Can i refinance a home equity
By Victor Benoun
Despite the negative press we are pounded with daily concerning the state of the housing market, and the difficulties in the banking system, it is actually a great time to purchase a home. Prices have not been this low in years, interest rates remain at historical lows, and buyers have tremendous bargaining power. Whether you are considering purchasing a house or refinancing an existing property, here are a few helpful hints to make your transaction as smooth as a summer day!
1. Get pre-approved. Pre-approval differs from pre-qualification as pre-qualification is simply a thumbnail sketch of your financial background. A credit report often is not run and no financial documentation is reviewed. Pre-approval requires income tax returns, pay check stubs, bank statements, liabilities, anything that might be required for a lender to make an adequate assessment of your ability to repay a mortgage. In addition, a credit report is requested and reviewed for your credit-worthiness.
2. Improve your credit score if necessary. A credit score is a numerical model of the likelihood of you repaying your debt. It is based on the amount of open credit trades you have, how near you are to your available credit, as well as your paying habits. In the case of credit scores, your past does equal your future. You can improve your credit score by paying down your debts, closing credit cards you no longer use, and of course paying on time.
3. Inquire how much money is required for a down payment and closing costs, and are there restrictions where the money comes from. Often, assumptions are made by the consumer that down payments can come from a credit card, a personal loan, cash on hand, or a small gift. It is wise to discuss this in advance in terms of what is allowable or not. Do not wait until you are under contract to discover the source of your funds can not be used.
4. If you find a home that is right for you, do not wait for the market to drop. Believe it not many homes today still sell with multiple offers. According to an article in The Los Angeles Times, dated June 1, 2008, “Homes in good condition that are listed at $300,000 or less are drawing as many as 15 to 20 bids from home buyers and investors, looking for bargains.” It is very difficult to time the market as to when the bottom has been reached. Prices have already dropped by record amounts, and there is just no way to say how much lower they may go.
5. In financing a home, now is a good time to think long-term. By that I mean to consider a 30 year fixed rate mortgage. Rates are still at low record levels so it is great time to lock something in and not worry about it.
People often make life changing decisions based on beliefs which in reality no longer exist. Loan programs have changed as well as the criteria for being approved. Before ever stepping foot into an open house meet with a lender what programs are available and what you qualify for.
Victor Benoun is President of The Mortgage Source, Inc., and author of Your Castle No Hassle. He has 29 years experience in the mortgage industry and is available for keynote speaking and consulting. For free housing and mortgage reports, visit his website at http://www.yourcastlenohassle.com.
Your Online Source For Home Equity Loan Information
Questions about Home Mortgage Refinance
By Christina Costa
There are many questions that can be asked about home mortgage refinance. Let’s take a look at what could be considered the top three things people want to know. This is a big decision you will be making and you definitely don’t want to make any mistakes.
If you are looking to refinance your mortgage, this is when you are taking out a new mortgage to pay off your existing one.
First of all, how can a home mortgage refinance loan help you? There are many different reasons; one being that you can lower your interest rate. This will give you a lower payment. If you have had your mortgage for a long period, by refinancing you will now make payments on a smaller loan amount.
Another option this gives you is the ability to consolidate your credit cards and possibly automobile loans. The average interest rate on credit cards is from 12% to 25% and mortgages are typically from 5% to 8%. So you obviously would be cutting down a lot you would normally spend on your interest every month.
The extra hundred dollars you would save each month in extra interest could finally help you to pay off those credit cards or car loan.
Maybe you have been fortunate enough to stay away from using any credit cards. This would give you an opportunity to get some money from your equity to invest. You could do some improvements on your home or anything else that wouldn’t cause you to worry about taking out a big loan.
The next question most people are wondering, is usually how often can you refinance a home mortgage? You really can refinance as often as you’d like. Just remember that you are going to have to pay closing costs each time. There are a large number of banks who will sell the loan on the secondary market.
So if you refinancing, then the same bank you are trying to get away from might end up becoming the new owner of your loan. There really isn’t anything you can do to stop that from happening.
Banks are very careful when processing loans and they way they set them up. They want to make sure that is “salable” or that it will sell. If they have a loan that is “unsalable,” that means that they don’t not want to give the individual lender all that money or can’t. The banks want to just give it to a bigger bank that can sell the capital to a consumer, and just take their cut from the loan.
Be advised that there are some banks that chose not to resell loans, but this is a small number. Possibly look for any of those banks to see if you will wind up with an even better deal.
The most important question, I believe is how do you go about finding a reputable company, one that you can trust to refinance your home mortgage? There are plenty of good lenders out there, but this now depends on specifics. If you are able to afford a large payment and have good credit, also if you have taken care of your home then an FHA loan is the best way to go.
Most lenders do these types of loans and you can get help in seconds by submitting your info online. There are many reputable companies that will be able to work with you!
Christina Costa, a freelance writer, recommends eQuoteGrabber.com for refinancing your home where you can receive help with all of your mortgage needs in seconds! Visit http://www.eQuoteGrabber.com
Why Take Out A Tenant Loan?
By Martin Sumner
Whereas homeowners and property owners can use their property as leverage to get a better secured loan, non-homeowners do not have the same luxury. However, there are a growing number of providers offering strong tenant loan opportunities that give greater access to good loans for non homeowners.
There are many common uses of tenant loans, including: Home improvements, debt consolidation, vehicles, holidays, house deposits, surgeries, weddings, funerals, and more. Tenant loans allow the borrower access to great funds, more reasonable rates, and more favorable terms than other types of personal loans.
With the growing reliance on personal and credit card debt for spending, many Brits that do not own their homes are using tenant loans for debt consolidation. Users include people living with their parents, renting as part of an association, or renting private property from others. All of these groups can look to tenant loans as a way to consolidate debt to one creditor, potentially reducing interest rates. Typical variable rates range from around seven to 18 per cent, depending on credit history.
Loan amounts for tenant loans range from 5,000 to 250,000 British Pounds, depending on credit rating, needs, and other financial factors. Repayment periods often extend up to 25 years. This is another great benefit to non homeowners that allows the ability to stretch debt over a significant period of time. This can reduce monthly outlays for major purchases, home renovations on a rental property, debt consolidation, and more.
A great advantage for tenants who want to enjoy the benefits offered by tenant loans is the ability to find a competitive rate through an online broker. Online brokers offer efficient quote service and an easy way to compare offers. Most lender also work with providers to offer the most competitive loan rates and the most flexible loans for people that may have experienced some adverse credit. Even borrowers who have gone through county court judgments, bankruptcy, mortgage arrears, IVAs, and other extreme financial burdens, can typically find offers from tenant loan providers.
One of the reasons for the influx in use of tenant loans is the increased costs for moving homes. Many renters are finding it more practical to continue to rent their home versus buying their home. Therefore, they use a tenant loan to help meet their basic living needs in order to remain in their current situation. Some tenants are unable to obtain a reasonable homeowners loan because of their credit challenges.
Martin writes for a company that provides loans for tenants even with poor credit ratings.
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