Refinance vs second mortgage: Which one is good for you?
When shopping for a mortgage lender, it is important to know which loan product would best fit your borrowing needs. Here are tips to help you weigh refinance vs second mortgage and how your choice can make a difference in your finances. Situation A: Refinance You can refinance your existing mortgage and take cash out. If you home has an appraised value of $300,000 and you still have an outstanding balance of $200,000, it means your equity is only $100,000. You can refinance your loan and take out $100,000 to pay for your urgent expenses. Your new loan is now $300,000. Situation […]
4 Reasons to Get a Home Loan with Bad Credit
It’s Christmas Eve, and bad credit should not stop anyone from getting a refinance or second mortgage. In fact it is a good reason to get one. The fear of paying very high interests is one of the reasons borrowers dodge the idea of getting a home loan. Those who have gone through a foreclosure or bankruptcy are one of those people who think that a tanked credit will make them pay more than a borrower who has a stellar credit, but that’s not really true. Here are some of the most practical reasons why a borrower with a dismal […]
Second Mortgage: Alternative to Bankruptcy
Many borrowers think that bankruptcy is a practical option to solve their debt problems. But, the truth is that second mortgage is an affordable and practical alternative to bankruptcy that would help you reduce your debts without going to court. Why take a second mortgage When you are faced with multiple debts and you no longer have enough money to pay for them all, and creditors as well as credit collectors are knocking at your doorstep, use your house as a shield. Obtain a second mortgage to consolidate your debts. It is an easy way to pay off debts and […]
4 Overlooked Reasons of Defaults
Some people are lucky enough to win the lottery and achieve financial success overnight. But, hundreds of thousands of people—if not millions around the world; run into loan defaults at some point in their lives. Financial success is not attained by sheer luck. In fact, it is the opposite. Any finance guru would tell you that patience and hard work are vital in avoiding financial failures. If you have loan defaults right now, here are four potential reasons you shouldn’t ignore: You overlooked the interests and fees The higher your interests, the bigger your monthly payment will be. But, if […]
Why High-Risk Borrowers Need To Apply For Mortgages
If you’re struggling with bad debt, you may hear some people giving unsolicited advice like, “If you don’t want to go bankrupt, don’t pay your debt with another debt-much less with mortgages”. Yes, being high risk borrowers could mean higher interest rates, but it doesn’t mean that you’ll be in deeper trouble if you get a reasonable loan. It’s just a matter of learning the proper borrowing-and-repayment strategy. Here are some of the most practical reasons why a secured loan like mortgages can be a very practical option for you. As a high-risk borrower, you have the greatest need for […]
Is it Practical to Get Personal Loans to Pay for My Home Loan?
If you’re in need of some extra cash to fund a down payment to your house or to keep up with your monthly mortgage dues, you may have considered taking out personal loans. Personal loans and home equity loans are two of the most availed financing options. In fact, they are relatively easy to get-because of less-strict lending requirements compared to other types of loans. Equity loans, like personal loans application can be done online and are generally processed and approved in a matter of hours. Despite the fact that personal loan seems to be an attractive and less-complicated loan […]
Checklist Before Applying For First Time Home Loan
Do you want to grab the best first time home loan deal? Here’s how to improve your chances of getting approved for a mortgage you can afford. List your assets To qualify for a first time home loan, lenders would want to know your monthly income. Whether or not it is sufficient to meet your monthly mortgage plus other debt obligations will determine the amount you will qualify for. When listing your assets, don’t include car which is still on loan, or other assets that serve as collateral. Lenders are looking for liquid assets or those that you can easily […]
Poor Credit Mortgage Loans: Factors Affecting Your Borrowing Capacity
Are you planning to buy your dream house? Remember that your borrowing capacity depends on various factors. Whether you’re planning to apply for poor credit mortgage loans (bad credit loans) or a regular mortgage, here are a few factors that may affect how much you can borrow. Credit score As mentioned above, the higher the score, the better is your chance of getting a loan. Financing companies give preference to borrowers with good credit history. So, if you have been reliable in paying your utility bills and outstanding debts on time, lenders may quickly approve your loan. But, if there […]
Should I Get A Second Mortgage To Pay Off Bad Credit Loans?
If you have bad credit loans and your mortgage payment has increased because you missed several payments, will you consider getting a second mortgage? Home owners with existing first mortgage know that personal circumstances change, mortgage interest rates increase and defaults often lead to foreclosure and forced sales. If you cannot afford your current monthly mortgage payments and you have existing bad credit loans or numerous credit accounts, losing your home is just half of the problem. The other half is getting back your credit rating so you can qualify for other loans to save your home, pay your existing […]
Top Mortgage Refinance Mistakes to Avoid
Mortgage refinance is a serious financial strategy that should be carefully thought about. Learn about the common mistake that borrowers make when refinancing their mortgage and learn to avoid them. Not planning head of time. Mortgage refinance is a strategy, and must not be taken lightly. Why do you want to refinance your home? It is important to list all your reasons before you take the plunge. If you want to lower your payment, then think about ways on how you can lower it. Maybe you can call your mortgage company and negotiate a deal. Or, you […]