Let's get this handled.
So, let's take a few minutes and talk about the issues and what CAUSES them.
Here are some of the "root causes", and how I see them...
1) Having no other options.
If you're sitting at the phone with ONE seller's phone number in your hand, and you haven't ever bought an investment home (or it's been a long time; or you really are trying to buy quickly so you can gain momentum and go full-time into the "real estate investor lifestyle"), and you are feeling DESPERATE, you're probably going to get VERY nervous.
When you have no other options, the solitary one in front of you becomes VERY valuable.
Translation: You want it TOO badly.
This AUTOMATICALLY triggers your emotional system, because at some level you realize that if you screw this up, it's all over. And we both know that there truly are TONS of ways to KILL a real estate deal-- even IF you truly CAN structure a win-win agreement with the seller.
The pressure is too much! Without options, your judgment could become clouded and your neediness communicated to the seller will turn them off.
In this world, the hungry fish does not get fed. Such is true in real estate investing as well.
2) Putting too much importance on a single deal.
Now, if you have a deal that you've been working for three months, and you've decided that it's one heckuva rare find with a GREAT spread, a motivated seller and a CLEAR exit strategy, really a one in a thousand scenario, it makes sense to put a lot of importance on your completion of this deal.
After all, you've invested a LOT of your time and sure there might have been obstacles but now you are running with the ball and you can see blue sky and five-figure checks.
But, if you don't have other things going on, other deals in the works, other proverbial "irons" getting hot then you are only setting yourself up for major disappointment by putting too much importance on ANY one deal.
3) Thinking you need to IMPRESS the seller.
This is a HUGE issue.
If you're like many investors, you might "subconsciously" behave and communicate like you're trying to IMPRESS the seller of a house you're considering buying.
With me, when you think about this, it only makes sense... of course you'd want to impress the seller in a "creative real estate" deal that has everything going for it... so he/she'll think you're a professional, can do what you say you can do and want to work with you.
But have you ever thought for a moment how a desperate, motivated seller sees it when an investor is TRYING to IMPRESS him/her?
Well, here's the INSTANT and SUBCONSCIOUS response that sellers often have:
"He's trying too hard. There's something wrong. This guy must have something he's trying to hide...better keep my mouth shut."
In other words, the INSTANT you do something or say something that is an obvious attempt at impressing a seller, his/her radar system screams:
"Con man!"
Can you blame them? With the world we live in today? When doing creative real estate deals, when you KNOW you can help the seller, it is 100% more effective in the long run to use a strategy of EDUCATING people and not trying to "sell" them.
Remember, as a real estate investor, people often want to do what you do for a living. It seems glamorous and fun and highly lucrative, all of which it can be. But in the real world most of what works to build wealth in real estate is JUST PLAIN NOT UNDERSTOOD by "average Joe" Johnny Lunch Bucket types. This is where you must EDUCATE your sellers and you can only do that by actually caring about them, building trust and comfort and not coming off as a smooth-talking con man.
4) Being attached to your expectations of a deal.
You might think of this one as a variation of "wanting it too much"... only slightly different.
When you start getting your hopes and expectations up, you begin to get ATTACHED to them.
Then you run the risk of HOLDING ON TOO TIGHT to your little "get rich quick" fantasy.
Bad idea.
Of course, you should run your numbers and do your due diligence and throw some projections around to see what you could be making if a deal goes through.
Nothing wrong with that. In fact, it's essential! Many a new investor has jumped straight into "investing" by buying a property in a stupid deal and ended up a glorified house buyer with a house that they come out of pocket every month to own.
Except in some instances, this is just not sound investing!
Remember, as professional real estate investors:
We buy properties that PAY us to own them!
Back to the being attached to the deal thing.
I want to elaborate on this concept because it is SO important in SO MANY WAYS for those of us who want to enjoy success in real estate investing and be Good Stewards.
Of course, when dealing with a seller or any kind of deal issue you want to be PERSISTENT. Persistence is a key to success in ANYTHING. But you don't want to be ANNOYING!
Sellers don't don't often want to work with investors who come across as arrogant, are obviously only motivated by a lust for dollars, who assume too much, act too comfortable with them, or blow smoke up their chimney.
Remember, motivated sellers have investors often literally pounding down their door (well, once their reason for motivation is in the public forum anyway). They are getting daily calls and letters from people who, in effect are saying "I want to steal your house!"
In fact, with few options they almost EXPECT to get a short-handed stick at closing but what can they do... they gotta sell, right?
I mean, they're "motivated" sellers right?
It says right there in BLACK and WHITE that Johnny's mortgage is in arrears and Johnny told you right out of his mouth that he just got laid off at the factory and you KNOW none of Johnny's friends/relatives/boss can or will bail him out. His inability to pay the mortgage is temporary until he finds work but he just can't catch up the rears.
Logically, you know that he can't refinance either. Plus he actually TOLD you all his troubles trying to refinance and how the banks are ignoring him in his time of need.
Logically...you KNOW he HAS to sell-- doesn't he?
Logically, yes it makes sense to do whatever it takes to avoid foreclosure and avoid a potential bankruptcy. Logically, you KNOW these things. But REMEMBER three things, please, dear investor.
1) You have SPECIALIZED KNOWLEDGE:
Chances are, what makes sense to you as a seasoned -- or even just well-read ;)-- real estate investor, might be highly CONFUSING to others who are not real estate insiders. Examples? Try the Lease-Option Purchase or Seller Financing or Taking over Payments or any one of a hundred other techniques investors know and use but most people have no idea about.
Hint: Like, for instance the SELLER you're trying to help.
2) This is not a LOGICAL situation:
Oftentimes when talking to a motivated seller it is an EMOTIONAL situation. Even if the person is just a FSBO this is often their home, a place of all kinds of emotional references and attachments.
Regardless of how LOGICAL it is for a distressed seller to take you up on your win-win creative real estate offer, they are not likely to deal with a person they DO NOT LIKE, they CAN NOT TRUST and who does not make them FEEL GOOD.
Period.
But, you keep thinking...they gotta sell, right?
Maybe, maybe not.
One thing's for sure--they don't HAVE to sell to YOU!
In fact, here's number three to keep in mind...
3) They don't HAVE to do ANYTHING:
Believe it. I've seen people FORECLOSED on because no one who came to "help" them took the TIME to explain what their options were and clearly articulated what each party's responsibilities and rewards would be for selling the house by using creative real estate strategies.
They were determined to hope and pray for a miracle because they could feel the sharks circling out there waiting for the feeding frenzy--all those so-called "investors" who low-ball offered to buy their house and insulted them and told them to, basically, "take it or leave it dummy."
These people lose their house and their equity because no one was there to give them a hand and treat them like a human being. No one was there to point to the pile of unopened mail and bills on the kitchen table and, with love, say:
"I can see you're in a tough spot, but honestly folks ignoring the problems like an ostrich with your head stuck in the sand isn't going to save your house or your credit. It's time for you now to do something about it. I'm here to help!"
Just like appearing desperate can destroy your chances of structuring a creative deal with a seller, liking a deal's profit potential too much and creating an expectation leads to crazy, stupid mistakes as well.
Like forgetting the #1 Rule of building wealth through good stewardship:
"Wealth is the accumulation of problems solved and people helped."
Now, think over what I just said...
http://www.homeinvestingsolutions.com/newsletter.php
Calling home sellers can be a scary idea--or it can be a lot of fun. I have a question for you...When you have got a prospective seller's phone number and you're picking up the phone to call and "test the waters" for a first contact or to present a verbal offer, does it sometimes bother you? Do you get freaked out? Try this...
What do I mean by overcoming real estate fears?
Calling home sellers can be a scary idea--or it can be a lot of fun.
I have a question for you...
When you have got a prospective seller's phone number and you're picking up the phone to call and "test the waters" for a first contact or to present a verbal offer, does it sometimes bother you?
Do you get freaked out?
Do you start thinking about exactly what you're going to say, how you're going to say it, how to deal with any and every possible contingency, how to "convince" or "sell" the seller on doing a creative real estate deal with you... etc.?
Do you ever get NERVOUS when you're dialing the phone?
You know that feeling when you just start getting anxious for no logical reason, and you just CAN'T control it?
Have you ever had to actually HANG UP because you were so darn freaked out... and you just couldn't follow through with it?
OK, now another set of interesting questions...
Have you ever called a seller back after a first chat/offer, and started talking to the person, only to realize that he/she was in a COMPLETELY different mood from the last time?
Have you ever had a seller "turn cold" on you all of a sudden and be "not interested" in your creative real estate offer?
It's almost like you're talking to a different person from the person you built rapport with-- hopefully ;)-- and it makes no sense to you... right?
And finally...
Despite some weird feelings, have you ever worked up the nerve to call a difficult prospective seller, gotten the seller on the phone, had a great conversation full of all kinds of possibilities...but when it came time to get some agreement over something hammered out, you froze up because you didn't know what to say?
Or even worse, have you ever gotten to the end of a conversation on the phone or at the house, after a long time investment of exploring the seller's needs and the house itself... only to have him/her answer with:
"Well, maybe... call me Friday afternoon... OK?"
or...
"That really doesn't sound like what I want to do, but thanks for asking... (silence)"...?
Have you ever had one of those conversations where you could just TELL that something wasn't right... and that, even though the SELLER had a problem you were offering to help SOLVE, he/she wasn't going to be taking you up on your creative real estate offer, or calling you back at all anytime soon?
Me too.
So why all the problems?
What is it about these particular few minutes just getting the information and finding out the motivation of the seller that constantly ends in problems for beginning real estate investors?
I mean, you are calling someone who wants to sell their house about SELLING their house! Hello, where does all this anxiety come from?
I personally think that this issue comes down to a few key DEEPER ISSUES.
And I think that if you don't have these other issues "handled", you're going to keep running into problems... and NEVER even know WHY...
...which sucks.
I mean, it's bad enough to keep having a particular problem and not figure out how to solve it... but the idea that the solution is in doing something you would never think of is a little bit maddening.
In other words, I think that this is all about understanding the problem, and actually PREVENTING it from coming up... rather than trying to "solve it" in the moment.
Let me put it this way...
If you're dialing the phone, and you're starting to feel nervous, then it's already too late to solve the problem.
No quick fix will help you.
Or if you're on the phone with him/her and you have just fired across the bow with something like, "Well, Susie...I understand all that you're saying, but if I were to pay cash and close quickly what is your bottom line to sell this house?"
OR
"Well, Susie, now that you understand what an Option Agreement is and we've established that you no longer want to be a landlord but ALSO want to get full retail value selling your house, and want to do it yesterday with no headaches and no real estate commissions...I think I can help-- do you now feel ready to make a deal with me?
and she says "Um, well Mr. Investor, I do need to sell the house BUT...X,Y,Z...let me call you back in a few days/weeks/next Christmas and tell you my answer then"...
And you start to get that sinking feeling that what should be a GREAT deal because you KNOW you can help her out and get this thing done, is dead in the WATER because you know she's blowing you off.
You confused the seller or worse you sounded so "slick" she was ready to run for the hills.
At this point IT'S TOO LATE.
There's no "magic pill" now.
The answer is PREVENTION.
Let's get this handled.
So, let's take a few minutes and talk about the issues and what CAUSES them.
Here are some of the "root causes", and how I see them...
1) Having no other options.
If you're sitting at the phone with ONE seller's phone number in your hand, and you haven't ever bought an investment home (or it's been a long time; or you really are trying to buy quickly so you can gain momentum and go full-time into the "real estate investor lifestyle"), and you are feeling DESPERATE, you're probably going to get VERY nervous.
When you have no other options, the solitary one in front of you becomes VERY valuable.
Translation: You want it TOO badly.
This AUTOMATICALLY triggers your emotional system, because at some level you realize that if you screw this up, it's all over. And we both know that there truly are TONS of ways to KILL a real estate deal-- even IF you truly CAN structure a win-win agreement with the seller.
The pressure is too much! Without options, your judgment could become clouded and your neediness communicated to the seller will turn them off.
In this world, the hungry fish does not get fed. Such is true in real estate investing as well.
2) Putting too much importance on a single deal.
Now, if you have a deal that you've been working for three months, and you've decided that it's one heckuva rare find with a GREAT spread, a motivated seller and a CLEAR exit strategy, really a one in a thousand scenario, it makes sense to put a lot of importance on your completion of this deal.
After all, you've invested a LOT of your time and sure there might have been obstacles but now you are running with the ball and you can see blue sky and five-figure checks.
But, if you don't have other things going on, other deals in the works, other proverbial "irons" getting hot then you are only setting yourself up for major disappointment by putting too much importance on ANY one deal.
3) Thinking you need to IMPRESS the seller.
This is a HUGE issue.
If you're like many investors, you might "subconsciously" behave and communicate like you're trying to IMPRESS the seller of a house you're considering buying.
With me, when you think about this, it only makes sense... of course you'd want to impress the seller in a "creative real estate" deal that has everything going for it... so he/she'll think you're a professional, can do what you say you can do and want to work with you.
But have you ever thought for a moment how a desperate, motivated seller sees it when an investor is TRYING to IMPRESS him/her?
Well, here's the INSTANT and SUBCONSCIOUS response that sellers often have:
"He's trying too hard. There's something wrong. This guy must have something he's trying to hide...better keep my mouth shut."
In other words, the INSTANT you do something or say something that is an obvious attempt at impressing a seller, his/her radar system screams:
"Con man!"
Can you blame them? With the world we live in today? When doing creative real estate deals, when you KNOW you can help the seller, it is 100% more effective in the long run to use a strategy of EDUCATING people and not trying to "sell" them.
Remember, as a real estate investor, people often want to do what you do for a living. It seems glamorous and fun and highly lucrative, all of which it can be. But in the real world most of what works to build wealth in real estate is JUST PLAIN NOT UNDERSTOOD by "average Joe" Johnny Lunch Bucket types. This is where you must EDUCATE your sellers and you can only do that by actually caring about them, building trust and comfort and not coming off as a smooth-talking con man.
4) Being attached to your expectations of a deal.
You might think of this one as a variation of "wanting it too much"... only slightly different.
When you start getting your hopes and expectations up, you begin to get ATTACHED to them.
Then you run the risk of HOLDING ON TOO TIGHT to your little "get rich quick" fantasy.
Bad idea.
Of course, you should run your numbers and do your due diligence and throw some projections around to see what you could be making if a deal goes through.
Nothing wrong with that. In fact, it's essential! Many a new investor has jumped straight into "investing" by buying a property in a stupid deal and ended up a glorified house buyer with a house that they come out of pocket every month to own.
Except in some instances, this is just not sound investing!
Remember, as professional real estate investors:
We buy properties that PAY us to own them!
Back to the being attached to the deal thing.
I want to elaborate on this concept because it is SO important in SO MANY WAYS for those of us who want to enjoy success in real estate investing and be Good Stewards.
Of course, when dealing with a seller or any kind of deal issue you want to be PERSISTENT. Persistence is a key to success in ANYTHING. But you don't want to be ANNOYING!
Sellers don't don't often want to work with investors who come across as arrogant, are obviously only motivated by a lust for dollars, who assume too much, act too comfortable with them, or blow smoke up their chimney.
Remember, motivated sellers have investors often literally pounding down their door (well, once their reason for motivation is in the public forum anyway). They are getting daily calls and letters from people who, in effect are saying "I want to steal your house!"
In fact, with few options they almost EXPECT to get a short-handed stick at closing but what can they do... they gotta sell, right?
I mean, they're "motivated" sellers right?
It says right there in BLACK and WHITE that Johnny's mortgage is in arrears and Johnny told you right out of his mouth that he just got laid off at the factory and you KNOW none of Johnny's friends/relatives/boss can or will bail him out. His inability to pay the mortgage is temporary until he finds work but he just can't catch up the rears.
Logically, you know that he can't refinance either. Plus he actually TOLD you all his troubles trying to refinance and how the banks are ignoring him in his time of need.
Logically...you KNOW he HAS to sell-- doesn't he?
Logically, yes it makes sense to do whatever it takes to avoid foreclosure and avoid a potential bankruptcy. Logically, you KNOW these things. But REMEMBER three things, please, dear investor.
1) You have SPECIALIZED KNOWLEDGE:
Chances are, what makes sense to you as a seasoned -- or even just well-read ;)-- real estate investor, might be highly CONFUSING to others who are not real estate insiders. Examples? Try the Lease-Option Purchase or Seller Financing or Taking over Payments or any one of a hundred other techniques investors know and use but most people have no idea about.
Hint: Like, for instance the SELLER you're trying to help.
2) This is not a LOGICAL situation:
Oftentimes when talking to a motivated seller it is an EMOTIONAL situation. Even if the person is just a FSBO this is often their home, a place of all kinds of emotional references and attachments.
Regardless of how LOGICAL it is for a distressed seller to take you up on your win-win creative real estate offer, they are not likely to deal with a person they DO NOT LIKE, they CAN NOT TRUST and who does not make them FEEL GOOD.
Period.
But, you keep thinking...they gotta sell, right?
Maybe, maybe not.
One thing's for sure--they don't HAVE to sell to YOU!
In fact, here's number three to keep in mind...
3) They don't HAVE to do ANYTHING:
Believe it. I've seen people FORECLOSED on because no one who came to "help" them took the TIME to explain what their options were and clearly articulated what each party's responsibilities and rewards would be for selling the house by using creative real estate strategies.
They were determined to hope and pray for a miracle because they could feel the sharks circling out there waiting for the feeding frenzy--all those so-called "investors" who low-ball offered to buy their house and insulted them and told them to, basically, "take it or leave it dummy."
These people lose their house and their equity because no one was there to give them a hand and treat them like a human being. No one was there to point to the pile of unopened mail and bills on the kitchen table and, with love, say:
"I can see you're in a tough spot, but honestly folks ignoring the problems like an ostrich with your head stuck in the sand isn't going to save your house or your credit. It's time for you now to do something about it. I'm here to help!"
Just like appearing desperate can destroy your chances of structuring a creative deal with a seller, liking a deal's profit potential too much and creating an expectation leads to crazy, stupid mistakes as well.
Like forgetting the #1 Rule of building wealth through good stewardship:
"Wealth is the accumulation of problems solved and people helped."
Now, think over what I just said...
http://www.homeinvestingsolutions.com/newsletter.php
2007-11-03
Credit home equity loan refinance helps raise mortgage
by Robert Langdon
Credit home equity loan refinance is a method of securing finance on low interest rates. The act of refinancing helps develop a stipulated payment schedule that fits borrowers' budget. This method is easiest option for refinancing to roll over the loan to a second mortgage.
Followings are some of the salient features of credit home equity loan refinance
* An ideal resource for funds you can use as needed, for ongoing expenses
* With a credit limit based in part on the equity you have built in your home, you can borrow, repay and borrow again
* Obtain at lower interest rates than with typical revolving credit lines
* Accessing your funds is as simple as writing a check
* Fixed-Rate
* Perfect for specific, large expenses
* Given in a lump sum with a fixed rate and monthly payments for the life of the loan
* Take advantage of a wide range of terms, and the opportunity to borrow up to 85% of the equity in your home
For all that, money market is flooded with uncountable lenders. Selecting a right one is just simply be not done visiting lender to lender. To this view, online search proves to be a good utility tool. Just in a click and innumerable sites with their fact files gets opened. Select some of them and go through their terms and conditions the lenders have projected.
With a Credit home equity loan refinance getting the things you want can be easier than you think. Rather than taking advances on your high-interest on other sources, you can borrow against the equity you have built in your home. And, the interest you pay may be tax deductible.
Followings are some benefits of securing credit home equity loan refinance
* Remodel your home. In addition to the obvious short-term benefits, home improvement can be a great investment. Adding a bedroom or updating bathrooms is a great way to increase the value of your home.
* Infrastructural development: under the provision, raised amount best converted to enhance infrastructural at business plans.
* Buy your dream car. If your car is on its last legs or you're ready for an upgrade, your home's equity can help put you in a new set of wheels.
* Finance an education. A Home Equity Line of Credit may be just the thing for covering tuition bills and other expenses as they come due.
* Take control of your debt. Tired of paying high-interest monthly payments to credit card companies? Pay off all those debts at once and enjoy one low monthly payment.
http://www.goarticles.com/cgi-bin/showa.cgi?C=669366
Credit home equity loan refinance is a method of securing finance on low interest rates. The act of refinancing helps develop a stipulated payment schedule that fits borrowers' budget. This method is easiest option for refinancing to roll over the loan to a second mortgage.
Followings are some of the salient features of credit home equity loan refinance
* An ideal resource for funds you can use as needed, for ongoing expenses
* With a credit limit based in part on the equity you have built in your home, you can borrow, repay and borrow again
* Obtain at lower interest rates than with typical revolving credit lines
* Accessing your funds is as simple as writing a check
* Fixed-Rate
* Perfect for specific, large expenses
* Given in a lump sum with a fixed rate and monthly payments for the life of the loan
* Take advantage of a wide range of terms, and the opportunity to borrow up to 85% of the equity in your home
For all that, money market is flooded with uncountable lenders. Selecting a right one is just simply be not done visiting lender to lender. To this view, online search proves to be a good utility tool. Just in a click and innumerable sites with their fact files gets opened. Select some of them and go through their terms and conditions the lenders have projected.
With a Credit home equity loan refinance getting the things you want can be easier than you think. Rather than taking advances on your high-interest on other sources, you can borrow against the equity you have built in your home. And, the interest you pay may be tax deductible.
Followings are some benefits of securing credit home equity loan refinance
* Remodel your home. In addition to the obvious short-term benefits, home improvement can be a great investment. Adding a bedroom or updating bathrooms is a great way to increase the value of your home.
* Infrastructural development: under the provision, raised amount best converted to enhance infrastructural at business plans.
* Buy your dream car. If your car is on its last legs or you're ready for an upgrade, your home's equity can help put you in a new set of wheels.
* Finance an education. A Home Equity Line of Credit may be just the thing for covering tuition bills and other expenses as they come due.
* Take control of your debt. Tired of paying high-interest monthly payments to credit card companies? Pay off all those debts at once and enjoy one low monthly payment.
http://www.goarticles.com/cgi-bin/showa.cgi?C=669366
What Can Be Gained By Refinancing Your Mortgage?
by Joseph Kenny
Many people are doing it, but should you? Getting a new mortgage to replace the old one could be very sound advice - but not every time. Here are some things that you could gain if you refinance your mortgage.
Lower Interest Rates
One of the best reasons to refinance is to be able to get a better interest rate and lower your monthly payments. This, of course, leads to more savings. Since the interest rates on mortgages changes every day, it is always a good idea to keep one eye on those changes. When the interest rates drop more than 1% lower than what you already have, it is one indication that you can save some money.
Save Some Money
The amount of money you can save by a lower interest rate, however, is not all that can be gained. In fact, you could save much more if you also reduce the amount of time left to pay off the mortgage. By keeping your payments about the same and shortening the time by at least five years, you could save additional tens of thousands of dollars more.
Get Your Equity
At the same time that you refinance your mortgage, you can also get access to some of your equity. A cash out mortgage refinance will enable you to get your equity and provide the cash you may need for that home project, or other need.
Be sure that you leave at least 20% of you home's value in the equity - don't take it out. This way, you will not need to get private mortgage insurance. It will also enable you to have a reserve cash supply, just in case you need to move later.
Obtain Level Payments
If you currently have an adjustable rate mortgage that is about to become adjustable in its payments, you may need to quickly refinance in order to reduce your risk. When the rates go up - so will your payments, but you can refinance to a more stable fixed rate mortgage. If you wait too long to refinance, you could be stuck with the interest rates that the market will force you to have - whether you have adjustable rate or fixed rate.
Calculate Your Options
It is important that you take some time and make some serious calculations. You should not refinance just because your friends are, or your neighbors. Your situation could be (and probably is) different from theirs.
Once you have determined that you are going to stay for at least another 3 to 5 years, you should calculate the different options available and see which ones are most profitable. Some mortgage types may not be suitable for you to get a good deal on, but you will need to look them over first to find out which ones will give you the greatest benefit and savings.
Be sure to get quotes from different lenders and then compare them. Refinancing your mortgage is something you cannot do very often, because of the cost - so get the best one you can.
http://www.rebuild.org/refinance.html
Many people are doing it, but should you? Getting a new mortgage to replace the old one could be very sound advice - but not every time. Here are some things that you could gain if you refinance your mortgage.
Lower Interest Rates
One of the best reasons to refinance is to be able to get a better interest rate and lower your monthly payments. This, of course, leads to more savings. Since the interest rates on mortgages changes every day, it is always a good idea to keep one eye on those changes. When the interest rates drop more than 1% lower than what you already have, it is one indication that you can save some money.
Save Some Money
The amount of money you can save by a lower interest rate, however, is not all that can be gained. In fact, you could save much more if you also reduce the amount of time left to pay off the mortgage. By keeping your payments about the same and shortening the time by at least five years, you could save additional tens of thousands of dollars more.
Get Your Equity
At the same time that you refinance your mortgage, you can also get access to some of your equity. A cash out mortgage refinance will enable you to get your equity and provide the cash you may need for that home project, or other need.
Be sure that you leave at least 20% of you home's value in the equity - don't take it out. This way, you will not need to get private mortgage insurance. It will also enable you to have a reserve cash supply, just in case you need to move later.
Obtain Level Payments
If you currently have an adjustable rate mortgage that is about to become adjustable in its payments, you may need to quickly refinance in order to reduce your risk. When the rates go up - so will your payments, but you can refinance to a more stable fixed rate mortgage. If you wait too long to refinance, you could be stuck with the interest rates that the market will force you to have - whether you have adjustable rate or fixed rate.
Calculate Your Options
It is important that you take some time and make some serious calculations. You should not refinance just because your friends are, or your neighbors. Your situation could be (and probably is) different from theirs.
Once you have determined that you are going to stay for at least another 3 to 5 years, you should calculate the different options available and see which ones are most profitable. Some mortgage types may not be suitable for you to get a good deal on, but you will need to look them over first to find out which ones will give you the greatest benefit and savings.
Be sure to get quotes from different lenders and then compare them. Refinancing your mortgage is something you cannot do very often, because of the cost - so get the best one you can.
http://www.rebuild.org/refinance.html
How A Home Equity Line Of Credit Can Fulfill Your Dreams
by Joseph Kenny
If you have lived in your home for a number of years, then you have had time to have built up some equity in your home. By making regular payments on your mortgage, and having an increase in the value of your home over those years, the equity increases - especially if you have kept the house in good working order and appearance. Through a home equity line of credit you can get access to your equity and use it to fulfill some of your dreams. Here is how you can go about it.
Although there is more than one way to get access to your equity, a home equity line of credit, often referred to as a HELOC, may be your best option. One reason is that you have access to the money in equity, but you do not pay interest on it until you actually draw it out and use it. Initially, when you apply, you are given a credit limit that sets the amount of cash you can get. You are then given access to the money through a credit card or checking account.
A time limit is also set in which you can draw the cash out of the account. This means that you can only use the cash in your home equity line of credit for a limited time - which could be up to 11 years.
The interest that you are paying during the draw period is calculated on a daily basis (usually). The overall time length including both the draw period and the payment period are usually calculated on a 30-year time frame. As you draw money out, you are only paying the interest on the amount used.
A HELOC can work best for you if you have a number of projects that you have the money for, but do not know exactly how much you will need. You can use the money to take that vacation or cruise you have always wanted - to Bermuda, Alaska, Europe, or wherever, to make renovations or additions to your home, to pay for college, buy a car, debt consolidation, or to cover some medical expenses - you decide.
You do need to know about how repayment will take place. Some lenders will require a single balloon payment to be made for the whole amount at the end of the draw period. This will mean that you need to refinance it. Others will simply figure out how much cash you used and then calculate your payments for the payment period - which, in most cases, will fully amortize the home equity line of credit mortgage.
HELOC's often have no closing costs. You do, however, need to find out about the margin that is a percentage of interest above the APR. It is permanent and could double your interest on the loan. Shop around for the best deals and compare the fees, interest rates, time for repayment, and other features. Then - enjoy your equity, and your dreams.
http://www.goarticles.com/cgi-bin/showa.cgi?C=670023
If you have lived in your home for a number of years, then you have had time to have built up some equity in your home. By making regular payments on your mortgage, and having an increase in the value of your home over those years, the equity increases - especially if you have kept the house in good working order and appearance. Through a home equity line of credit you can get access to your equity and use it to fulfill some of your dreams. Here is how you can go about it.
Although there is more than one way to get access to your equity, a home equity line of credit, often referred to as a HELOC, may be your best option. One reason is that you have access to the money in equity, but you do not pay interest on it until you actually draw it out and use it. Initially, when you apply, you are given a credit limit that sets the amount of cash you can get. You are then given access to the money through a credit card or checking account.
A time limit is also set in which you can draw the cash out of the account. This means that you can only use the cash in your home equity line of credit for a limited time - which could be up to 11 years.
The interest that you are paying during the draw period is calculated on a daily basis (usually). The overall time length including both the draw period and the payment period are usually calculated on a 30-year time frame. As you draw money out, you are only paying the interest on the amount used.
A HELOC can work best for you if you have a number of projects that you have the money for, but do not know exactly how much you will need. You can use the money to take that vacation or cruise you have always wanted - to Bermuda, Alaska, Europe, or wherever, to make renovations or additions to your home, to pay for college, buy a car, debt consolidation, or to cover some medical expenses - you decide.
You do need to know about how repayment will take place. Some lenders will require a single balloon payment to be made for the whole amount at the end of the draw period. This will mean that you need to refinance it. Others will simply figure out how much cash you used and then calculate your payments for the payment period - which, in most cases, will fully amortize the home equity line of credit mortgage.
HELOC's often have no closing costs. You do, however, need to find out about the margin that is a percentage of interest above the APR. It is permanent and could double your interest on the loan. Shop around for the best deals and compare the fees, interest rates, time for repayment, and other features. Then - enjoy your equity, and your dreams.
http://www.goarticles.com/cgi-bin/showa.cgi?C=670023
Things You Must Know About Mortgage Refinancing
by Debbie Groves
If reduced interest rates, monthly payments, longer time for repayment of loans is what you are looking for, then opt for mortgage refinancing. This is the best way to get the benefits that we mentioned above. However, it is crucial that you understand the process in detail. A wrong decision might make you pay more than you wanted to save in the first place.
Be clear about refinancing,
Refinancing is the process of achieving a second loan for paying off the original loan; this leaves you with the new interest rates and the new payment schedule. It helps decrease your monthly loan installment as the new loan would typically have a lower principal than your original loan.
Moreover, refinancing provides you more time to pay off your mortgage, which benefits you when you are soon approaching a huge payment that you cannot really afford or would like to extend your loan.
The best time for refinancing,
How can you denote the ideal time for refinancing? Well, the best time to consider refinancing your mortgage is after you have repaid a large chunk of your original mortgage and have built a good amount of equity. The equity is most likely for securing the refinance loan; therefore, it is crucial to have enough for covering the amount of the loan.
Application for a refinance loan must be made when the interest rates are lower than when you had taken out the mortgage. This enables the lower interest rate to be an additional bonus to refinancing.
The refinance terms you agree upon and your original mortgage balance will determine the amount by which your monthly mortgage installments would decrease.
Other ways to denote the right time for refinancing,
Start reading the finance journals and watch the news carefully; this helps you determine what the national interest rates are set at. Also, try to foresee whether the national interest rates are likely to decrease or increase in the near future.
The loan market will enable you to find lenders providing special rates or promotions for a limited amount of time. Take your time to examine the offers and ensure that they are legal; also it is advisable to consider if the offer will suit your requirements, than waiting for the rates to change.
Knowing the way to go about refinancing,
For mortgage refinancing, primarily you will need a lender who will issue you the refinancing loan. The loan application in this case is almost like the majority of the other applications; with the exception being that the subject of the loan is the original mortgage balance and that the collateral is the equity you have in the house or any other real estate where the mortgage was taken out to purchase.
Usually the lender or the bank, through which you take out the refinance loan, is involved in handling all the payments and transfers of the mortgage. In some cases, however, you have to handle these works yourself; this depends completely on the specific lender that you use
www.mortgagerefinancingpeople.com
If reduced interest rates, monthly payments, longer time for repayment of loans is what you are looking for, then opt for mortgage refinancing. This is the best way to get the benefits that we mentioned above. However, it is crucial that you understand the process in detail. A wrong decision might make you pay more than you wanted to save in the first place.
Be clear about refinancing,
Refinancing is the process of achieving a second loan for paying off the original loan; this leaves you with the new interest rates and the new payment schedule. It helps decrease your monthly loan installment as the new loan would typically have a lower principal than your original loan.
Moreover, refinancing provides you more time to pay off your mortgage, which benefits you when you are soon approaching a huge payment that you cannot really afford or would like to extend your loan.
The best time for refinancing,
How can you denote the ideal time for refinancing? Well, the best time to consider refinancing your mortgage is after you have repaid a large chunk of your original mortgage and have built a good amount of equity. The equity is most likely for securing the refinance loan; therefore, it is crucial to have enough for covering the amount of the loan.
Application for a refinance loan must be made when the interest rates are lower than when you had taken out the mortgage. This enables the lower interest rate to be an additional bonus to refinancing.
The refinance terms you agree upon and your original mortgage balance will determine the amount by which your monthly mortgage installments would decrease.
Other ways to denote the right time for refinancing,
Start reading the finance journals and watch the news carefully; this helps you determine what the national interest rates are set at. Also, try to foresee whether the national interest rates are likely to decrease or increase in the near future.
The loan market will enable you to find lenders providing special rates or promotions for a limited amount of time. Take your time to examine the offers and ensure that they are legal; also it is advisable to consider if the offer will suit your requirements, than waiting for the rates to change.
Knowing the way to go about refinancing,
For mortgage refinancing, primarily you will need a lender who will issue you the refinancing loan. The loan application in this case is almost like the majority of the other applications; with the exception being that the subject of the loan is the original mortgage balance and that the collateral is the equity you have in the house or any other real estate where the mortgage was taken out to purchase.
Usually the lender or the bank, through which you take out the refinance loan, is involved in handling all the payments and transfers of the mortgage. In some cases, however, you have to handle these works yourself; this depends completely on the specific lender that you use
www.mortgagerefinancingpeople.com
Refinancing A Home Or Car With Bad Credit - Take It Slowly
by Michael Benifez
Bad credit refinance is the process of taking out a new loan in order to cover the cost of a previous loan. Bad credit refinance is most beneficial when the first loan is taken during a period of high interest rates. Before opting for bad credit refinance, compare lenders and interest rates.
The second loan should have a lower rate of interest or a lower monthly payment. Interests have been declining, so that the second loan should have a lower rate. If it doesn't, refinancing to solve bad credit is not a logical choice. Also, the difference in interest rates should be significant enough to cover additional fees required by some lenders. The amount of time that has passed since you took your first loan impacts a refinance loan.
You can save a lot of money from your first loan payment schedule. You can also change the amount of your monthly payments or try out a new bank. Bad credit loans often come with various promotional offers, such as lower interest rates or longer terms. These benefits may not have been available at the time you took out your first loan.
Timing is essential when you opt for bad credit refinance. Be patient, and research the loan market thoroughly to find out the rate of interest and terms that make sense for you. Your options will depend on your credit history and the amount of time you have made payments on your current loan.
Get a Bad Credit Mortgage Loan
A bad credit mortgage loan is a loan based on the equity in your home. This loan can help you lower your overall interest and monthly payments. It can also help you consolidate all your debts. A bad credit mortgage loan can be very helpful in repairing your credit.
By taking out a bad credit mortgage loan, you can make all the payments you can afford. Cash-out refinance and home equity loans are the most popular options for people with bad credit. Both allow you to rely on the equity that you've paid on your home. They allow you to use your home's value as a tool to get out of debt.
Using home equity for debt consolidation mortgage loans can help you move all your high-interest credit card payments into a single lower monthly payment. Payment of bills is simplified, monthly payments are less, and your credit status increases. You will eventually even notice an increase in your credit score.
Lenders agree to provide you with a bad credit mortgage loan if you increase your down payment and cash reserves. The lower your credit score, the larger is the down payment required on the bad credit mortgage loan. A credit score of 580 requires a down payment of about 5%. Higher cash reserves convince lenders that you will be able to continue making payments if an emergency should happen.
Bad credit mortgage loans can also be taken through online mortgage brokers. Thoroughly check loan market rates before choosing a specific lender to be sure you get the most favorable terms possible.
http://www.everlife.com/debt-consolidation-loans.php
Bad credit refinance is the process of taking out a new loan in order to cover the cost of a previous loan. Bad credit refinance is most beneficial when the first loan is taken during a period of high interest rates. Before opting for bad credit refinance, compare lenders and interest rates.
The second loan should have a lower rate of interest or a lower monthly payment. Interests have been declining, so that the second loan should have a lower rate. If it doesn't, refinancing to solve bad credit is not a logical choice. Also, the difference in interest rates should be significant enough to cover additional fees required by some lenders. The amount of time that has passed since you took your first loan impacts a refinance loan.
You can save a lot of money from your first loan payment schedule. You can also change the amount of your monthly payments or try out a new bank. Bad credit loans often come with various promotional offers, such as lower interest rates or longer terms. These benefits may not have been available at the time you took out your first loan.
Timing is essential when you opt for bad credit refinance. Be patient, and research the loan market thoroughly to find out the rate of interest and terms that make sense for you. Your options will depend on your credit history and the amount of time you have made payments on your current loan.
Get a Bad Credit Mortgage Loan
A bad credit mortgage loan is a loan based on the equity in your home. This loan can help you lower your overall interest and monthly payments. It can also help you consolidate all your debts. A bad credit mortgage loan can be very helpful in repairing your credit.
By taking out a bad credit mortgage loan, you can make all the payments you can afford. Cash-out refinance and home equity loans are the most popular options for people with bad credit. Both allow you to rely on the equity that you've paid on your home. They allow you to use your home's value as a tool to get out of debt.
Using home equity for debt consolidation mortgage loans can help you move all your high-interest credit card payments into a single lower monthly payment. Payment of bills is simplified, monthly payments are less, and your credit status increases. You will eventually even notice an increase in your credit score.
Lenders agree to provide you with a bad credit mortgage loan if you increase your down payment and cash reserves. The lower your credit score, the larger is the down payment required on the bad credit mortgage loan. A credit score of 580 requires a down payment of about 5%. Higher cash reserves convince lenders that you will be able to continue making payments if an emergency should happen.
Bad credit mortgage loans can also be taken through online mortgage brokers. Thoroughly check loan market rates before choosing a specific lender to be sure you get the most favorable terms possible.
http://www.everlife.com/debt-consolidation-loans.php
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