Determine if an Equity Home Loan Second Mortgage is Right for You
If you're wondering whether or not you should tap the equity in your home for a loan, you may have discovered that there are a few different ways you can borrow that money. For example, you can borrow it as a home equity line of credit, or HELOC, which, similar to a credit card, allows you to draw off the balance over and over again. On the other hand, a home equity loan, sometimes referred to as a Second Mortgage, pays you the amount you borrow in one lump sum, and you can't access it again without taking out another loan. So, is an equity home loan second mortgage right for you? Probably, if you can answer "yes" to these questions:
Do You Have Significant Equity In Your Home?
Most lenders allow folks to borrow
up to 80% of the equity in their home. The equity is the value of your home
minus any amount you still owe on it. So, if your home is worth $200,000, and
you have $100,000 left on your current mortgage, you have $100,000 in equity.
Since you can usually borrow up to 80% of that amount, the maximum amount of
your loan will be $80,000. Do your own math to calculate if you have enough
equity in your home to borrow enough to meet your needs.
Do You Need One Lump Sum?
If you're paying for college, buying a car, remodeling
your home, or need the cash for a medical bill, chances are one lump sum payment
will be sufficient. However, if you'd like to use the cash for an emergency
fund, or if you'll be making small repairs to your house over a long period of
time, it might be better to choose the home equity line of credit since you can
borrow from it over and over again.
Can You Make Payments?
With any home equity loan second mortgage refinancing,
your home is used as collateral on the loan. That means, if you can't make payments on
time, and you default on the loan, the lender may be able to take your house.
You should only choose a home equity loan if you're certain that you'll be able
to make all your payments in the future.
An equity home loan second mortgage is a smart idea for responsible borrowers
who need an inexpensive, quick loan. You can check with your current mortgage
lender to find out if you qualify for the loan, or you can search online for
home equity lenders.
See our Recommended Home Equity Loan Lenders Online
วันพุธที่ 30 กันยายน พ.ศ. 2552
วันอังคารที่ 29 กันยายน พ.ศ. 2552
Removal of a 2nd Mortgage Through Chapter 13 Bankruptcy
Removal of a 2nd Mortgage Through Chapter 13 Bankruptcy
Chapter 13 Bankruptcy offers an important, and often unknown, option to consumers who have residential real estate mortgages. Namely, removing a junior lien holder or "2nd" from your debt. Since the value of real estate has decreased, a common complaint I hear is, "I cannot believe I am paying more than my house is actually worth."
If you purchased a home in the past three to four years and financed with 80/20 mortgages, or if you refinanced your home and took out a second mortgage, chances are you can completely remove that second mortgage and other junior liens from your home.
Imagine...file a chapter 13 Bankruptcy to eliminate all your credit card debt, reduce your car payments, cure the back payments on your first mortgage and now, entirely remove your second mortgage.
In addition, if your house value bounces back, that equity is yours to keep.
It is important to realize that the removal of a 2nd mortgage is available in a Chapter 13 bankruptcy only. The ideal candidate for this process has a 2nd mortgage on a home that is no longer appraised at or above the amount of the 1st mortgage. It is necessary to obtain comps for the property and an appraisal to establish your the fair market value of the home.
If the fair market value works, a motion to get court approval will need to be filed. The mortgage company may oppose this motion. This will then require an evidentiary hearing and perhaps an adversary complaint. If the court decides that the fair market value of the home is below what is owed on the first mortgage, the second mortgage is "stripped" from the home and the debt associated with the second mortgage is made an unsecured debt (essentially being treated like credit card debt). Typically, in a Chapter 13 bankruptcy, a small percentage of the unsecured debt is paid, if at all.
Once the motion is approved, you will need to make all plan payments (over a 3 to 5 year period) and obtain your discharge. Once the debts are discharged, the second mortgage is completely gone.
Under existing Bankruptcy laws, debtors are not able to force a first mortgage to modify the terms of the mortgage on loans for their primary residence. Many lenders who realize the alarming state of the economy are willing to negotiate a modification of their mortgage, allowing a debtor to lower their monthly payments. This is a relatively recent change for many lenders who had previously refused to accommodate such requests. Such a modification may drastically help a homeowner who wants to keep their home but who is suffering from a reduction in income and home value. This benefit is even more evident when used in conjunction with the removal of a second mortgage for debtors who have both a first and second mortgage.
Further, recent legislation was introduced in Congress in the first week of 2009 that would now allow Bankruptcy judges in Chapter 13 cases to modify first mortgages by:
-reducing the amount of the secured claim (i.e. lowering the balance on the mortgage/deed of trust that is secured by the home);
-changing the interest rate of the loan or modifying the adjustable feature of certain loans; and/or
-changing the term of the loan.
This bill, if enacted, would finally provide some relief to homeowners. In the past, the mortgage lenders have vehemently opposed such a change. However, this time may be different. News reports indicate Citigroup has already suggested that it would support this legislation with some minor revisions, one of which is to require that a homeowner first attempt to modify the loan directly with the lender(s) before the loan can be modified by a Bankruptcy judge.
Call the Christopher Legal Group to discuss your options regarding removing a second mortgage from your home. It's worth it.
Shawn Christopher is an attorney licensed in Nevada and California. His office is located in the Las Vegas area. For more information on his firm, please visit his website, http://www.christopherlegal.com or for more specific information on bankruptcy, please review http://www.bklasvegas.com
Chapter 13 Bankruptcy offers an important, and often unknown, option to consumers who have residential real estate mortgages. Namely, removing a junior lien holder or "2nd" from your debt. Since the value of real estate has decreased, a common complaint I hear is, "I cannot believe I am paying more than my house is actually worth."
If you purchased a home in the past three to four years and financed with 80/20 mortgages, or if you refinanced your home and took out a second mortgage, chances are you can completely remove that second mortgage and other junior liens from your home.
Imagine...file a chapter 13 Bankruptcy to eliminate all your credit card debt, reduce your car payments, cure the back payments on your first mortgage and now, entirely remove your second mortgage.
In addition, if your house value bounces back, that equity is yours to keep.
It is important to realize that the removal of a 2nd mortgage is available in a Chapter 13 bankruptcy only. The ideal candidate for this process has a 2nd mortgage on a home that is no longer appraised at or above the amount of the 1st mortgage. It is necessary to obtain comps for the property and an appraisal to establish your the fair market value of the home.
If the fair market value works, a motion to get court approval will need to be filed. The mortgage company may oppose this motion. This will then require an evidentiary hearing and perhaps an adversary complaint. If the court decides that the fair market value of the home is below what is owed on the first mortgage, the second mortgage is "stripped" from the home and the debt associated with the second mortgage is made an unsecured debt (essentially being treated like credit card debt). Typically, in a Chapter 13 bankruptcy, a small percentage of the unsecured debt is paid, if at all.
Once the motion is approved, you will need to make all plan payments (over a 3 to 5 year period) and obtain your discharge. Once the debts are discharged, the second mortgage is completely gone.
Under existing Bankruptcy laws, debtors are not able to force a first mortgage to modify the terms of the mortgage on loans for their primary residence. Many lenders who realize the alarming state of the economy are willing to negotiate a modification of their mortgage, allowing a debtor to lower their monthly payments. This is a relatively recent change for many lenders who had previously refused to accommodate such requests. Such a modification may drastically help a homeowner who wants to keep their home but who is suffering from a reduction in income and home value. This benefit is even more evident when used in conjunction with the removal of a second mortgage for debtors who have both a first and second mortgage.
Further, recent legislation was introduced in Congress in the first week of 2009 that would now allow Bankruptcy judges in Chapter 13 cases to modify first mortgages by:
-reducing the amount of the secured claim (i.e. lowering the balance on the mortgage/deed of trust that is secured by the home);
-changing the interest rate of the loan or modifying the adjustable feature of certain loans; and/or
-changing the term of the loan.
This bill, if enacted, would finally provide some relief to homeowners. In the past, the mortgage lenders have vehemently opposed such a change. However, this time may be different. News reports indicate Citigroup has already suggested that it would support this legislation with some minor revisions, one of which is to require that a homeowner first attempt to modify the loan directly with the lender(s) before the loan can be modified by a Bankruptcy judge.
Call the Christopher Legal Group to discuss your options regarding removing a second mortgage from your home. It's worth it.
Shawn Christopher is an attorney licensed in Nevada and California. His office is located in the Las Vegas area. For more information on his firm, please visit his website, http://www.christopherlegal.com or for more specific information on bankruptcy, please review http://www.bklasvegas.com
วันจันทร์ที่ 28 กันยายน พ.ศ. 2552
Can a Second Mortgage Declare Foreclosure Before the First?
Can a Second Mortgage Declare Foreclosure Before the First?
In most cases of foreclosure, it is the first mortgage company that initiates the process. The second mortgage may file its own foreclosure in order to protect its interest in the property, but even this is somewhat uncommon. The second lender would much rather work with the homeowners to find a solution to avoid foreclosure entirely, if possible. However, if the homeowners are simply too far behind on the second mortgage but up to date on the first, there is a good chance that the second lender will declare foreclosure on the house.
Any lienholder can try to force a sale of the property through foreclosure, but usually only the first mortgage will get paid off through the proceeds of the sale. This is because there usually just are not enough proceeds at all for even the first lien to be paid in full, let alone extra ones after that. It just makes more sense for the second mortgage to try to work with the debtors to find a solution, since they would most likely not get anything from a sheriff sale. Especially with the declining real estate market right now, second mortgages may have loaned tens of thousands of dollars more than the home is currently worth, which guarantees they will not receive anything from a sheriff sale. County foreclosure auctions usually consist of very low bid amounts and few bidders, resulting in properties selling for far less than their current market values.
If a participant at the foreclosure auction placed a bid and won, the proceeds of the sale would be distributed like any other foreclosure, regardless of which mortgage company actually began the foreclosure process in the courts. The property taxes would be paid first, since the bureaucrats need to get their hands on the money as quickly as possible. Then the first mortgage would be paid off with as much of the proceeds as are left. Unfortunately for second mortgage companies and other junior lienholders, the winning bid at auction is usually not even enough to cover the entire first mortgage. In fact, most of the time it is one of the banks that bids on the property to ensure that they will be able to sell it after the foreclosure if there are no other bidders.
After the first mortgage is paid off in full, though, then any other liens, including the second mortgage, would be paid in order of when the lien was filed with the county recorder. If there is enough money to pay all of the second mortgage, then they get all of the rest of the money until their lien is paid in full. Then anything remaining goes to other liens or to the homeowners as their gain from the sheriff sale. If there is not enough to pay off the second mortgage (or even all of the first mortgage), then the second will not be paid off at all or in full. It will be up to the mortgage company to sue afterwards for a deficiency judgment after the foreclosure has ended (an unlikely occurrence).
Thus, just because it is a second mortgage who begins the process of foreclosure, it will not really change the order of how the liens are paid off through the foreclosure auction. Any bidder at sheriff sale, whether the bank or a third party, will still end up with a title that has had the liens on it discharged through the county foreclosure auction. And the homeowners will have to move out of the property at the appropriate time or be faced with the possibility of a forced eviction. No matter which mortgage company initiates the foreclosure, the process will move through the court system in exactly the same way.
The ForeclosureFish website has been created to provide homeowners in danger of losing their houses with relevant and important foreclosure help and resources. The site describes various methods that may be used to save a home, such as foreclosure refinance loans, mortgage modification, short sales, bankruptcy, and more. Visit the site to read more articles about how foreclosure works and how the process may be avoided before it is too late: http://www.foreclosurefish.com/
In most cases of foreclosure, it is the first mortgage company that initiates the process. The second mortgage may file its own foreclosure in order to protect its interest in the property, but even this is somewhat uncommon. The second lender would much rather work with the homeowners to find a solution to avoid foreclosure entirely, if possible. However, if the homeowners are simply too far behind on the second mortgage but up to date on the first, there is a good chance that the second lender will declare foreclosure on the house.
Any lienholder can try to force a sale of the property through foreclosure, but usually only the first mortgage will get paid off through the proceeds of the sale. This is because there usually just are not enough proceeds at all for even the first lien to be paid in full, let alone extra ones after that. It just makes more sense for the second mortgage to try to work with the debtors to find a solution, since they would most likely not get anything from a sheriff sale. Especially with the declining real estate market right now, second mortgages may have loaned tens of thousands of dollars more than the home is currently worth, which guarantees they will not receive anything from a sheriff sale. County foreclosure auctions usually consist of very low bid amounts and few bidders, resulting in properties selling for far less than their current market values.
If a participant at the foreclosure auction placed a bid and won, the proceeds of the sale would be distributed like any other foreclosure, regardless of which mortgage company actually began the foreclosure process in the courts. The property taxes would be paid first, since the bureaucrats need to get their hands on the money as quickly as possible. Then the first mortgage would be paid off with as much of the proceeds as are left. Unfortunately for second mortgage companies and other junior lienholders, the winning bid at auction is usually not even enough to cover the entire first mortgage. In fact, most of the time it is one of the banks that bids on the property to ensure that they will be able to sell it after the foreclosure if there are no other bidders.
After the first mortgage is paid off in full, though, then any other liens, including the second mortgage, would be paid in order of when the lien was filed with the county recorder. If there is enough money to pay all of the second mortgage, then they get all of the rest of the money until their lien is paid in full. Then anything remaining goes to other liens or to the homeowners as their gain from the sheriff sale. If there is not enough to pay off the second mortgage (or even all of the first mortgage), then the second will not be paid off at all or in full. It will be up to the mortgage company to sue afterwards for a deficiency judgment after the foreclosure has ended (an unlikely occurrence).
Thus, just because it is a second mortgage who begins the process of foreclosure, it will not really change the order of how the liens are paid off through the foreclosure auction. Any bidder at sheriff sale, whether the bank or a third party, will still end up with a title that has had the liens on it discharged through the county foreclosure auction. And the homeowners will have to move out of the property at the appropriate time or be faced with the possibility of a forced eviction. No matter which mortgage company initiates the foreclosure, the process will move through the court system in exactly the same way.
The ForeclosureFish website has been created to provide homeowners in danger of losing their houses with relevant and important foreclosure help and resources. The site describes various methods that may be used to save a home, such as foreclosure refinance loans, mortgage modification, short sales, bankruptcy, and more. Visit the site to read more articles about how foreclosure works and how the process may be avoided before it is too late: http://www.foreclosurefish.com/
วันอาทิตย์ที่ 27 กันยายน พ.ศ. 2552
Using A Second Mortgage To Buy A Foreign Property
Using A Second Mortgage To Buy A Foreign Property
For many years now, British people seem to have had something of an obsession with buying 'a place in the sun'. Numerous TV shows including the one just mentioned, as well as multiple newspaper and magazine articles. All encouraging people to find their little piece of heaven in Spain, France, Bulgaria, or even further afield in Florida, or even Asia.
So many British people find this whole concept to be, a dream come true. In addition, huge numbers are not just dreaming about it. They are actually making it happen, and are buying their piece of foreign property, either as an investment is or as a place to permanently emigrate to in the future.
A survey last year by a well known UK mortgage Company showed that a massive 33% of all British residents fully intended to make owning a foreign home a reality. Some people are waiting for perhaps, a considerable amount of years, until they reach retirement. Then selling off their home and everything else to head for a new life in the sun.
Others cannot wait to make the leap much earlier, either as a permanent residency or as an investment that will have to sit and wait until retirement. In some countries such as Spain, there are limited opportunities, to obtain mortgage financing locally. Many people opt for local financing of some have trouble with ruthless operators who think nothing of fleecing foreign mortgage holders for huge sums in front fees.
SolBank a large Spanish bank and mortgage lender charges an upfront fee of €23,000 to cover 'application costs' on a mortgage of €200,000.
These days, the once stuffy traditional mortgage British lenders are far more amenable to second mortgages in the UK for the purpose of purchasing a house abroad. Below are some things to consider when planning, UK financing for a home in the sun. As with all real estate deals the first thing to consider, are actually three things, Location, Location, Location. Many people opt for the ever popular areas Spain France or maybe Florida, but there are other options.
There are many stunning and exotic places around the world, some highly developed some off the beaten track for tourists. Some of these of the beaten track locations can be equally beautiful, with warm friendly people and just as safe as well known tourist traps. To find such a property, you may not have to always go to some out of the way exotic country. Properties on the Costa del Sol sell for several times more than those in the northern areas of Spain.
Central France, is far cheaper than the Cote d'Azur, and the same applies to many well-known house buying destination countries. If you are financing your new foreign home with a second mortgage and you don't intend to live in it for the time being. You should consider location's that will bring in a decent income, especially in the local peak season.
If you're home in the sun is able to finance itself, it will give you more free cash to save of the day when you can jet out and live in it yourself. This option may also allow you to buy your dream house with a second mortgage today, rather than waiting for retirement.
You should also consider, not using the property yourself in any period of the year, when it can be rented out, and instead opt to use it in the 'off season'. Perhaps if you have friends or family, who also want their little piece of paradise. Why not consider pooling and the available funds, they you have between you. Again this can bring you to a point of a buying a property, much earlier. Then, if you sell that property 10 years from now, you will have on considerably more cash available to purchase a place in the sun of your own.
You could of course, opt to buy a property abroad, that needs some renovation, this may entail protracted work over several years to make the home come up to a good standard. However, you should be looking at a profit from your renovations; also, the property will hopefully have gone up in value in the meantime anyway.
Financing your home away from home using equity stored up in your UK house is a great way to jump onto the foreign ownership ladder. All that is needed is that your home is now worth more than you paid for it. You can then consider a remortgage to release this equity as cash which you can use to purchase your second home in the sun.
One good advantage to this option is that the money you draw out of the property is being reinvested into a second property purchase. So although you will have interest to pay until second mortgage loan, this should be outpaced by the increased value in your second home, and may even be paid for by rental income.
This may be a good way for many people begin their place in the sun dreams tomorrow, rather than waiting 15 or 20 years, for retirement. If this idea appeals to you, then contact an online mortgage broker, so that he can assess if this is a viable option for you.
Joe Kenny writes for Only Stop, compare bad credit remortgages in the UK, visit them today for mortgages or Glitec for more mortgages and information.
For many years now, British people seem to have had something of an obsession with buying 'a place in the sun'. Numerous TV shows including the one just mentioned, as well as multiple newspaper and magazine articles. All encouraging people to find their little piece of heaven in Spain, France, Bulgaria, or even further afield in Florida, or even Asia.
So many British people find this whole concept to be, a dream come true. In addition, huge numbers are not just dreaming about it. They are actually making it happen, and are buying their piece of foreign property, either as an investment is or as a place to permanently emigrate to in the future.
A survey last year by a well known UK mortgage Company showed that a massive 33% of all British residents fully intended to make owning a foreign home a reality. Some people are waiting for perhaps, a considerable amount of years, until they reach retirement. Then selling off their home and everything else to head for a new life in the sun.
Others cannot wait to make the leap much earlier, either as a permanent residency or as an investment that will have to sit and wait until retirement. In some countries such as Spain, there are limited opportunities, to obtain mortgage financing locally. Many people opt for local financing of some have trouble with ruthless operators who think nothing of fleecing foreign mortgage holders for huge sums in front fees.
SolBank a large Spanish bank and mortgage lender charges an upfront fee of €23,000 to cover 'application costs' on a mortgage of €200,000.
These days, the once stuffy traditional mortgage British lenders are far more amenable to second mortgages in the UK for the purpose of purchasing a house abroad. Below are some things to consider when planning, UK financing for a home in the sun. As with all real estate deals the first thing to consider, are actually three things, Location, Location, Location. Many people opt for the ever popular areas Spain France or maybe Florida, but there are other options.
There are many stunning and exotic places around the world, some highly developed some off the beaten track for tourists. Some of these of the beaten track locations can be equally beautiful, with warm friendly people and just as safe as well known tourist traps. To find such a property, you may not have to always go to some out of the way exotic country. Properties on the Costa del Sol sell for several times more than those in the northern areas of Spain.
Central France, is far cheaper than the Cote d'Azur, and the same applies to many well-known house buying destination countries. If you are financing your new foreign home with a second mortgage and you don't intend to live in it for the time being. You should consider location's that will bring in a decent income, especially in the local peak season.
If you're home in the sun is able to finance itself, it will give you more free cash to save of the day when you can jet out and live in it yourself. This option may also allow you to buy your dream house with a second mortgage today, rather than waiting for retirement.
You should also consider, not using the property yourself in any period of the year, when it can be rented out, and instead opt to use it in the 'off season'. Perhaps if you have friends or family, who also want their little piece of paradise. Why not consider pooling and the available funds, they you have between you. Again this can bring you to a point of a buying a property, much earlier. Then, if you sell that property 10 years from now, you will have on considerably more cash available to purchase a place in the sun of your own.
You could of course, opt to buy a property abroad, that needs some renovation, this may entail protracted work over several years to make the home come up to a good standard. However, you should be looking at a profit from your renovations; also, the property will hopefully have gone up in value in the meantime anyway.
Financing your home away from home using equity stored up in your UK house is a great way to jump onto the foreign ownership ladder. All that is needed is that your home is now worth more than you paid for it. You can then consider a remortgage to release this equity as cash which you can use to purchase your second home in the sun.
One good advantage to this option is that the money you draw out of the property is being reinvested into a second property purchase. So although you will have interest to pay until second mortgage loan, this should be outpaced by the increased value in your second home, and may even be paid for by rental income.
This may be a good way for many people begin their place in the sun dreams tomorrow, rather than waiting 15 or 20 years, for retirement. If this idea appeals to you, then contact an online mortgage broker, so that he can assess if this is a viable option for you.
Joe Kenny writes for Only Stop, compare bad credit remortgages in the UK, visit them today for mortgages or Glitec for more mortgages and information.
วันเสาร์ที่ 26 กันยายน พ.ศ. 2552
Refinancing Second Mortgage–Whats the Difference Between a 2nd Mortgage and a Home Equity Loan?
Refinancing Second Mortgage–What's the Difference Between a 2nd Mortgage and a Home Equity Loan?
A 2nd mortgage and a home equity loan are basically the same type of financing. Both can cash out part of your home’s equity, require paying application fees, and have a variety of term options. The only difference is that you can use a second mortgage as part of your home’s down payment or apply for one once you are in the house. Home equity loans can only be secured when you have actually bought the house.
Second mortgages and home equity loans can both be refinanced for better rates or more favorable terms at any time, either separately or as part of a total mortgage refi.
Refinancing Options For Equity Loans
Equity loans have a number of refinancing options. You can refinance your second mortgage as just another second mortgage, only with better rates and terms. You can decide to change to a fixed rate mortgage for security. You may also want to shorten your loan period to pay less on interest charges.
Or you can rollover your loan as part of your first mortgage. By
refinancing both mortgages, you can qualify for lower rates. You also save on closing costs by only going through the application process once. Combining both mortgages is best for those with two high rate mortgages and a plan to stay in the house for several years.
Be A Smart Shopper With Your Refinance
While refinancing may be the answer for your budget, you need to spend some time making sure you are getting a good deal. With a little bit of time analyzing loan quotes, you can find lower rates and cheaper fees – saving you money.
With online lending companies, you can receive loan estimates without damaging your credit score. By providing information on your loan amount and credit standing, you can get quotes on rates and fees. With these numbers you can make an informed decision on which is the best financing for you.
Refinancing is also a great time to revaluate your over all finances. With a refi, you can cash out additional equity, allowing you to consolidate debts or invest in home repairs.
Visit Refinance Smarts to view our Recommended Refinance Lenders online. Also, visit Refinance Smarts for more information on a Refinance Second Mortgage.
A 2nd mortgage and a home equity loan are basically the same type of financing. Both can cash out part of your home’s equity, require paying application fees, and have a variety of term options. The only difference is that you can use a second mortgage as part of your home’s down payment or apply for one once you are in the house. Home equity loans can only be secured when you have actually bought the house.
Second mortgages and home equity loans can both be refinanced for better rates or more favorable terms at any time, either separately or as part of a total mortgage refi.
Refinancing Options For Equity Loans
Equity loans have a number of refinancing options. You can refinance your second mortgage as just another second mortgage, only with better rates and terms. You can decide to change to a fixed rate mortgage for security. You may also want to shorten your loan period to pay less on interest charges.
Or you can rollover your loan as part of your first mortgage. By
refinancing both mortgages, you can qualify for lower rates. You also save on closing costs by only going through the application process once. Combining both mortgages is best for those with two high rate mortgages and a plan to stay in the house for several years.
Be A Smart Shopper With Your Refinance
While refinancing may be the answer for your budget, you need to spend some time making sure you are getting a good deal. With a little bit of time analyzing loan quotes, you can find lower rates and cheaper fees – saving you money.
With online lending companies, you can receive loan estimates without damaging your credit score. By providing information on your loan amount and credit standing, you can get quotes on rates and fees. With these numbers you can make an informed decision on which is the best financing for you.
Refinancing is also a great time to revaluate your over all finances. With a refi, you can cash out additional equity, allowing you to consolidate debts or invest in home repairs.
Visit Refinance Smarts to view our Recommended Refinance Lenders online. Also, visit Refinance Smarts for more information on a Refinance Second Mortgage.
วันศุกร์ที่ 25 กันยายน พ.ศ. 2552
Second Mortgage Refinancing - Dirty Secrets the Banks Dont Want You to Know!
Second Mortgage Refinancing - Dirty Secrets the Banks Don't Want You to Know!
Second mortgage refinancing has become one of the most attractive concepts in the mortgage industry. Many homeowners at one point or another have either considered or obtained this type of loan for many different reasons. Justifications may be different; such as home improvements, consolidating compounding credit card debts, going on a long awaited and deserved vacation, or simply investing in a child's future and education. The idea is always the same...money talks!
People with money spend their money. People who don't have money but like to live like the ones who do are the ones who go after this type of loan. A second mortgage loan is taken against the property's equity which is the difference between the preexisting mortgage on the home and its current market value. However, what needs to be understood by homeowners and potential borrowers is equity is not a savings account that they have worked for and earned. Rather, it's inconsistent, unreliable and if misused has a negative consequence on the property and their lifestyle. Just like fire, enough of it will warm you up, too much of it will burn you.
I have knowledge in every type of mortgage, and taught each of their consequences if abused. However I believe that many people should consider the advice of an objective financial adviser before they commit themselves to a second mortgage loan or any loan for that matter. I find it ironic that many do not consider financial counseling when the stakes are so high. Purchasing or refinancing a house is the biggest financial investment for the majority of people, financial counseling should be mandatory.
The home owner's appetite to spend the easy money they never worked for cannot be condemned. We have an impartial system of checks and balances in the mortgage industry. The idea that in the event of a foreclosure or short sell, the first mortgage is protected and the bank has the priority is not right at all. The second mortgage loan along with the homeowner is abandoned. Innovative financial solutions aligned with the public ability during it darkest hour is yet to be seen.
To start we must bring the two concepts of home and house together. While the banks are in the business of providing loans to people to purchase or refinance a house, people are more concerned just to have a place called home. Where the house is nothing but an empty lot with certain materials and fixtures, a home is where life happens. People have the highest level of attachment to their homes. Many have a hard time letting go of their past homes, even when purchasing a new and even better house. Home means memories; it means families, pets and some place to call home. That is why it is so imperative for the banking industry to recognize this, and realize the importance of creating a reliable procedure independent from the markets uncertainties, not only for the public peace of mind, but for theirs as well. For the public it is important to realize the responsibility of home ownership and not jeopardize their home to the inadequacies of impartial system.
You can also find more information about Second Mortgage Refinancing and learn to stay one step ahead of the banking industry.
http://www.livedirtcheap.org is a comprehensive resource which provide information about Mortgage Refinancing for the people by the people.
Second mortgage refinancing has become one of the most attractive concepts in the mortgage industry. Many homeowners at one point or another have either considered or obtained this type of loan for many different reasons. Justifications may be different; such as home improvements, consolidating compounding credit card debts, going on a long awaited and deserved vacation, or simply investing in a child's future and education. The idea is always the same...money talks!
People with money spend their money. People who don't have money but like to live like the ones who do are the ones who go after this type of loan. A second mortgage loan is taken against the property's equity which is the difference between the preexisting mortgage on the home and its current market value. However, what needs to be understood by homeowners and potential borrowers is equity is not a savings account that they have worked for and earned. Rather, it's inconsistent, unreliable and if misused has a negative consequence on the property and their lifestyle. Just like fire, enough of it will warm you up, too much of it will burn you.
I have knowledge in every type of mortgage, and taught each of their consequences if abused. However I believe that many people should consider the advice of an objective financial adviser before they commit themselves to a second mortgage loan or any loan for that matter. I find it ironic that many do not consider financial counseling when the stakes are so high. Purchasing or refinancing a house is the biggest financial investment for the majority of people, financial counseling should be mandatory.
The home owner's appetite to spend the easy money they never worked for cannot be condemned. We have an impartial system of checks and balances in the mortgage industry. The idea that in the event of a foreclosure or short sell, the first mortgage is protected and the bank has the priority is not right at all. The second mortgage loan along with the homeowner is abandoned. Innovative financial solutions aligned with the public ability during it darkest hour is yet to be seen.
To start we must bring the two concepts of home and house together. While the banks are in the business of providing loans to people to purchase or refinance a house, people are more concerned just to have a place called home. Where the house is nothing but an empty lot with certain materials and fixtures, a home is where life happens. People have the highest level of attachment to their homes. Many have a hard time letting go of their past homes, even when purchasing a new and even better house. Home means memories; it means families, pets and some place to call home. That is why it is so imperative for the banking industry to recognize this, and realize the importance of creating a reliable procedure independent from the markets uncertainties, not only for the public peace of mind, but for theirs as well. For the public it is important to realize the responsibility of home ownership and not jeopardize their home to the inadequacies of impartial system.
You can also find more information about Second Mortgage Refinancing and learn to stay one step ahead of the banking industry.
http://www.livedirtcheap.org is a comprehensive resource which provide information about Mortgage Refinancing for the people by the people.
วันพฤหัสบดีที่ 24 กันยายน พ.ศ. 2552
Second Mortgage Foreclosure and Home Equity Loan
Second Mortgage Foreclosure and Home Equity Loan
The past ten years leading up to 2007-08 were amazing years for the real estate market. Home values were skyrocketing at double-digit percents across the entire nation and everybody was building up equity in their homes. Home loan providers and lenders capitalized on this thriving real estate market by providing second mortgages and home equity loans to people who had built up a significant level of equity in their property and wanted to access this equity as cash. It became routine to use your property as a virtual ATM machines by extracting the equity via a second mortgage or home equity loan and then using the money for whatever reason.
The problem came in 2007-08 when the entire real estate market began to tumble and home prices began to drop and stagnate. People who took out second mortgages and home equity loans were often left with notes on upside down properties with no way to payback the lenders. People began to go into foreclosure, and this meant that they were going to eventually lose their homes unless they began making payments on the variety of loans that were against their property.
Many people began to wonder what would happen if they only defaulted on their second mortgage and kept paying their first mortgage. Would they still have to foreclose and lose their property? Well, not so much because often times with situations like this the person that defaults on their second mortgage will still be able to stay in their property and if the house is upside-down then it is pretty much commonplace for the homeowner to reach an agreement with the bank or lender so that they can come to terms with the second mortgage that they may have taken out years ago. The majority of homes that default on second mortgages do not end up going into foreclosure and if you find yourself in this situation you can be rest assured that if make an effort to contact your lender then you shouldn't have to go into foreclosure unless you stop paying your first mortgage.
Blake Fisher is an expert writer on such financial topics as Second Mortgage Foreclosure and Second Mortgage and Home Equity Loan.
The past ten years leading up to 2007-08 were amazing years for the real estate market. Home values were skyrocketing at double-digit percents across the entire nation and everybody was building up equity in their homes. Home loan providers and lenders capitalized on this thriving real estate market by providing second mortgages and home equity loans to people who had built up a significant level of equity in their property and wanted to access this equity as cash. It became routine to use your property as a virtual ATM machines by extracting the equity via a second mortgage or home equity loan and then using the money for whatever reason.
The problem came in 2007-08 when the entire real estate market began to tumble and home prices began to drop and stagnate. People who took out second mortgages and home equity loans were often left with notes on upside down properties with no way to payback the lenders. People began to go into foreclosure, and this meant that they were going to eventually lose their homes unless they began making payments on the variety of loans that were against their property.
Many people began to wonder what would happen if they only defaulted on their second mortgage and kept paying their first mortgage. Would they still have to foreclose and lose their property? Well, not so much because often times with situations like this the person that defaults on their second mortgage will still be able to stay in their property and if the house is upside-down then it is pretty much commonplace for the homeowner to reach an agreement with the bank or lender so that they can come to terms with the second mortgage that they may have taken out years ago. The majority of homes that default on second mortgages do not end up going into foreclosure and if you find yourself in this situation you can be rest assured that if make an effort to contact your lender then you shouldn't have to go into foreclosure unless you stop paying your first mortgage.
Blake Fisher is an expert writer on such financial topics as Second Mortgage Foreclosure and Second Mortgage and Home Equity Loan.
วันพุธที่ 23 กันยายน พ.ศ. 2552
2nd Mortgage Refinance
2nd Mortgage Refinance
Second mortgage refinancing helps you reduce your monthly bill considerably. Sometimes, consolidation of two mortgages into one payment may also lower rates. Consolidation combines your first and second mortgages and it often results in a higher rate of interest. A second mortgage refinancing will benefit you when you have a large amount of equity. Since the amount is large, you mortgage falls under a low rate category. It goes without saying that the right time for refinancing is when the mortgage rates are low. The mortgage rate at which you first acquired the house should be higher than the current mortgage rate.
Second mortgage refinance starts a new loan account by paying off the first mortgage. In other words, second mortgage refinancing is in effect the same as taking out a new mortgage. Normal procedures such as submitting application and by paying a fee for processing the application and checking your credit reports should be followed. The second mortgage refinance fee includes settlement costs, discount points etc. If your credit points have been coming down in recent years, lenders may not approve the refinance. Interest rates and number of credit points determine the total expense for a second mortgage refinancing.
It is not necessary that you refinance all your mortgages. More than one mortgage payment monthly may cause some difficulty for you. Second mortgage refinancing not only gives convenience, but also saves you money. A thorough study of the advantages and disadvantages should be made before you decide to refinance your mortgage. Sometimes, second mortgage refinancing fetches you better rates. In some cases, it is advisable that you refinance your mortgages separately to save money.
2nd Mortgage provides detailed information on 2nd Mortgage, Refinance 2nd Mortgage, Bad Credit 2nd Mortgage, 2nd Mortgage Loans and more. 2nd Mortgage is affiliated with 1st Mortgage Rate.
Second mortgage refinancing helps you reduce your monthly bill considerably. Sometimes, consolidation of two mortgages into one payment may also lower rates. Consolidation combines your first and second mortgages and it often results in a higher rate of interest. A second mortgage refinancing will benefit you when you have a large amount of equity. Since the amount is large, you mortgage falls under a low rate category. It goes without saying that the right time for refinancing is when the mortgage rates are low. The mortgage rate at which you first acquired the house should be higher than the current mortgage rate.
Second mortgage refinance starts a new loan account by paying off the first mortgage. In other words, second mortgage refinancing is in effect the same as taking out a new mortgage. Normal procedures such as submitting application and by paying a fee for processing the application and checking your credit reports should be followed. The second mortgage refinance fee includes settlement costs, discount points etc. If your credit points have been coming down in recent years, lenders may not approve the refinance. Interest rates and number of credit points determine the total expense for a second mortgage refinancing.
It is not necessary that you refinance all your mortgages. More than one mortgage payment monthly may cause some difficulty for you. Second mortgage refinancing not only gives convenience, but also saves you money. A thorough study of the advantages and disadvantages should be made before you decide to refinance your mortgage. Sometimes, second mortgage refinancing fetches you better rates. In some cases, it is advisable that you refinance your mortgages separately to save money.
2nd Mortgage provides detailed information on 2nd Mortgage, Refinance 2nd Mortgage, Bad Credit 2nd Mortgage, 2nd Mortgage Loans and more. 2nd Mortgage is affiliated with 1st Mortgage Rate.
วันอังคารที่ 22 กันยายน พ.ศ. 2552
How Taking Out a Second Mortgage to Resolve Credit Card Debt Can Hurt You
How Taking Out a Second Mortgage to Resolve Credit Card Debt Can Hurt You
Everybody gets in over their heads once in a while with the bills they have to pay. Well maybe not every single person in the world. Movie stars probably never have a problem with their finances. But most people will at one time in their life go through rough financial times. So what are they to do in this case?
If the debt stems from credit cards, then a popular solution is credit card debt consolidation.
Let's see what the idea behind credit card debt consolidation is. It's a very confusing process, but hopefully this will help a bit in your understanding. You want to try to understand the process as much as possible before you get into the process and end up spending a bunch of money you don't have.
It's a program that many people will take advantage of in those tough times, because needless to say when you consolidate it will lower your payments each month and usually the interest rate will be lower.
But it's not a perfect process as you will soon discover. There are things to watch out for. There are predatory companies out there that prey on the desperate in the guise of wanting to help you with your finances.
The biggest and most important thing that most people do not understand about consolidation is that they may in fact be putting their homes at risk. Because if you have gone about your consolidation by taking out a second mortgage on your house, you have succeeded in changing those once unsecured debts -- which are not good for any kind of collateral -- into a secured debt that is using your house as collateral.
The reason why most people choose this option for credit card debt consolidation is the lower interest rate they are able to get. They think that if you have an interest rate that is lower you will in fact save money, but this isn't always that true!
What may well happen when you try to use this type of consolidation is that you may get charged high fees, and possibly some hidden fees no one will tell you about. With all these extras figured in you may find that you're actually paying more money even with the low interest rate you have picked up.
So you may not really be making the best decision with a unsecured credit card consolidation. You will want to check into it very carefully before making that jump into something that will only make your situation worse than it was originally.
debtGuru.com (http://www.debtguru.com/unsecured-credit-card-debt-consolidation.htm) offers free quotes for unsecured credit card debt consolidation. Billings Farnsworth is a freelance writer.
Everybody gets in over their heads once in a while with the bills they have to pay. Well maybe not every single person in the world. Movie stars probably never have a problem with their finances. But most people will at one time in their life go through rough financial times. So what are they to do in this case?
If the debt stems from credit cards, then a popular solution is credit card debt consolidation.
Let's see what the idea behind credit card debt consolidation is. It's a very confusing process, but hopefully this will help a bit in your understanding. You want to try to understand the process as much as possible before you get into the process and end up spending a bunch of money you don't have.
It's a program that many people will take advantage of in those tough times, because needless to say when you consolidate it will lower your payments each month and usually the interest rate will be lower.
But it's not a perfect process as you will soon discover. There are things to watch out for. There are predatory companies out there that prey on the desperate in the guise of wanting to help you with your finances.
The biggest and most important thing that most people do not understand about consolidation is that they may in fact be putting their homes at risk. Because if you have gone about your consolidation by taking out a second mortgage on your house, you have succeeded in changing those once unsecured debts -- which are not good for any kind of collateral -- into a secured debt that is using your house as collateral.
The reason why most people choose this option for credit card debt consolidation is the lower interest rate they are able to get. They think that if you have an interest rate that is lower you will in fact save money, but this isn't always that true!
What may well happen when you try to use this type of consolidation is that you may get charged high fees, and possibly some hidden fees no one will tell you about. With all these extras figured in you may find that you're actually paying more money even with the low interest rate you have picked up.
So you may not really be making the best decision with a unsecured credit card consolidation. You will want to check into it very carefully before making that jump into something that will only make your situation worse than it was originally.
debtGuru.com (http://www.debtguru.com/unsecured-credit-card-debt-consolidation.htm) offers free quotes for unsecured credit card debt consolidation. Billings Farnsworth is a freelance writer.
วันจันทร์ที่ 21 กันยายน พ.ศ. 2552
Short Sale Second Mortgage - How To Get Out Of Two Mortgages At The Same Time
Short Sale Second Mortgage - How To Get Out Of Two Mortgages At The Same Time
Is a mortgage short sale possible if you have not one mortgage company to deal with, but two?
I am the developer of the Mortgage Relief Formula home study course. In my work I receive hundreds of questions from homeowners who owe more than their house is worth and cannot afford to continue making the payments. They want to avoid foreclosure appearing on their credit and they also want to do the right thing under the circumstances.
A mortgage short sale beats foreclosure both from the homeowner's viewpoint and from the perspective of a mortgage lender. If you cannot pay on a mortgage, the bank would rather get partial payment of the mortgage, and not get your house back.
They can in fact deal with getting your house back because they are set up for it. But when they get a house back they must add it to their already bulging inventory. They must insure it. They have to fix it up. They have to put it on the market and sell it. They are selling into the same terrible market that you are facing.
But, a mortgage short sale helps the lender get partial payment on your mortgage and avoid getting your house.
Let's recap what this type of sale is. It's when you sell your house for less than the mortgage. The lender approves the sale and the lender collects the proceeds from the buyer, whatever is left at closing after paying closing costs and real estate broker commissions and so forth. They mortgage lender releases the mortgage so the transaction can close.
The mortgage company now has a financial loss. They may pursue you for that financial loss, which they can sometimes do through a civil court proceeding. Sometimes they cannot pursue you at all because state law prevents them from doing so. And sometimes you can negotiate with the home loan lender before the sale goes through, and they will agree in writing not to come after you for their financial losses.
But be that as it may, the question we are addressing is how you can do a sale that yields only partial payment of your first mortgage, if you have a second mortgage and not just a first mortgage?
What people forget is that even if they do a sale of their house, the loans go with the house so if they deed their house to someone else, the loans stay in place. A sale of a house does not affect the loans on that house.
The reason a short sale works is that the lender agrees to release their claim on the house at the closing table. So the new buyer can get the house free from your crushing mortgage. But if you have two mortgages such a sale is much more complicated. The buyer will want to be free of both your first and second mortgage.
That makes it twice as complicated.
Because if the first mortgage lender agrees to the sale even though it will not pay off the first mortgage, that isn't enough. The house will be sold and still have a second mortgage on it.
A foreclosure sale, on the other hand, wipes out all the loans on the property. The lender who forecloses may get the property back through their "credit bid". That is, if nobody bids higher than the balance on the loan including all delinquent payments and fees, the lender gets the house back. If someone bids higher, they will get the house.
Either way, all the junior loans are extinguished in the foreclosure sale. A foreclosure sale results in a transfer of title through a trustee's deed or sherriff's deed. A trustee's deed or sheriff's deed transfers title to either the lender, or the high bidder if there is a party that outbids the lender. And with that foreclosure deed, the junior loans are wiped out. So junior loans are not an issue in a foreclosure and in fact a lot of houses go through foreclosure in order to wipe out the junior loans.
But what if you want to avoid foreclosure through a short sale process, in order to help your credit and the lender? And what if you have junior loans?
There is a way to do it. Actually three ways.
Is the second mortgage a piggyback loan? Sometimes the lenders who made the first mortgage also made the second. Maybe they can allocate the short sale proceeds to release both loans.
Or, you may be able to buy out the second. They are in a position where they will get nothing at this point. If you can offer them a nickel on the dollar of debt, or a dime, maybe they will take it. That assumes you have a bit of cash. But it may not take much. After all they are already prepared to be wiped out. If you do a deal like this, make sure you get the arrangement in writing including how they will report to the credit bureaus (you want to avoid foreclosure appearing there) and also that they will not go after you any more -- this is full payment of the second mortgage and forever wipes clean that debt.
And there is a third option for most folks who do not have cash to buy out the second mortgage.
This third option is doing a deal with the second mortgage holder: They will release the second mortgage in order to allow the short sale to go through. In return, you will sign a note for a percentage of that loan.
Such a note is a personal loan, an unsecured loan, and would be dischargeable in bankruptcy. But if you can manage the payments this is a good outcome for all concerned compared to the alternatives. Remember that if they get wiped out, the second mortgage holder can still come after you in civil court but by signing a note you make it cheaper for them and either way, something is better than nothing.
These three options are the best ones to consider if you want to do a short sale and avoid foreclosure, but have a second mortgage on the property. I would always recommend you consult a good lawyer to help you and best of luck.
And Get a free acclaimed 25 page report Keep Your Home avoid foreclosure. If you want to find out more about short sales and foreclosure, for instance, can they go after your bank account in foreclosure, and what short sale mortgage paperwork do you need, I can help.
Is a mortgage short sale possible if you have not one mortgage company to deal with, but two?
I am the developer of the Mortgage Relief Formula home study course. In my work I receive hundreds of questions from homeowners who owe more than their house is worth and cannot afford to continue making the payments. They want to avoid foreclosure appearing on their credit and they also want to do the right thing under the circumstances.
A mortgage short sale beats foreclosure both from the homeowner's viewpoint and from the perspective of a mortgage lender. If you cannot pay on a mortgage, the bank would rather get partial payment of the mortgage, and not get your house back.
They can in fact deal with getting your house back because they are set up for it. But when they get a house back they must add it to their already bulging inventory. They must insure it. They have to fix it up. They have to put it on the market and sell it. They are selling into the same terrible market that you are facing.
But, a mortgage short sale helps the lender get partial payment on your mortgage and avoid getting your house.
Let's recap what this type of sale is. It's when you sell your house for less than the mortgage. The lender approves the sale and the lender collects the proceeds from the buyer, whatever is left at closing after paying closing costs and real estate broker commissions and so forth. They mortgage lender releases the mortgage so the transaction can close.
The mortgage company now has a financial loss. They may pursue you for that financial loss, which they can sometimes do through a civil court proceeding. Sometimes they cannot pursue you at all because state law prevents them from doing so. And sometimes you can negotiate with the home loan lender before the sale goes through, and they will agree in writing not to come after you for their financial losses.
But be that as it may, the question we are addressing is how you can do a sale that yields only partial payment of your first mortgage, if you have a second mortgage and not just a first mortgage?
What people forget is that even if they do a sale of their house, the loans go with the house so if they deed their house to someone else, the loans stay in place. A sale of a house does not affect the loans on that house.
The reason a short sale works is that the lender agrees to release their claim on the house at the closing table. So the new buyer can get the house free from your crushing mortgage. But if you have two mortgages such a sale is much more complicated. The buyer will want to be free of both your first and second mortgage.
That makes it twice as complicated.
Because if the first mortgage lender agrees to the sale even though it will not pay off the first mortgage, that isn't enough. The house will be sold and still have a second mortgage on it.
A foreclosure sale, on the other hand, wipes out all the loans on the property. The lender who forecloses may get the property back through their "credit bid". That is, if nobody bids higher than the balance on the loan including all delinquent payments and fees, the lender gets the house back. If someone bids higher, they will get the house.
Either way, all the junior loans are extinguished in the foreclosure sale. A foreclosure sale results in a transfer of title through a trustee's deed or sherriff's deed. A trustee's deed or sheriff's deed transfers title to either the lender, or the high bidder if there is a party that outbids the lender. And with that foreclosure deed, the junior loans are wiped out. So junior loans are not an issue in a foreclosure and in fact a lot of houses go through foreclosure in order to wipe out the junior loans.
But what if you want to avoid foreclosure through a short sale process, in order to help your credit and the lender? And what if you have junior loans?
There is a way to do it. Actually three ways.
Is the second mortgage a piggyback loan? Sometimes the lenders who made the first mortgage also made the second. Maybe they can allocate the short sale proceeds to release both loans.
Or, you may be able to buy out the second. They are in a position where they will get nothing at this point. If you can offer them a nickel on the dollar of debt, or a dime, maybe they will take it. That assumes you have a bit of cash. But it may not take much. After all they are already prepared to be wiped out. If you do a deal like this, make sure you get the arrangement in writing including how they will report to the credit bureaus (you want to avoid foreclosure appearing there) and also that they will not go after you any more -- this is full payment of the second mortgage and forever wipes clean that debt.
And there is a third option for most folks who do not have cash to buy out the second mortgage.
This third option is doing a deal with the second mortgage holder: They will release the second mortgage in order to allow the short sale to go through. In return, you will sign a note for a percentage of that loan.
Such a note is a personal loan, an unsecured loan, and would be dischargeable in bankruptcy. But if you can manage the payments this is a good outcome for all concerned compared to the alternatives. Remember that if they get wiped out, the second mortgage holder can still come after you in civil court but by signing a note you make it cheaper for them and either way, something is better than nothing.
These three options are the best ones to consider if you want to do a short sale and avoid foreclosure, but have a second mortgage on the property. I would always recommend you consult a good lawyer to help you and best of luck.
And Get a free acclaimed 25 page report Keep Your Home avoid foreclosure. If you want to find out more about short sales and foreclosure, for instance, can they go after your bank account in foreclosure, and what short sale mortgage paperwork do you need, I can help.
วันอาทิตย์ที่ 20 กันยายน พ.ศ. 2552
Pros And Cons Of A Second Mortgage
Pros And Cons Of A Second Mortgage
If you own a house and are in need of additional funds, then the best option for you is to apply for a second mortgage loan. Getting a second mortgage on your house is the right thing to do because most creditors will offer you an amount that is close to the difference between the current value of your house and the principal balance outstanding on your first mortgage. This means that you can covert the apprised value of your house into ready cash just by opting for a second mortgage loan. You can thus limit your credit card transactions, which can create debt-related problems for you and your family due to the high rates of interest charged on credit cards. Depending on the current value of your home and your first mortgage loan amount, you can get loans that can be used for varied purposes such as home repairs, school tuition, debt consolidation, and meeting other financial obligations.
There are many benefits associated with second mortgage loans; the very basic benefit is that they are very easily available as compared to other types of unsecured loans. For getting a second mortgage loan, you just need to get your house apprised, contact creditors and opt for a creditor that offers the lowest interest rates and repayment terms. Another benefit is that interest paid on such loans is normally tax deductible, which is certainly good as far as your finances are concerned because tax benefits are not available for other type of loans.
Second mortgage loans are no doubt beneficial but you should not forget that they are granted against your house, which basically means that you are putting your house on the line. If you do not make your repayments in time, you can easily end up losing your home. You may have planned for a third or fourth mortgage but making repayments in time is always necessary because failed payments show up on your credit report, which can prompt creditors to raise your interest rates. To make the best use of such loans, you need to consider all the pitfalls involved and ensure that the loan is repaid in time.
15 Signs That You're Getting Into a Risky Mortgage Loan - A comprehensive list of "red flags" in your mortgage loan process.
List of Leading Second Mortgage Lenders Online - Bad Credit OK
If you own a house and are in need of additional funds, then the best option for you is to apply for a second mortgage loan. Getting a second mortgage on your house is the right thing to do because most creditors will offer you an amount that is close to the difference between the current value of your house and the principal balance outstanding on your first mortgage. This means that you can covert the apprised value of your house into ready cash just by opting for a second mortgage loan. You can thus limit your credit card transactions, which can create debt-related problems for you and your family due to the high rates of interest charged on credit cards. Depending on the current value of your home and your first mortgage loan amount, you can get loans that can be used for varied purposes such as home repairs, school tuition, debt consolidation, and meeting other financial obligations.
There are many benefits associated with second mortgage loans; the very basic benefit is that they are very easily available as compared to other types of unsecured loans. For getting a second mortgage loan, you just need to get your house apprised, contact creditors and opt for a creditor that offers the lowest interest rates and repayment terms. Another benefit is that interest paid on such loans is normally tax deductible, which is certainly good as far as your finances are concerned because tax benefits are not available for other type of loans.
Second mortgage loans are no doubt beneficial but you should not forget that they are granted against your house, which basically means that you are putting your house on the line. If you do not make your repayments in time, you can easily end up losing your home. You may have planned for a third or fourth mortgage but making repayments in time is always necessary because failed payments show up on your credit report, which can prompt creditors to raise your interest rates. To make the best use of such loans, you need to consider all the pitfalls involved and ensure that the loan is repaid in time.
15 Signs That You're Getting Into a Risky Mortgage Loan - A comprehensive list of "red flags" in your mortgage loan process.
List of Leading Second Mortgage Lenders Online - Bad Credit OK
วันเสาร์ที่ 19 กันยายน พ.ศ. 2552
House Mortgage- What Coverage You Need
House Mortgage- What Coverage You Need
In many instances, people do not give much importance on homeowners insurance shopping than in home buying since they are still in a cloud 9 with their new purchased house. The result is, new homeowners end up getting an insurance policy with too little coverage or paying more than what they should have. This mistake of course is not yet realized after a fire or other loss.
Moreover, people are often mistaken with the thought that the cost of their homeowner’s insurance policy should equal to the cost of their house or the house’s current market value. Others let the broker to take care of their homeowner’s insurance policy, which in turn creates a problem since brokers can only help with the decision making on what policies you should but do not exactly know what type of policy you and your house require. Thus, it is very important to take the first hand and identify types of coverage you need in order to ensure that you protect your most important asset.
The types of insurance coverage you need may include protection against theft, fire, earthquake, hurricane, or other natural calamities and accidental damages called insured perils.
There are certain degrees of protection that a homeowner’s insurance can give to your home.
First, there is the guaranteed replacement. Although this type of coverage is rarely offered by many companies, this is the best protection you can get. Say your home is originally worth $200,000, but over the years you have made some improvements to it: a new patio; a landscaped garden; and a kitchen expansion. These increase the value of your home plus the appreciated value, say $400,000. If your home was destroyed by a fire, the guaranteed replacement assures you that you get the $400,000 condition of your home. Since, it seems to be obvious that you are a winner in this type of coverage, the guaranteed replacement costs higher than other types of coverage.
Second, is the actual cash value. This type of policy covers cost of replacement the property or the house at its depreciated value at the time of loss.
Then, there is the extended replacement cost. This type of coverage gives you the actual cash value plus an extended replacement cost. Suppose that the amount of replacement costs $150,000 with an extended replacement cost of 200%. At your claim, you will get the replacement cost plus the extended replacement cost: 100% for the RC and another 100% for the ERC totaling to $300,000.
Same with the house coverage, there is also a level of protection to your property.
The actual cash value replaces your personal property at the cost of its original amount minus depreciation.
The replacement cost coverage replaces your lost personal property at its current market value. If you opt for this type of coverage, you will have to pay for additional premium compared to the actual cash value coverage.
The guaranteed replacement demands higher premium but it does not apply any cap or maximum pay-out. Increasing your deductibles will help you lower your premiums and make this coverage affordable.
Another coverage you should look into is personal liability coverage. A typical insurance coverage includes $100,000 worth of personal liability coverage. This can be used to pay out medical cost and legal expenses if a guest or a member of your family is injured at your home. Many mortgage lenders and insurance professionals would require or advice you to get $300,000 to $500,000 worth of personal liability coverage. This can be acquired with extra amount. You may also consider purchasing a personal umbrella coverage which begins once your liability coverage is exhausted. For example, your guest sues you for $700,000 for a severe injury he had at your home. After your home policy pays out $500,000, your personal umbrella will take care of the remaining amount. Personal umbrella costs a couple of hundred dollars annually but will give you somewhere close to a million dollars worth of coverage. This small investment will definitely give you a peace of mind.
Home, personal property, and personal liability are the most important coverage you need to have for your homeowner’s insurance. Discuss with your insurance company or broker what options are offered and the cost of each coverage.
For more information on mortgage and home financing please go to:
http://www.homefinancingalert.com/Financing-Home-Mobile-Texas.html
http://www.homefinancingalert.com
http://www.drnathaliefiset.com
In many instances, people do not give much importance on homeowners insurance shopping than in home buying since they are still in a cloud 9 with their new purchased house. The result is, new homeowners end up getting an insurance policy with too little coverage or paying more than what they should have. This mistake of course is not yet realized after a fire or other loss.
Moreover, people are often mistaken with the thought that the cost of their homeowner’s insurance policy should equal to the cost of their house or the house’s current market value. Others let the broker to take care of their homeowner’s insurance policy, which in turn creates a problem since brokers can only help with the decision making on what policies you should but do not exactly know what type of policy you and your house require. Thus, it is very important to take the first hand and identify types of coverage you need in order to ensure that you protect your most important asset.
The types of insurance coverage you need may include protection against theft, fire, earthquake, hurricane, or other natural calamities and accidental damages called insured perils.
There are certain degrees of protection that a homeowner’s insurance can give to your home.
First, there is the guaranteed replacement. Although this type of coverage is rarely offered by many companies, this is the best protection you can get. Say your home is originally worth $200,000, but over the years you have made some improvements to it: a new patio; a landscaped garden; and a kitchen expansion. These increase the value of your home plus the appreciated value, say $400,000. If your home was destroyed by a fire, the guaranteed replacement assures you that you get the $400,000 condition of your home. Since, it seems to be obvious that you are a winner in this type of coverage, the guaranteed replacement costs higher than other types of coverage.
Second, is the actual cash value. This type of policy covers cost of replacement the property or the house at its depreciated value at the time of loss.
Then, there is the extended replacement cost. This type of coverage gives you the actual cash value plus an extended replacement cost. Suppose that the amount of replacement costs $150,000 with an extended replacement cost of 200%. At your claim, you will get the replacement cost plus the extended replacement cost: 100% for the RC and another 100% for the ERC totaling to $300,000.
Same with the house coverage, there is also a level of protection to your property.
The actual cash value replaces your personal property at the cost of its original amount minus depreciation.
The replacement cost coverage replaces your lost personal property at its current market value. If you opt for this type of coverage, you will have to pay for additional premium compared to the actual cash value coverage.
The guaranteed replacement demands higher premium but it does not apply any cap or maximum pay-out. Increasing your deductibles will help you lower your premiums and make this coverage affordable.
Another coverage you should look into is personal liability coverage. A typical insurance coverage includes $100,000 worth of personal liability coverage. This can be used to pay out medical cost and legal expenses if a guest or a member of your family is injured at your home. Many mortgage lenders and insurance professionals would require or advice you to get $300,000 to $500,000 worth of personal liability coverage. This can be acquired with extra amount. You may also consider purchasing a personal umbrella coverage which begins once your liability coverage is exhausted. For example, your guest sues you for $700,000 for a severe injury he had at your home. After your home policy pays out $500,000, your personal umbrella will take care of the remaining amount. Personal umbrella costs a couple of hundred dollars annually but will give you somewhere close to a million dollars worth of coverage. This small investment will definitely give you a peace of mind.
Home, personal property, and personal liability are the most important coverage you need to have for your homeowner’s insurance. Discuss with your insurance company or broker what options are offered and the cost of each coverage.
For more information on mortgage and home financing please go to:
http://www.homefinancingalert.com/Financing-Home-Mobile-Texas.html
http://www.homefinancingalert.com
http://www.drnathaliefiset.com
วันศุกร์ที่ 18 กันยายน พ.ศ. 2552
Should I Refinance or Take Out A Second Mortgage?
Should I Refinance or Take Out A Second Mortgage?
When you are looking at getting some extra money for whatever purpose you want you have two options, you can consider:
Taking out a second mortgage
Refinancing your existing mortgage
You shouldn't look into taking out a second mortgage instead of refinancing, and this is why:
1. Second mortgages have a higher interest rate, this can be three times higher than your original mortgage. If you refinance instead then you can keep your current low rate, which will save you a lot of money in interest charges. So don't take out a second mortgage, instead just refinance your existing one!
2. Home equity lines of credit aren't really that great either, they are sold to you by people that ring you up on the phone. The idea and main selling feature is that you can use it like a credit card which is attached to your house. The people selling these can be very persuasive and will try to encourage you to use this line of credit time and time again.
3. Refinancing your existing loan is much better to keep some equity in your home. Not many loan companies will refinance your home back up to 100% of the value without making you take out a second mortgage. You certainly don't want to sell all of your house back to the bank, if you do that you have no safety margin should anything go wrong.
4. Sales people like to sell you second mortgages because they get a lot of commission from doing so. Don't believe everything they say, it's likely that they will say anything to get the most commission possible!
5. Equity in your home is very valuable, sure it's tied up and you can't spend it. But it's an investment, by releasing all of the equity in your home it can be very dangerous. Should you need any money in an emergency, you have nothing to fall back on. Plus if the house prices in your area fall you could be left struggling with negative equity, which is where you owe more than the house is actually worth.
6. The best piece of advice is this, if you don't genuinely need something then don't take out a second mortgage. If you can do without it then don't consider a second mortgage, these should only be used for emergencies. Refinancing on the other hand can be used to release money for anything you might need it for.
I can't stress this enough, the only reason you should use a second mortgage is if you're in an emergency situation that cannot be resolved by other means. Do not use it for anything that isn't essential.
You can also find more info on home refinance and refinance mortgage interest rate. Mortgagerefinanceloanhelp.com is a comprehensive resource to get help in Mortgage refinance Loan.
When you are looking at getting some extra money for whatever purpose you want you have two options, you can consider:
Taking out a second mortgage
Refinancing your existing mortgage
You shouldn't look into taking out a second mortgage instead of refinancing, and this is why:
1. Second mortgages have a higher interest rate, this can be three times higher than your original mortgage. If you refinance instead then you can keep your current low rate, which will save you a lot of money in interest charges. So don't take out a second mortgage, instead just refinance your existing one!
2. Home equity lines of credit aren't really that great either, they are sold to you by people that ring you up on the phone. The idea and main selling feature is that you can use it like a credit card which is attached to your house. The people selling these can be very persuasive and will try to encourage you to use this line of credit time and time again.
3. Refinancing your existing loan is much better to keep some equity in your home. Not many loan companies will refinance your home back up to 100% of the value without making you take out a second mortgage. You certainly don't want to sell all of your house back to the bank, if you do that you have no safety margin should anything go wrong.
4. Sales people like to sell you second mortgages because they get a lot of commission from doing so. Don't believe everything they say, it's likely that they will say anything to get the most commission possible!
5. Equity in your home is very valuable, sure it's tied up and you can't spend it. But it's an investment, by releasing all of the equity in your home it can be very dangerous. Should you need any money in an emergency, you have nothing to fall back on. Plus if the house prices in your area fall you could be left struggling with negative equity, which is where you owe more than the house is actually worth.
6. The best piece of advice is this, if you don't genuinely need something then don't take out a second mortgage. If you can do without it then don't consider a second mortgage, these should only be used for emergencies. Refinancing on the other hand can be used to release money for anything you might need it for.
I can't stress this enough, the only reason you should use a second mortgage is if you're in an emergency situation that cannot be resolved by other means. Do not use it for anything that isn't essential.
You can also find more info on home refinance and refinance mortgage interest rate. Mortgagerefinanceloanhelp.com is a comprehensive resource to get help in Mortgage refinance Loan.
วันพฤหัสบดีที่ 17 กันยายน พ.ศ. 2552
Piggyback Second Mortgage
Piggyback Second Mortgage
The Piggyback Second Mortgage provides an option to home buyer who can not afford a twenty percent down payment. Without enough funds for twenty percent down payment, the home buyer pays an expensive Private Mortgage Insurance (PMI). Mortgage Lenders are able to provide the usual ten percent second mortgage without PMI. Only a few mortgage lenders can provide fifteen or twenty percent second mortgage without PMI.
Another term for piggyback second mortgage are 80/10/10, 80/15/5, 80/20/0 mortgage. The 80/10/10 is the most popular. There are only a few who provide 80/15/5, and 80/20/0. The three numbers represents the percentage of first mortgage, second mortgage, and down payment. For example, the 80/10/10 means eighty percent first mortgage, ten percent second mortgage, and ten percent down payment.
The Advantages of Piggyback Second Mortgage
The demand for piggyback second mortgage increased lately. There are a few reasons. The monthly mortgage payment costs less than a mortgage with PMI. The PMI premium varies on different states and situation. The PMI protects the mortgage lender in case of default on mortgage payment. However, the PMI has no benefit at all to the home buyer.
The interest on first and second mortgage are tax deductible from the time being. Mortgage interests are actually one of the important tax deductions for home owners. In fact, some homeowners elect not to pay off mortgage early for tax purposes.
The home buyer avoids the higher interest for Jumbo Mortgage Loan. Every year, the government sets conventional mortgage limit for purchase. If the mortgage exceeds the conventional mortgage limit for purchase, the mortgage lenders considers the mortgage application as Jumbo Mortgage Loan. Since the Jumbo Mortgage Loan offer higher risk to mortgage lenders, the mortgage lenders give higher interest rate on Jumbo Mortgage Loan.
The Disadvantages of Piggyback Second Mortgage
The house prices goes up or down. As the house prices goes up, the equity on the house grows as well. When the home equity goes up to twenty two percent, the home owner can cancel the PMI. The Homeowners Protection Act of 1998 requires the removal of PMI on loans made after July 29, 1999 after the homeowners pay down twenty two percent of equity.
Mortgage Lenders made Piggyback Second Mortgage more difficult to acquire than traditional mortgage. To qualify for this mortgage, the home buyer needs 680 Fair, Isaac, & Co (FICO) score. The FICO score measures the individual record in using credit.
Second mortgage comes with its own costs. The home buyer pays the same kind of costs as the first mortgage. Furthermore, the home buyer pays the same penalties on mortgage payment default.
The final verdict on Piggyback Second Mortgage
The Piggyback Second Mortgage benefits the home buyers, but the second mortgage requires some crunching on numbers. With this second mortgage, the home buyers pay less mortgage payment, and income tax. The PMI providers are feeling the pinch on loss business. In the future, PMI could be a tax deductible as well. The House Resolution 3098 and Senate Bill 132 (which are currently on pending) allow deducting the PMI on income tax.
Dennis Estrada is a webmaster of mortgage calculators, mortgage dictionary, and Piggyback Second Mortgage website which calculate the monthly payment, bi-weekly payment, affordability, refinance, annual percentage rate, discount points, and more.
The Piggyback Second Mortgage provides an option to home buyer who can not afford a twenty percent down payment. Without enough funds for twenty percent down payment, the home buyer pays an expensive Private Mortgage Insurance (PMI). Mortgage Lenders are able to provide the usual ten percent second mortgage without PMI. Only a few mortgage lenders can provide fifteen or twenty percent second mortgage without PMI.
Another term for piggyback second mortgage are 80/10/10, 80/15/5, 80/20/0 mortgage. The 80/10/10 is the most popular. There are only a few who provide 80/15/5, and 80/20/0. The three numbers represents the percentage of first mortgage, second mortgage, and down payment. For example, the 80/10/10 means eighty percent first mortgage, ten percent second mortgage, and ten percent down payment.
The Advantages of Piggyback Second Mortgage
The demand for piggyback second mortgage increased lately. There are a few reasons. The monthly mortgage payment costs less than a mortgage with PMI. The PMI premium varies on different states and situation. The PMI protects the mortgage lender in case of default on mortgage payment. However, the PMI has no benefit at all to the home buyer.
The interest on first and second mortgage are tax deductible from the time being. Mortgage interests are actually one of the important tax deductions for home owners. In fact, some homeowners elect not to pay off mortgage early for tax purposes.
The home buyer avoids the higher interest for Jumbo Mortgage Loan. Every year, the government sets conventional mortgage limit for purchase. If the mortgage exceeds the conventional mortgage limit for purchase, the mortgage lenders considers the mortgage application as Jumbo Mortgage Loan. Since the Jumbo Mortgage Loan offer higher risk to mortgage lenders, the mortgage lenders give higher interest rate on Jumbo Mortgage Loan.
The Disadvantages of Piggyback Second Mortgage
The house prices goes up or down. As the house prices goes up, the equity on the house grows as well. When the home equity goes up to twenty two percent, the home owner can cancel the PMI. The Homeowners Protection Act of 1998 requires the removal of PMI on loans made after July 29, 1999 after the homeowners pay down twenty two percent of equity.
Mortgage Lenders made Piggyback Second Mortgage more difficult to acquire than traditional mortgage. To qualify for this mortgage, the home buyer needs 680 Fair, Isaac, & Co (FICO) score. The FICO score measures the individual record in using credit.
Second mortgage comes with its own costs. The home buyer pays the same kind of costs as the first mortgage. Furthermore, the home buyer pays the same penalties on mortgage payment default.
The final verdict on Piggyback Second Mortgage
The Piggyback Second Mortgage benefits the home buyers, but the second mortgage requires some crunching on numbers. With this second mortgage, the home buyers pay less mortgage payment, and income tax. The PMI providers are feeling the pinch on loss business. In the future, PMI could be a tax deductible as well. The House Resolution 3098 and Senate Bill 132 (which are currently on pending) allow deducting the PMI on income tax.
Dennis Estrada is a webmaster of mortgage calculators, mortgage dictionary, and Piggyback Second Mortgage website which calculate the monthly payment, bi-weekly payment, affordability, refinance, annual percentage rate, discount points, and more.
Considering Holding an Owner Financed Second Mortgage? - Know the Risks and Rewards!
Considering Holding an Owner Financed Second Mortgage? - Know the Risks and Rewards!
More and more sellers are being asked to carry-back a second mortgage for the buyer - especially with the banks still keeping a pretty tight reign on lending.
While seller financing can be a viable alternative to bank loans when it is the buyer's primary obligation or first lien, a second lien has considerably more risk.
If you are asked to owner finance a small second behind the buyers bank loan weigh your options carefully and be sure to ask yourself these questions:
Is this the only way the house will sell?
What if you lower the sale price? Will you still receive enough money?
Do you need the cash now? Are you ok getting payments over time instead?
What if the buyer does not make the payments? Are you prepared to foreclose on the property?
Is the property worth enough to make foreclosing on the second lien worthwhile since you will need to pay for the first mortgage?
Are you prepared to never get any of the money?
If you decide to carry back a second mortgage, make sure the buyers have good credit. Don't take anyone's word for it (that includes your Real Estate Agent). Ask to see a current credit report. You are carrying back the note (thereby extending the credit) and have the right to see the report.
Lastly, make the note fairly short term (two to five years) and be prepared to keep it until maturity. Selling a second mortgage to a note investor is unlikely to make sense. Most second mortgages, if purchased at all, will be for 20-cents to 50-cents on the dollar.
Owner carry-back second mortgages can be a great way to facilitate a sale and even potentially pick up a good return in the process. Just be aware of the risks before moving forward.
Fred Rewey is author of the book Winning the Cash Flow War (Wiley 2005). He is also co-founder of NoteInvestor.com, a free site created to educate people on how to buy, hold, and sell private mortgage notes.
More and more sellers are being asked to carry-back a second mortgage for the buyer - especially with the banks still keeping a pretty tight reign on lending.
While seller financing can be a viable alternative to bank loans when it is the buyer's primary obligation or first lien, a second lien has considerably more risk.
If you are asked to owner finance a small second behind the buyers bank loan weigh your options carefully and be sure to ask yourself these questions:
Is this the only way the house will sell?
What if you lower the sale price? Will you still receive enough money?
Do you need the cash now? Are you ok getting payments over time instead?
What if the buyer does not make the payments? Are you prepared to foreclose on the property?
Is the property worth enough to make foreclosing on the second lien worthwhile since you will need to pay for the first mortgage?
Are you prepared to never get any of the money?
If you decide to carry back a second mortgage, make sure the buyers have good credit. Don't take anyone's word for it (that includes your Real Estate Agent). Ask to see a current credit report. You are carrying back the note (thereby extending the credit) and have the right to see the report.
Lastly, make the note fairly short term (two to five years) and be prepared to keep it until maturity. Selling a second mortgage to a note investor is unlikely to make sense. Most second mortgages, if purchased at all, will be for 20-cents to 50-cents on the dollar.
Owner carry-back second mortgages can be a great way to facilitate a sale and even potentially pick up a good return in the process. Just be aware of the risks before moving forward.
Fred Rewey is author of the book Winning the Cash Flow War (Wiley 2005). He is also co-founder of NoteInvestor.com, a free site created to educate people on how to buy, hold, and sell private mortgage notes.
วันพุธที่ 16 กันยายน พ.ศ. 2552
Eliminating a Second Mortgage Through Bankruptcy
Eliminating a Second Mortgage Through Bankruptcy
The bursting of the housing bubble in the midst of a flagging economy has caused home values to drop precipitously. Zillow.com reports that national home values have fallen by about 12% in the last year alone. Home values in Portland, Oregon metropolitan area have dropped by about 11% in the last year alone, and some neighborhoods, such as the Pearl District, have dropped over 20% this year. Many of the homes sold in during the housing boom were purchased with an "80/20" mortgage, that is, a first mortgage for 80% of the purchase price, and a second mortgage for the remaining 20%.
Where the value of the home has fallen below the total outstanding balance of the first mortgage, it is possible in some cases to "strip" the second mortgage in Chapter 13 bankruptcy. A second mortgage may be converted into unsecured debt and could be discharged or classified as non-priority debt in the Chapter 13 plan.
Example 1: The homeowners paid $500,000 for their house in 2006, with a $400,000 first, and a $100,000 second. Since that time, their home has fallen in value to $395,000. These homeowners could strip off the second mortgage, eliminate $100,000 in debt (most likely at a much higher interest rate), and keep their home.
Example 2: The homeowners paid $500,000 for their house in 2006, with a $400,000 first, and a $100,000 second. Since that time, their home has fallen in value to $405,000. These homeowners cannot strip off the second mortgage, because the home value exceeds the first mortgage, and therefore the second mortgage remains secured by the property.
Stripping the second mortgage is not possible in every case. However, even if a homeowner does not qualify for a "strip down" of a second mortgage, they may be able to renegotiate the terms of the second mortgage, which may be at a high or variable interest rate.
Justin M. Baxter
Baxter & Baxter, LLP
Portland, Oregon
(503) 297-9031
http://www.baxterlaw.com
The bursting of the housing bubble in the midst of a flagging economy has caused home values to drop precipitously. Zillow.com reports that national home values have fallen by about 12% in the last year alone. Home values in Portland, Oregon metropolitan area have dropped by about 11% in the last year alone, and some neighborhoods, such as the Pearl District, have dropped over 20% this year. Many of the homes sold in during the housing boom were purchased with an "80/20" mortgage, that is, a first mortgage for 80% of the purchase price, and a second mortgage for the remaining 20%.
Where the value of the home has fallen below the total outstanding balance of the first mortgage, it is possible in some cases to "strip" the second mortgage in Chapter 13 bankruptcy. A second mortgage may be converted into unsecured debt and could be discharged or classified as non-priority debt in the Chapter 13 plan.
Example 1: The homeowners paid $500,000 for their house in 2006, with a $400,000 first, and a $100,000 second. Since that time, their home has fallen in value to $395,000. These homeowners could strip off the second mortgage, eliminate $100,000 in debt (most likely at a much higher interest rate), and keep their home.
Example 2: The homeowners paid $500,000 for their house in 2006, with a $400,000 first, and a $100,000 second. Since that time, their home has fallen in value to $405,000. These homeowners cannot strip off the second mortgage, because the home value exceeds the first mortgage, and therefore the second mortgage remains secured by the property.
Stripping the second mortgage is not possible in every case. However, even if a homeowner does not qualify for a "strip down" of a second mortgage, they may be able to renegotiate the terms of the second mortgage, which may be at a high or variable interest rate.
Justin M. Baxter
Baxter & Baxter, LLP
Portland, Oregon
(503) 297-9031
http://www.baxterlaw.com
Refinance Your House Mortgage – Different Types of Closing Costs
Refinance Your House Mortgage – Different Types of Closing Costs
Refinancing a home loan can be a lengthy process that entails many
fees. Closing costs are unavoidable. Homeowners have the option of paying
these fees out-of-pocket, or financing the fees into the mortgage. The
latter options will increase the principle balance of the mortgage by a
few thousand dollars. Before applying for a mortgage or refinancing, it
is important to understanding the two types of closing costs: recurring
and non-recurring costs.
What are Closing Costs?
When applying for a refinancing loan, many steps must be fulfilled
before the loan is finalized at closing. Unfortunately, these steps involve
fees. Unless otherwise negotiated, the homebuyer is responsible for
these costs. Closing costs vary from loan-to-loan. In a housing market
where properties are selling very quickly, homebuyers should be prepared
to pay 3 to 5 percent of the home price. As the housing market cools, it
may be possible to arrange for the seller to pay closing costs.
What are Non-recurring and Recurring Closing Fees?
There are two main types of closing fees. If using a mortgage broker,
they will likely explain the different fees. When refinancing a home,
most fees are one-time and paid at closing. These include the discount
and origination points, application fees, appraisal fees, title search,
credit report, etc.
Recurring closing fees are also due at closing. However, homebuyers are
also required to pay these fees annually. Typical recurring fees
include interest, property taxes, and a variety of insurances. Homeowners may
choose to prepay recurring closing costs each year, or have the
premiums included in the new mortgage payment.
What to Expect at Closing
To avoid unexpected charges, homeowners are informed of estimated
closing costs before finalizing the mortgage loan. When requesting a
mortgage quote, potential lenders remit quotes with estimated fees. Thus,
there are no surprises.
Lenders charge different fees. With this said, it is essential to
obtain Good Faith Estimates from at least three lenders. By doing so,
homeowners may pay less at closing.
Try using one of ABC Loan Guide's Recommended Mortgage Refinance Companies.
Getting a mortgage quote is simple. Mortgage brokers can link
homebuyers will several types of lenders, offering a range of loans for all
credit types and incomes.
View our recommended lenders for Bad Credit Mortgage Refinance. Also, view our recommended sources to Check Your Credit Report For Free.
Refinancing a home loan can be a lengthy process that entails many
fees. Closing costs are unavoidable. Homeowners have the option of paying
these fees out-of-pocket, or financing the fees into the mortgage. The
latter options will increase the principle balance of the mortgage by a
few thousand dollars. Before applying for a mortgage or refinancing, it
is important to understanding the two types of closing costs: recurring
and non-recurring costs.
What are Closing Costs?
When applying for a refinancing loan, many steps must be fulfilled
before the loan is finalized at closing. Unfortunately, these steps involve
fees. Unless otherwise negotiated, the homebuyer is responsible for
these costs. Closing costs vary from loan-to-loan. In a housing market
where properties are selling very quickly, homebuyers should be prepared
to pay 3 to 5 percent of the home price. As the housing market cools, it
may be possible to arrange for the seller to pay closing costs.
What are Non-recurring and Recurring Closing Fees?
There are two main types of closing fees. If using a mortgage broker,
they will likely explain the different fees. When refinancing a home,
most fees are one-time and paid at closing. These include the discount
and origination points, application fees, appraisal fees, title search,
credit report, etc.
Recurring closing fees are also due at closing. However, homebuyers are
also required to pay these fees annually. Typical recurring fees
include interest, property taxes, and a variety of insurances. Homeowners may
choose to prepay recurring closing costs each year, or have the
premiums included in the new mortgage payment.
What to Expect at Closing
To avoid unexpected charges, homeowners are informed of estimated
closing costs before finalizing the mortgage loan. When requesting a
mortgage quote, potential lenders remit quotes with estimated fees. Thus,
there are no surprises.
Lenders charge different fees. With this said, it is essential to
obtain Good Faith Estimates from at least three lenders. By doing so,
homeowners may pay less at closing.
Try using one of ABC Loan Guide's Recommended Mortgage Refinance Companies.
Getting a mortgage quote is simple. Mortgage brokers can link
homebuyers will several types of lenders, offering a range of loans for all
credit types and incomes.
View our recommended lenders for Bad Credit Mortgage Refinance. Also, view our recommended sources to Check Your Credit Report For Free.
วันอังคารที่ 15 กันยายน พ.ศ. 2552
Possibility For an Individual to Wipe Out Second Mortgage and Still Keep Their House
Possibility For an Individual to Wipe Out Second Mortgage and Still Keep Their House
In order to determine if you are able to wipe out your second and succeeding mortgages, you will need to consult with an experienced Washington bankruptcy lawyer.
In essence, however, it works like this way. If your second and any succeeding mortgages are no longer secured by any equity (value) based upon the current fair market value of your house, you may be able to discharge your second and any additional successive mortgages through a Chapter 13 bankruptcy. What is equity? Equity is the net value of your home. It is the current fair market value of your home minus the amount of any outstanding debts (mortgages) on your house.
If you believe that you may qualify under these circumstances, one of experienced Washington bankruptcy attorneys will assist you in undertaking a thorough analysis of your property so that you can make an informed decision. If we believe that you can prevail, we will then represent you through an adversarial proceeding process that allows you to shed or get rid of one or more mortgages on your house.
Please also note that you can never discharge your first mortgage because it will always be presumed that your property has some value. Given the chaos of our local real estate market in the last few years, it appears as if more and more homeowners are able to discharge their second mortgages through a Chapter 13 because the sale of their house will not even pay off the entire balance of their first mortgage. If you are contemplating filing a Washington bankruptcy and you own real property, it is important to consult with an experienced bankruptcy lawyer who understands how real property is treated in the bankruptcy process.
Choosing the right tacoma bankruptcy attorney may be one of the most important decisions that you will ever make. We are your experts in all chapter7, 13 bankruptcy and tacoma home foreclosure matters.
In order to determine if you are able to wipe out your second and succeeding mortgages, you will need to consult with an experienced Washington bankruptcy lawyer.
In essence, however, it works like this way. If your second and any succeeding mortgages are no longer secured by any equity (value) based upon the current fair market value of your house, you may be able to discharge your second and any additional successive mortgages through a Chapter 13 bankruptcy. What is equity? Equity is the net value of your home. It is the current fair market value of your home minus the amount of any outstanding debts (mortgages) on your house.
If you believe that you may qualify under these circumstances, one of experienced Washington bankruptcy attorneys will assist you in undertaking a thorough analysis of your property so that you can make an informed decision. If we believe that you can prevail, we will then represent you through an adversarial proceeding process that allows you to shed or get rid of one or more mortgages on your house.
Please also note that you can never discharge your first mortgage because it will always be presumed that your property has some value. Given the chaos of our local real estate market in the last few years, it appears as if more and more homeowners are able to discharge their second mortgages through a Chapter 13 because the sale of their house will not even pay off the entire balance of their first mortgage. If you are contemplating filing a Washington bankruptcy and you own real property, it is important to consult with an experienced bankruptcy lawyer who understands how real property is treated in the bankruptcy process.
Choosing the right tacoma bankruptcy attorney may be one of the most important decisions that you will ever make. We are your experts in all chapter7, 13 bankruptcy and tacoma home foreclosure matters.
Are You Planning A Second Mortgage?
Are You Planning A Second Mortgage?
Second mortgages are a huge commitment that you shouldn’t enter into lightly, as they carry many risks. It pays to know what you’re getting yourself into before you sign on that dotted line.
To begin with, be careful of second mortgages that seem like they are for small amounts, but last for a very long time. A common trick is to get you to borrow a relatively small amount of money and then pay it back over 10 or 20 years at a small amount per month. Unless you add it up, you might never realise that you can end up paying back more than twice what you borrowed.
Interest is generally quite high on second mortgages, because of the risk the lender is taking. While you are warned that you’re using your house as security and it may be repossessed if you can’t keep up the payments, in reality any proceeds from the repossession of your house will be used towards the repayment of your primary mortgage before the second lender ever sees a share.
Of course, the biggest risk on a second mortgage is the one you’re taking yourself. Releasing the equity in your home assumes that house prices are going to either stay stable or keep going up. If house prices ever go down, having a second mortgage makes you much more likely to find yourself trapped in a negative equity situation, and so unable to move house without massive expense.
The same thing applies if you’re thinking of taking a second mortgage that pays out more than 100% of your home’s value. This is speculation, but even worse than just betting that house prices will stay level – it actually bets that they will go up by however much extra money you just took! Be very careful, as this could potentially leave you in a very bad position, even if the market is merely underperforming rather than outright tanking.
John Gibb is the owner of second mortgage guide
For more information on second mortgages check out http://www.2nd-mortgage-guidance1k.info
Second mortgages are a huge commitment that you shouldn’t enter into lightly, as they carry many risks. It pays to know what you’re getting yourself into before you sign on that dotted line.
To begin with, be careful of second mortgages that seem like they are for small amounts, but last for a very long time. A common trick is to get you to borrow a relatively small amount of money and then pay it back over 10 or 20 years at a small amount per month. Unless you add it up, you might never realise that you can end up paying back more than twice what you borrowed.
Interest is generally quite high on second mortgages, because of the risk the lender is taking. While you are warned that you’re using your house as security and it may be repossessed if you can’t keep up the payments, in reality any proceeds from the repossession of your house will be used towards the repayment of your primary mortgage before the second lender ever sees a share.
Of course, the biggest risk on a second mortgage is the one you’re taking yourself. Releasing the equity in your home assumes that house prices are going to either stay stable or keep going up. If house prices ever go down, having a second mortgage makes you much more likely to find yourself trapped in a negative equity situation, and so unable to move house without massive expense.
The same thing applies if you’re thinking of taking a second mortgage that pays out more than 100% of your home’s value. This is speculation, but even worse than just betting that house prices will stay level – it actually bets that they will go up by however much extra money you just took! Be very careful, as this could potentially leave you in a very bad position, even if the market is merely underperforming rather than outright tanking.
John Gibb is the owner of second mortgage guide
For more information on second mortgages check out http://www.2nd-mortgage-guidance1k.info
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