Home Deals - Home Loan & Mortgage, Home Buying & Selling, Tips For Homeowners

Can I Get a Loan Even After Bankruptcy?

David — Thu, 03 Jul 2008 20:19:51 +0000

Some people believe that if they have filed a bankruptcy, their financial life is over. To some extent that is true but only when you are not fully informed. The truth is that bankruptcy leaves a big bad stain on your credit report and if you can avoid bankruptcy then we recommend you should try every [...]

No Change To House Prices For May

David — Wed, 02 Jul 2008 07:16:27 +0000

According to a recent report released by the Land Registry there was no change to house prices for the month of May, with figures showing that house prices were up 1.8% over the year. However, property sales figures remain bleak, with officials from the Land Registry claiming that property sales in March stood at just [...]

Should You Go with a Variable or Fixed Rate Mortgage?

David — Tue, 24 Jun 2008 19:44:00 +0000

I recently got into a discussion with a client about whether he should go with a fixed or variable rate mortgage and I shared with him a copy of a paper that was written by Associate Professor Moshe Milevsky at Schulich School of Business in 2001. The paper is called 'Floating Your Way to Prosperity' and you can find a copy of it and other papers written by Professor Milevsky at http://

Credit Crunch: Make No Predictions of What Lies Ahead

David — Thu, 19 Jun 2008 19:18:00 +0000

From the Oregonian:

There are new signs that the worst of the global credit crisis is yet to come and that banks and brokerages caught up in the market turmoil may lose nearly $1 trillion by the time it has passed. Major U.S. investment banks this week announced yet another painful quarter amid the implosion of mortgage-backed securities and risky credit investments. Regional banks have scrambled to secure fresh capital to stay in business, and by Wednesday there was new talk that embattled investment bank Lehman Brothers might be forced into a sale.
With each passing quarter, Wall Street's top bankers have indicated that the worst of the market turmoil was done, only to face more pain months later. The uncertainty has caused already battered investors to lose confidence in financial companies, and expectations have increased that more layoffs, asset sales and capital-raising will be needed in the weeks ahead.
"We thought this was going to be the kitchen-sink quarter, and we're finding out that CEOs and CFOs still don't have a handle on the credit crisis," said William Rutherford, a former state treasurer of Oregon who now runs Rutherford Investment Management. "We haven't disinterred all the dead bodies. What else is out there?"
The deepening credit crisis could cost the global financial system about $945 billion by the time it's over, according to a report from the International Monetary Fund. So far, banks and brokerages have written down nearly $300 billion from bad bets on mortgage-backed securities and other risky investments.
After reporting largely disappointing second-quarter results, executives at Goldman Sachs, Morgan Stanley and Lehman Brothers still weren't entirely clear when the hemorrhaging will end. David Viniar, Goldman Sachs' chief financial officer, said Monday that March marked "the bottom of the crisis, at least for now" -- making no predictions of what lies ahead.

Remember when $1 trillion in losses was 'at the very high end'?

Unemployment Rate Up To 5.6%

David — Tue, 17 Jun 2008 14:26:00 +0000

From the Oregonian :

Oregon lost jobs in May for a third consecutive month -- the first time that's happened since early 2003 -- as the state's unemployment rate rose to 5.6 percent.
Payroll employment dropped by 3,700, on a seasonally adjusted basis, reaching 1,735,200, the lowest level since October. Job losses hit construction, manufacturing and professional and business services again in May, and spread to the trade, transportation and utilities sector.
But the three-month decline has not come close to the deepest monthly losses in downturns during each of the past three decades. In addition, some resilient sectors of Oregon's economy, such as educational and health services, have protected the state from unemployment highs reached during 2003, for example.
"The employment trends are showing a modest downturn," said David Cooke, an Oregon Employment Department economist. "There are substantial corrections in certain industries -- construction and manufacturing, notably -- and other industries continue to add jobs."
Manufacturing lost 2,300 jobs in May, seasonally adjusted. Construction lost 1,600; trade, transportation and utilities also trimmed 1,600; and professional and business services dropped 1,000.
If not for educational and health services, a sector that added 1,400 jobs during a month when it usually loses 2,100, Oregon's economy would look much worse. If not for strong government hiring, for instance, unemployment would be higher. And if not for recently cashed U.S. economic-stimulus checks, retail trade -- down 3,200 jobs, seasonally adjusted, since February -- would likely be in worse trouble.

The fuss over froth revisited

David — Wed, 11 Jun 2008 16:04:00 +0000

Exactly one week ago, I had the pleasure of sitting on a panel to talk about financial blogs along with Jon Lansner of the Orange County Register and Mark Lacter of LA Biz Observed at the Reuters AdvicePoint Investment Conference in Long Beach.

It was a fun time - one of the quickest hours I can recall with lots of questions from the audience and some interesting give-and-take between the three of us and moderator Ray Fazzi.

The first question was the funniest - a white-haired gentleman in the back of the room asked, "How do you make money on blogs?"

None of us could really answer that question.

Since my badge looked something like what you see below, the subject of the retired Fed chairman and his legacy came up with almost everyone I spoke to at the conference as well as a number of times during the panel discussion.
So, it was not much of a surprise later in the day when Jon forwarded a link to his mid-2005 column on the subject of Alan Greenspan's "froth" characterization of the then-booming housing market.

It's worth having another look at three years later. It begins...

What in the world is Federal Reserve boss Alan Greenspan thinking when he says there's "froth" in some of the nation's hottest housing markets?

Understanding the word's meaning is critical in this town, where many folks wonder if the wealth created by soaring home prices is a permanent addition to their checkbooks.

Well, the wondering is over. We all know the answer to that question now - housing wealth is about as permanent as stock market wealth.

After going on to talk about beer heads and baristas, a pricey gourmet coffee analogy concludes the piece:

Greenspan says he's cool with a national economy dotted with dicey regional housing markets that have been heavily financed with exotic, untested loan products.

That logic works for me only if housing is undergoing a froth-like metamorphosis, where changing tastes make folks comfortable spending far more money than previous generations on old favorites.

The Starbucks analogy is a good one.

It's more than just a coincidence that the Starbucks (Nasdaq: SBUX ) share price peaked at about the same time that home prices peaked back in 2006.

I can't tell you how many $4 Starbucks cups I used to see when I slogged away as a software engineer in Southern California a few years ago. Stopping on the way to work for a latte when you could brew a cup at home for about 10 cents never made any sense to me.
(Note: Starbucks stock would make a fine addition to the S&P Case-Shiller Home Price Index chart series - see government inflation , job creation , revolving credit , and Countrywide stock .)

In a " froth update " earlier this week, Jon looked back at when the mid-2005 "tiny bubbles" characterization was formalized in a Federal Reserve speech and suggested readers weigh in on the matter.

Not surprisingly, the retired Fed chairman fared rather poorly.

Full disclosure: No position in SBUX at time of writing.

Fisher: Silly interest rate talk

David — Tue, 10 Jun 2008 22:51:00 +0000

Does anyone really think that the Federal Reserve is going to be raising short-term interest rates anytime soon? And if so, by anything more than some token amount that will likely have all sorts of disastrous, unexpected effects on markets?

Remember what happened with the housing market back in 2004 when former Fed chief Alan Greenspan began his "baby-steps" campaign? Well, just think how emboldened commodity traders will become when that first quarter-point rate hike comes and the price of oil doesn't drop as expected.

Does anyone really think that interest rates are going to be moving up during an election year with job losses already totaling 324,000 through just five months with what will likely be a massive downward revision to that total before November?

Dallas Fed head Richard " eighth inning " Fisher was talking yesterday like he was a cowboy about to go "round up" inflation with a big lasso.

According to this report from Bloomberg, it's not so much if or when, but how much and how fast rates will be raised.

Any move to increase interest rates to counter rising inflation pressures should be "very deliberate" and gradual, Federal Reserve Bank of Dallas President Richard Fisher said.

"We need to proceed in a very deliberate manner and I expect us to do so,'' Fisher said in a speech today in New York. Fisher said he disagreed with the idea that "we could move less than gradually if the forces of inflation were threatening.''

The Dallas Fed chief is the only member of the Federal Open Market Committee to dissent three times this year from decisions to lower the overnight bank-lending rate, favoring either no change or less aggressive reduction. Chairman Ben S. Bernanke yesterday said policy makers will "strongly resist" any surge in inflation expectations, delivering his clearest message yet that the central bank is done lowering interest rates.

"You don't want central banks with trigger fingers," Fisher said to the Council on Foreign Relations. "One would expect gradualism."

And you don't want Fed Bank Presidents who imply something that the central bank can't deliver - after a while of talking and not delivering, people start to catch on.

It looks like we're in for months and months of "silly interest rate talk", a phrase that, if memory serves, Chuck Butler at Everbank coined a few years back.

If they really wanted to do something about rising prices and the plunging dollar, they'd take rates back up to at least four percent - the "official" rate of inflation. And if they were really serious about it, they'd take rates up to five percent, six percent, or more - closer to the "actual" rate of inflation.

But there's that little problems of jobs to deal with.
Now, admittedly, no one really thinks that the Bernanke Fed will wait as long as the Greenspan Fed waited to start raising interest rates back in the summer of 2004 - there was a whole year of job growth back then before short-term rates began rising and they were talking about "deflation" when home prices were rising by more than 20 percent a year in parts of the country.

Ahhh... memories...

That's actually very ironic - today we're talking about in-flation while home prices are dropping by more than 20 percent a year in parts of the country.

Is there some imminent reversal in the employment picture that Richard Fisher knows about that will make the current downturn the briefest of all economic slowdowns following the bursting of the biggest financial bubble in the history of the planet?

Yeah, that sounds >like< a plan.

Should I install a solar energy system using a home equity loan, even when rates are at 8.25%?

David — Tue, 10 Jun 2008 17:34:00 +0000

Q. What is your take on upgrading your house to include solar energy and taking the money out of the equity of your home even when rates are at 8.25%. They may not rise before summer, but do you see them rising after that?

A. It's often hard to determine whether solar heating or electrical systems will save much if any money in the long run. You not only have to consider the cost of buying, installing, maintaining and financing the equipment, but the price of natural gas and electricity over the next decade as well. That is very difficult to forecast. But most homeowners who install solar systems seem to be happy with their decision. Even if they don't save a lot of money, they have the satisfaction of knowing they did something good for the environment. How do you put a dollar figure on that?

But if you're going to do it, you should do it now because you should qualify for some generous tax credits that are only available this year. Whether you're installing photovoltaic panels that turn sunlight into electricity or a water heating system, you'll receive a tax credit for 30% the cost of the system, up to a maximum of $2,000. Each project must meet specific criteria and the work must be completed by 2007. Your contractor should know the details. (You can also get tax credits for other improvements, such as new windows, air conditioning units and water heaters.)

As far as where the prime rate will go this year, the best guess is that it should stay at 8.25% at least until August. What the Federal Reserve decides to do after that will depend on the economic data we see over the next six months. If you decide to go with a home equity loan to finance your project, be sure and shop around. Some banks, particularly smaller ones, are offering rates that are 0.5% or even 1.0% below prime. You can find the best deals on our comparison charts of home equity rates.

Another option would be a cash-out refinancing. This is where you refinance your primary mortgage for more than your current balance and use the extra cash to pay for your solar project. With home equity rates so high, that has become a very popular way to get money for home improvements and to pay off credit card debt, because average mortgage rates are still below 6.5%. If you're paying more than 7% on your current mortgage, or you have an adjustable rate loan that's poised to go that high, this could be a less expensive way to go.

By: http://home-equity.interest.com

Protect Yourself From Home Equity Loan Scams

David — Tue, 10 Jun 2008 17:33:00 +0000

It's become almost instinctive these days for some people to rush to tap into the equity in their homes when they find themselves in need of cash. That's because of the growing awareness that home is where the money is. However, it pays to stay alert as you pursue funding, since your budget will be affected for years to come.

There are a wide variety of home equity loan scams out there. Whether you're planning to tap your equity through a home improvement loan, a home equity loan, or a home equity line of credit (HELOC), here are some tips to keep you out of trouble.

No rose-colored glasses: Don't be dazzled by dollar signs. Make sure that you've considered all the costs and conditions of any loan before signing on the dotted line. Since your intention is to solve a short-term problem with a long-term solution, consider whether the loan you choose makes sense over the long haul.

Don't succumb to pressure: Avoid being bullied into accepting home mortgage products that you don't want, such as credit insurance. Shop around for the extras that you do want before allowing them to be rolled into your loan. They may be cheaper somewhere else. If you can't reasonably handle the monthly payments or the loan costs, reject the offer. Follow your gut instinct-it's probably right!

Watch what you sign: Read everything carefully before you sign anything, and make sure that you understand it. Don't put your John Hancock on anything that has blank spaces that could be filled in later.

Don't deed your property: If you think that you should deed your property over to another party for any reason whatsoever, consult with an attorney first.

Even if you're desperate, act like you're not. Take your time, stay on your toes, and make a good decision. You'll need to live with it for a very long time. And you'd like to live with it inside your own home, not on the street because you inadvertently lost it.

By Jan Lindsey - MortgageLoan.com

One Closing, Two Home Mortgage Loans

David — Tue, 10 Jun 2008 17:32:00 +0000

A little efficiency in life can go a long way. Since free time seems to come at a premium these days, why not consider killing two birds with one stone using one loan closing to obtain two home financing instruments? Not only will you save time down the road, you'll also realize some compelling benefits.

HELOC Basics

HELOCs are powerful, versatile, and very popular financial instruments. They function like any other revolving credit account, in that you can take cash withdrawals and make payments as needed. Even better, you can choose not to draw on the account and it won't accrue any interest. Having access to a large sum of cash can be a comforting precautionary measure, particularly if you don't have a liquid fund set aside for emergencies. Other common uses for HELOCs include debt consolidation, big-ticket purchases, college tuition, and home improvement projects, among others.

HELOCs and interest rates

Unlike a conventional mortgage, the HELOC carries a variable rate of interest. While variable rate debt can be riskier, it's a good long-term companion to the fixed-rate debt of your conventional mortgage loan. A fixed rate mortgage insulates you from rate increases, but doesn't give you access to rate decreases. Over a complete cycle of rising and falling rates, the characteristics of the two instruments are complementary. Incidentally, your credit cards also have variable interest, but at rates much higher than a HELOC. This is why HELOCs are often used for debt consolidation purposes.

On a conventional HELOC, the interest rate will be quoted as a margin plus or minus the prime rate. As is true with all mortgages, the best rates are reserved for borrowers with excellent credit. Borrowers with bad credit will be offered somewhat higher rates.

Leveraging the time and energy you put into your first home mortgage loan to close a HELOC at the same time will increase your purchasing power and provide you with access to emergency cash. The other upside is the time you'll save, which is absolutely priceless. And since time is money, saving time also means saving money.

By Catherine Brock - MortgageLoan.com

Home Equity Loans for the Credit-Challenged

David — Tue, 10 Jun 2008 17:30:00 +0000

If you have bad credit, finding a home equity loan, or any loan for that matter, can be a frustrating task. In today's market, however, mortgage loans for people with bad credit are available, even though the interest rates that they’ll face will be higher than those for borrowers with stronger credit numbers. Unfortunately, you should also expect to pay slightly higher fees on your loan as well. Despite the elevated costs, you can still find a good home equity loan if you gather as much information as you can, and follow the tips listed below:

Understand the product and process. Unfortunately, the mortgage industry still has its shared of lenders who will take advantage of potential borrowers with poor credit and a lack of knowledge about mortgages and the mortgage marketplace. It's important to understand the basics and specifics of your mortgage, and how loans differ. For example, an adjustable-rate mortgage will give you a low monthly rate for an initial period of two- to seven years; but then the rate adjusts upward. On the other hand, a balloon mortgage will have the same initial, low payment period, but when it concludes, the entire mortgage will be due in full.

Comparison shop. Competition in the marketplace is a good thing for the consumer; it naturally regulates costs. When it comes to home equity loans, there's plenty of competition out there to choose from. And with more competition comes cheaper prices. Research lenders on the Internet and compare quotes from several lenders on rates and closing costs. Before making a commitment, check with the Better Business Bureau to make sure a lender doesn't have any complaints lodged against it.

Pick a loan that’s right for you. As long as you qualify, most lenders will be happy to give you as much money as you want. They don't mind if you have to start making huge monthly payments on the loan. Make sure the that loan benefits you in the long run. Will it help you get your finances back on track, and eventually qualify you for a better loan? That should be the ultimate goal of this financial transaction.

Check closing costs diligently. Each mortgage lender is required by law to provide you with a Good Faith Estimate detailing the proposed costs of the loan. Make sure that you understand all the charges, and keep a watchful eye out for inflated origination fees and so-called “junk fees”, which only serve to increase a lender’s profit yield.

When it comes to home equity loans for people with poor credit, the biggest favor that you can do for yourself is to study the mortgage marketplace and what’s available in it. There’s a plethora of information available to anyone who needs it. Familiarize yourself with the different types of loans that are offered. Find out how you can improve your credit. An excellent place to start your research is in the Mortgage Loan Education Center . You’ll find valuable calculators, tools and information to help you pinpoint the best mortgage available. In the end, you'll get a loan that will help, and not hurt, your financial situation.

By: www.finweb.com

Getting a Home Equity Line of Credit

David — Tue, 10 Jun 2008 17:28:00 +0000

Credit cards are a good thing, but a home equity credit line is a great way to use the equity in your home to finance big ticket items such as home improvements, paying off high-interest debt, financing a car, or paying for college tuition.

A credit card is a revolving line of credit that you use when you need it, and make payments only if you use it. But credit cards can charge very high interest rates. A home equity line of credit (HELOC) is also a revolving line of credit. You draw from it again and again as you need it, and make payments only if you use it. But, unlike most credit cards, you get a much lower interest rate with a home equity line of credit than with a credit card.

Using a home equity line of credit is a way to turn bad debt into good debt. In other words, the interest on the debt you have on your high-interest credit card cannot be deducted from your taxes. But the interest on your HELOC is usually tax-deductible*.

There is also flexibility that can be built into home equity loans that you wouldn’t get for say, an auto loan. There are different home equity programs that have an interest-only option. With an interest-only loan, you can pay only the interest for a pre-determined amount of time and pay as much principal as you want, even none. You can’t do that with an auto loan. Most lenders offer home equity lines of credit for up to $100,000. But Quicken Loans offers a line of credit for up to $500,000! This is a great option to have when buying your dream vacation home.

It’s fairly easy to get a home equity line of credit. That’s one of the best things about it! Nowadays, many companies allow you to apply online and close within a very short period of time, 7-10 days typically. There’s less paperwork to deal with, the closing costs are less expensive and the process is just as easy as applying for a credit card. If you get a home equity line of credit at the same time as your first mortgage with the same lender, you only have one closing to go to for both loans.

Home Refinancing With Poor Credit

David — Tue, 10 Jun 2008 17:26:00 +0000

Home refinancing with poor credit should only be considered if the homeowner has much equity in their home or if the original mortgage loan carries an unbelievably high rate. Credit scores directly determine the interest rate that will be offered. Refinancing a house is not a good idea if the borrower's credit has fallen since the origination of the mortgage loan. If the borrower is adamant about refinancing, choosing a mortgage brokerage or lending institution with low closing costs and no points is the wisest course of action. Sometimes it is not always beneficial to refinance. Determining if the time is right for an individual will rely on knowledge, research, help, and faith in God for guidance. "In thee, O LORD, do I put my trust: let me never be put to confusion" (Psalm 71:1).

Good mortgage brokerages may not always be easy to find. A good brokerage will let the borrower honestly know if home refinancing with poor credit is even worth their time. If calculations are done, and the time and money spent are added up, the end result should be either a decrease in monthly payments, or a decrease in the total amount of interest paid throughout the life of the loan. If these benefits do not exist for the borrower, and the mortgage company does not point that out, the consumer should not accept the deal. In recent years, there has been a record number of mortgage fraud cases that have left the consumer with more debt and much worse problems than they originally had. In cases where something does not seem to be right, it is important to drop negotiations to keep from losing a great deal of money.

With some help, home refinancing with poor credit can be changed by the end of the month. The fastest way to lower a credit score up to 30 points in 30 days is to pay down the balances on all cards and accounts until they reach under 20% of the total spending limit. This proves to lenders that the applicant is a responsible consumer. Lenders make refinancing difficult for some, but if credit is improved, the process is a breeze and can be completed in as little as 2 weeks. This situation may begin poor, but it doesn't have to end that way. As the borrower makes regular monthly payments to the refinance mortgage, their credit will begin to improve even more.

Taking advantage of home refinancing with poor credit enables those that have made mistakes in the past to come clean and embark on a new path, free from the consequences of bad or no credit. In today's real estate financing market, there are many creative avenues for financing homes, refinancing homes, or financing businesses and commercial properties. Thorough research should be done prior to application with any mortgage brokerage or lending institution. Experts advise a quick check with the BBB or Better Business Bureau. The BBB rates businesses and companies according to customer complaints and compliments.

For more information: http://www.christianet.com/homerefinance

Home Builder Spec Home Loans

David — Tue, 10 Jun 2008 17:25:00 +0000

Home builder spec home loans are available on the Internet, and most include a convenient application process. Users looking for financing for an upcoming building project can find a lender that will allow him to begin his payments after the construction has been completed. A spec house is a home that is built on speculation, or includes plans to build a house without a pre-sale of the building. After the spec house is finished, the buyer puts it up for sale. With this type of financial arrangement, a builder can finance up to 90 percent of his project. He can also draw requests for money online at any time during the construction phase.

An applicant can get home builder spec home loans for as much as 1.5 million dollars. Land equity and prepaid costs can be used as a down payment for some deals. But the builder must have an average or better credit rating score and provide a 10 percent post-closing liquidity of the total amount. He must also have a 15 percent minimum gross profit margin to qualify. Some lenders also require that the applicant have a certain number of years' experience, or a co-signer with home-building experience, in order to qualify.

Applicants can hold up to ten contracts at one time, enabling them to begin more than one construction project at a time, as long as he meets the other qualifications. The terms are normally 12, 15, or 18 months, giving the home builder plenty of time to complete the project and sell the speculative house. The total amount of home builder spec home loans a person can take out at one time may equal a sum of no more than 1.5 million dollars no matter how many houses they have being built. Once a person applies for a contract, the lender will work with him to process the paperwork and to help him get the most from his loan and glorify God at the same time.

In Luke 14:27, Jesus gives us advice about building: "Which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it?" That's what makes taking out home builder spec home loans so important. Each person must first sit down and count the cost. Without the right kinds of financing, many projects would fail before they began. The right financing can make the difference in any construction business.

For more information: http://www.christianet.com/homeloans

Mortgage Tip: Ask about your Lender’s Variable Rate Mortgage “Lock-in Privileges”

David — Tue, 10 Jun 2008 14:11:00 +0000

Not all variable mortgages are created equal. In the current mortgage market, the spread between fixed and variable rates is very wide. Fixed rates are around 5% while variable rates are closer to 4%. As a result, most borrowers are opting for variable rate mortgages. When trying to decide which variable rate mortgage to go with, one of the most important things you need to find out about,

Poor Credit Holder? Get Hassle Free Loans With Bad Credit Personal Loans

David — Tue, 10 Jun 2008 05:57:00 +0000

Bad credit often comes in between you and your dreams. It hampers your credit history which results in poor credit score and hinders your financial life. To overcome this situation, bad credit personal loans are there for you to meet your needs despite your bad credit.

Bad credit personal loans are offered to satisfy your vast needs. You can use this loan to purchase house, car or any property, you can meet any medical, wedding or holiday expenses. Apart from that you can also use this loan for business purpose and debt consolidation.

Bad credit personal loans are available to individuals having the following in their credit history:

-Arrears

-Defaults

-County Court judgment

-Bankruptcy

-Late payments

If you are facing any of these with your credit history, you can easily avail bad credit personal loans. You will get loan amount based on your credit score. You can know your credit score by contacting any credit rating agency.

Bad credit personal loan can get you an amount up to £50,000 and with a repayment term of 3-25 years. The interest rate will depend upon the loan amount and the repayment that you choose.

Personal loans for bad credit holders are available in both secured and unsecured forms. If you have a property, you can put it as a security against the loan amount and get secured personal loans in cheap rates. You can put home, car, jewelry or any other valuable property against the loan. While if you do not wish to put your property at risk, you can avail unsecured personal loans which do not require putting any security, but might charge a bit higher rate of interest.

The most convenient and preferred way to get a bad credit personal loan is to apply online. Online lenders provide you several benefits that other regular lender fail to offer. They provide you speed and quick loan approval which is the most important factor to be considered while taking a loan. Apart from that you can also choose a lender according to your repayment capabilities and financial situations.

Bad credit personal loans are multipurpose loans. They not only offer you money for your needs but also give you an opportunity to improve your credit history. Bad credit personal loans are offered in low rates so that you can easily repay them and make your credit score better.

About the Author
Eunice Scott is a financial advisor at PersonalLoansBadDebt and provides advices on finance and insurance.To know more about bad debt personal loans, bad debt Secured personal loans, bad credit personal loans, bad debt Unsecured personal loans visit http://www.personal-loans-bad-debt.co.uk
Published At: www.Isnare.com
Permanent Link: http://www.isnare.com/?aid=89301&ca=Finances

Refinancing? Five Questions to Ask Your Mortgage Lender

David — Mon, 09 Jun 2008 16:39:00 +0000

The world of mortgage loans is foreign to the majority of us. It's riddled with its own jargon, rules and unique mathematical formulas. To make your visit to this strange planet a beneficial one, arm yourself with knowledge. Even though you've already been through the mortgage process once, it's easy to forget. Here are some questions you'll want to ask when shopping for a new mortgage.

Question 1: How much are the closing costs?

Closing costs generally total two to five percent of a home's purchase price. They're not part of the down payment, and include such charges as an appraisal fee, credit report fee, title insurance, and prorated property tax. If your first mortgage wasn't obtained too long ago, you may be able to use some documents from your original closing. One thing you'll particularly want to watch out for is points, which are lender's origination fees. You'll receive a Good Faith Estimate well before you close the loan. Be sure to scrutinize it.

Question 2: What are the options for locking in a rate?

Some lenders give you the option of either locking in a rate or "floating," which means waiting for rates to potentially get lower. "Floating" can be tricky; be sure to ask your lender for details.

Question 3: Is there a prepayment penalty?

This is a fee, sometimes quite sizable, designed to discourage you from refinancing your loan at a later date. Try to avoid these, if at all possible. Also, make sure that the mortgage you're refinancing doesn't have one, or you may be in for a surprise when you pay it off.

Question 4: Will I need to escrow insurance and taxes?

Some lenders give you the option of escrowing your own insurance and taxes. You may not like the extra monthly payments that you've been giving the bank for this purpose, and are hoping a new lender will let you handle them yourself. There may be an added fee for this privilege, so make sure you check.

Question 5: How long will it take to close?

Closing times vary by lender. If you need to close the loan sooner than later, make sure that your lender can accommodate you.

So what do you do now that you're armed with knowledge? Heed the sage lyrics of Toni Tennille, who crooned, "My momma told me: 'You better shop around.'" Start shopping for lenders and ask them the questions listed above. They'll help you to make an apples-to-apples comparison that should ultimately result in a loan that's music to your ears.

By MortgageLoan.com

Overcoming Bad Credit Scrores with a Home Equity Loan or Second Mortgage

David — Mon, 09 Jun 2008 16:37:00 +0000

If you have bad credit, but want to save some money and repair your credit score, take out a home equity loan. Of course you need to own a home first, but if you already own a home, and are serious about raising credit score and saving money, then a 2nd mortgage is a great start. Home equity loans will enable you to pay off collections, bad debts, judgements, and past due credit cards. Even if you had a bankruptcy years ago, home equity loans can offer solutions to many high interest debt problems. Second mortgages have become somewhat easier for homeowners to qualify for with credit issues, such as, low credit scores, late payments, or collection accounts.

The down-side is that you won’t be offered prime interest rates from any second mortgage lender if you have low credit scores and past late payments reported with your mortgage loans. Is paying a higher rate the end of the world? Of course not… It is a temporary finance solution to get you back on track.

The bottom line you need to focus on is whether or not the home equity loan offers you monthly savings by consolidating your debt. If you save a few hundred dollars a month and eliminate revolving credit cards, then who cares what about the interest rate. Besides, as soon as your credit score increases to a 680 fico, you can refinance the sub-prime equity loan for a reduced rate second mortgage and save even more a month. Remember, “ Rome wasn’t built in a day.” With debt consolidation, it’s not all or nothing. If you can save money now with a bad credit home equity loan, then take advantage of the monthly savings.

By: www.simplifiedbadcreditrepair.com

IRS Home Loan Refinance

David — Mon, 09 Jun 2008 16:36:00 +0000

If IRS home loan refinance taxes are due, then the loan receiver must notify the IRS agent in order to report any income gained financially through the loan. Refinancing is generally done when interest rates drop and it is more beneficial to the homeowner to apply for a lower rate thus allowing the monthly payment to decrease. They also have the option of pocketing that extra interest rate money into their bank accounts in one lump sum. Another reason homeowners refinance is to turn an adjustable rate mortgage into a fixed rate mortgage.

"And Jesus answering said unto them, 'Render to Caesar the things that are Caesar's, and to God the things that are God's.' And they marvelled at him" (Mark 12:17). IRS home loan refinance taxes are due with a homeowner's regular income tax. This information should be included on the federal tax return the following year. In order to find the best refinanced mortgage rate, it is advised to check the Internet. Lenders update interest rates daily and printed publications cannot keep up with the information as effectively as online publications. Information to be aware of when refinancing is listed in the closing costs a lender charges. Each lender charges a different amount of closing costs.

A third party mortgage broker may have additional fees included in the closing costs, but may offer a better interest rate than traditional banking institutions. Consumers should use online mortgage calculators to figure out the difference in interest rates compared with the closing costs to see which offer is more economically suited to the homeowner. The taxes are only paid on the actual income earned by lowering the interest rate if taken out of the equity. IRS home loan refinance taxes do not apply to an increase in a home's equity growth because of the refinance loan.

Those that are interested in learning more about IRS home loan refinance taxing regulations can view the IRS website for additional information or contact an IRS agent with any questions concerning his/her individual situation. This tax may not be due for everyone, and it is important to be aware of the tax laws as they pertain to home ownership and home financing. It is recommended that before choosing a refinancing lender, to research and review at least three other lenders and their lending options. Making an informed decision about the largest purchase in one's life should not be a decision made without adequate research and information.

For more information: http://www.christianet.com/homerefinance

Home Equity Line of Credit Loans

David — Mon, 09 Jun 2008 16:35:00 +0000

Home equity line of credit loans are a way of using the money that you've invested in your mortgage by borrowing against it. Essentially, a home equity loan is a 'second mortgage' - a loan secured by your property. If you don't make good on your payments, the lending company or bank can force the sale of your house to recover their money.

There are two major types of Home equity line of credit loans - home equity loans and home equity lines of credit, also called HELOCs. Most lenders that offer home equity loans offer both kinds. A home equity loan for $10,000 and a home equity line of credit for $10,000 are two completely different animals though they have a lot of similar features.

Home Equity Line of Credit Loan

If you apply for and are granted a home equity loan for $10,000 at 7% APR for 15 years, you will receive a check or a deposit to your bank account of $10,000. That is the full amount of the loan that you can ever draw on that particular application. Depending on the terms agreed upon, you may have one to several months before you have to begin repaying the loan. You'll pay a fixed amount every month until the full amount of the loan and the interest charge is paid off. You'll know from the very start how much you'll be repaying.

Home Equity Loan - Line of Credit

A home equity line of credit - a HELOC - is much more like a credit card. When you apply for and are granted a home equity line of credit, the bank establishes a 'line of credit' - which functions just the way that a 'credit limit' does on your credit card. You may receive special checks or a plastic card with which to access your line of credit - but you don't receive the full amount at one time.

In fact, you don't have to take any of it immediately. You can draw on the line of credit at any time, up to the full amount of the line of credit throughout the agreed-upon life of the loan. Suppose that you're doing some home repairs. You can use your home equity line of credit to pay for $2,000 worth of roofing tiles. That leaves you $8,000 in your line of credit. Three weeks later, you can use your line of credit to pay for $4,500 worth of windows - and still have $3,500 left that you can borrow against.

If you then start paying back on your home equity line of credit, that money becomes available to you again. If you pay back $1,000 of what you've borrowed, you now have $4,500 on your line of credit.

HELOC Interest Rates

HELOCs usually have variable interest rates which are typically tied to the prime interest rate. The interest due on a HELOC is calculated on a daily basis based on the outstanding balance. HELOCs do not have interest rate adjustment caps, so if the prime interest rate were to go very high, the interest rate on a HELOC would also be high. The maximum interest rate that may be charged on a HELOC is 18%, except in North Carolina where it is 16%. Some home equity lines of credit do allow conversion to a fixed-rate loans.

HELOC Term

Home equity lines typically have a draw period of five to ten years, followed by a repayment period of 10 to 20 years. There are many variations on this theme.

HELOC Fees

Up front costs for obtaining a home equity line of credit are typically low. Many lenders charge no fees to set up a HELOC. Some lenders charge continuing annual fees or access fees.

Uses for a Second Mortgage

The most common uses for a home equity line of credit is to obtain equity from a borrower's home for some other purpose. Typical uses for the money obtained from a HELOC may include:

Obtaining cash for home additions, remodeling, repairs, or renovations

Obtaining cash for other significant purchases

Obtaining cash to pay off or consolidate other debt (such as credit card debt, car loans, or student loans)

Bad Credit Loans Made Easier by Pre-Approval

David — Mon, 09 Jun 2008 16:33:00 +0000

Imagine the indignity of finding your dream home, having your offer accepted by an eager seller, and then having the lender say, "No!" You end up upset and embarrassed. The seller gets angry that you tied up his home. Worst of all, you may lose the contract.

You can avoid all this by getting pre-approved for a mortgage. It's even more important to seek pre-approval if your credit history is bad.

Pre-qualification

To pre-qualify for a bad credit loan, you'll need to provide information about your income, your total debt, and your assets. The lender will then review those numbers and estimate the amount of the loan for which you would qualify. The lender, however, is not obligated to lend you the money until the information that you provide is verified.

Although pre-qualification is free and can give you an idea of how much you can afford to spend on a house, pre-approval gives you a financial foundation, much like your house's foundation.

Pre-approval

Before a lender will pre-approve you for a bad credit loan, your credit and income information must be verified. A small fee is usually charged for this service, and once you're approved, you'll receive a letter that states the loan amount and the length of time that the offer will remain open.

This can be a persuasive piece of information to a seller, who won't have to worry about whether you'll be approved for financing and if you're able to complete a deal. Pre-approval can also speed up a closing because the lender has already done a lot of the legwork needed for the final loan commitment.

If you're looking for a bad credit mortgage, taking the time to get pre-approval can both save you the worry and embarrassment of being turned down for a mortgage, and get you into your new home much faster.

By Jan Lindsey

Bad Credit Does Not Mean You Are A Bad Person

David — Mon, 09 Jun 2008 16:32:00 +0000

Have you recently applied for a loan only to hear the dreaded word “denied”? This type of situation is one that can be devastating. It doesn’t mean you are irresponsible or shirk your bills. Regardless of the stigma attached to a low credit rating, there are probably logical reasons for your less than flawless credit. Still, the damage has been done. Now it’s time to fix it. If you follow some simple credit repair tips, you could be on your way to mending your credit.

The first credit repair tip to remember is that you can dispute any items on your credit report. The credit bureau must prove any claims. If they cannot prove them, they must remove the items from your credit file. If they don’t respond within one month of your disputing of an item, they must remove that item from your credit report.

Another credit repair tip is to contact any creditors with which you have outstanding accounts. Sometimes, being candid about your financial woes is the best option. Schedule a payment arrangement on the contingency that they update your credit report to reflect the account as being up to date. Make sure to keep your new payment arrangements. Getting behind again is the worst thing you can do when trying to boost your credit rating.

A simpler credit repair tip is one that might appeal to you if you are overwhelmed by the prospect of contacting creditors. You always have an option of having someone do the “fix-it” work for you. You can approach a credit repair company. Just be sure that you read all the fine print in any agreement. Remember that according to the Credit Repair Organization Act of 1997, credit repair companies are prohibited from accepting a dime from you until service has been rendered. Make sure that they have given you documentation of all payments, contract terms, etc. They should also be able to give you an estimated time frame of how long the reconstruction process will take.

No credit repair tip can magically erase the blemishes that taint your credit report. However, following these few simple credit repair tips can help shape your credit into that of a more desirable candidate. Take steps toward making your loan application disappointments turn into a thing of the past. Before you know it, you may hear that magic word “approved”!

By: www.businessremortgage.co.uk

Bad Credit Debt Consolidation Services

David — Mon, 09 Jun 2008 16:31:00 +0000

If an individual can no longer handle his debt, a credit counselor can make an in depth study of his financial situation and suggest enrolling in a debt consolidation service or a debt management plan. In a debt consolidation service, the counselor negotiates with creditors for lower interest rates, waiver of fees and penalties and bargains for apportioning a larger amount of the debt repayment towards the payment of the principal amount. A new repayment plan is developed on terms favorable to the customer, so that debts can be paid off faster without the burden of high interest rates.

Upon agreement of the new terms and conditions of repayment, multiple debts are consolidated into equal monthly installments. The customer deposits this amount with the credit service who then makes payments to individual creditors. Once enrolled in a debt consolidation service, an individual has to pay the entire amount owed to the creditors.

Debt consolidation services are offered by profit and non-profit organizations. The terms of repayment are the same for both. A legitimate organization charges a flat monthly fee on every individual debt account handled.

It is important to keep track of how the consolidation service operates to make sure that each account is properly closed before the consolidation begins, and the reduction in the rate of interest and waiver of certain penalties has been granted. Also, it is wise to check whether the amount deposited under the debt consolidation service is properly disbursed to the concerned creditors.

A legitimate organization will not handle any account that is six months old and is charged off. It will make it a point to inform the customer of how long it will take to pay off individual accounts, and may offer the customer the option to select the debt accounts to be handled by the organization.

By: www.businessremortgage.co.uk

Refinance Interest Rate

David — Mon, 09 Jun 2008 16:31:00 +0000

Refinance interest rates provide consumers with information regarding the percentage of interest that will be paid when they choose to refinance. This percentage can vary considerably from one mortgage company to another. If the consumer is researching available options for refinancing, there are many mortgage companies to choose from. Each will offer a different refinance interest rate. When a person chooses refinancing, they will be given calculations and worktables to help determine what kind of rate they will be able to achieve. Many of these calculations can be done before the individual officially completes the application process. It is important to seek quotes and information before beginning the application process.

An aspect of a consumers financial history that will affect his or her refinance interest rate is the credit score. Before applying for a loan, the individual should check his or her credit history to make sure they don't find any surprises. Sometimes, an error can show up on the credit report or the individual may even find credit items that they have never seen before. These errors and wrong reports can negatively affect refinance interest rates. It is vital to get them cleared up before going further with research so that it is possible to receive better deals from potential lenders.

Individuals can seek refinancing in a variety of forms. Lenders offer both fixed rate mortgages (FRM) and adjustable rate mortgages (ARM) for their loans. A FRM is a refinance interest rate that will stay the same over the term of the loan, whether that is 15 years, 20 years, or 30 years. With an ARM, however, the refinance interest rates will change. If the individual applies for an ARM, they should check to determine what basis the mortgage company uses to change the percentages. Also, it is important to research other factors affecting interest, such as the points that the lender charges and any other fees or restrictions you will incur.

The Federal Truth in Lending Law requires mortgage companies to truthfully report the APR (Annual Percent Rate) that they charge for each loan. By checking out the APR when looking at refinance interest rates, the consumer will be able to compare one company's quotes with another's. The individual will also be able to discover if a lender is charging hidden fees or up-front costs to the loan. The Internet is the greatest resource when seeking information on this and similar subjects. No matter where the individual seeks information, gathering as much knowledge on the subject will allow the consumer to make the best decision. "A wise man will hear, and will increase learning; and a man of understanding shall attain unto wise counsels" (Proverbs 1:5).

For more information: http://www.christianet.com/refinancemortgage

No Equity Home Loans Could Fix Leaking Roofs But Cost You a House

David — Mon, 09 Jun 2008 16:29:00 +0000

If you could wish yourself somewhere else, you would. Bills are mounting, the roof is leaking, and you're in the middle of the worst rainy season in recent memory. For the moment, however, you're pressed for time and strapped for cash, and there's not much you can do about these. Then, out of the blue, a lender shoves a mouth-watering offer at you, in the form of a no equity home loan. “Salvation,” you think.

Before you jump in and take as much as the lender can give, take the time to mull over this question: is a no home equity loan truly the answer to your financing needs? There is a big gulf of difference between drawing on the value of your home when you get a no equity home loan and exceeding this value.

Consider the following before signing anything:

1. Can you take the risk?

Some experts see no equity home loan as a glossed-over nickname for a high loan to value, or LTV, home equity loan. An LTV loan is one where the loan granted will be equal to, or even exceed by as much as 25%, the mortgage value of your home.

2. Can you handle the interest rates?

Usually, a no equity home loan comes with high interest rates - say, 2 to 6 percent higher than the standard. However, while the rates of no equity home loans are typically higher, they vary depending on a host of factors, such as your credit status, the financing institution, interest rates prevailing in the market, and the loan’s structure.

3. Can you take on the added requirements?

In obtaining a no equity home loan, you must take out a private mortgage insurance, or PMI. This adds between 0.5 to 1 percent to your total loan. PMI covers the loan’s total amount that is more than 80% of your home’s total estimated value but not over 100% yet. This means PMI is tied to 20% of the secured portion of your loan.

4. Can you manage the tax implications?

Home equity loans with interests of up to $100,000 are tax deductible. If you have a spouse and both of you file separate tax returns, divide this amount by two. In high-LTV loans, no benefit like this applies. So, if you take out a no equity home loan, you had better be prepared for tax season because any loan amount in excess of your home’s actual value is not tax deductible.

5. Can you live with the inconvenience should you ever have to sell you home?

Suppose you have to sell your house on short notice. The house is valued at $200,000 and you owe $250,000 on it. You have a problem sitting on your lap, and it's the same problem that's lining your pocket. Failure to come up with the full amount you borrowed obviously causes default in your loan financing. Can you say bankrupt without wincing?

So, what now? Water still trickles down the roof, and your bills continue to pile up with clockwork precision. Loans may seem the only oasis in the financing desert, but applying for no equity home loan is not a practical solution to your financial woes. If you truly have to take out a loan to get that roof fixed, look for a hybrid of traditional home equity loan and unsecured personal loan. No equity home loans could fix the leak, but it might cost you a whole house later on.

By Rony Walker