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
Showing posts with label Credit. Show all posts
Showing posts with label Credit. Show all posts
2007-11-10
2007-09-11
Home Refinancing - What You Should Know
by Terry Edwards
If you own a home and are drowning in credit card or medical bills, home refinance may be a good idea for you. Maybe your home needs some repairs or upgrades and you don't have the cash. Consider a home refinance to get the cash that you need to improve your home. Read on and discover why refinancing your home may be the answer to your cash flow problems.
First of all, examine what type of home loan you currently have. Do you have a fixed rate or an adjustable rate mortgage? If you have an adjustable rate mortgage, it would probably be a good idea to refinance with a fixed rate mortgage. The market is very volatile right now and you really don't know what is going to happen with adjustable rate mortgages.
The next decision you have to make is how long you want the term of your home refinance loan to be. This is where you need to examine your budget and run the numbers to see if you can swing a mortgage payment on a 15 year loan or if you will have to go 30 years to be able to make the payment.
Obviously the faster you are able to pay off your mortgage the less you will pay in interest. But be careful and don't lock yourself into a monthly payment that is going to be difficult to make. You don't want to refinance your home and then risk losing it to foreclosure.
Once you have decided on the type and length of your refinance loan, don't forget to take a close look at your interest rate. You want to make sure that the interest rate on your home refinance is lower than the original mortgage loan. If it's higher don't commit to this loan. You are trying to put yourself in a better position, not get yourself deeper into debt.
Do some shopping around. Find a company that is reputable and willing to give you a great home refinance loan at a great interest rate. But beware of predatory lenders. These types of lenders will promise you a great deal, but when it comes down to it, they will pull the rug out from under you.
Predatory lenders will not give you a good interest rate based on your credit, they will loan you money based on the equity of your home and not your ability to pay and they will add excessive fees and roll them into the loan, increasing the amount that you owe. Many people who have been the victims of predatory lending have lost their homes to foreclosure.
The most important thing to remember is if you refinance your home to get cash to pay off those high interest bills, do it. Don't use the cash for something else. The goal is to take care of the bills that are draining you dry and to have extra money left over at the end of the month. Don't give into the temptation to use the money for something frivolous.
www.HomeRefinancingA-Z.com
If you own a home and are drowning in credit card or medical bills, home refinance may be a good idea for you. Maybe your home needs some repairs or upgrades and you don't have the cash. Consider a home refinance to get the cash that you need to improve your home. Read on and discover why refinancing your home may be the answer to your cash flow problems.
First of all, examine what type of home loan you currently have. Do you have a fixed rate or an adjustable rate mortgage? If you have an adjustable rate mortgage, it would probably be a good idea to refinance with a fixed rate mortgage. The market is very volatile right now and you really don't know what is going to happen with adjustable rate mortgages.
The next decision you have to make is how long you want the term of your home refinance loan to be. This is where you need to examine your budget and run the numbers to see if you can swing a mortgage payment on a 15 year loan or if you will have to go 30 years to be able to make the payment.
Obviously the faster you are able to pay off your mortgage the less you will pay in interest. But be careful and don't lock yourself into a monthly payment that is going to be difficult to make. You don't want to refinance your home and then risk losing it to foreclosure.
Once you have decided on the type and length of your refinance loan, don't forget to take a close look at your interest rate. You want to make sure that the interest rate on your home refinance is lower than the original mortgage loan. If it's higher don't commit to this loan. You are trying to put yourself in a better position, not get yourself deeper into debt.
Do some shopping around. Find a company that is reputable and willing to give you a great home refinance loan at a great interest rate. But beware of predatory lenders. These types of lenders will promise you a great deal, but when it comes down to it, they will pull the rug out from under you.
Predatory lenders will not give you a good interest rate based on your credit, they will loan you money based on the equity of your home and not your ability to pay and they will add excessive fees and roll them into the loan, increasing the amount that you owe. Many people who have been the victims of predatory lending have lost their homes to foreclosure.
The most important thing to remember is if you refinance your home to get cash to pay off those high interest bills, do it. Don't use the cash for something else. The goal is to take care of the bills that are draining you dry and to have extra money left over at the end of the month. Don't give into the temptation to use the money for something frivolous.
www.HomeRefinancingA-Z.com
2007-09-06
Do We Need To Refinance?
Jason Roberts
There are plenty of reasons why people chose to refinance. The needs for home improvements, sending a child to college or simply lower their monthly mortgage are a few. You need to find a loan company that offers you the best rate when you chose to refinance. Comparison-shopping is a wise thing to do before you refinance.
With the rising cost in college tuition choosing to refinance is becoming more popular. No one wants to deny sending their child of to college to better their education and become successful in life. This is why people look into refinancing their home or mortgage. There are a few different options, consulting a loan specialist would better help you decide which option is for you.
Another reason people chose to refinance is to lower there monthly mortgage payments or interest. This allows them more room to breathe when coming up with the money to pay for your mortgage or interest. When you chose to refinance it is also a way to get money to make improvements to your home.
You could just want to pay off your car loan. That is another reason that you would decide refinancing is right for you. Knock out that monthly payment and focus on other expenses. If you don't already have a car you would use the money to purchase one. Either for yourself or as a gift for your high school graduate.
A very popular reason that you would choose to refinance with a loan is debt consolidation. Pay off accumulated debts, such as credit card or medical bills. This reason may be increasing in the near future with the new bankruptcy law soon to go into effect. It gets rid of the frustration of bill collectors calling and mailing your home. It is an uncomfortable thing to deal with debt and no one likes to stress over bills that they can't pay. So choosing to refinance to knock out those bills is a wise step to take. This will also help you to improve your credit rating.
You may not even be concerned with any of the above reasons. You could just be looking for a way to take a family vacation or some kind of long awaited trip. Whatever your reason there is no wrong reason if you chose to refinance with a loan. As long as it is something that will benefit you and paying it back will not be a hassle.
There are plenty of competitors that will offer you a chance to refinance for what ever your reasons may be. Look for them on the Internet or call around and compare quotes. Some lenders will even match the lowest quote you can find.
www.aprefinance.com
There are plenty of reasons why people chose to refinance. The needs for home improvements, sending a child to college or simply lower their monthly mortgage are a few. You need to find a loan company that offers you the best rate when you chose to refinance. Comparison-shopping is a wise thing to do before you refinance.
With the rising cost in college tuition choosing to refinance is becoming more popular. No one wants to deny sending their child of to college to better their education and become successful in life. This is why people look into refinancing their home or mortgage. There are a few different options, consulting a loan specialist would better help you decide which option is for you.
Another reason people chose to refinance is to lower there monthly mortgage payments or interest. This allows them more room to breathe when coming up with the money to pay for your mortgage or interest. When you chose to refinance it is also a way to get money to make improvements to your home.
You could just want to pay off your car loan. That is another reason that you would decide refinancing is right for you. Knock out that monthly payment and focus on other expenses. If you don't already have a car you would use the money to purchase one. Either for yourself or as a gift for your high school graduate.
A very popular reason that you would choose to refinance with a loan is debt consolidation. Pay off accumulated debts, such as credit card or medical bills. This reason may be increasing in the near future with the new bankruptcy law soon to go into effect. It gets rid of the frustration of bill collectors calling and mailing your home. It is an uncomfortable thing to deal with debt and no one likes to stress over bills that they can't pay. So choosing to refinance to knock out those bills is a wise step to take. This will also help you to improve your credit rating.
You may not even be concerned with any of the above reasons. You could just be looking for a way to take a family vacation or some kind of long awaited trip. Whatever your reason there is no wrong reason if you chose to refinance with a loan. As long as it is something that will benefit you and paying it back will not be a hassle.
There are plenty of competitors that will offer you a chance to refinance for what ever your reasons may be. Look for them on the Internet or call around and compare quotes. Some lenders will even match the lowest quote you can find.
www.aprefinance.com
2007-08-20
Tips on How to Keep Your Credit Score from Lowering
by Thane Rutledge
If your credit score is under 630 or so, then you have a problem. If it's in the 500 area, you definitely have a problem. If you have a score in the 400 region, well, you have your work cut out for you.
While working as a loan agent, I came upon credit issues with clients everyday. I saw great credit and bad credit, exceptional credit and abominable credit. By working with so many credit issues for such a protracted period of time, I learned a lot and I'm happy to pass that info on to you.
Believe it or not, it's a lot easier than you might think to at least maintain your score but it's also not that hard to improve your score. There's really no great mystery to it. Having credit worthiness is the heart of our capital system today and needless to say, if you don't have good credit, then you won't get a mortgage, a HELOC, a credit card, a car loan, not even an ATM card without limits. Taking care of your credit is important
Okay, enough preamble. This article will give you basic, simple, yet practical tips that can help you to keep your credit score from lowering and allow you to even improve it. Let's get started.
1. Not a lot of consumers know this but according to the Big Three of the credit world, Equifax TransUnion, and Experian up to approximately 30% to 35% of your credit score is determined by your payment history. This didn't always used to be the case but it is now. Believe it or not, if you miss just one month's payment on a tradeline, it can drop you 100 points. That 100 points could be the reason why you get that better interest rate on your home equity line of credit or that car loan or that business loan.
2. Here's the simple yet powerful secret of getting a good credit score: your credit rating and score is made up of your demonstrated ability to pay all your bills on time. Pay your bills within the time allotted to you by the company that extended to you the credit. Prompt payment in housing and car loans have especial weight but lenders certainly don't diminish the demonstrated ability to pay a credit card consistently on time. Okay, first thing to do proactively besides paying your bills on time is to get a copy of your credit report. Mistakes on credit reports are common my friend. In my experience, about 1 in 5 have an error although the industry tolerance is 1 in 10. That's nonsense. It's worse than that. If there are any mistakes on your credit, they can be fixed. You'll need documentation to prove your claim but if it's clear and you make it easy for the credit company, they will remove mistakes and that will automatically cause your score to go up. At the end of every credit report are the names and address of the Big Three. Contact them and get it started.
3. Avoid bankruptcy and foreclosures. A bankruptcy will lower your score from 150 to 200 points. If at all possible, avoid it. Bankruptcy statements on your credit report actually stay there for for up to 10 years. Foreclosures around nine to 10.
4. Close old accounts. The number of tradelines (accounts) that you have open is a determining factor in your credit score. By consolidating your debt into one credit card if you can and by closing unused accounts, this will help your score. I still remember the very first loan I did on my own. The man had about 15 tradelines open and even though he paid his debts faithfully, his score was only around 540. I got him a debt consolidation loan on his refinance that allowed him to take some of his equity out (he had a lot of built up equity) and he used that to pay off all his debts. Within six months, his score was in the high 690 range. For some lenders, they consider that A-paper territory. You should do the same.
5. Not a lot of people know this but your credit card company sends out a report once a month to the credit bureaus regarding your outstanding balance. By having a low balance, or none at all, you are showing yourself as financially responsible to the Big Three and the consequence? It's then part of their calculation to improve your score.
There you have it. In summary, your credit score determines so much of your financial life. Like I said, getting a car loan, a mortgage, or a school loan is determined in many cases on your credit score. It's even becoming important as a determining factor in gaining employment. The current company I work for asked me to sign a waiver allowing them to check my credit. I was surprised for it was only the second time that has happened to me. I suspect it will become more common.
Now you have the knowledge you need to improve your score and in how to maintain it.
If you'd like a free online credit report? You can get one by visiting http://www.freecreditreportinfo.info a popular credit report site that provides free tips and resources including information on credit scores, credit reports, credit repair and resolving credit disputes legitimately.
www.freecreditreportinfo.info/.
If your credit score is under 630 or so, then you have a problem. If it's in the 500 area, you definitely have a problem. If you have a score in the 400 region, well, you have your work cut out for you.
While working as a loan agent, I came upon credit issues with clients everyday. I saw great credit and bad credit, exceptional credit and abominable credit. By working with so many credit issues for such a protracted period of time, I learned a lot and I'm happy to pass that info on to you.
Believe it or not, it's a lot easier than you might think to at least maintain your score but it's also not that hard to improve your score. There's really no great mystery to it. Having credit worthiness is the heart of our capital system today and needless to say, if you don't have good credit, then you won't get a mortgage, a HELOC, a credit card, a car loan, not even an ATM card without limits. Taking care of your credit is important
Okay, enough preamble. This article will give you basic, simple, yet practical tips that can help you to keep your credit score from lowering and allow you to even improve it. Let's get started.
1. Not a lot of consumers know this but according to the Big Three of the credit world, Equifax TransUnion, and Experian up to approximately 30% to 35% of your credit score is determined by your payment history. This didn't always used to be the case but it is now. Believe it or not, if you miss just one month's payment on a tradeline, it can drop you 100 points. That 100 points could be the reason why you get that better interest rate on your home equity line of credit or that car loan or that business loan.
2. Here's the simple yet powerful secret of getting a good credit score: your credit rating and score is made up of your demonstrated ability to pay all your bills on time. Pay your bills within the time allotted to you by the company that extended to you the credit. Prompt payment in housing and car loans have especial weight but lenders certainly don't diminish the demonstrated ability to pay a credit card consistently on time. Okay, first thing to do proactively besides paying your bills on time is to get a copy of your credit report. Mistakes on credit reports are common my friend. In my experience, about 1 in 5 have an error although the industry tolerance is 1 in 10. That's nonsense. It's worse than that. If there are any mistakes on your credit, they can be fixed. You'll need documentation to prove your claim but if it's clear and you make it easy for the credit company, they will remove mistakes and that will automatically cause your score to go up. At the end of every credit report are the names and address of the Big Three. Contact them and get it started.
3. Avoid bankruptcy and foreclosures. A bankruptcy will lower your score from 150 to 200 points. If at all possible, avoid it. Bankruptcy statements on your credit report actually stay there for for up to 10 years. Foreclosures around nine to 10.
4. Close old accounts. The number of tradelines (accounts) that you have open is a determining factor in your credit score. By consolidating your debt into one credit card if you can and by closing unused accounts, this will help your score. I still remember the very first loan I did on my own. The man had about 15 tradelines open and even though he paid his debts faithfully, his score was only around 540. I got him a debt consolidation loan on his refinance that allowed him to take some of his equity out (he had a lot of built up equity) and he used that to pay off all his debts. Within six months, his score was in the high 690 range. For some lenders, they consider that A-paper territory. You should do the same.
5. Not a lot of people know this but your credit card company sends out a report once a month to the credit bureaus regarding your outstanding balance. By having a low balance, or none at all, you are showing yourself as financially responsible to the Big Three and the consequence? It's then part of their calculation to improve your score.
There you have it. In summary, your credit score determines so much of your financial life. Like I said, getting a car loan, a mortgage, or a school loan is determined in many cases on your credit score. It's even becoming important as a determining factor in gaining employment. The current company I work for asked me to sign a waiver allowing them to check my credit. I was surprised for it was only the second time that has happened to me. I suspect it will become more common.
Now you have the knowledge you need to improve your score and in how to maintain it.
If you'd like a free online credit report? You can get one by visiting http://www.freecreditreportinfo.info a popular credit report site that provides free tips and resources including information on credit scores, credit reports, credit repair and resolving credit disputes legitimately.
www.freecreditreportinfo.info/.
2007-08-13
A Guide to Getting Bad Credit Home Improvement Loans
by John Mussi
You might be wanting to look into bad credit home improvement loans but are unsure of where to start. After all, how do you get a good loan when your credit isn't the greatest?
What you probably don't realize is that there are a number of lenders who offer bad credit home improvement loans, which use the equity of your home or other real estate to determine the amount of the loan with no additional collateral needed.
These bad credit home improvement loans can be used to make repairs to your home or real estate, or they can finance expansions, new buildings, or any of a number of home improvement projects.
The key to getting these loans is knowing where apply and what they're looking at once you do.
Finding places to apply
A variety of banks, finance companies, and other lenders offer various bad credit home improvement loans.
Many of these lenders advertise this fact with print, television, and radio ads… however, the ones with the flashier ads will often have you paying for their advertising costs with extra fees and higher interest rates.
The best place to start looking for bad credit home improvement loans is the bank or credit union where you have previous accounts… cheques, savings, or even other loans.
Since you're a repeat customer, you might even get a reduced interest rate. Don't take the first offer that you get, though, unless you're certain that you won't be able to beat it elsewhere.
Get at least four or five different quotes for bad credit home improvement loans before deciding on one so that you can make the most informed decision.
Borrowing against equity
Bad credit home improvement loans base the amount that you borrow off of the equity of your home or real estate, which is the amount of the mortgage or home loan that you've paid off. 100% equity means that you own the home or real estate completely, whereas 30% equity means that a bank or lender has a lien or legal claim to it and you've only paid off 30% of the money that you borrowed to purchase it.
The more equity you have in your home the larger the amount you'll be eligible for when you apply for bad credit home improvement loans, and may also cause you to have lower interest rates if the equity is high in comparison to the loan amount you're requesting.
Three month credit repair
Having bad credit can be a stigma that can take years to get rid of, but in some cases the effects of your efforts can be seen in as little as three months.
Begin trying to pay off as much of your outstanding debt several months before you begin shopping for loans, making sure to make all of your payments on time. This will create a small bubble of positive reports in your credit history, which some potential lenders will see as a sign that you're making an effort to turn your finances around.
It's a good idea to start at least three months beforehand, since some creditors only report quarterly… plus, it gives you three months worth of debt reduction which is a boon regardless of everything else.
You might be wanting to look into bad credit home improvement loans but are unsure of where to start. After all, how do you get a good loan when your credit isn't the greatest?
What you probably don't realize is that there are a number of lenders who offer bad credit home improvement loans, which use the equity of your home or other real estate to determine the amount of the loan with no additional collateral needed.
These bad credit home improvement loans can be used to make repairs to your home or real estate, or they can finance expansions, new buildings, or any of a number of home improvement projects.
The key to getting these loans is knowing where apply and what they're looking at once you do.
Finding places to apply
A variety of banks, finance companies, and other lenders offer various bad credit home improvement loans.
Many of these lenders advertise this fact with print, television, and radio ads… however, the ones with the flashier ads will often have you paying for their advertising costs with extra fees and higher interest rates.
The best place to start looking for bad credit home improvement loans is the bank or credit union where you have previous accounts… cheques, savings, or even other loans.
Since you're a repeat customer, you might even get a reduced interest rate. Don't take the first offer that you get, though, unless you're certain that you won't be able to beat it elsewhere.
Get at least four or five different quotes for bad credit home improvement loans before deciding on one so that you can make the most informed decision.
Borrowing against equity
Bad credit home improvement loans base the amount that you borrow off of the equity of your home or real estate, which is the amount of the mortgage or home loan that you've paid off. 100% equity means that you own the home or real estate completely, whereas 30% equity means that a bank or lender has a lien or legal claim to it and you've only paid off 30% of the money that you borrowed to purchase it.
The more equity you have in your home the larger the amount you'll be eligible for when you apply for bad credit home improvement loans, and may also cause you to have lower interest rates if the equity is high in comparison to the loan amount you're requesting.
Three month credit repair
Having bad credit can be a stigma that can take years to get rid of, but in some cases the effects of your efforts can be seen in as little as three months.
Begin trying to pay off as much of your outstanding debt several months before you begin shopping for loans, making sure to make all of your payments on time. This will create a small bubble of positive reports in your credit history, which some potential lenders will see as a sign that you're making an effort to turn your finances around.
It's a good idea to start at least three months beforehand, since some creditors only report quarterly… plus, it gives you three months worth of debt reduction which is a boon regardless of everything else.
2007-08-07
Home Refinance Can be Your Solution to Credit Problems
by lexy
A home refinance loan can get your finances back on track. ParkAveCredit.com can introduce you to excellent home loan companies, which specialize in bad credit loans, from which you can secure your home refinance loan NOW!
By refinancing your home loan, you can give yourself the funds to pay off that high-interest credit card debt and stop the depleting cycle of finance charges and late fees; you can secure the funds at a lower interest rate and lower your monthly payments - while you rid yourself of other debt that is damaging your credit rating.
With bad credit, banks and many finance companies will not be willing to grant you a loan, or they will charge exorbitant interest rates. At ParkAveCredit.com, we have access to the most current programs, with a wide spectrum of lending institutions willing to make a home finance loan reduce your financial burden.
Here are some of the benefits of a home refinance loan:
* Your loan is secured by your home as collateral, reducing the risk to lenders to obtain a lower interest rate. * You have one reduced monthly payment. * You can use the loan to pay off your debt to multiple creditors, and eliminate the high interest rates charged by credit card companies, which immediately puts those finance charges back into YOUR pocket. * You will immediately improve your credit rating by eliminating multiple debts and unpaid balances being reported to the credit bureaus every month. * The interest and property taxes are tax deductible. * Fast approvals - We can get a home refinance loan approved and closed in as little as 14 days. * Convenience: We work with a nationwide network of lenders and can find a title and escrow company in your location for the closing of your loan. * Service: Our service staff will hold your hand during the process and answer any questions you may have.
goarticles.com
A home refinance loan can get your finances back on track. ParkAveCredit.com can introduce you to excellent home loan companies, which specialize in bad credit loans, from which you can secure your home refinance loan NOW!
By refinancing your home loan, you can give yourself the funds to pay off that high-interest credit card debt and stop the depleting cycle of finance charges and late fees; you can secure the funds at a lower interest rate and lower your monthly payments - while you rid yourself of other debt that is damaging your credit rating.
With bad credit, banks and many finance companies will not be willing to grant you a loan, or they will charge exorbitant interest rates. At ParkAveCredit.com, we have access to the most current programs, with a wide spectrum of lending institutions willing to make a home finance loan reduce your financial burden.
Here are some of the benefits of a home refinance loan:
* Your loan is secured by your home as collateral, reducing the risk to lenders to obtain a lower interest rate. * You have one reduced monthly payment. * You can use the loan to pay off your debt to multiple creditors, and eliminate the high interest rates charged by credit card companies, which immediately puts those finance charges back into YOUR pocket. * You will immediately improve your credit rating by eliminating multiple debts and unpaid balances being reported to the credit bureaus every month. * The interest and property taxes are tax deductible. * Fast approvals - We can get a home refinance loan approved and closed in as little as 14 days. * Convenience: We work with a nationwide network of lenders and can find a title and escrow company in your location for the closing of your loan. * Service: Our service staff will hold your hand during the process and answer any questions you may have.
goarticles.com
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