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When Not To Agree To A Home Equity Loan
Before you borrow money on your home's equity, think twice so you don't end up paying more than you expected. According to the Federal Trade Commission, homeowners-particularly elderly, minority and those with low incomes or poor credit should be careful when borrowing money based on their home equity. Certain abusive or exploitative lenders target these borrowers, who unwittingly may be putting their home on the line. Abusive lending practices range from equity stripping and loan flipping to hiding loan terms and packing a loan with extra charges. When not to agree to a home equity loan: - If you don't have enough income to make the monthly payments. - If the loan terms are incredibly unfavorable to you, with enormous up-front costs and high interest rates (sometimes exceeding 50 percent). - If there are discrepancies between the promised or stated interest rate and the annual percentage rate (APR) figure required in all consumer loan contracts (Truth in Lending). If that figure is significantly higher than the rate stated in the contract, the loan contains hidden interest charges. - If you can't determine who the lender is. A lender could be nothing more than a few individuals in for a quick score. Does the agent have an office? Is the company an old and established one with community ties? - If you haven't read or if you don't understand the loan terms or you're being pressured into signing the loan document. - If the loan includes extra products you don't want. What to do before you Agree to a home equity loan: Have a financial adviser such as an attorney or accountant review all papers before signing anything. Paperwork for a loan contract is often technical and unclear. Read all items carefully. If you need an explanation of any terms or conditions, talk to someone you can trust, such as a knowledgeable family member or an attorney. Keep careful records of what you've paid, including billing statements and cancelled checks. Consider all the costs of financing before you agree to a loan. Copyright © 2005. Chileshe Mwape writes for the Banking News Website at: http://www.banking-news.org.uk/ which offers informative articles about banking, mortgages and loans. This article may be reprinted as long as all the above links are active and clickable.
California Bad Credit Mortgage
California is a beautiful place to live There is no doubt about that. But, to live in California you must pay the price, which is sky high real estate prices. Renting, as opposed to buying in California, can save a little bit of money. However, renting has the disadvantage of not building any equity. As home prices in California continue to rise, you may want to be a homeowner and take advantage of the home appreciation factor. If you're going to be paying a lot of money to live in California anyway, you might as well be making some money on top of it too, right?Now, if you have bad credit and are trying to get a home loan for California home prices, this may seem like an impossible situation. Home prices a...
Basic Tips For First Time Home Buyers
The first time you purchase a home is an exciting experience. You are anxious to call the place yours and maybe a little worried about how the whole thing will play out. Knowing a few basic tips for home buying is important and will help eliminate your fears altogether.Here are some to consider.Find a reputable Realtor to help you. When you call a real estate company, make sure the person you talk to is a Realtor. Real estate agents all have to go through a licensi...
Home Improvements Turn Average Homes Into Dreams Come True
If you're thinking about taking out a home improvement loan, there are several options to consider. First and foremost, your mortgage consultant needs to know why you want a home improvement loan. Here are some factors to take into consideration.? How long have you been in the home?? Will the improvements increase the property value?? Are you making improvements to increase energy efficiency?? Will improvements be made in one fell swoop, or in stages?? What is the current outstanding balance on your mortgage?? What is the appraised value of the home?? How much will the improvements cost?? What improvements will be tax deductible?? Do you have other revolving debt that you would like to pay off at t...
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For Mortgage-refinance Help, Get The Best Mortgage Professional, Not A Bank Loan Officer
When you need a mortgage -- either because you are buying, refinancing, taking out equity or getting into investment real estate, you need a good mortgage professional. Now, you may be tempted to go to your local savings and loan, as they may promise lower fees or zero costs. Meanwhile, in virtually every case, banks can't compete with mortgage professionals on the two most important things -- interest rates and service.Also, the banker who promises very low closing costs will probably be making his money on a higher rate, and he'll likely try to sell you on discounting that higher rate, by paying a percentage of the loan amount. This is a common tactic bank loan officers use, and it is a very poor strategy in almost every case for you to buy a rate.Finally, bank loan officers can't come... |  |
| First Time Buyer Mortgages ? Transforming Homeless Into Property Owners
Having just settled in life, you are finding the rentals putting too much of a burden on your finances. Nevertheless, you continue the payments thinking that purchasing a home would be practically impossible. There are many expenses that one has to necessarily make in order to just make a bare subsistence. Though the list differs with each individual as each has a subjective concept of the necessities, it is difficult to accumulate enough savings to pay for a house.The following cha... | |
| Home Equity Loans - How To Use Your Homes Equity To Consolidate Debt
If you've got a wallet full of credit cards, and monthly payments on them that total more than 25% of your monthly income, chances are that you've considered debt consolidation loans or some other means of taming your credit card debt. But did you know that a home equity loan is another way to get the money that you need to pay off your creditors, reduce your monthly payments, and get out from under the weight of all those monthly payments?A home equity loan is essentially a second mortgage taken out with your house as the collateral. Because the loan is secured, you'll have a much more favorable interest rate. And those lower rates will translate to a lower monthly payment overall. You'll... | |
| Hard Money Loans - Reasons Why You Might Want To Try Applying With A Subprime Mortgage Lender
Before you apply for a hard money loan, try applying with a subprime mortgage lender first for lower rates and fees. Hard money lenders charge excessive fees to high-risk borrowers, but will only lend 50% to 75% of the value of the property. On the other hand, subprime lenders offer loans to similar high-risk groups, but with better terms.Lower RatesSubprime lenders specialize in B, C, and D class loans. Even with a bankruptcy in your financial records, you can still be approved for a mortgage with a subprime lender. To protect themselves from the ... | |
| Guide To Remortgages
Here is a useful guide to remortgages. What is a remortgage? A remortgage is when the terms of the original mortgage are renegotiated, and usually means that the borrower increases the amount that they are borrowing, which is often possible due to a rise in the value of the property.A remortgage is simply the act of paying off your current mortgage and taking out a new one. Many people do not realise that they are able to do this and so are losing out on low interest rates. By remortgaging your home, you could save significant amounts on your monthly payments.Remortgaging is changing mortgages without moving home. It is the process of changing your mortgage for a better rate, or to release some of the equity in your home, or to consolidate your debts. Getting a remortgage involves ending yo... | |
| Thought You Can Go All Alone In Mortgages! Mortgage Advice Beneficial In All Important Decisions
Mortgages are easy as long as you understand them well. But how many borrowers can be confident of their knowledge of mortgages.With the list of terms and terminologies related to mortgages growing fastly, it is difficult to keep pace with it. However, the legal maxim goes as follows ? "ignorantia juris non excusat" (ignorance of law is no excuse). Therefore, it is necessary to be updated in the field of mortgages.This will not require a wide knowledge of mortgages. A basic understanding of the mortgage terms and the impact that every mortgage decision has on the overall financial condition of the customer will be desi... | |
| Interest-only Mortgages Have Their Pitfalls
Rising home prices, particularly on the East and West coasts have put the costs of home ownership seemingly beyond the reach of many. And yet, home ownership is up nationwide, and the percentage of Americans who own their homes is the highest it has ever been. How is this possible?There are more different types of mortgages available to home buyers than ever before, and one that is growing in popularity is the interest-only mortgage. With an interest-only mortgage, the buyer pays no principal for the first few years of payments. The period of time varies, and is typically anywhere from one to five years. At that time, the principal is added to the mortgage payments and the amount of the payment increases. By keeping the paym... | |
| Remortgages Guide
Outlined below is a useful remortgages guide. Remortgaging has become increasingly popular due to the relatively simple and flexible process.A remortgage is exactly as the name suggests, taking out a new mortgage and repaying your existing... | |
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