Basics of Home Equity Loans

A home equity loan is secured by the equity you have in your home. Equity is the difference between how much your home is worth and how much you own on the mortgage. Lenders may offer as much as 75% to 90% of equity as a loan amount. This kind of a loan is a sound choice for meeting some financial needs as it offers low interest rates of a secured loan and may also have tax deductible interest.
There are two types of home equity loans – lump sum home equity loans and home equity lines of credit, also known as HELOCs and work like credit cards. Both these are often referred to as second mortgages, because they are secured by your property.
Lump sum home equity loan – is a one-time, up-front loan where you receive the full amount of the loan when it is opened and pay it back in fixed monthly installments at a fixed rate of interest. Your payments can be fully amortized or may consist of only interest with a balloon payment of the balance money owed at the end of the term of the loan. Once you get the money, you cannot borrow further from the loan. This kind of loan is good for home improvements, debt consolidation, purchase of large expenditure items like a car and paying unexpected and large bills like medical expenses.
Home Equity Line of Credit - allows you to have a maximum loan amount available which you can draw on as and when you need, usually by writing a check. Its revolving balance makes it similar to a credit card. You monthly payment is generally a percentage of the total outstanding principle. HELOCs are thus more flexible then lump sum home equity loans and allow you to borrow and pay back only when required. A line of credit has a variable interest rate that changes over the life of the loan.
With either a home equity loan or a HELOC, you are required to pay off the balance when you sell the house.
Home equity loan rates differ from lender to lender so it would be worthwhile to shop around for the best and the lowest interest rate. Compare the Annual Percentage Rate (APR) which indicates the cost of credit on an annual basis. Also consider other charges such as points and closing costs which will add to the cost of your home equity loan. Additionally there are different types of home equity loan rates like fixed and variable. Most home equity credit lines have variable interest rates. These variable rates may initially offer lower monthly payments, but during the rest of the repayment period the payments may change and may be higher. Fixed interest rates, if available, may be slightly higher initially than variable rates, but fixed rates offer stable monthly payments over the life of the credit line.
Qualifying for a home loan: Although there are no fixed rules, lenders look at two key factors while approving home buyers for the type and amount of mortgage they want – the borrower’s ability and willingness to repay the loan. Ability to repay is verified by your current status of employment and total income. Willingness to repay depends on the how the property will be used, for example will you be living there or just renting the property. It also depends on your fulfilment of previous financial commitments.
William Bristerhttp://www.mortgageproguide.com The basics of investing and personal finance. Useful information on investing in precious metals, stock options, mutual funds, bonds, annuities and other money making instruments.
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The Zero Down 80/20 Mortgage

This is an excellent loan for those that are lacking the down payment required for other types of mortgages.
The 80 20 mortgage is simply two loans for 100% of the purchase price. It is a first mortgage at 80% of the purchase price with a 20% second mortgage.
If you are a conforming borrower, doing your loan in this manner will save you from having to pay mortgage insurance. Mortgage insurance is almost always required when you have less than 20% down. But with the 80 20 loan you avoid this necessary evil.
If you are a sub-prime borrower, doing you loan in this manner will typically keep your interest rates ½% to 2.5% lower than doing a 100% one loan. A 100% one loan is simply one loan for the entire purchase price.
Many times you will have two choices when it comes to the second mortgage portion of the 80 20 mortgage. The second mortgage can either be a fixed second mortgage or it can be a line of credit.
If it is a fixed second mortgage. The interest rate is fixed for the entire length of the mortgage. Most fixed second mortgages are a 30 due in 15. Meaning that the second mortgage is amortized over 30 years, but is due in 15 years. Basically it is a balloon payment. Don’t let this scare you. Statistically people refinance or sell their home every 7 to 9 years any ways.
If it is a line of credit as the second mortgage. The interest rate will fluctuate as the Federal Reserve adjusts the prime interest rate up or down. The benefit of going with the line of credit as the second mortgage is that the interest rate is normally much lower than the fixed second mortgages rate. It can be 2% to 5% lower.
If you are considering doing the 80 20 loan have your loan officer compare the two different options if you have both available to you.
You may also want to consider an 80 20 interest only loan. The interest only loan could save you hundreds of dollars in mortgage payments every month. This can help you purchase a more expensive home or keep the payments down on the home you want to buy.
About The Author
Matthew Allen is a mortgage consutlant with Action Brokerage Services, Inc. in Medford Oregon. He is also the author of "How To Buy A Home With Zero Down, Even If You Have Damaged Or No Credit" You can visit his website at http://www.realmortgageadvice.com.
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Mortgage Cycling - Brilliant or Risky

With mortgage rates near 20-year lows, competition in the mortgage industry is fierce. It seems like every day a new mortgage loan strategy comes out that is suppose to be the best thing since sliced bread. Whether it's a mortgage with no closing costs or an interest only mortgage, everyone is claiming they can save you a ton of money. Now someone has come out with something called Mortgage Cycling. Mortgage Cycling could save you thousands of dollars or it could cost you your home.
Mortgage cycling is a program that advertises itself as a method to payoff your mortgage in 10 years or less without making biweekly mortgage payments or changing your current mortgage. Does mortgage cycling work as advertised? The answer is unequivocally yes – with a few caveats. I'm going to let you in on the secret to mortgage cycling.
Mortgage cycling is based on making huge lump sum principal payments every 6-10 months. What this means is mortgage cycling works well for those who have at least a few hundred dollars in extra cash at the end of each month. The problem is most people don't have that kind of cash available.
Mortgage Cycling relies on using a revolving Home Equity Line of Credit to make huge lump sum payments against their original mortgage principal balance. When you take out a home equity line of credit, you pay for many of the same expenses as when you financed your original mortgage such as an application fee, title search, appraisal, attorney fees, and points. You also may find most loans have large one-time upfront fees, others have closing costs, and some have continuing costs, such as annual fees. You could find yourself paying hundreds of dollars to establish a home equity line of credit. Most home equity lines of credit also carry what is known as interest rate risk.
Home equity line of credit interest rates are typically variable. The Federal Reserve is currently in the process of raising the overnight federal funds rate. As the Fed continues to raise rates, it is all but inevitable that variable interest rates for mortgages will also rise. Your savings may not be as great as anticipated.
While Mortgage Cycling does have some additional costs for most people, that is not what makes this mortgage reduction strategy risky. If you use a Home Equity Line of Credit and money gets tight, you could lose your home and the equity you have built up. Home equity lines of credit require you to use your home as collateral for the loan. This may put your home at risk if you are late or cannot make your monthly payments. And if you sell your home, most lines of credit require you to pay off your credit line at that time.
Mortgage Cycling requires you to make mortgage payments and Home Equity Line of Credit payments for up to 10 years. For most people mortgage cycling is an extremely risky way to payoff a mortgage. Mortgage cycling should be used only after a careful assessment of the risks and benefits. Prepaying your mortgage is smart. You should explore all of the mortgage reduction alternatives before choosing Mortgage Cycling as a mortgage reduction strategy.
George Burks of http://www.mybiweeklymortgagepayment.com has offered a biweekly mortgage payment plan with no enrollment fee since 1999. His interest in financial topic is varied. Visit http://www.mybiweeklymortgagepayment.com financial library for more information about a revolving Home Equity Line of Credit.
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Paying Off Debt with a Home Equity Loan

One of the best ways to pay off debt is getting a home equity loan or 2nd mortgage which will allow you to consolidate all your debts into one monthly payment. The majority of consumers in this country are over burdened with credit card debt, consumer loans, car loans and other financed items. Paying off all that debt can take time and patience. A good first step is consolidating all those bills into one more manageable loan.
If you are new to debt consolidation you may be asking how does a debt consolidation home equity loan work?
The idea behind this type of loan is really quite simple. The equity in your home is the difference between how much it is worth and how much you still owe on your mortgage. Aside from your credit score the amount of equity in the home will determine whether or not you will qualify. It is important to remember that a debt consolidation loan is not free money but because it usually comes with a lower interest rate it is easier on the budget and easier to pay off.
Before you decide on go out and get this type of loan it might be worth looking at some of the benefits it can bring.
The big benefit of getting a debt consolidation home equity loan is the easing of the debt burden. But there is a catch that you have to watch out for. Once you have used the equity in your home to pay off debts it is vitally important that your cease to use any and all credit cards and do not start financing new purchases. Not doing this can lead many people right back into an even bigger debt problem with the added threat of losing their home that was used as collateral.
Another benefit of getting a home equity loan is the interest paid is deductible on your yearly income taxes. While not quite as rewarding as having no debt being able to recoup some of the cost of the interest on your loan can make life a little easier. Aside from mortgages and home equity loans other debts such as credit card interest, car loans, payday loans and others are not tax deductible.
A home equity loan or line of credit can be a way for many people swamped in debt to gain some financial breathing room. These loans are not an instant fix, but rather a way to move all debts into one easy to deal with payment with a lower interest rate. It can be a good first step on the road to a debt free life. But this route to financial freedom will only work if you stay away from credit cards and work a budget that will get you on the road to building wealth.
To learn more about debt consolidation refinance please visit the website Home Equity Loan by clicking here.
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Home Equity Loans Refinance Credit - It's Time To Save Money

So you are dealing with a home equity that is asking you a little too much. Well, you are lucky: every time you are dealing with home equity loans refinance credit, you are having the opportunity to save money. Let’s see how.
Home Equity Loans Refinance Credit: What You Are Going To Get
Every time you are able to renegotiate a loan you are tied to, you have the opportunity to improve at least four key areas.
The first and most important is the interest rate you are paying. Of course this will affect all the money you are going to give back to the lender for all the instalments.
You can improve on the explicit and especially hidden expenses you are dealing with.
You can improve the cash flow stress you have to confront on big yearly expenses, i.e. you can improve the demand of money you are going to match, knowing that it will be different along the year (vacations and Christmas will drain sometimes significant money and this could lead you to trouble). Finally you can improve the overall cash flow demand along the year.
If you’ll be able to improve a little on each of the above items, your quality of life will greatly benefit from your refinancing effort.
The First Step For Your Home Equity Loan Refinance
Of course if you are resolved to exploit the many benefits of refinancing you’ll have to find a home equity loan type that will allow you to overcome these problems.
With "Flexible Home Equity Loans" you are going to get greater flexibility. These are Equity Loans that allow you to:
overpay instalments to reduce debt (so interests);
underpay instalments when you are short of money (if you have overpaid before);
skip a payment in the year if your previous overpayments have given you enough margin.
You can ask for a new flexible home equity loan with new terms that will pay the previous one. From that point on your financial constraints will be depending on the new loan and should be lighter than with your old debit.
Home Equity Loans Refinance Credit – Take Action And Save The Money
Now you are ready to take action and get a new home equity loan that will save you money. The are plenty of ways to do this. See Home Equity Loans Refinance Credit - 5 Steps You Have To Take To Save Money to get started.
Mark Tern is the author of the Home Equity Loans Special Report you can get for free at his Website. Check also his Home Equity Loans Blog where you can get more tips.
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A Second Mortgage is the Second Loan You Have Secured Against Your Home

A second mortgage is the second loan you have secured against your home. A second loan can be taken by home owners for any reason they might need the money for. Owning your own home makes it easy to loan money as you can secure the loan against your home.
Most home owners use this money to renovate their homes. As this loan is usually a large amount of money it will be able to pay for all the work that has to be done. It is worth the expense of the loan to have all the repairs done on your home.
Second mortgages have this name because they are the second loan that you have taken from a bank that is secured against your home. The first loan financed the purchase of your home. This loan will take many years to pay off and once you have added another loan to pay off you might find difficulty later on in paying them both off.
It is always wise to first make sure that there is no other way out for you to get access to cash than to take this loan. It will cost you a lot as the interest is higher on this loan than on the first one.
If you take a second mortgage on your home it is very risky as you will then have two loans secured against your home. The first loan is the one with which you purchased your home. If at any time got into financial difficulty and could no longer pay off the loans you could lose your home to the bank or building society.
Lee Van writes informative articles on various subjects including Second Mortgages http://www.secondmortgagessite.com
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Home Owners can Apply for a Home Equity Loan Whenever they Need Cash for a Special Project

Home owners can apply for a home equity loan whenever they need cash for a special project. Most home owners qualify for this loan as it is secured against the home. The bank or money lender will check an applicant’s credit record and they will have to produce proof that they can afford the monthly payments.
If an applicant has a poor credit history they will probably still give him or her, the loan but the loan charges would be higher. They could shorten the duration of the loan which would make the monthly payments more than they would have been.
The proceeds of the loan can be used for any purpose and it could be that you and your family have been dreaming for a long time about a wonderful holiday. You thought is would always have to remain a dream but by taking this loan you can make the dream come true. It is not always easy to save money from the monthly budget to pay for any pleasurable occasions. You will be paying for this holiday with a relatively low interest rate loan over a period of time.
Once this loan has been paid off in full there is nothing stopping you from borrowing the equity of your home again for the next project. Banks and money lenders encourage home owners to borrow this money as they profit hugely from them. The loans are secured against the borrower’s home and this minimises the chance of any loss of money by the lender.
The home equity loan is the ideal loan to use when you are consolidating your debts and need a loan to pay them all off. The loan is secured against your home which will make it easier to qualify for one. You will have a bad credit record as you are in debt so it will be difficult to take an unsecured loan. You might have to shop around to find a money lender willing to give you an unsecured loan if that is what you want.
A secured loan makes it safe for the lenders to give you a loan as they will have the purchase documents of your house in their possession and should you default in your monthly payments they can sell your house out under you.
These loans were first devised by the banks for home owners to use for home renovations. They have no problem what the proceeds of the loan are spent on as long as the monthly payments are promptly paid every month. As there is always work to be done on any house the proceeds of this loan come in handy to keep the house up to its original value.
Lee Van writes informative articles on various subjects. http://www.homeequityloanwebsite.com
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A Home Equity Loan is Available to all Home Owners

A home equity loan is available to all home owners as it is the difference between what is owed on a home and the value of the home. Most applicants qualify as the bank will check their credit record and want documented proof of monthly earnings in order to ascertain whether or not they are capable of paying off the monthly payments.
Home owners may borrow this equity whenever they need cash for any purpose. There is no control exercised by the bank on what the borrower spends the money on. As soon as a loan has been paid of in full they are at liberty to apply for another one if they require cash again.
The home equity loans are very popular with home owners and banks and money lenders alike. They are mostly used by home owners to finance improvements on their homes. Periodically repairs and renovations have to be done on the home to keep it up to the current market value. If this is not done the resale value of the home could be much lower than expected.
The banks and money lenders like these loans because they are secured against the borrower’s home and they do no stand a risk of losing their money. They also make huge profits from the interest rates and loan charges.
Because this facility is always readily available to home owners many of them take these loans but do not have any specific project in mind. This is considered to be spending money. This is not a good idea as you will be paying interest and loan costs to borrow this money and you will probably just be wasting it. If you were to get into financial difficulty and could no longer pay off the loan you could stand the chance of losing your home to the bank or money lender.
This author writes informative articles on various subjects.
http://www.homeequityloanlist.com
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125% Equity Home Loans

If you are a homeowner in need of a home equity loan but you have not yet built up any equity in your home, don't despair. A 125 percent equity home loan may be the answer.
A 125 percent equity home loan is a second mortgage loan that allows you to borrow up to 25% more than the value of your home. For example, if your home is worth $100,000 and you owe $100,000 on the mortgage, this loan program would allow you to still borrow up to $25,000.
The 125 percent equity home loan is offered by various online lenders. Each lender has their own qualification and loan term guidelines but generally this is a credit score driven loan program. Credit score driven means that you have to have a certain credit score to qualify for the loan. In addition, your credit score usually determines the maximum loan amount you may qualify for and the maximum cash in hand you may receive. Also, some 125 percent equity home loan lenders may require seasoning on the length of time you have lived in your home. Three months is normally the minimum.
When it comes to a property appraisal, most 125 percent home equity loan lenders do not require you to obtain one. They generally will use the purchase price of your home as the value if you have lived in your residence for 12 months or less. If you have lived in your home over 12 months, a recent tax assessment, simple drive-by appraisal, or automated value model (avm) can be used. An avm is a computer generated assessment of your home's value which is based on recent home sales of comparable houses in your neighborhood.
For more information on 125% home equity loans, or to compare rates and programs of 125% home equity loan lenders visit http://www.equityloansource.com
Levetta Rivera is a successful mortgage broker and publisher of the following financial websites: http://www.equityloansource.com and http://www.militaryvaloan.com
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Your Home Secures Your Debt

It is your home that secures your debt in a mortgage as well as a second mortgage. Mortgage lenders are always on the lookout for new ways to earn more money from homeowners and they are often financially creative. A reverse mortgage for example is not a sale. This type of mortgage is just compounded each year, with the interest rolled up into the capital. It can be regarded as a problem that the debt increases each year that the mortgage is open. On the other hand you can use and enjoy the funds you otherwise should have tied in your house.
The adjustable rate mortgage is a mortgage where the rate is composed of interest rate and an index. So adjustable mortgage rates vary according to various economic factors. Therefore, the monthly payment will also accordingly go up or down throughout the term.
Generally interest can be either fixed or adjustable. The truth which should not be overlooked is the high rate of interest generally charged by the lenders in case of poor credit mortgage. A plan with mortgage cycling could work well for the dedicated purchaser who puts all extra money and bonuses into the mortgage account as payment on the balance. At the same time you can build yourself $14,000 in equity within the first year of using this plan. How would you like to have built $44,972 in just three short years? This can easily be accomplished for you with the Mortgage Cycling plan.
If you only plan on living in a home for three to five years, a loan in which the interest is fixed for five years is perfect for you. Do you know how much repayment and interest add up too? If you borrowed 100,000 over 25 years, with a repayment and interest mortgage you will have to payback 190,000! In case of a reverse mortgage loan, the loan is repaid through the sale of the house when you die. If the value of the loan and interest is more than the house is worth, the lender takes the loss.
Interest only loans are ideally suited for various strata of the society. One reason that these loans are meant for older people is that they are not usually repaid until the borrower pass away. The type of commercial mortgage loans the borrowers want and the objective behind such loans should be taken into consideration. Sub prime lenders have originated many adjustable rate loans in the past several years that were priced at below market interest rates. Now these loans will have payment increases. Many money lending agencies have jumped on to the band wagon and started lending very small loans over a very short period of time. The duration of the loans are from one day of payment to the next, this is how these loans got their name, payday loans.
The mortgage loan is a major debt and should be covered by a life insurance. It is one of the most important life insurance policies a person who owns a home can buy. What you should look for is for example a 20 year decreasing term policy which would usually be sufficient if you should die anywhere within the mortgage period. Actually that is what mortgage life insurance is all about. Mortgage insurance has in some countries been recommended by the government to the home owners. Millions of people in UK now have mortgage insurance as an essential part of their financial planning.
As with mortgages, the rates of the insurance can be either fixed or adjustable. The fixed rate mortgage insurance is constant for the entire life of the mortgage, while adjustable-rate mortgage insurance varies according to market fluctuations in rates.
Lenders usually lend up to 75-95 percent of the home equity. Where the home equity is the difference between current value and amount owed. Financial decisions need to be approached with caution, and when dealing with a home a person needs to be extra cautious.
Equity should be thought of less as a cash-cow and more as an emergency safety net because the mortgage is secured by the asset. If you have problems with the payments, your house can be taken from you.
Keith George always writes about valuable news. A related resource is Mortgage Loan Further information can be found at Home Mortgage Cycling
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Home Equity Loan - What Is It?

If you own a home then you've probably heard the term, home equity loan, or home equity line of credit, but perhaps you really don't understand the meaning. No problem, you are certainly not alone.
Financial terms like home equity, second mortgage, or 125% equity loan can be challenging. So, here is a quick explanation on equity and how it applies to you.
Basically, equity is the value of something you own, like a car or home, minus what you still owe on it. Think of it as what you can put in your wallet after you sold the item and paid off the loan.
Here's a quick visual example. Let's say you own your home and it is currently worth $175,000. You have a loan balance, or mortgage balance, of $100,000. The equity in your home would be $75,000.
Of course, with every payment you make on the mortgage, the less you owe on the loan, and the more equity you'll build up.
This sounds great, but remember, in the beginning you will always be paying more in interest charges than on the principal balance.
It's only later that you will really begin building up equity in your home. Of course, if housing values continue to rise you'll build up equity that way too.
The worst example of equity is with a new car. Because of how quickly they depreciate, cars rarely have any equity value after the loan is paid.
So, when you hear someone talking about a home equity loan, you'll now have a better understanding of what they're talking about.
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By the way, you can learn more about what are Home Equity Loans as well as more information on everything to do with home equity loans, visit us at http://www.HomeEquityLoansA-z.com
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Home Purchase Loans - When Should I Have a Down Payment?

Get a lower interest rateIf you have 20 percent of the value of the home to put down as a down payment, you can find yourself having a lower interest rate and you won’t have to pay private mortgage insurance premiums. Investing the 20 percent of the money in a down payment can be a great way to invest your money in your real estate and secures your money for you for the future.
Invest your money elsewhereIf you don’t have the 20 percent to put down or if you have a lot more than 20 percent to put down as a down payment, you should first look for other ways to invest your money. You may be able to find a better place to put your money as an investment. Look at stocks, mutual funds, certificates of deposits—whichever investment forms work for you.
Putting more than 20 percent of the value of your home down as a down payment doesn’t net you a whole lot unless you have a personal concern about having a sizable debt to your mortgage lender. The other good reason for investing your money in your property is if you belief putting your cash into the value of your home will prove to be a better investment than investing your money in other ways.
What if I have less than 20 percent?Carefully consider what to do with your money. There are many ways to get a mortgage loan, even if you don’t put any money down as a down payment.
The Bottom LineThe main reason to invest as much as you can in your home as a down payment even if you don’t have the 20 percent down payment is because the more money you use as a down payment, the smaller your loan. And the smaller your loan, the less money you’ll owe in interest payments each month.
Save Money By Applying Here - Save money on your next mortgage loan by applying with one of our recommended mortgage lenders.Also, see 15 Bad Credit Mortgage Tips
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Home Mortgage Loans-Top Tips on Pitfalls

If you avoid these common mistakes you will be well on your way to having done your job-finding the right mortgage for your needs.
• Don't necessarily gravitate to a FIXED RATE MORTGAGE. A perfect example is my son-in law and daughter in Las Vegas. He flies for the Thunderbirds and knew when he got to Las Vegas that it was only going to be for two years then he'd move. So why pay more for something he didn't need. Take the lower rate ARM and go for it.
• PREQUALIFICATION VS PRE-APPROVAL- Know the difference and don't confuse the two. Prequalification is basically nothing. Pre-approval is going thru the whole process of applying for a loan and actually gives you useful information.
• THE TRAP-"how much can you afford"? Once you are pre-approved, some lenders will try to steer you to a bigger loan than you need. When you hear someone tell you you can afford to get a bigger mortgage I'd get my antenna up. You know how much you can afford.
• Avoid loans that have a PREPAYMENT PENALTY. If you do prepay on a loan with such a provision you may be charged thousands in penalty. So stay away in the first place.
• Avoid the 125% LOANS. There are plenty of reasons to avoid these types of loans and their variations. The temptation is huge to borrow more money than the home is worth. But to give an example in today's market, with declining values and a depressed market it wouldn't take too much for you to be in big trouble financially.
• Avoid MORTGAGE LIFE INSURANCE. Insurance is important but mortgage life insurance is an overpriced product. Other products can meet your needs more effectively.
In essence, when you get to the point of getting a mortgage don't be overwhelmed with how easy it is to get more money than you ever thought possible. It is easy. The industry makes it that way. Use your head and keep your cool. Don't be overwhelmed!
Jack Krohn is a leading free lance writer on Home Equity and Mortgage issues with over 40 articles to his credit. He is also the #1 author of Home Security Articles in the country according to Ezine Articles.
The absolute best, most up-to-date and valuable information and resources on mortgages and home equity loan matters is at LEARN ABOUT MORTGAGES and LEARN THE POWER OF HOME EQUITY LOANS
Homeowners can get valuable FREE information about HOME SECURITY
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Home Mortgage Loans For People With Bad Credit

Getting a home loan with bad credit has actually never been easier than it is today. Here are some tips to help improve your chances of success:
Find A Good Real Estate Deal – If you can find a property that has some equity in it when you purchase it, you may have an easier time getting financing on that property. To the lender it may be almost as good as if you had some kind of down payment on the property. Some lenders will consider the properties loan to value ratio when they consider the loan. Talk to your mortgage broker and see if this factor could help you get qualified.
Try Creative Financing – See if the seller would be willing to carry back a second mortgage on the home. This is where you set up a contract or agreement with the seller that you will pay them monthly payments, including interest of, let’s say, $150/mo on $10,000 dollars of the price of the property, as a second mortgage. Then, to make it nice for the seller, perhaps put in the agreement that the entire amount is due in full within 2 years or something. That should give you plenty of time to refinance and then the seller doesn’t feel permanently locked into the contract.
Save For A Down Payment – There are lenders who may be able to qualify you for 100% financing, even with low credit scores, but your interest rate will be much lower if you can put even 3-5% down. If possible, try to save as much as possible for a down payment. Sometimes it may be better to wait about 3-6 months to get into a new home loan if it means the difference of having a down payment. The interest rate could be quite a bit better because of that factor. However, if you don’t want to have a down payment, you can always refinance later for a lower interest rate.
Shop Around – There are some mortgage brokers out there that you will talk to who will say, “I can’t help you, and if I can’t help you, no one can help you.” But, if you persist in talking with other brokers, 10 minutes later you could be talking to someone who knows a way to help you, no problem. Most brokers feel that if they can’t help you, no one can. However, the ironic thing is that each broker is varied in the types of loans they can do. Some brokers have relationships with flexible mortgage lenders and others do not. I recommend applying online to mortgage services that will submit your application to multiple lenders. That way, your credit is only pulled once, and you can analyze offers from multiple lenders. To see our list of recommended bad credit mortgage lenders, visit here recommended bad credit mortgage lenders
Improve Your Credit Score – There are some really simple ways to improve your credit score without spending too much time at it. All 3 major credit bureaus now have areas on their websites where you can dispute incorrect items on your credit. The process is very quick and easy. Make your current payments on time to help your score. Keep your number of credit inquiries down. Too many inquiries can hurt your credit score. If you want to buy a house, don’t apply for any credit cards, auto loans or any other type of loan if you can avoid it. For your reference, here are the links to all 3 major credit bureau’s websites: www.abcloanguide.com/credithelp.shtml
If you really do want to get into a home, don’t let bad credit stop you. There are lenders out there who can help you, it just takes some persistence. Apply with multiple lenders. Like I said, apply with mortgage services that specialize in bad credit mortgage loans and will submit your application to multiple lenders with only having one credit inquiry.
Carrie Reeder is the owner and webmaster of http://www.abcloanguide.com. Visit her site for informative loan articles and lists of recommended lenders for bad credit mortgages.
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Refinance Home Mortgage Online - Beware Computerized Loan Origination Fees

If you are in the process of refinancing your mortgage on the Internet, there are a number of garbage fees you need to avoid. Computerized loan origination fees are among the worst; unknowingly agreeing to pay this fee can cost you as much as $1,300 for no reason. Here are several tips to help you avoid garbage fees when refinancing your mortgage online.
Computerized Loan Origination fees are paid to websites that generate leads for mortgage companies and brokers. These websites have absolutely nothing to do with mortgage loans; they slap up websites with a contact form and drive traffic to them from the search engines. When you fill in your financial information and contact information the company gets paid by selling your details.
There’s nothing wrong with companies that sell leads in general; the problem comes from companies that pass the fee on to you the borrower. One particular “Lending” site that advertises on television promising to get mortgage lenders “competing” for your business receives up to $1,300 for selling your information. Take a minute to read the licenses & disclosure statement found on this website and you’ll discover the fee is passed on to you at closing.
Is charging someone $1,300 for the privilege of filling out a contact form on your site even legal? It is if you disclose what you’re doing; however, as you’ll find this disclosure is buried deep in the fine print. How can you avoid paying this ridiculous garbage fee when refinancing your home mortgage? Always read before you submit any information to find out if there is a fee and if it comes back to you on your Good Faith Estimate.
You can learn more about refinancing your home mortgage online while avoiding costly mistakes with a free mortgage tutorial.
To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this free video tutorial: "Mortgage Refinance - What You Need to Know," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com.
Get your free mortgage refinancing tutorial today at: http://www.refiadvisor.com
Home Mortgage Refinance Loan
Article Source: http://EzineArticles.com/?expert=Louie_Latour

Bad Credit Home Mortgage Loan

In this article I intend to show you that just because you have bad credit doesn’t make you a bad person. If you’re looking for a home mortgage loan then I am here to tell you there are options.
So you have bad credit and you’re sick of paying rent. You worry about applying for a loan because you hate being turned down. You have pretty much given up on your dream of being a home owner. You need to know that there is help out there for you. It’s a lot different today. There are many home loans that you can apply for to make sure your dreams of being a home owner does come true.
Something you have to realize is that home loans are very flexible. These loans can be adjusted to meet the needs of almost any borrower. You have to be willing to take your time and talk to different lenders. You have to make them aware of your bad credit or new circumstances and almost all of them will be willing to work with you.
If you know you have bad credit and you are quite sure you will be turned down at the traditional mortgage places then you want to go to sub prime lenders. Bad credit mortgage companies specialize in mortgages for people with challenged credit. You do need to know that over the life time of the loan you will end up paying more but that is really a small price to pay to have your dream come true.
With today’s technology just about everyone has been on the internet for one reason or another. There are many companies on line that will help people with bad credit to get mortgages. All you have to do is search them out. While there are a lot of good companies on the net there are also a lot of scams. So while there is help on line I will warn and ask you to make sure you do your home work on the company you are thinking of dealing with.
There are a few lenders that will really try and help a person with bad credit trying to buy a home. They will give you a mortgage that you only pay the interest on for a few years. This gives you time to work on getting your credit into better shape. So then years later you can then refinance so that you can start paying the principal. Chances are at this time if you worked on your credit you will get a better interest rate at this time.
Dale Mazurek
Dale has personally experienced bad credit and getting out of it. The easiest way to work on getting your credit is with a credit card. Dale has a number of credit cards available for people with most needs. Just go to http://stcajo.ecreditdirectory.com/ On a different subject you can also check out 2 of his very popular blogs at http://relationshiptidbits.blogspot.com/ or http://fishingtutor.blogspot.com/
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Mortgage Tutorial - The ABCs of Refinancing Your Home Loan

If you are looking to refinance your existing mortgage or considering a cash-back refinance loan, here are several tips to help you with the process. Careful comparison shopping can save you a bundle of cash, if you avoid Yield Spread Premium and Computerized Loan Origination fees in the process. Here’s how you can refinance your home mortgage loan while avoiding these costly mistakes.
If you’re not familiar with Yield Spread Premium, it is simply the markup of your mortgage interest rate by the loan originator for a commission. Mortgage loans are retail products just like cars; like a car the dealer marks up your mortgage rate for a profit. The problem with Yield Spread Premium is that you’re already paying origination fees for your loan representatives work on your loan. If you pay this markup it’s like paying double (sometimes more) for your home loan, not to mention the unnecessary mortgage interest you’ll pay every year that you keep your loan.
Computerized Loan Origination fees on the other hand are fees collected by websites masquerading as mortgage and lending portals. These sites have absolutely nothing to do with mortgage loans and exist only to collect your personal information and sell it to any mortgage lender willing to pay for it. The names of companies online that engage in this type of activity would surprise you; many advertise on television promising to get mortgage lenders competing for your business. The problem with this Computerized Loan Origination fee is that it’s often passed to you on your Good Faith Estimate. Homeowners who neglect to read the fine print before filling out a form and clicking submit can find themselves paying as much as $1,300 at closing unnecessarily. The number one rule of using the Internet with your finances: always read before you click.
You can learn more about your mortgage refinance options, including expensive pitfalls you need to avoid with a free mortgage tutorial.
To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this free video tutorial: "Refinance Home Mortgage Loan - What You Need to Know," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com.
Get your free mortgage refinancing tutorial today at: http://www.refiadvisor.com
Home Mortgage Refinance Loan
Article Source: http://EzineArticles.com/?expert=Louie_Latour

Poor Credit Home Mortgage Loans - The Role of the FICO Score

If you have bad credit history and are looking to get a home mortgage loan, then chances are you are going to need to know all about how the FICO credit scoring system works.
FICO – Fair ISAAC & Company – is the leading credit reporting agency that lenders turn to when it comes time to credit scoring your home loan mortgage application; so if you do have bad credit history, these guys will know.
The formula used by FICO cannot be disclosed because of a decision made by U.S. Congress. There are some things generally known about FICO which that could help you understand why and how you can get approved:
1. The higher your FICO score, the better chance you have of getting that home mortgage loan. Also, the higher your score, the more room you have to negotiate a lower interest rate.
2. If you have a FICO score lower than 500, there is very little chance you’ll be getting a mortgage home loan.
That said, if you have a score of:
500 – 600 you should be able to get a home mortgage loan, provided you are willing to make a down payment.
600 – 640 You should get a 100% home loan financing. Thats right, with no money down.
640 - 700 You should be able to be approved for a 125% home mortgage loan. 700+ You’re in the drivers seat! You should be able to get an excellent rate with excellent terms.
3. FICO depends on each credit report, so before you apply for a home mortgage loan, if you have bad credit history, get a copy of your credit report and make sure there is nothing on there that shouldn’t be there. If there is, get it changed before you apply for the home mortgage loan.
4. Wait until after you have purchased or refinanced your home before you buy anything additional on credit. More loans or higher balances can have a dramatic effect on your mortgage approval, regardless of whether or not you had over a 600 FICO score before you bought on credit.
5. Remember, the FICO score is only a part of your home mortgage loan application, so if at first you don’t succeed in getting your home loan mortgage, don’t give up. Some lenders may still be willing to lend to you!
People with bad credit often don't understand how the credit scoring system works. It is beneficial to find out more about it when looking to get a home loan with less than perfect credit to bad credit or when dealing with sub prime mortgage lenders.
To view our list of recommended bad credit mortgage lenders online, visit this page: Recommended Bad Credit Mortgage Lenders
Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans. The site has many informative articles and the latest finance news.
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