Home loan limits increased for USDA rural development

Home loan limits increased for USDA rural development

Greg Branum, Missouri State Director for USDA Rural Development, announced increased limits on the maximum home mortgage available through the agency's direct loan program.

“Owning your own home is part of the American Dream,” said Branum. “The new increased loan limits may allow more individuals and families to reach the joy of owning their dream home.”

The new limit is $140,600.00 for residents living in Macon, Monroe, Randolph and Shelby Counties.

USDA Rural Development's direct and guaranteed loan programs provide low-interest, no-down-payment loans to help eligible families living in rural communities and rural areas to purchase existing or new homes. The new lending limits affect only direct home loans from Rural Development. There are no lending limits for guaranteed home loans.

The direct loan program is geared toward low-income individuals. No down payment is required and closing costs may be included in the loan. Eligible applicants are qualified for a loan amount up to this new loan limit based upon their debt-to-income ratios. In addition, the applicant must have an acceptable credit history and adequate and dependable income sufficient to meet all obligations.

Loans may be made up to 100 percent of the appraised value for the purchase of a home, and, in some cases, the loan may include closing costs. The result is borrowers may need less up-front cash for loans made under this program.

Buyers (or borrowers) must personally occupy the dwelling following the purchase. Dwellings must be structurally sound, functionally adequate and in good condition.

The standard term for a loan is 33 years. Depending on an applicant's income, loans may be subsidized and interest rates may be reduced to as low as 1 percent.

Anyone seeking more information about homeownership financing or any other USDA Rural Development program may visit the homepage at http://www.rurdev.usda.gov/mo/ or by contacting Steven E. Gerrish, Rural Development Manager, at steve.gerrish@mo.usda.gov by e-mail, or visiting the office at 2995 County Road, 1325, Moberly, Missouri 65270 or calling (660) 263-7400 extension 4 .

Federal Home Loan Bank restores down payment assistance grants

Federal Home Loan Bank restores down payment assistance grants (BizJournals)

Business First of Columbus - March 23, 2007by Adrian BurnsBusiness First

The Federal Home Loan Bank of Cincinnati has reinstated a grant program that could bring tens of thousands of dollars in homebuying assistance to low-income and handicapped Central Ohioans.

The American Dream Homeownership Challenge program, which provides down payment grants, sent $200,000 to Central Ohio between 2004 and last May, when the Federal Home Loan Bank suspended it over concerns that proposed government regulations would hurt the bank. For the most part, those regulations never came to fruition, so on March 6 the bank reinstated the program.

Federal Home Loan Bank of Atlanta Declares First Quarter Dividend

Federal Home Loan Bank of Atlanta Declares First Quarter Dividend (PR Newswire via Yahoo! Finance)

ATLANTA, March 22 /PRNewswire/ -- The board of directors of Federal Home Loan Bank of Atlanta (FHLBank Atlanta) has approved an annualized dividend rate for the first quarter of 5.90 percent, applicable to capital stock held during the period from Jan. 1, 2007, to March 31, 2007. FHLBank Atlanta will credit this dividend to members' daily investment accounts at close of business on April 2, 2007.

Each FHLBank Atlanta member may obtain additional information concerning the amount of its dividend payment by contacting FHLBank Atlanta's Customer Operations and Systems department at 1.800.536.9650, ext. 8299 or 5608.

About FHLBank Atlanta

The Bank is a cooperative financial services organization that provides funding, community development grants, and a host of other banking services to more than 1,200 member financial institutions in Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and the District of Columbia. The Bank is one of 12 district banks in the Federal Home Loan Bank System (FHLBank System), which since 1990 has contributed more than $2 billion to affordable housing development in the United States.

Some of the statements made in this press release may be "forward-looking statements," which include statements with respect to FHLBank Atlanta's beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, many of which may be beyond FHLBank Atlanta's control, and which may cause FHLBank Atlanta's actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements.

The forward-looking statements may not be realized due to a variety of factors, including: future economic and market conditions; changes in demand for advances or consolidated obligation; changes in interest rates; legislative and regulatory changes; political, national and world events; and adverse developments or events affecting or involving other FHLBanks or the FHLBank System in general. Additional factors that might cause FHLBank Atlanta's results to differ from these forward-looking statements are provided in detail in our filings with the Securities and Exchange Commission, available through FHLBank Atlanta's website at www.fhlbatl.com.

The cost of a home equity loan

The cost of a home equity loan (Bankrate.com)

An equity loan will cost you twice. First, you pay fees and closing costs, and then you pay interest.

Fees and closing costs
A home equity loan almost always carries fees and closing costs. Many lenders don't charge fees or closing costs on credit lines. If your lender does charge fees to open a credit line, don't rule out that offer immediately; maybe there are other features that make it a good deal. But shop around.

The fees that you pay for opening an equity account are similar to the ones you pay when you buy a home. The fees can total 2 percent to 5 percent of the loan and are for such things as: • property appraisal;

• application;
• title search;
• attorney or title agent; and
• document preparation.

The most common fee levied on a credit line is for an appraisal or other estimate of the property's value. Sometimes, instead of paying an appraiser to visit the house and compare it to other nearby homes of similar value, the lender accepts a computerized estimate called an automated valuation model, or AVM. Or a real estate agent might estimate the value in what is called a broker's price opinion, or BPO. AVMs and BPOs cost less than full appraisals.

Other fees and interest
The biggest cost you will pay on an equity loan or a credit line is the interest. Home equity loans usually have fixed rates, and credit lines usually have variable rates. If you get an equity loan on the same day that your neighbor gets a home equity line of credit (HELOC), your rate will be higher than your neighbor's. Over time, your neighbor's HELOC rate can rise higher than what you pay on the equity loan, but your rate never changes.

Some lenders offer "teaser" rates that are artificially low for a few months, then adjust to normal levels. The variable rate of a HELOC moves up and down with another rate, called an index. Most banks index HELOC rates to the prime rate or the prevailing yields on Treasury notes.

The lender adds a margin, or fixed number of percentage points, to the index to determine the new rate each time it is adjusted. For example, a HELOC might use the prime rate as an index, with a margin of 1 percentage point. If the prime rate is 3 percent, the HELOC's rate is 4 percent (the 3 percent prime plus 1 percent margin). If prime rises to 3.5 percent, the HELOC's rate will rise to 4.5 percent. Adjustments can be made monthly, quarterly or annually.

Variable-rate loans have a cap on how high the interest can climb over the life of the loan. Most variable-rate lines of credit also have a cap that limits how much, and how often, the interest rate can change during the course of a year. This cap typically prevents the rate from jumping more than two percentage points in a year. Some plans require a minimum monthly payment. Chart out how high your payments would be at different rates by going to Bankrate.com's mortgage calculator or ask your banker to do it for you.

Credit lines sometimes have other fees attached to them, such as annual maintenance charges, transaction fees each time you use the account, or inactivity fees if you don't use the account. Both types of equity debt may be subject to prepayment penalties, which are charged if you pay off or close the account within two or three years.

If you expect to sell the house within a couple of years, don't get an equity account with a prepayment penalty.

Tips

* Check out rates in Bankrate.com's survey of home equity rates and compare.
* Ask the lender what the lifetime and periodic caps are.
* Find out if there is a minimum payment.
* Understand what index is used, what the margin is, and how often the lender adjusts rates.
* Ask whether there is a balloon payment -- a requirement that the entire balance is due in a lump-sum payment after a few years.

Understand that you cannot compare the annual percentage rate -- the cost of the loan each year, expressed as a percentage -- of a home equity loan against a home equity line of credit. They are calculated differently. The APR for a fixed-term equity loan takes into account the interest rate plus points and other finance charges. For a line of credit, the APR is based on the periodic interest rate and does not include points and other costs.

Electronic payments sometimes get you a fractional break on interest rates. Before you sign, consult a tax adviser about deductions on your loan because there are exceptions to deductibility.

Home equity car loan bad idea

Home equity car loan bad idea (Seattle Post-Intelligencer)

By MICHELLE SINGLETARY

Would you take out a 30-year car loan?

OK, you're probably thinking that sounds outrageous, so let me take it down a bit. How about a 10-year auto loan?

If you're financing the purchase of a car with the equity in your home, that is exactly what you could be doing -- paying for a car over 10 or even 30 years.

The use of home equity loans, lines of credit and cash-out refinancing to buy an automobile grew in the last decade as interest rates dropped and property values soared. It also has become popular as lenders hyped the fact that interest on a home loan is tax-deductible, unlike on a vehicle loan.

In 2006, about 24 percent of homeowners used a home equity line of credit to buy a car or truck, according to Synergistics Research Corp., a financial services consumer market research company based in Atlanta.

About 8 percent of homeowners took out a second mortgage specifically to buy a vehicle, says William McCracken, chief executive of Synergistics.

But is buying a car or paying off your remaining auto loan balance with the borrowed equity from your home a good financial move?

"I issue a note of caution on this," says Don Taylor, a columnist for Bankrate.com and an associate professor of finance at The American College in Bryn Mawr, Pa. "If you don't have the discipline to do more than the minimum payments on these loans, then this is not a good idea."

The assumption people make is that the home equity loan is cheaper than a traditional car loan because of the mortgage interest tax break.


However, if you don't make extra payments or pay the loan off early, you end up paying more in interest over the life of that loan than you would with an auto loan, erasing any savings on your taxes.

I asked Taylor to run a few financing scenarios to compare the total cost of four types of auto borrowing -- a 60-month car loan, a 10-year home equity loan, a 10-year home equity line of credit and a 30-year cash-out mortgage refinance. To view the full results or to plug in your own loan figures, income tax rate and interest rates, go to bankrate.com/compare.

So let's look at one example of an auto loan versus a home equity loan in which you finance $30,000.

If you took out a five-year car loan at 7.76 percent (the national average, according to Bankrate.com), your monthly payment would be $604.85. Over the 60 months of the loan you would pay $6,291.11 in interest.

If you took out a 10-year home equity loan for $30,000 at 7.88 percent, your monthly payments would be significantly lower at $362.08, Taylor calculated. Make extra payments of $242.77 during the first 60 months and you'd pay $6,417.71 in interest.

If your federal marginal income tax rate is 25 percent, your effective interest rate on the home equity loan is 5.91 percent. Thus you would save $1,356.03 in interest in today's dollars (not including estimated loan costs of $500).

However, if you don't itemize your taxes to get the interest deduction and you fail to make extra payments every month, you end up paying $13,450 in interest, a difference of $7,158.89, according to Taylor's calculations.

Under that scenario, and even with the tax deduction, the auto loan is cheaper.

The savings are even less with a home equity line of credit versus a home equity loan.

That's because the interest rate for a line of credit is higher. The average interest rate on a home equity line of credit is 8.13 percent. If you take the interest deduction, your effective rate would be 6.10 percent.

But again, to make it worth the trouble, you still have to make extra payments. Even with the interest tax deduction, you may find better auto loan rates if you have a good credit history and shop around.

Considering a 30-year cash-out refinancing to buy a car or pay off the balance on an auto loan? With rates at about 6.2 percent, your effective interest rate if you itemized would be 4.65 percent.

But don't forget that with a refinance you have to factor in closing costs, which average about $3,000, according to Bankrate.com. Of course, you wouldn't allocate all the closing cost to the car loan, Taylor points out, but you still have to consider that expense to determine if you're really saving money.

"For you to do a cash-out refinancing it has to make sense on its own, such as you are getting a lower interest rate," Taylor said. "Buying a new car on its own isn't a reason to refinance your first mortgage."

Whenever someone wants to know what I think about using their home's equity to purchase or pay off a car, I ask them this: "Have you done the math?"

"Well, um, you get a tax deduction," they always respond.

That, of course, means no, they haven't done the math.

Home loan demand drops for 1st time in 4 weeks

Home loan demand drops for 1st time in 4 weeks (Washington Post)

By Julie Haviv

NEW YORK (Reuters) - U.S. mortgage applications fell last week for the first time in four weeks, reflecting a drop in demand for home refinancing even as interest rates hovered near recent lows, an industry trade group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended March 16, which includes both refinancing and purchasing loans, decreased 2.7 percent to 672.1.

Applications, however, were 19.0 percent above their year-ago level. The four-week moving average of mortgage applications, which smooths the volatile weekly figures, was up 2.5 percent to 665.1.

Phillip Neuhart, an economic analyst at Wachovia Corp. in Charlotte, North Carolina, said the U.S. housing market has become increasingly pivotal to Federal Reserve monetary policy and right now they are taking a "wait-and-see" attitude.

"I don't think the Fed is going to drop rates in the near-term since core inflation is above their comfort zone," he said. "They are not going to cut off their nose to spite their face."

Market participants will be looking for any hints from Federal Reserve policy-makers at the conclusion of a two-day meeting Wednesday afternoon that they may be concerned about the level of subprime loan defaults and the potential impact on the U.S. economy.

"I don't see the Fed getting caught up in headline and headline risk," Neuhart said.

Rapidly rising defaults in the subprime mortgage market, which caters to borrowers with poor credit histories, and collapsing lenders may be taking a toll on home sales.

The MBA's seasonally adjusted purchase index, considered a timely gauge of U.S. home sales, fell 0.9 percent to 410.6. The index, however, was above its year-ago level of 393.6, a rise of 4.3 percent.

"With regulators looking to tighten up lending standards, it will be a supply constraint on mortgage issuance," said Neuhart. "If the supply of loans is limited, there are going to be fewer homebuyers since they can't get a mortgage."

Homeowner loans - release dormant equity

Homeowner loans - release dormant equity

by Anaya Erika



Generally, homeowner loans require collateral from the borrower for the loan amount to be released. In homeowner loans, the home is the security. The year 2006 witnessed a never before seen increase in the number of homeowner loans taken.

This inclination is primarily owing to the benefits that come with homeowner loans. With collateral in place, the lenders tend to relax on the interest rates. Not only that, one can borrow a substantial amount with this loan type, and that facilitates the fulfilment of a lot of big-money requirements. Also, the repayment term of the loan is long, and that allows for better handling of the finances.

A homeowner loan can be availed from different sources, like building societies, banks, private lenders and the online institution. The last option is, for all sense and purposes, the best among the lending alternatives. The choices are great, and the entire online processing thing is convenient for the borrower.

With homeowner loans, one can get up to 80 percent of the home's value. In some cases, it can go up to 125 percent. The maximum amount one can borrow with homeowner loans is £250000, and the repayment period ranges from 5 to 25 years.

However, there are some disadvantages with homeowner loans. The biggest drawback is that, in case of a repayment default from the borrower, the lender can seize the collateral and sell it off to recoup the amount. Another minor disadvantage is the amount of time taken for collateral valuation. This scrutiny of documentation can be somewhat hassling for the loan taker.

Before taking a homeowner loan, one should analyse and undertake a thorough comparison of the loans available in the financial market these days. There are a lot of lenders floating around in the market today. And not all of them take the straight and narrow road. Hidden charges amount to a lot in the end. So, one should always look out for those.

home improvement loan

home improvement loan

by Michael Malega

There are a score of people who would love to redo their homes. These individuals will need to take these home remodeling ideas well-to-do unless they have a large amount of money just lying around. Since not many of us having this much of money to spend without any worries we will need to take out a home improvement loan.

Now while this seems straight forward enough there is always the fact that you need a reputable home loan agency to give you the money that you need. So what do you need to do number one The first thing you must attain is to find a home loan company who is willing to give you the large amount of money that you need.

When you find this company or depose then you must be ready to convince them of your need for money. In short you will have to show them why they need to give you a home improvement loan and to what purpose will you be Using this money. Now I know this sounds rather nosy but you are asking for their money.

So before you approach any of these places have a plan - an formally or architecturally drawn plan of your home improvement ready. Get all of the estimates that you need for equipment, materials and other items. Having obtained all of these necessities you can find out from your verify if you have the needed money amount.

Now that you have all of the crucial info you can ask for your home improvement loan. Providing that you have a way of paying back the money and if you are going away to use it for the purpose that you are Taking it for, then you should have no problems with getting the loan.

Once you have gotten the home improvement loan you can either engage a home improvement firm or you can try doing the renovations yourself. These options will both give you gratification because your home is expiration to look just the way that you have planned. When you decide upon the home improvement path that you will take do some shopping to find the prices of all the items that you will need.

You should also find the costs of the diverse home improvement and home remodeling companies. This way if you do decide to have your home improvement done in this way you will know if your home improvement loan will cover these costs as well.

The home improvement loan that you have gotten is a great way to remake your built-in house up. Until now you will need to take it one step at a time otherwise you will run out of money and your home improvement will only be half done.

This article was written to provide you with knowledge about the subject I appreciate you Taking your time to read it.

Will Congress Stop Bad Credit Auto Loans & Bad Credit Home Loans?

Will Congress Stop Bad Credit Auto Loans & Bad Credit Home Loans?

by Michael Peterson

Christoper Dodd, U.S. Banking Committee Chairman and U.S. presidential candidate, announced on Monday that he has requested executives from the nations top bad credit mortgage companies to testify at a hearing on this Thursday. The five bad credit home loan companies are: HSBC Holdings Plc, Countrywide Financial Corp., WMC Mortgage, First Franklin Mortgage and New Century Mortgage Corp.

Rep. Barney Frank, Massachusetts Democrat, announced last week that he plans to introduce legislation that would restrict future subprime lending, bad credit home loans and bad credit mortgages.

What is worrisome, is whether, or not Congress will assist in making substantive changes in the subprime mortgage industry, or just "knee jerk" changes, that would only send bad credit mortgage companies into further downward spiral. It appears, that Congress will limit its reach to bad credit home loan companies; however, the hearing that the House Financial Services Committee will have on March 27, will focus specifically on subprime and predatory lending.

I'm sure that the executives called to testify, in these hearings, will cite the industry practices of other subprime lenders that specialize in bad credit loans for cars, jewelry, furniture and etc. If these executives draw "straight lines" of comparison from their practices, to the practices of other bad credit lenders, the entire subprime industry could be legislated right out of existence.

The bad credit auto loan industry could find the same "bull's eye" drawn on its back, that the bad credit home loan industry has drawn its back.

Congress really needs to make sure that these lenders separate subprime statistics from Alt-A statistics. I think this number might shed a little light on the true problem.

During our recent real estate boom, four out of 10 home sales were second homes and investment property. Second homes and investment properties are always non-conforming loans, but not always subprime loans. The underwriting rules, of the most generous bad credit home loan companies, did not allow most subprime borrowers to qualify for a "Pay Option ARM." Only borrowers with good credit, seeking good credit mortgage loans and Alt-A borrowers with a minimum of a 640 mid credit score could even qualify for them.

The Pay Option ARM, also know as "Pick-A-Pay" has proved to be the most "deadly" for borrowers, of all the exotic loan products. It employs negative amortization, and if borrowers "pick" the sub-interest only monthly payment, while the rate and payment are adjusting upward, in just one year they can owe more, each year they do this than the year before!

Compound this with declining real estate values and after one year a typical California borrower, could very quickly be in hole $50K!!!

If you need a bad credit home loan, bad credit mortgage, bad credit auto loan, or a bad credit car loan apply today, while there are still great programs available to help you get financing - no matter how bad your credit is.

Using Home Equity Lines of Credit as Bridge Loans

Using Home Equity Lines of Credit as Bridge Loans

by Dan Lewis

If you decide to sell your home, you most likely are going to want to buy another one. This process is known as stepping up in the market, but can lead to financing problems.

Selling and buying homes can be a bit stressful to say the least. If you recall the process of buying your first home, you know this is more than true. Now that you are going to both sell your current home and buy another, you are going to have twice the stress. There is also another problem that may arise. It is known as the financing gap.

When you sell a home, the transaction will close upon an agreed upon date. At the same time, you are going to be trying to buy a home that will close on or near the same date in question. At least, that is how you should try to line it up. The problem, of course, is coming up with money for the new purchase. You may have a lot of equity in your first home, but it is in a non-liquid form, to wit, you can't spend it. When you need to put down an earnest money deposit or down payment on the new home, how do you come up with the money?

The typical answer for filling this "financing gap" is to get a bridge loan. A bridge loan is a short term loan of two to three months that gives you the liquidity required to purchase the new home. Sound great, right? Well, short term loans are infamously expensive. Points and fees are, frankly, outrageous. So, is there another solution?

One option is to try to use your home equity line of credit. A line of credit on your home is just what it sounds like. It allows you to tap your equity in the home, often through a checking account. If you actually sell the home at some point, the line becomes due immediately upon closing. That being said, you can still time out the sale and purchase real estate transactions to use it to provide financial assistance with your new purchase.

Assume I list my home for sale on March 1st. I also go out and start house hunting and applying for pre-approval on a new loan. I reach an agreement to sell my home on April 1st and also reach an agreement to buy a home on April 3rd. The problem is I have nominal amounts of liquid money. I can access my line of credit to pay the deposit and down payment on my new home. When the sale of my previous home closes, the equity line is paid off when the buyer funds the transaction. By taking this step, I have effectively used the equity in my own home to buy the new one and avoided paying high fees and costs with a bridge loan.

Should You Take Second Mortgage or Home Equity Loans

Should You Take Second Mortgage or Home Equity Loans

by Natalie Aranda

You need to use your house as equity to get some extra cash. However, you don't know whether you should take out a second mortgage or a home equity loan. What's the difference anyway? Wouldn't Utah home equity loans and Utah home mortgages be the same over the long run? Well, not really. Consider the differences before making your decision and realize that mortgage planning is important.

First of all, the wording is difficult to understand. But, you must understand the difference in order to make the right decision. A second mortgage is simply another lien on your property. A second mortgage is very similar to the first mortgage, just that it comes second. It is likely to be an adjustable rate or fixed rate loan just like the first mortgage.

Then there are home equity loans. These loans appeared in the 1980s as a second mortgage that was a line of credit open for the individual to "borrow" from as needed. The loans were called home equity loans and they allowed the borrower to take what was needed on an ongoing basis up to a certain limit. The difference between the two has now been discussed, but which one is the best one for you? If you are trying to decide whether you need a second mortgage or a home equity line of credit you simply need to answer a couple of questions. First of all, what do you need the money for? If you need the money for a big repair project on the house or some other situation where you need a large sum of money in the exact moment then a second mortgage is a good option. But, if you need money over time, say to pay for college, then a home equity line of credit is the better option. You really need to determine your needs and what is available to you before making a decision. Once you have all of the information you will be ready to choose the best option for you.

Remember that when it comes to mortgage planning you can rely on a banker or someone else to guide you. But, you should be informed and educated on the options and what you are able to chose. Not to mention how it will affect you. When you have this information you will make better financial choices. So, do your research, learn the difference between the two, and then go ahead and make the best decision for you.

Creating A Home Improvement Plan

Creating A Home Improvement Plan

by Hunter Pyle

You've got your eye on the out-dated kitchen or you think you might want to just tear up your carpeting and install hardwood floors, but before you start to rip out the cabinets or the carpet make sure to establish some guidelines for your home improvement plan. A good home improvement plan should take into account: budget, financing, scope of work, functionality and aesthetics, resale value.

Budget Considerations

One good way to find out what you can afford is to simply get three estimates from contractors. Discuss what you want with the contractor and if the estimate is high, ask them how you can reduce the costs. The estimate should be separated into cost of materials and cost of labor. By getting a professional opinion first, you may find that the bids are very similar and you have a good starting point for the high-end cost of your project.

Now, you can begin to factor in whether there is some work you can do yourself. This will improve the amount of cash outlay necessary to complete the work. Another way to get to meet your budget is to shop for a cheaper source of materials or change the type of material used. Either way, these are highly flexible items in your home improvement budget.

Sources of Financing

If one doesn't have the money, the inclination is not to do the home improvement. Cash, however, is not the only way to pay for a home improvement plan, you can also finance. If you find you don't have enough cash, you can use a home equity loan to finance the remodeling of your home. Try to identify additional forms of financing in case you need additional monies to complete the project. In the end, a home improvement project should add to the resale value of your home for it to be a sound purchase.

Scope of Work

This is where a good plan is essential. If you are planning a major remodel, you will want some basic plans drawn up, preferably by a professional. You don't want to find out later that the wall you envisioned removing for a more open space is a critical weight-bearing wall. Similarly, you don't want to plan for electronic appliances and devices in an area where there are no outlets. If you plan on revamping a kitchen, the dimensions of workspace and appliance real estate are very important. Don't try to eyeball it or you'll end up paying for it later in time, additional work, or wasted purchases. By trying to define the scope of the work on paper first, you can bypass many of the simple problems that arise from not having thought the improvement plan out thoroughly.

Functionality And Aesthetics

Obviously, we don't just want to substitute one thing for another, we want the new home improvement to outshine the old room. We want it to work better for us and we want that "ah" factor too. Have you done your research on the functionality of the appliances and space arrangements? How about the aesthetics and maintenance of the materials you chose? Does the improvement help to accommodate the growing needs of your family? Will it continue to be of service after 5 years? 10 years? These are all factors that should be considered and weighed against budget, scope, and resale value.

Resale Value

This is a tricky value that can't really be foreseen that much. We know that kitchen and bathroom remodels recoup the most on the sale of the house. No home improvement will recoup 100% of the price it took to remodel, however, if you are in a climbing real estate market that might not matter. What you don't want to do is to add a home improvement that detracts from the value of your property. Adding a fifth bedroom in a neighborhood of four bedroom homes would be detrimental to the value of your home. Adding a swimming pool in areas where houses with pools don't sell well would also be considered an investment that could not be recouped. Some people still do it anyways. The point is that most home improvements are done to meet the needs of a particular family and the desire for a more comfortable living space. While resale value is important, it is just one of the many considerations that have to be evaluated in a good home improvement plan.

Financial Factors of Home Purchase

Financial Factors of Home Purchase

by Ron victor

When a house property is listed for sale in the market, the buyers will come with different price ranges to purchase the house property. To purchase the house property, the buyer should have enough price consideration for the property. Most buyers do not have enough cash to purchase the house. To buy the home the buyers would search for obtaining finance through mortgage. To purchase the house property, the buyer is to obtain the mortgage from any of the institution, banks, and mortgage lenders and so on. In order to evaluate the financial plans of the buyer, financial strategies are to be evaluated. Financial details are the major reasons that are included in the offer price.

Down Payment

Down payment is the initial payment made by the buyer to the seller for the purchase of the house property. This down payment is to be disclosed properly by the buyer at the time of purchase. As part of the offer price, the amount or volume of the down payment is to be decided by the buyer. At the time of down payment the seller will evaluate the possibility of the house buyer obtaining the home loan. When the buyer make large down payment, it is easier for the buyer to obtain the mortgage approval. The underwriting guidelines for this will be less restrictive. Down payment is the financial aspect which will affect your financial requirement.

Influence of Interest Rate

The other aspect that includes in the financial requirement of the purchase is the interest rate offered by the mortgage lenders and banks. To protect the buyer against the financial shortage, the interest rate offered by the institution is to be less. When interest rate paid by the buyer is more, then the buyer will be afraid of buying the house property. Interest rate is the financial drawback for the buyer. To purchase the home property the buyer will obtain the mortgage from the mortgage institution and banks with the high interest rate. If interest rate rises quickly, the mortgage payment paid by the buyer will be higher. When interest rate offered is more then the buyer can close the contract. Interest rate also affects the financial aspect of the buyer.

Financial Incentives

The seller may sometimes ask the buyer to pay of the price consideration in single payment. In such a situation, the buyer may ask incentives to the seller regarding the payment. When the incentive is asked to the seller, the seller may sometimes provide the incentive to the buyer. Here the seller may negotiate the price. Financial incentives are the main consideration to be considered by the buyer at the time of purchase. The buyer can ask the seller to provide the loan to him for the purchase of the house property.

Seller Financing

Obtaining the loan from the seller is called seller financing. It is a second mortgage which helps the buyer to facilitate the home purchase. The benefit for the buyer is that combining the down payment with the second mortgage from the seller, will avoid paying mortgage insurance and also save money.

You are the individual who make home purchase offer through cash, it makes the sense to provide the documentation for the funds available. The offer should contain information whether you obtain fixed rate or adjustable rate of mortgage. The offer should also state whether you are obtaining conventional financing or any other loan.

Refinancing Your Home Loan - Apply With A Leading Lender Online

Refinancing Your Home Loan - Apply With A Leading Lender Online

by CL Haehl

If you are looking to refinance your home mortgage loan, make sure you apply with one of the internet's leading lenders. You want to be absolutely sure that your application is secure online. All reliable, major loan companies online use encrypted applications for the best security online.

Avoid Applying With Smaller Companies - Applying for a mortgage online with a company that is small or not very established could be risky, if their application process is not secure, but it can also be a waste of time. Smaller mortgage companies online do not usually work with a large network of lenders and loan programs. So, for filling out your application and having your credit pulled, you might only be offered one or two different mortgage options.

Leading Lenders Have Thousands of Loan Programs Available - If you apply with a leading lender online, they usually have hundreds of lenders and thousands of programs they work with and with one application and one time of pulling your credit report, you can have loan offers that are competitive and realistic.

No Commitment - Another benefit to applying for a mortgage online is that there is no commitment. You can apply with no obligation of accepting any loan offers that you might receive. When you work through a broker that you know and have met with. You usually feel quite a bit of pressure to continue working with him/her once that person has started to put time and energy into helping you find a loan.

Make sure you complete your application as accurately as possible and describe your credit as accurately as possible in order to get the most realistic mortgage quote. If you fudge those numbers initially, you will just be disappointed later when the mortgage loan you thought you could qualify for will not be available to you.

How To Avail Car Loans

How To Avail Car Loans

by John Gorman

Car loans are the second biggest category of loan taken by individuals. Car loans are good news for those who wish to have a car, but their budget doesn't allow buying one.

Credit

There are local car credit centers near you for fast, hassle free service. You are not alone if you have bad credit. These lenders and certified new and used car dealers focus on bad credit. Also, the rates and terms of an unsecured loan usually vary depending on your personal circumstances, so a lender's advertised rate may not be the one they ultimately offer you, especially if you fall into the category of having poor or adverse credit rating. As mentioned previously, lenders consider your personal circumstances, such as your credit rating, as a major factor when determining the rate for your unsecured loan. Because of these variables, it's important to do plenty of research to find the best deal for you especially if you have a bad credit history as loan quotes can vary wildly. Get fast approval for new and used bad credit car loans. Get low or zero down payment programs even with bad credit. Your ability to obtain finance and the interest rate you will be charged is determined to a large extent by your credit history. Lenders look at your credit report when determining the rate of interest they will charge. For tenants options are more limited and generally speaking if you have a bad credit history expect to pay high interest on any credit as lenders will see you as a higher risk.

Bad

No credit or bad credit; auto loans programs are available for all auto loan products. Please remember if you have any of the following you can get approved: bad credit, bankruptcy, no credit, poor credit, or repossession. High risk auto loan programs and bad credit auto loans can help you rebuild credit and are readily available with a low rate and easy qualification. All credit situations whether bad credit, poor credit, slow credit or no credit get the opportunity they are waiting for. Please be sure to read the Bad Credit Car Loan agreement fully and carefully before making any agreement. No matter where you live there are bad credit auto loans programs available nationwide.

You can drive the car of your dreams today with a car loan tailored to fit your needs. Don't spend your valuable time, or waste your cash on expensive gas when you have already found the best place to find new and used car loans. By spending just two more minutes at your computer, you can quickly apply for your car loan online.

Choosing The Best Car Loans

Choosing The Best Car Loans

by John Gorman

Car loans are provided and approved by one of our nationally certified new or used car dealers. Car loans are a lot easier to obtain at this time. Competitive interest rates and low payments on car loans are offers that you just can't refuse, especially if your credit is less than perfect. There is no need to leave your home or office when all that is required of you is just a few minutes of your time to apply for car loans.

Finance

Whether you're looking for something classic or brand spanking new, a low rate loan is a competitive alternative to car finance. Land Rover has announced a new scheme to help offset emissions for owners of its vehicles, which are made much more affordable by taking a car loan or car finance. The government has launched a new rankings system to help drivers find the cleanest car enabling motorists to cut their fuel use and car costs, particularly when also taking car finance. Luxury auto maker Porsche has unveiled the first details of its eagerly awaited Cayenne Hybrid, an impressive vehicle that will no doubt be a popular choice to buy with car finance. Drivers looking to cut their carbon emissions have received the welcome news that Mercedes Benz is planning new amendments to all its cars, reports Auto Week, putting environmental motoring in reach of all - particularly with car finance. Given that you've probably already got quite a lot of credit and debts, and so there is a good chance another personal loan would be turned down by one of the regular banks is now the time to turn to a specialist car finance package. If so, are they really just for those who can't get finance elsewhere. So the answer is, you might want to use a finance company either if you have very little money and are therefore forced into using one or you have loads of money which enables you to make choices about everything in your lifestyle.

Purchase

Most loans for the purchase of a car are considered unsecured. Used car loans are specifically designed by loans companies to provide used car buyers with a competitive finance arrangement through which to purchase a used car. There are many loans companies out there offering loans for used car purchases, so it makes sense to shop around to get the best loans deals for buying a used car. It is important to take into account other financial commitments too, including other loans, when calculating the loans amount that you can comfortably borrow to purchase a used car. When negotiating the price of a used car with a trader, they may accept your lower offer providing that you take up one of their loans to finance the used car purchase.

You can apply and receive car loans from the privacy of your own home today. A brief browse round the internet soon reveals that these loans are a lot cheaper on the apr than the specialist car finance companies, with rates for personal or car loans ranging from 5.

Auto Loan Tips To Keep In Mind When You Buy Your Next Automobile

Auto Loan Tips To Keep In Mind When You Buy Your Next Automobile

by Craig Thornburrow

Buying an automobile is a very exciting thing to do. Even if you are not a real car buff it can be a fun time until you get to he part about financing your purchase. Getting an auto loan can be stressful and confusing. In this article we will look at a couple of things you should keep in mind if you decide to finance your new car.

The first thing you want to consider is the length of the loan. Do you want to have a sixty month, or longer loan, or do you you want to pay it off now. If you do financing for sixty months, or longer, you will pay more in interest to the lender.

If you pay off your loan as soon as possible they will not be making as much interest. You want to choose an affordable payment, yet pay it off quicker if you can.

A lot of people will do sixty or seventy two month payments now because it is a lower interest rate and a lower monthly payment. Then they will pay double payments in months when they can to pay it off quicker.

If you should have bad credit the new or used car you buy will cost more in interest because you are going to pay a higher rate. So again, if you can pay it off sooner you will save more money.

Let's look at this example of what interest can do to you and the total amount of money your car will end up costing you.

- You buy a car for thirty thousand dollars

- Your payments are $450 a month for 84 months

- Your total payments would be $37,800

- You will have paid over $7,000 in interest on your auto loan.

You have to be very careful when buying a car because with that comes the car loan, and you have to know which kind of a loan will go best for you. Just because they offer a low rate to get you into the showroom does not mean that is the rate you will get. For many people the interest rate will end up higher when it is time to sign the papers.

In summary there is more to buying a car than the make and model. Your auto loan will play a big role in determining what you can afford. It can also affect your financial future.

You want to negotiate the best deal up front when you have some leverage as a new buyer. Your current credit situation will partly determine the interest rate of your auto loan which in turn will affect you payment.

Tips for Auto Refinancing

Tips for Auto Refinancing

by Dale Peterson

Everyone deserves a second chance. Whether you're struggling to rebuild your credit or just struggling to make a huge monthly car payment, auto refinancing can save you thousands of dollars and help you start fresh.

What is auto refinance?

While record numbers of people are refinancing their homes, many have never thought of refinancing their car. Car refinance is a lot like home refinance. You pay off your current car loan with a refinancing loan from a different lender offering lower APR. You can shop around for the best lenders and lowest APR at online sites like myAutoLoan.com.

Why refinance your car?

Refinancing at a lower APR decreases your car payments and can even help you pay off your car loan sooner. Plus, you'll likely save thousands of dollars in interest. Just by decreasing your car loan interest rate by 1 percent, you can save $1,000 on the total cost of your car over the life of your car loan.

Who should refinance?

If you've had bad credit and currently have a car loan with high APR, it is crucial that you refinance at a lower APR. Sadly, many individuals with bad credit don't even try to refinance because they've been convinced that they can't get a lower interest rate with their credit score. The truth is, even with bad credit, you can usually refinance at a lower APR, which will help you pay off your debt faster. That alone will go a long way to improving your credit score.

How to refinance your car

Here are few tips to help you get started and find the best rate quickly, so you can start paying less!

* Know the value and loan pay off for your vehicle before you begin. Contact your current lender for help with these questions.

* Be sure and have accurate vehicle information, including make, model and VIN number.

* Look online. Many online lenders actually have better rates than some banks and credit unions. There are also sites that let you search for and compare loans in order to make sure you're getting the best rates.

Auto Loan - How To Drive A Hard Bargain

Auto Loan - How To Drive A Hard Bargain

by Ronn Jones

Taking an auto loan these days are not much of a matter. However, even in case of an easily available auto loan, one can end up paying a lot more than he should have. So bargaining becomes essential as usually is the case for many other things. A complete control of the bargaining process needs to be in the hands of the buyer. Here are a few tips to handle the bargaining process confidently:

Get pre-approved.

Avoid hassles over financing and focus on prices and rebates by getting your loan pre-approved.

* Tell the loan counselor the type of vehicle you want and the amount you want to borrow. Remember that tax, title and tags will add to the price, so factor those costs in.

* When your loan is approved, you'll probably get a "not to exceed" draft that you can use just like cash when you go car shopping. The draft is good for up to 60 days.

Before taking the loan or going in for the bargain a complete knowledge of the auto loan terms is a must. This will help you understand all the statements and offers clearly and remove any tricky and hidden costs from your bargain.

Negotiate the purchase price

The "sticker price," otherwise known as the Manufacturer's Suggested Retail Price (MSRP), is not what the dealer paid for the car. Ask to see the invoice price--the cost to the dealer when the car is delivered to the lot. The final cost to the dealer is normally even less than the invoice amounting. That's because the dealer gets rebates from the manufacturer of 2% to 3% of the invoice price. Never negotiate down from the MSRP. Always negotiate up from the invoice price. Dealer options--extended warranties; undercoating, rust proofing, upholstery and paint protection; insurance; add-ons; and fees for tags, title and taxes--all add to the price. They're high-profit items for the dealer, and their prices are negotiable. Most new cars today don't need undercoating or rust proofing. Extra warranty insurance is usually less expensive if bought from an insurance company rather than the dealer. If at any time you feel pressured, hurried or confused--leave.

Get it in writing

Make your final offer and state that the price includes all of the agreed-upon items. Get it in writing. Now ask if there are any rebates in effect. After you and the salesperson have agreed on the price, only then should you mention your trade-in.

The trade-in: Do it last

* Determine the real wholesale value of your car in advance. The "Book Price" is an average for trade-in and resale values.

* Clean up your car; drive it to three or four used car dealers; ask them what they'll pay you for it. Check average figures in the National Automobile Dealers Association (NADA) Official Used Car Guide.

* Don't talk trade-in when you are negotiating the purchase price of the new car. Only after you've reached an agreement on price should you ask the dealer what he'll give you for your trade.

These factors not only help to have complete control over the auto loan bargain but also makes the entire process smooth and free of any misunderstandings.

Getting A Home Equity Loan After Bankruptcy

Getting A Home Equity Loan After Bankruptcy

by CL Haehl

Obtaining a home equity loan after a bankruptcy can seem particularly difficult. However, it is by no means impossible for someone who's willing to take time to explore options offered from different lenders. Here are some things you should know about getting approved for a home equity loan after bankruptcy.

The term "home equity loan" typically refers to a second mortgage (a lien that is in secondary position to a first mortgage). If the borrower defaults on a loan, the lien holder in first position is the first to be repaid and any interested parties (e.g. second mortgage lender, tax collectors, mechanics' liens) will be compensated in the order that they appear on the title or deed of the property. Because of that, lenders that hold second mortgages assume a higher risk than those that hold first lien positions.

You will almost certainly be looking for a lender that specializes in "sub-prime" or "non-prime" loans. There is no shortage of sub-prime lenders, however, with current trends showing the sub-prime sector of the mortgage industry to be increasing exponentially each year.

One of the most important aspects of obtaining a home equity loan (particularly after a bankruptcy) is the amount of equity you are seeking to draw from your home's value. The lender is going to be primarily interested in the Combined Loan-to-Value ratio, or "CLTV" of your new loan. The higher the CLTV, the higher the risk from a lender's point of view, and whenever the risk increases, so does the interest rate.

You should know your credit score if possible, as that will be a large factor in the percentage of equity the lender allows you to tap into. If your credit score is above 620, you have a good chance of being able to access 100% of the equity in your home, even after a bankruptcy.

Home Equity Loan-Buyer Beware!

Home Equity Loan-Buyer Beware!

by Jack Krohn

With all the hype and seductive ads about home equity loans, are you curious to find out if you are missing out on something. I mean it seems everywhere you look or listen there's an ad for a home equity loan that sometimes appears to be too good to be true. Millions of Americans are taking out these extremely profitable (for the lender) loans. So what's the problem you ask?

Foreclosures and defaults on homes are at an all time high and the Federal Reserve expects them to continue to increase as many homeowners get to the conversion point on their ARM's. Many homeowners are in big trouble and may not even know it.

Home equity is the difference between what your home is worth and the amount you owe on it. For most homeowners their home is their biggest asset and it usually represents a treasure trove of cash. In 2005 the value of home equity across the US was $11.3 trillion. The percentage of home ownership in 2005 was 69% down slightly from the record 69.2 % in 2004. Almost 124 million Americans own their own home.

So there is plenty of money available to lend. Before you get a home equity loan you should know these facts.

* They are secured by a second deed of trust on your house.

* If your financial situation changes your home could be at risk of foreclosure.

* Having to make two payments on your home can be a lot of financial strain.

* A lot of unscrupulous lenders could care less.

* Keep your eyes open to what the local housing market is doing. Just recently many areas experienced a 10% decline in values in one month causing many homeowners to owe more than their home was worth.

Secured Home Loans:Minimum Interest Maximum Benefits.

Secured Home Loans:Minimum Interest Maximum Benefits.

by Aldrich Chappel

Every one knows that home is the most beautiful and safest place to live. But how many know that home is the base of taking a loan at a lower rate of interest. So, home can be utilized to make the home owner financially stronger. Secured home loans are popular among the homeowners because these loans are of low cost and provide benefits to the homeowners.

Secured home loans are offered to the homeowners against their home as security. The borrower will have to use his house against the approval of loans to the lenders. In secured loans, one privilege is that homeowners do not have to move his house as is commonly thought among the people.

In secured home loans, the borrowers can borrow large amount as he is using his house against the loan. The amount that a borrower generally can approve ranges from ₤5, 000 to ₤ 75, 000. Homeowners can borrow more amounts if the equity of the house is greater and the borrower has a good credit history. The loaned amount is generally required to repay within the given repayment duration, which extends from 10 to 25 years.

One of the advantages in secured home loans is loans are offered at cheap rate of interest. Comparisons will be helpful and beneficial for the borrowers while looking for a reasonable rate of interest. Borrowers can also go for online process to collect more information about the loan which is available with free of cost.

In secured home loans, the loans are approved to the bad credit holders without many credit checks. This is mainly to the reasons that borrower uses his most valuable property as security to the lender against the loan.

In secured home loans, the borrower enjoys the privilege to use the loan amount in meeting his various requirements. Home improvements, debt consolidations, wedding, higher educations, are some of the demands which the borrower can meet in one single manageable loan. Secured home loans can well help you to realize your dreams into reality.

Home Equity Loans-What to Look Out For

Home Equity Loans-What to Look Out For

by Jack Krohn


Fortunately most lenders are pillars of their communities and can be trusted. Unfortunately there are a few lenders who prey on the elderly, the poor, and those in financial trouble with bad credit. These unscrupulous lenders deliberately target weak borrowers with the hopes they get further in trouble and end up losing their home for financial gain.

Like any industry that is capital intensive with money flowing like wine there are a few bad apples in the barrel. There are lots of new brokers out there and some brokers are looking for get rich quick schemes. Real Estate market has been hot and will be again. When things slow down some brokers get overly aggressive and promise things they cannot deliver.

National Association of Mortgage Brokers (NAMB) says as many as 30% of brokers are questionable.

Everyone should be made aware of some tactics used to exploit particularly weak borrowers or borrowers in financial trouble. Here are some examples.

Hidden Balloon Payment Nearly everyone has seen the ads for a high dollar amount loan for a ridiculously low monthly payment. What some lenders will do is forget to tell you that the payments are interest only and at the end of the term of the loan a huge balloon payment is due. If you can't refinance or pay the loan off you may lose your home.

Flipping Loans This is the practice of luring a borrower into repeated home equity loan refinancing over a period of time. Each time the rate goes up and points and other closing costs are rolled into the loan making the net proceeds lower than expected and the payments higher than expected.

"Home Improvement" Loan A contractor offers to do some much needed work on your house but you tell him you can't afford it. He offers to get financing thru a lender he has done business with before. The work on the house starts. Then you are asked to hurry and sign some papers for the loan. You realize the loan is a home equity loan and the rate is very high so you hesitate to sign. The contractor says he will not do any more work unless you sign. The contractor already has a lien on your property.

Bait and Switch Tactics This is the practice of getting to within a critical time of closing the home equity loan and finding out the terms are different from those agreed to. The unscrupulous lender is hoping that he has the borrower in a position that he must accept the terms.

No matter what your situation borrowers are well advised to follow common sense when picking a mortgage broker. There is a lot at stake. Don't press the "EASY" button.

Jack Krohn is a leading free lance writer on Home Equity and Mortgage issues with over 35 articles to his credit. He is also the #1 author of Home Security Articles in the country.

Get Extra Benefit with Secured Home Loans

Get Extra Benefit with Secured Home Loans

by Maria Smith

Possessing a home is not just having a place of abode, but it is more than that. Home can be utilised as a financial tool for enhancing your various causes. So there is no doubt that secured home loans are most preferred means to obtain the required funds for homeowners. With the advantage of secured home loans, a homeowner can complete works at low cost and hardly ever feels the loan burden while paying the monthly installments. There is no problem for any lender to approve secured home loans if the borrower is willing to put his home as collateral. Collateral plays major role for lenders that he approves the loan at lower interest rates. The value of your property matters a lot, like on higher equity in home; the rate of interest decreases if the equity is backed by great repaying ability and your sound income. The loan amount depends on equity in collateral.

For homeowners, there is no trouble while repaying secured home loans, which also is of immense advantage. Secured home loans are obtainable for a larger repayment duration ranging from 5 to 25 years. Secured home loans are combined with cheaper interest rate and larger repayment options of the choice of the homeowner. This obviously means that borrowers can save more money after paying installments.

Secured home loans are very popular with bad credit borrower also. The risk is minimum for the lenders, since it is secured against the property of the borrower who has bad credit. Lenders have no hesitation in providing secured home loans for bad credit people. However, there is some risk for the bad credit borrowers, in case of payment default, remember that the lenders for recovering the loan amount may sell the home. So you have to be regular in paying off the loan installments for avoiding any payment default. Secured home loans will help you to improve your credit also.

100% Financing - No Down Payment Home Loans For People With Bad Credit Or Past

100% Financing - No Down Payment Home Loans For People With Bad Credit Or Past

Bankruptcy by CL Haehl

What's Going to Help You Get Approved? - To get 100% financing on your mortgage, that means that you have no down payment, which puts more emphasis on the other factors going toward your mortgage loan. For example, you will need to be stronger in the areas like income, employment, recent payment history, low debt-to-income ratios. If you can strengthen some of these factors you will have a better chance of getting approved. If you can find a home with a low loan-to-value rate, that may also help your chances of getting approved. Search around. Try to find a home that is being sold for much less than the appraised value.

What's Going to Hurt You? - A super recent bankruptcy or foreclosure. Although it is not impossible to get financing under these circumstances, it makes it more likely that you will need some kind of a down payment.

Watch Out For Sub-prime Mortgage Scams - Borrowers with poor credit are often the target of inflated interest rates and excessive fees. With adverse credit history, you can expect to pay a slightly higher interest rate, but make sure you compare at least 2-3 other loan offers to be sure that your interest rate is competitive.

What About After Bankruptcy Mortgages? - You can expect to wait 2-3 years after the bankruptcy discharge date before mortgage lenders will be completely open to working with you. However, it's not impossible to get approved for a mortgage loan before that time, you just may need a small down payment.

Beware of the Pre-Payment Penalty - Mortgage lenders lending to people with bad credit usually tack on a pre-payment penalty to the borrowers mortgage loan. If you are ok with a pre-payment penalty, make sure it is for a reasonable length of time, maybe 6 mo. to a year. You don't want to lock yourself in to higher interest rates for very long.

Poor Credit Home Mortgage Loans - Getting Approved With No Down Payment

Poor Credit Home Mortgage Loans - Getting Approved With No Down Payment

by CL Haehl

When applying for a new mortgage with poor credit, you may be wondering whether or not you can get approved with zero down. There are a few factors that will influence this. Consider these points:

1. Poor Credit Will Put More Weight On Your Employment History & Salary - When you are putting less money down and have credit problems, this will cause the lender to look more heavily at the stability of your employment history and income. If your debt-to-income ratio is low and you have been at your job for more than one year, this will help you toward getting 100% financing.

2. Lenders Will Look Closely at Your Most Recent Payment History - Many people have had financial difficulties in your past, but one of the most telling things for a lender, is what your most recent payment history has been like. If you have a bankruptcy that is more than a few years old, but over the last few years have made regular, on-time payments on all of your existing bills, you are more likely to get approved for 100% financing.

3. Consider Having The Home Seller Pay The Closing Costs - If, with poor credit, you are able to get 100% financing, it will probably be quite a stretch to have the lender also wrap the loan closing costs up in the mortgage loan as well. When you make your offer on your new home, consider including in your offer that the seller pay all of the loan closing costs. This is a common practice, and it is highly likely that the seller will agree.

Try pulling a copy of your own credit report to see how bad your credit really is. Make sure you have disputed all inaccuracies on your credit report before you allow a mortgage lender to pull your credit. If possible, pay down as many high balance revolving credit accounts as possible. This can help increase your credit score significantly.

The Greatest Home Buying Tip

The Greatest Home Buying Tip

by Peter Jones

The Greatest Home Buying Tip

Everywhere you look online there is a home buying tip that is supposed to be the best home buying tip available. Most of the time the tip is to use this or that mortgage company for your loan. The truth of the matter is that tips for buying homes are a dime a dozen and often worth little more than a dime. Buying a new home can be a frightening prospect, especially if you are going it alone so to speak. For this reason, the best tip I have to offer is to find a great realtor and learn from their experience and guidance.

It cost you nothing as a buyer to go with a realtor, they make their money in a commission from the sale of the home and are often smart enough to realize that a percentage of a bargain basement price on a home is better than a percentage of a lost sell. They are generally going to be your greatest ally in the home buying process. If you are still nervous about using the services of a realtor because of divided loyalties, then perhaps you'd be interested in hiring a 'buyers agent'. This is essentially a realtor that will work for you, the buyer.

A buyer's agent can negotiate his or her fee to be paid as part of the closing costs from the seller, but this will have to be negotiated and can be refused. That means that you could end up paying the fees for your buyer's agent. That is often not the case and the realtor's manage to work things out between themselves in order to split a commission and keep the sell. This is one home buying tip that I would seriously recommend you take as it can save you time and money and help introduce you to homes in areas for prices that you might find astonishing.

A great realtor or buyer's agent will help you find homes that meet your criteria and your budget. He or she can often be credited with achieving the impossible and are well worth every penny they earn in commission and then some. Not only do they help guide you through the process of finding your dream home, they also help you during the bidding, negotiating, inspecting, and appraising process all the way through the closing process. I assure you, the closing can be by far the most intimidating and the most exciting (until you're on your second hour of signing you name to the bottom of countless pages).

The bottom line is that it's a toss up between the realtor and the mortgage broker who is your best friend in the home buying process but my vote goes to the realtor. The right realtor can make or break the experience for you. He or she can show you the road to your dream home in the perfect neighborhood for the perfect price and if you feel at any time during the process that your realtor is not listening to your needs, then it might be time to have a serious heart to heart, redefine your needs and offer to find another realtor. That is generally a great motivator if it comes down to it. Most of the time it will not and your realtor will work relentlessly to insure that your deal goes through and your home closes according to your wishes and satisfaction. As I've said before I could offer a home buying tip for almost every occasion, the best tip by far is to find a great realtor to work with from the very beginning of the process.

Home Equity Loan And Line Of Credit

Home Equity Loan And Line Of Credit

by Patricia Lewis

Many people turn to a home equity loan to consolidate their debt, pay off some credit cards, make repairs, renovations to their current home, pay for personal vacations, weddings, or other special purchases.

A home equity loan is a one-time loan amount that is paid off over a period of time with fixed interest rates. Borrowers cannot get this loan amount extended, and will lock in the current rate. There is also what is called a home equity line of credit. A home equity line of credit is extended to borrowers with a home equity loan and can be used like a credit card. Any amount can be withdrawn and paid off as part of the principal balance. Both types of loans are available for home owners who qualify for the loan terms.

Equity is the difference between the worth of the home, and how much is left on the mortgage. The line of credit simply turns this amount into cash, and can be used for other projects or as a revolving credit card balance.

Many people look for a home equity loan when they are looking to make a big purchase. This might include refurnishing or renovating the house, purchasing a new car, or obtaining a personal loan. A home equity loan lets the borrower borrow money against the home's equity as collateral for the loan. If the borrower does not repay the loan, they can lose the home or if they sell the home, the loan still remains and requires repayment.

There are many home equity scams and frauds in the market, offering very low interest rates but exceptionally high fees. These are often disguised as balloon payments, or sudden appearances of new larger loans just from a recent loan. This is called loan flipping, and can only drive you into a circle of debt. Some contractors may offer a home improvement loan that they states you've already been pre-approved by a bank. No matter what the case may be, it's important to review all documentation, rates, and obtain a second opinion by shopping around.

Getting a good deal on a home equity loan is similar to obtaining the original loan. The borrower will need to provide steady credit, and possibly offer an up front payment to reduce the rate and term of the loan. Getting a good deal on the equity loan may also involve obtaining a good appraisal of the house--the collateral--and working with an ethical and legitimate lender.

Can A Home Refinance Loan Give You The Cash You Need ?

Can A Home Refinance Loan Give You The Cash You Need ?

by Ken Black

A Home Refinance loan can take many shapes and forms. There are many options available to suit different goals that a person may have. Just remember that what will work well for some people, will not benefit others.

So before choosing a home refinancing option, read through a quick overview of some of the most popular options available to you. Assess your financial situation and consider what you want to gain from refinancing your home.

Mortgage Refinancing - is basically a second mortgage secured by your home that pays off your original mortgage. Some of the benefits of mortgage refinancing include lowering your monthly repayments, lower interest, or getting some extra cash from the equity of your home by borrowing more than you owe on your original loan.

Reverse Mortgage - is designed for older people who are over 65 and currently own their own home. This type of loan does not require repayments to be made. When the owner of the home either ceases to live or moves out of the home, it is then sold and the outstanding money returned to the bank. Money borrowed from these loans can be paid in lump sums or in regular small payments.

Home Equity Loans - are designed to make money available to you that is tied up in your home's equity. Usually a home equity will provide you with a one-time payment of cash. Equity loans are ideal for those who want to improve their homes, pay off credit card debts, fund a Children College education or have a set sum of money they want to borrow from their homes equity.

Home Equity Credit Lines - are like a second lien on your home that allows you flexibility to access cash, as you need it, and make principal repayments as you choose. Home equity lines of credit (HELOC) are different than normal home equity loans that usually only give you a one time payment for fixed budgeted projects.

5 Main Reasons Why People Refinance Their Homes:

Home refinancing is an option for many people that will allow them to pay off their already existing loan with money from a new loan. The new home refinancing loan will be secured by the same property, your family home. There are many reasons why people choose to refinance their home, as well as many different refinancing options available to choose from.

So before choosing a home refinancing loan, you will need to carefully consider the type of housing loan that you currently have and your own unique financial situation. Below are some of the different reasons why you may choose to refinance your home.

1. Refinance From ARM Loan To A Fixed Rate Mortgage

An ARM loan, or adjustable rate mortgage, has interest rates that are adjusted to suit the economy or current markets. While an ARM loan can be a great way to get lower interest rates, they do have the risk of rising much higher. Often, people choose to refinance their homes based on current market trends, if interest rates are likely to change in the near future to a rate that is higher than a fixed interest rate loan, refinancing your home to a fixed rate may be the safest option for you.

Another thing you may want to consider when changing from an ARM loan to a fixed rate mortgage is the amount of time that you intend to stay in your home. The rule of thumb is to only refinance to a fixed rate mortgage if you intend to stay in your home for longer than seven years.

2. Switching From A Fixed Rate To An ARM Loan

A fixed rate mortgage gives you a fixed interest rate over the life of your home loan. While this is considered to be the safest option, it is also the most expensive option. If the economy is strong, interest rates on ARM loans will be very low. Often, people choose to refinance their homes to an ARM loan to get lower interest rates, which will lower monthly repayments and save thousands of dollars while repaying the loan.

3. Home Refinancing To Lower Repayments

Even a small percentage drop in your mortgage repayments can quite considerably lower your mortgage repayments. Many people choose to refinance their homes to a new loan that has a lower interest rate to lessen the burden of high repayments.

Another way to lower your monthly installments is to increase the term of your mortgage. For example, if your current mortgage is for 10 years, you will be paying higher payments to get the loan paid off before those 10 years are up. By home refinancing your loan terms to 20 years, your payments will be much lower as you have 10 more years to pay the loan off.

One other way that interest rates can be lowered is to pay interest only repayments. How this loan works is that you are required to pay enough money to cover the interest of your mortgage each month.

Additionally, you can make payments off of the principal of your loan as you please. This option makes your home loan more flexible, especially if you want to take some pressure off of yourself during a difficult situation or when you are trying to pay other debts off.

4. Getting Extra Cash

Often, people choose to refinance their homes to get access to tied up equity in their homes. Equity is the amount of money left over after all of the outstanding debt is covered, such as your existing mortgage. If you are planning to pay off debts, fund a Child's college education or make improvements to your home, refinancing with an equity mortgage is a great option.

5. Consolidating Debt

Often, when people get into serious amounts of debt, especially credit cards, store cards, personal loans or car finance repayments, the amount of interest that they are paying on these debts makes it almost impossible to repay them.

Consolidation loans funded through your home equity are usually much lower and take the confusion out of paying many different repayments.

Planning Your First Home Mortgage

Planning Your First Home Mortgage

by Adam Heist

It isn't a simple task to buy your home on a mortgage, especially so if it is your first home. Homebuyers find it very intimidating to take over such a huge responsibility, and that too spanning over so many years. To add to the problem, the language and terminology used by the mortgage lenders, realtors and title companies is nothing short of an alien tongue to the first time mortgage buyer. All this taken together makes buying your home on a mortgage quite a scary proposition.

But nothing is easier than a mortgage if you have all your preparations in place, all that frightful jargon notwithstanding. This article puts forward those fundamental things you need to be armed with before contemplating your first mortgage.

Affordability is the chief factor. You must remember that at the end of the day you will be repaying the mortgage out of your monthly income. So this will require a basic calculation at your end about how much you will be able to shell out on the monthly repayment. There is a way to get a rough estimate on this. Calculate your annual gross income. Multiply this figure by three. Generally, this is the amount which you can afford for your house. Do not stretch your mortgage beyond this figure. If you are doing so, you must be positive that your financial gains will increase within a couple of years. You could use a mortgage calculator (freely available online) to compute what the monthly payments on the mortgage would be. If it still seems complicated, there are mortgage bankers who could help go ahead with the process.

The next step would be to hunt for the house of your desires, which would also fit within the budget you have made! You might have to meet several realtors and scour the property classifieds of the newspapers. Once you have zeroed in on a house, then it is time to begin the talks for the mortgage. Again here, preparedness is the key to have a smooth mortgage processing experience. You will need to have several documents when you are meeting the lenders. It is wise to keep them ready beforehand so that you do not waste much time later. Most lenders would want information about your employment and income, tax returns, investments on shares and interests and all other sources of money for the last two years at least. Lenders would also want to see how you are managing your bank accounts; so keep all your check books ready and updated. Statements from stocks, bonds, life insurance policies and retirement funds would also be needed. Finally keep all documents pertaining to your fixed assets ready, and also information about any other form of credit you have availed of.

Mortgage buyers are often too preoccupied with their mortgage proceedings that they do not give much thought to the different types of mortgages that prevail in the market. Decide whether you would like to go ahead with a fixed rate or an adjustable rate loan. Make this decision on the basis of your current financial position and its potential of growing in the future. There are several tools on the internet to help you with your decisions. You would also need to take into consideration for how long you plan to live in the home.

The government is helping first time homebuyers by providing the Federal Housing Administration loans. These loans provide a very low down payment and have much more attractive rules for the first time homebuyers. FHA loans are available with almost all mortgage lenders.

Which Type Of Home Equity Loan Is Right For You?

Which Type Of Home Equity Loan Is Right For You?

by Connie Barker

Choosing a home equity loan that is right for you takes lots of thought. The first thing you should know is that you are putting your house down as collateral and if you are unable to repay your loan, the bank can sell your home to recoup it losses. Before you decide what type of loan to take out, make sure you are comfortable with the idea of placing your home down as collateral.

There are two main categories of home equity debt; they are home equity loans and a home equity line of credit, sometimes called Heloc. It should be noted that these two loan products both use your home as collateral. However, a home equity loan is much similar to your primary mortgage, in that it is a fixed interest loan. The interest rate for the life of the loan will stay the same, whether you repay your loan in 5 years, 10, years or 30 years.

A home equity line of credit has a different kind of interest rate structure. Where a home equity loan has a fixed interest rate, a home equity line of credit has a variable interest rate. Variable interest rates can fluctuate. Sometimes, you can get lucky and have lower interest rates, but sometimes these interest rates can see a sharp increase, causing the money that you lend to be more expensive.

A home equity loan is for homeowners that are looking to take out a large amount of money at one specific time. For instance, if you are planning on adding an addition to your home or would like to take out $50,000, a home equity loan is usually the loan product you should look into.

A home equity line of credit is similar to a credit card, where you can borrow small amounts of money several times a year and quickly pay them back. Usually the advantage to a home equity line of credit is that the interest rates are lower than normal credit cards, due to the fact that the loan is secured with your home as collateral.

Besides the type of equity you can borrow, do lots of research on possible fees that you will need to pay when borrowing or applying for a home equity loan. These fees can play a big part in your choice. Additionally, shop around and do your research. Don't jump at the first offer you see. Usually home equity loans are very competitive and if you shop around, you should be able to find a loan that fits your needs well.

Home Equity Loans: Loans against Your Home's Equity

Home Equity Loans: Loans against Your Home's Equity

by James Taylor

All your financial needs of starting a business or for wedding can be looked by your home. Your home is not only a place where you reside but can also be used for getting huge finance to fulfill your dreams. Home equity loans are loans that are granted on equity of the home.

Home equity loans are secured loans that allow you to avail loan against the equity of your home. The collateral placed for availing loan is the home equity. The term "equity" is defined as the amount of funds you have invested to own your home or to improve it.

The various purposes for which home equity loans can be availed are for debt consolidation, home repairs and improvements, medical bills etc. The loan amount that can be availed under a home equity loans depend upon the borrower's repayment ability, credit history, income status etc. The interest rate charged under home equity loans is low and the repayment tenure for home equity loans is up to 25 years. Since the repayment tenure is large the loan amount can be repaid in small easy monthly installments.

Home equity loans are granted in two ways fixed rate loans and adjustable interest rate loans. In fixed rate loans the borrower gets the whole loan amount needed in one go. The loan amount applied for is obtained as lump sum whereas in adjustable rate loans you are given a line of credit and can avail loan up to that credit limit.

Home equity loans can be availed by borrowers with bad credit history also. Any credit score below 600 is considered as bad credit by lenders. The various reasons for bad credit history are CCJs, IVAs, bankruptcy, arrears etc. Bad credit borrowers can avail home equity loans at flexible terms of repayment and comparatively interest rates.

Home equity loans are granted against the equity or value of the borrower's home so all the borrowers irrespective of the credit history can avail home equity loans.

Don't Go Crazy With Your Home Equity

Don't Go Crazy With Your Home Equity

by Dan Lewis

There were many benefits to the red-hot real estate market earlier this decade. One is the fact many people are sitting on homes with lots of equity. Tapping such equity should be done very carefully.

Home equity is a beautiful thing. For most homeowners, it is a steady accumulation of wealth. Equity is simply the difference between the value of a property and what you owe on it. Over time, equity tends to grow for two reasons. First, you pay down the amount you owe on the home by making monthly mortgage payments. Second, the home should appreciate in value over time. This natural burning of the candles at both ends effectively turns a home into a wealth building tool. During the recent hot real estate market, homes appreciated at stunning rates. Many homeowners are now sitting on significant amounts of equity. The decision to tap this equity, however, should be taken carefully.

Most people access the equity in their home through two methods. The first is to get a home equity line of credit that can be tapped as money is need. The second is to do a cash out refinance where the original loan is refinance for a larger amount with the difference going into the pocket of the owner. The process of refinancing is fairly simple, but the real question is whether you should do so.

If you are sitting on significant amounts of equity, there is going to be a temptation to tap it for purposes that may not be wise. One of the classic temptations is to buy a new car. A credit line is opened and $30,000 or more is spent on a car. The problem, of course, is the credit line is rarely paid back in a manner that will pay off this debt in three to five years. Instead, it languishes over a longer period of time, long enough that the car is no longer worth anything or being used by the owner. In short, you have thrown away equity at a luxury item that ultimately has little or no value. The same goes for purchases of televisions, clothes and so on.

If you are sitting on a lot of equity in your home, you are best off fighting temptation. If you must access the equity, you should try to restrict using it to things that have value. The ultimate choice is to use the money to improve the home. Such improvements add to the value of the home and can be recaptured when it is sold. Buying a car/clothes/vacation does not and you will ultimately regret spending your money on such things.