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Refinancing Your Home

Refinancing your home can be a wise financial move if the homeowner has been diligent to do their financial homework regarding financial goals in light of the current lender market. Whether a consumer wishes to cash out home equity, refinance to save money over the long range or shorten length of loan payments in order to retire debt free, a multitude of lenders offer a wide range of options for refinancing. After determining all financial goals, homeowners will need to determine if lenders will be willing to offer loan options to them.

Those who are considering the refinance process will need to begin by assessing the value of the property and the current equity in the house. Lenders may require a professional appraisal to determine the fair market value as it stands currently. Some lenders may only require a general assessment, based on the typical sale price of homes within that particular neighborhood, when considering applications for refinancing your home. If a professional appraisal is done, the cost can either be paid up front by the homeowner or included within the cost of the refinance package.

Another important aspect to consider, when refinancing your home, is the fact that the value is always somewhat vulnerable to appreciation or depreciation depending upon the current trend in any local community or neighborhood. What is of value today may not be as equitable 5 years from now as well as vice a versa. The size of a house, construction quality, style, and landscaping all affect equity which consequentially affects a consumer's refinancing options. Homeowners can add equity value to a home by giving attention to property details, before refinancing, in order to receive the best possible second mortgage loan.

Lenders are also interested in the homeowner's financial status in order to protect their investment. A good credit rating, personal earning-to-debt ratio and any other client collateral are calculated within all refinancing mortgages. The more equity, better credit, and higher personal earnings make it possible to receive the lowest mortgage rates and the best payment options available. However, many lenders make refinancing your home possible even with a negative financial status, but higher interest rates are inevitable. Always check with several lending sources for free quotes in order to determine the best option. No matter the outcome, be sure to thank God for your home and pray for ways to use it for His will. "Give unto the LORD the glory due unto his name: bring an offering, and come into his courts" (Psalm 96:8).

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Loans For Home Construction

Loans for home construction provide funds for homeowners to alter their current house or build a dream house on a piece of land. Before getting funds to build, consumers need to decipher what type of home construction will take place. There is lending available when it comes to building a brand new house or there are options if the homeowner wants to make additions to their current house. There is also lending for repairs if there was an accident in the house (fire, vehicle drove through it, etc.) Therefore homeowners need to know what kind of repairs and additions are necessary to get the right type of lending as well as the right amount of money. One can explore all lending options by talking to a loan officer or broker.

When a consumer wants to build a house, the process may seem quite familiar. The application for a loan for home construction is not going to look much different from one that a consumer would use to buy a house. Those who want funds to build need to know what kind of building and where the land is for the new property. Borrowed funds will greatly depend on how big and what kind of a house one is building. A loan is easy to get for this kind of thing as long as the consumer has done their homework and knows what kind of lending to apply for.

There is also lending available if one wants to do construction on their current house. These loans for home construction tend to be harder to get. A good deal has a smaller interest rate, and will require the applicant to have sufficient reasoning for building. They will be able to get approved, but the amount of building and reasoning will decide whether it is going to be a loan for home construction that has a low interest rate and low monthly payments or whether it is going to be pricier.

Finally, there are lending options when something has happened to the home. Before looking into a loan for home construction, the homeowner needs to look into insurance. Sometimes insurance will cover everything and consumers do not even have to worry about getting funds. But if they do not have good insurance; borrowing may be a necessity. This will once again depend on how much work needs to be done. Either way it is good to look into loans for home construction because it will allow less stress in the decision to make one's house beautiful. However, one should never put too much emphasis on earthly things. There needs to be balance. "The rich man shall lie down, but he shall not be gathered: he openeth his eyes, and he is not" (Job 27:19).

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Home Equity Line of Credit and How to Use it

Believe it or not, many people do not understand equity and the power it provides.

In its purest form, equity is money. With regard to real estate (specifically, your house or other investment property), equity is measured in terms of the value of the property minus what you owe. So, if your home is valued at $100,000, and you owe $40,000 on it, you have $60,000 in equity (actual money that is available to you, under particular circumstances).

Surprisingly, many people have this type of equity and do not take advantage of it. Some people are actually in dire financial straits and fail to realize their problems can be solved very easily, by taking the equity from their home. Remember, your home is a "vault," and the money inside that vault belongs to you. Best of all, you can use that money/ equity for anything you desire, from home improvement to travel expenses to spending money to opening your own business.

Exactly what is a home equity line of credit or HELOC? A home equity line of credit, which lenders and mortgage brokers refer to as a HELOC, is a different kind of home loan. An equity line has different rates and terms from a conventional first mortgage.

In a standard home loan, or mortgage, your monthly payments cover both the principal loan and the interest you are charged.

Most mortgage payments include escrow, or taxes and insurance. An equity line of credit payment does not reduce your principal loan amount and does not include escrow. You are borrowing the equity in your house and paying the bank an interest premium on that loan. With a HELOC, you pay only the interest on the loan and, generally, you get the money for less time than you do a standard first mortgage.

The underwriting on these loans is very simple, and in most cases, the loans are very easy to get. At close, you either get one big check, which you can deposit into your savings or checking account or you can get a check book and treat your equity line of credit as another checking account. The payment on equity lines is very enticing. Paying interest only makes for a very low payment. It's important to remember, though, when paying interest only, you are not paying down the principal loan balance.

The Power of Interest-Only Payments So, let's suppose you take an equity line for $50,000 at 4.25% interest. This interest rate is based on the Prime rate, a floating rate that can change but does not fluctuate very often. When this article was first published, the prime rate was 4.25 percent. So, on your $50,000 equity line of credit, your payment is $177.00 each month. This is an incredibly low payment on a loan of this size. This gives you a great deal of power, because you can control a large sum of money for an extremely low monthly payment. It is this low, because you are only paying the interest on the loan.

At the end of the first year, you will have paid the bank over $2,100. You will, however, still owe $50,000. This is because your monthly payment is an interest-only payment. This is where some people can get in trouble with home equity lines of credit. If you use all the equity in your home and never pay down the balance, then decide to sell your house, you won't make anything on the sale, because you'll owe it all to the bank.

It is also important to understand the terms on a home equity line of credit (HELOC). When talking to mortgage professionals about home equity lines of credit, be sure you understand the terms, as lenders vary on what they'll offer. Like conventional mortgages, which have terms of 30 years, 15 years, 10 years, etc., home equity lines also have various terms, but not all lenders offer them. Don't let this confuse you. Just find your trustworthy mortgage broker, and tell him or her exactly what you want.

Unlike mortgage payments, which include complicated yearly amortization of the principal loan amount, interest-only payments are calculated very easily. You can do it in two simple steps. To find out your payment, first learn what rate of interest you'll be charged. If you are using 80 percent or less of the equity available and you have an A credit rating, you'll be able to get the best rate available, which is the prime rate.

Now, let's assume you have $40,000 in equity in your house, but you only need $20,000 (taking less than 100% of the equity is important). You take $20,000 and multiply it by 4.25%, which gives you 850. This is what you'll pay each year to borrow $20,000. Next, divide the 850 by 12 for a monthly, interest-only payment. Your payment for your $20,000 home equity line of credit is $70.83.

This is a very powerful loan. Imagine paying less than 71 dollars for the ability to control $20,000. Some people pay more for cable TV or their monthly cell phone bill. Some people even take the equity in their home and invest it elsewhere. You're probably figuring out how much equity you have right now, and what you can do with that money!

To learn how you can turn your equity into a never-ending money cycle that will fill your bank account year after year, read Winning the Mortgage Game. Whatever you decide, open the cash vault inside your home, and make use of your equity today.

Mark Barnes is author of the wealth-building system, Winning the Mortgage Game and other investment real estate books. He is also a suspense novelist, and his new novel, The League, will thrill both suspense and sports fans. Learn about Mark's wealth-building system and get his free home loan course at

Home Equity Loans without Equity?

Even if you haven’t built any equity on your home yet or if you need more money than the amount you have built on your home, you can get a 125% home equity loan that will let you get a quarter more money above your home value.

This means that if you just bought your home and you financed 100% of its value, you could still get 25% of its value from a home equity loan. If your home value is $200.000 this implies that you can borrow up to $50.000. If you have already paid 10%, you could borrow $70000 and so on.

Loan Requirements

In order to qualify for this kind of loans you need to meet certain requirements. Requirements are mainly associated with your credit score and history. Nevertheless, each lender has its own requirements and you can always consult with them weather youll be able to get a loan or not. Bear in mind that your credit report will be pulled so you might want to check everything is in order before applying as you may get declined and this will affect your credit score even more.

Additionally, your credit score will not only determine your eligibility but it will also establish the loan amount youll be able to request, the lending schedule and the repayment schedule. You wont always be able to receive the full loan amount in hand; you may get the money in 3 or 4 separate installments.

Some lenders require that you spend a certain amount of time living in that home prior to granting the loan. This period of time is not fixed and depends on your credit score and on the lender; some of them do not require it at all. But normally two months residing in the property is the minimum period of time required.

As regards to appraisal, most of the time, it can be bypassed. This is due to the fact that property values tend to be stable over small periods of time, and chances are that if youve bought the property or refinanced within a small period of time, theyll use the value concealed in that contract in order to calculate the new loan figures. This is almost always true if youve bought your home or refinanced within twelve months.

Perfect for home improvements

This kind of loan is a great option for those who didnt have enough money to buy a home and undertake house improvements at the same time due to the lack of funds. With a 125% Home equity loan you can get the finance needed to make house improvements without having to pay for high interest personal loans.

So if you need the extra cash and youve made up your mind, just search the internet for 125% home equity loan lenders and request loan quotes. Compare fees and interest rates, and once youve decided which option is best for you, apply for the loan. In a matter of days youll get approved and you will be able to get started.

About the Author

Bryan Quinn is a financial advisor with more than thirty years of experience in the field of finance who aids people undergoing financial problems and helps them obtain personal loans, home loans, student loans and grants, consolidation loans, car loans and many other financial products regardless of their credit situation. For more smart tips on Home Loans you can visit and also learn more about other financial options.

Bankruptcy Home Loan

A bankruptcy home loan is a mortgage for a person who has previously been discharged from bankruptcy. This can leave a black mark on a person's credit report for years to come, which makes it difficult for them to get a home loan afterwards. Despite the difficulty, there are lenders out there who are willing to give out money. However, borrowers must be cautious and watch out for scams. Any credit counselor will advise those coming out of this situation to work towards a good credit score before attempting to obtain bankruptcy home loans.

Many bankrupt individuals are advised to live on a budget and manage their money cautiously since many of their purchases are monitored. Continuing a budget shouldn't be too difficult. Also, these individuals need to build up a savings account and obtain a credit card. The credit balance - not minimum payment - must be paid in full each month. It is also wise to establish a consistent home address and employer for at least six months. These steps will help borrowers obtain a better bankruptcy home loan. The most important thing to remember about bankruptcy home loans is that they tend to be higher in interest than typical loans. Lenders consider borrowers with a history of bankruptcy especially risky to work with. They will make up for that risk in interest. Seriously consider putting off borrowing until credit improves, and a person can show lenders that they are a reliable borrower. Pray about the decision carefully. "Blessed be God, which hath not turned away my prayer, nor his mercy from me". (Psalm 66:20)

For whatever reason, some individuals are too pressed for time to reestablish their credit before looking at other options. In these cases, they will want to search for a reliable lender. They can either do so themselves or work with a mortgage broker. A mortgage broker is especially helpful in finding home loans because they know many lenders and what each lender requires. The broker understands their client's financial history and can find the best deal on a bankruptcy home loan. For those who prefer to do the homework themselves, there are many services on the Internet, but use caution. Some of these sites offer too-good-to-be-true deals on bankruptcy home loans. Check the background of these lenders. Be especially wary of lenders who don't post information about their company or policies on their website. Make sure that the lender has a clean record with the Better Business Bureau. Other websites are available which compare lenders and their rates. A person can simply fill in one form and the website will submit it to dozens of lenders. The lenders then offer an unofficial quote.

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Best Refinance Rate

The best refinance rates are available to consumers who investigate and ask questions when seeking a refinance mortgage on their home. To get the best refinance rate possible, a homeowner will need to be aware of the current market and what the lowest interest rate available actually is. There are closing points and points attached to interest fees, and these costs can depend upon the borrower and, or the lender, or both. The Internet can provide the information needed about the best rate, the current housing markets, and what is happening with the economic indexes. Homeowners looking for good rates can also comparison-shop the many mortgage companies competing for clients online to see what they offer. To find the lowest cost for a newly financed mortgage, log on and study the housing markets and trends.

Getting the best refinance rate possible is not always easy when homeowners and borrowers do not have knowledge of the various reasons loans can vary in price and interest fees. The very lowest rate for refinancing one situation may not be the best rate for another person's mortgage. Getting the best refinance rates all depends, and it is depending upon hidden fees attached by mortgage brokers and companies and a borrower's own credit report and financial needs.

Homeowners looking for the best refinance rates will need to speak frankly with their mortgage brokers and ask questions. If there are no closing costs involved, such as a no cost loan, be sure and ask if there are added fees. Asking how to get the lowest interest is another good question when searching for the lowest finance rate. Also, if a homeowner's credit report has a low credit score, or if there is excessive debt on the credit report, a mortgage company may not be able to extend the preferred rates available at closing to that borrower. Compassion toward debtors is expressed in some Biblical passages such as this one: "And hath not oppressed any, but hath restored to the debtor his pledge, hath spoiled none by violence, hath given his bread to the hungry, and hath covered the naked with a garment;" (Ezekiel 18:7)

The Internet is a great place to begin the journey of learning how to get the finest terms available. Get online and discover from the various articles and information websites just how to ask for the best refinance rate. With the vast mortgage company competition on the Internet, getting facts and figures about current interest rates should be simple. Mortgage companies are advertising the best refinance rates to attract clients. Log on today, and discover how to get the best refinance rate for a new home loan.

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Government Loans For A Single Parent

Government business loans for a single parent and for other minorities are available, but not widely publicized. Lending organizations are finding that groups that traditionally had limited access to financing are a growing market and lenders are stepping up to meet the need. If in need of single parent assistance, do some research starting with the New and Improved Single Parents Cash and Resources Guide. This publication is produced with the awareness of the need for financial assistance for various minorities and can offer some helpful details and tips.

While the number of small businesses in the United States is growing at 8% a year, minority owned small businesses are growing at 20% a year, according to the latest Census Bureau data. The need for government business loans for a single parent is definitely growing, and to meet the growing need, the Small Business Administration, with it's 7 (a) financing guarantee program is providing 25% more to women than in previous years. This program can be compared to the early church as it created the means to take care of the widows of that time. "Pure religion and undefiled before God and the Father is this, to visit the fatherless and widows in their affliction" (James 1:27).

The snag in trying to obtain such a specific financing agreement is that the Federal Anti-discrimination laws prevent banks from targeting specific minority groups such as those seeking government business loans for a single parent. Because they are insured by the FDIC, they must observe the equal and fair lending laws, thereby making it difficult to obtain. However, because the market is growing and in order to be able to supply the growing minority market, some of the major banks are targeting women and minorities by offering outreach programs in under served communities. When it comes down to approval for such a specific type loan, all applicants must be treated on an equal basis.

While this type of financing isn't as popular as the grant programs for singles and minorities, money is available. If having difficulty in finding government business loans for a single parent, look to the foundations and such that offer grants to these specific groups. The government offers many different finance agreements in general, and this one falls into the category mentioned above. However, if in need of financing assistance, don't let the need for a little research stop in seeking government loans.

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Government Loans For First Time Home Buyers

Government loans for first time home buyers provide opportunities for individuals seeking new homes. This service can be made available to individuals in a variety of forms. The most often utilized government loans for a first time home buyer include fixed rate mortgages, adjustable rate mortgages, and graduated payment mortgages. Each of these types is also available for individuals who have purchased homes in the past.

The fixed rate mortgage is one of the most common government loans for first time home buyers. With these, the interest rate that is agreed upon with the mortgage contract is the same throughout the term. They are usually scheduled on a 30 year repayment plan. Fixed rate mortgage loans are not only available to first time home buyers, but anyone purchasing a house or wishing to refinance has the ability to select this type of loan.

The adjustable rate mortgage is another one of the commonly used government loans for a first time home buyer. As the name suggests, the interest rate is allowed to change over time. This could mean the interest rate will either increase or decrease. Often, consumers will choose this type of mortgage when the interest rate is lower. This loan also provides the opportunity to receive a lower interest rate when refinancing a house.

A graduated payment mortgage is an excellent option for individuals seeking government loans for a first time home buyer. When the household income is limited, this loan offers the opportunity to take on lower payments at first and gradually increase the amount of the monthly payments. With the graduated payment mortgage, interested consumers have the ability to take on payments at a lower price, and as income increases, the payment can also increase.

For those interested in purchasing homes, government loans for a first time home buyer can provide many opportunities. With the many types of government loans for first time home buyers available, the choice will depend on the needs and financial ability of the home buyer. Fixed rate mortgages, adjustable rate mortgages, graduated payment mortgages, and many other options are available to people in search of this type of assistance. For individuals, pursuing a loan for the first house is a very important step in life. While the process of buying a house is significant, it is even more significant to glorify and thank God for this purchase that he provides. "For every house is builded by some man; but he that built all things is God" (Hebrews 3:4).

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Refinance Online

If you want a low interest, low payment mortgage refinance, refinancing online could be the answer. There are many mortgage companies who specialize in mortgage refinancing online. No matter what your credit history, you can refinance your mortgage online and potentially save thousands of dollars in interest on your loan. With interest rates being at a historical low level, customers expect great rates and low payments from mortgage lenders. Online lenders can offer you free quotes and low interest rates when you apply for a mortgage refinance loan online.

Online lenders compete for customers by offering incentives and extremely low interest rates, even for a subprime loan. Bad credit will not disqualify you when you apply to refinance online. Subprime online lenders will offer you the lowest rates possible and easy terms on your refinance loan. Refinancing online is quick, easy, and convenient. You can be pre-qualified or even pre-approved in a matter of minutes. You can begin the refinancing process now when you complete a mortgage refinance application online.

If you have less than perfect credit, you can still qualify to refinance online. There are online lenders who specialize in subprime loans for those with poor credit history. As with any mortgage lender, subprime loans will have higher interest rates than loans for those with good or excellent credit. Subprime lenders, whether traditional or online, will assist you in getting the lowest interest rate possible for your credit situation. Bad credit will not prevent you from refinancing your mortgage online.

You should comparison shop when looking for online lenders. In order to get the very best terms when you refinance online, you need to compare the interest rates and monthly payments offered by various online lending institutions. Online lenders compete for customers and are currently offering amazingly low interest rates and may be able to drop the amount of your monthly payments dramatically. When shopping for online lenders it is wise to get quotes from several different lenders before making a decision. Finding the best interest rate possible can save you a lot of money over time. When you refinance online you will find mortgage experts who will assist you during each step of the refinancing process and will answer all your questions in a prompt, professional manner.

Refinancing online is an excellent choice when shopping for mortgage lenders. Your application will be processed quickly and one or more online mortgage companies will contact you promptly. If you would like to take advantage of today's low interest rates, apply to refinance your mortgage online today. A poor credit history will not prevent you from qualifying for a mortgage refinance loan from an online lenders.

Author-Bio: To see a list of recommended refinance loan companies online, visit this page: - Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.

Carrie Reeder

High Risk Loans – tips for ensuring smooth approval

Borrowers with a bad credit tag are considered as having high risks for lenders. But that should not mean a refusal of loan to them. Thanks to intense competition amongst the lenders, borrowers having very bad credit history are also approved for loans. Such loans are called high risk loans.

Borrowers, whose past credit history is severely damaged due to repeated payment mistakes are considered highly risky to make a loan deal with. Such people usually have multiple credit problems in their names like late payments, payment defaults, arrears, CCJs and IVAs. It is for these people that high risk loans are especially carved out.

The basic of taking High Risk Loans is to cut risks for the lenders as much as possible. How can you ensure doing this? Well, note that in these days of cut throat competition, the lenders will approve high risk loan just on verifying your financial capacity. The lenders are more worried about your repayment ability than your credit history. So first make a repayment plan showing your income and monthly savings. That cuts lender's risk to an extent.

To further assure the lender of safe return of the loan, you may offer home or any valued asset as collateral of high risk loans. A secured high risk loan is easier to avail as lender has little risks. What is more, you will be approved greater amount of loan at competitive rate of interest under secured high risk loans. High risk loans are available as unsecured loans also, without collateral. These are meant for smaller loans of up to£ 25000 with 5 to 15 years of repaying duration. Interest rate charged on unsecured high risk loans will be very high.

Also, online lenders should be preferred for ensuring high risk loan approval. Online lenders lend money at competitive interest rate. These lenders are known for fast and cost free processing and approval of loans for bad credit borrowers. Ensure timely repaying of the loans for improving credit score.

by George Kane

Understanding Bridge Loans

Bridging finance, also referred to as bridge loans and bridging loans, have nothing at all to do with re-constructing the London Bridge. Bridging finance is typically a short-term loan that a business uses to supply cash for a real estate transaction until permanent financing can be arranged. The word bridge; conveys the fact that the loan is designed to get you over a temporary obstacle.

A typical use for a bridge loan is to cover situations such as when a company needs to close on a new office building before having sold their old one. They would use the proceeds of the bridge loan to continue making payments on the old building until it is sold.

Bridging finance almost always requires that you pledge some sort of collateralas security against the loan. You could offer up commercial or private real estate that you own,or are in the process of buying, machinery and office equipment or even existing inventory. If you have outstanding business and personal credit, as well as an outstanding relationship with your lender, you might be able to secure your bridge loans on just a signature.

Because the need for bridging finance sometimes arises suddenly and without warning, it is a good idea to establish a relationship with a lender before the actual need arises. When you do this you can arrange to be pre-approved for a specified loan limit. Later, when the need suddenly arises, you won't have to wade through all of the red tape. The typical term for a bridge loan runs from a fortnight to as long as two years. Of course, any terms can be negotiated and a motivated lender will work hard to match your needs.

Since bridging finance usually lasts for a relatively short period you may find that the interest rate you are being asked to pay is slightly higher than a more conventional type of loan. Lenders make their profit by charging interest across the life of the loan. The shorter the loan period the less interest they earn. As a result many lenders will often boost the rate by a 1/2 point or more. In general, the length of the loan, the amount of risk that is present for the lender, the quality of your credit history and the liquidity and value of your collateral all are used to help determine the interest rate.

Your best bet for securing a bridge loan at the most favourable rates and terms is to work with a qualified UK Commercial Mortgage Broker who understands the ins and outs of bridge loans. That way you can get your application in front of as many lenders as possible and end up with several who are willing to compete for your business.

Commercial Lifeline are Commercial Mortgage and Bridging Finance specialists.

Refinance After Bankruptcy

Refinancing your mortgage after bankruptcy is actually the same as replacing it with an entirely new mortgage. The most common reason for refinancing your mortgage after bankruptcy is to get a lower interest rate and save money over the length of your mortgage. It is possible for you to lower your payments and save money each month and there has never been a better time to refinance. Mortgage lenders will consider refinancing your mortgage after bankruptcy because the risks involved in refinancing an existing mortgage are extremely low.

You can receive quotes from multiple lenders who are competing for your business, even if you have filed bankruptcy in the past. A quick online application will put you in touch with lenders who are experts in refinancing mortgages after bankruptcy. You can be pre-qualified in just minutes and the application is quick and easy. Refinancing your home, even after bankruptcy, can lower your payments and even give you extra cash for that well-deserved vacation, to consolidate bills, or to fund your child's college education.

If you thought refinancing your mortgage after bankruptcy was impossible, you will be pleased to learn that you can refinance and dramatically lower your monthly payments with one short online application. Lenders who are anxious to help you find the best refinancing package available for your special circumstances will contact you within as little as 24 hours after receipt of your application. A bankruptcy does not have to mean you are stuck with a high interest rate and less than desirable mortgage terms. Mortgage lenders have hundreds of loan programs that will help you meet your financial goals.

If you have been through bankruptcy and are wondering if it is possible to refinance your mortgage, complete a short online application today and learn how much money you can save each month and over the entire length of your mortgage. The difference could mean thousands of dollars in your bank account over time. Get the information you need and learn how you can lower your monthly payments and get the cash you need for bills or unexpected expenses. Refinancing your home is the best way to take advantage of the lowest interest rates in many years.

Refinancing your mortgage after bankruptcy is not impossible. Get free quotes today from multiple lenders with one simple online application. You have nothing to lose and you will find that mortgage lenders are prepared to offer you better terms than you thought possible. Lowering your mortgage payments and consolidating bills can make all the difference in your financial situation. You can be on your way to financial freedom when you contact mortgage lenders who will give you expert advice and offer you numerous choices in refinancing your home, even after bankruptcy.

Author: Carrie Reeder

Home Equity Loans for the Credit-Challenged

If you have bad credit, finding a home equity loan, or any loan for that matter, can be a frustrating task. In today's market, however, mortgage loans for people with bad credit are available, even though the interest rates that they’ll face will be higher than those for borrowers with stronger credit numbers. Unfortunately, you should also expect to pay slightly higher fees on your loan as well. Despite the elevated costs, you can still find a good home equity loan if you gather as much information as you can, and follow the tips listed below:

  • Understand the product and process. Unfortunately, the mortgage industry still has its shared of lenders who will take advantage of potential borrowers with poor credit and a lack of knowledge about mortgages and the mortgage marketplace. It's important to understand the basics and specifics of your mortgage, and how loans differ. For example, an adjustable-rate mortgage will give you a low monthly rate for an initial period of two- to seven years; but then the rate adjusts upward. On the other hand, a balloon mortgage will have the same initial, low payment period, but when it concludes, the entire mortgage will be due in full.

  • Comparison shop. Competition in the marketplace is a good thing for the consumer; it naturally regulates costs. When it comes to home equity loans, there's plenty of competition out there to choose from. And with more competition comes cheaper prices. Research lenders on the Internet and compare quotes from several lenders on rates and closing costs. Before making a commitment, check with the Better Business Bureau to make sure a lender doesn't have any complaints lodged against it.

  • Pick a loan that’s right for you. As long as you qualify, most lenders will be happy to give you as much money as you want. They don't mind if you have to start making huge monthly payments on the loan. Make sure the that loan benefits you in the long run. Will it help you get your finances back on track, and eventually qualify you for a better loan? That should be the ultimate goal of this financial transaction.

  • Check closing costs diligently. Each mortgage lender is required by law to provide you with a Good Faith Estimate detailing the proposed costs of the loan. Make sure that you understand all the charges, and keep a watchful eye out for inflated origination fees and so-called “junk fees”, which only serve to increase a lender’s profit yield.

When it comes to home equity loans for people with poor credit, the biggest favor that you can do for yourself is to study the mortgage marketplace and what’s available in it. There’s a plethora of information available to anyone who needs it. Familiarize yourself with the different types of loans that are offered. Find out how you can improve your credit. An excellent place to start your research is in the Mortgage Loan Education Center. You’ll find valuable calculators, tools and information to help you pinpoint the best mortgage available. In the end, you'll get a loan that will help, and not hurt, your financial situation.


No Emergency Fund? Try a Home Equity Line of Credit

It's a good idea to have an emergency fund to fall back on in case you encounter unanticipated financial difficulties. Three to six months' worth of living expenses is the commonly accepted rule of thumb. Do you have these funds set aside in case an unforeseen disaster makes an unexpected appearance?

Flexible Power

An emergency fund doesn't necessarily need to be all in cash. A home equity line of credit is a savvy alternative. With a HELOC, you get direct access to your home equity in case you ever need it; but until you actually use it, there are no payments, interest, or debt. That flexibility is the strongest argument for this type of financial instrument.

When you do run into one of life's not-so-little surprises and start drawing from your credit line, you may appreciate the low interest rate that a HELOC carries. It's generally much lower than credit cards, and often better than traditional home equity loans. And, in most cases, you're only required to make interest payments during the first few years of your borrowing (the "draw period"). While it's still a smart long-term choice to pay down the actual balance, the pressure on your finances during times of need is more bearable when you have lower payments.

In the Interest of Interest

A HELOC will have an adjustable interest rate. As the federal lending rate rises, so does your interest rate. In a rising interest rate environment, this can become expensive. On top of that, your repayments will be larger the more you draw from the credit line; so this option may not be for you if you require absolutely predictable monthly payments.

Since your home equity line of credit is secured against your home, some or all of your interest payments may be tax deductible. It depends on the home's value and the existence of other equity debt. Ask a financial professional whether your interest payments will qualify.

If you have a lot of equity in your house, the credit limit on a HELOC can be very high, which makes it perfect for emergency use. You'll be able to handle most of what life throws at you.

Finally, you don't want to pay a lot of fees for an emergency fund. Look around for a HELOC with low or no closing costs, no fees for actually using the credit, and no early repayment fees. Getting a leg up on financial flexibility doesn't need to cost you an arm and a leg.


One Closing, Two Home Mortgage Loans

A little efficiency in life can go a long way. Since free time seems to come at a premium these days, why not consider killing two birds with one stone using one loan closing to obtain two home financing instruments? Not only will you save time down the road, you'll also realize some compelling benefits.

HELOC Basics

HELOCs are powerful, versatile, and very popular financial instruments. They function like any other revolving credit account, in that you can take cash withdrawals and make payments as needed. Even better, you can choose not to draw on the account and it won't accrue any interest. Having access to a large sum of cash can be a comforting precautionary measure, particularly if you don't have a liquid fund set aside for emergencies. Other common uses for HELOCs include debt consolidation, big-ticket purchases, college tuition, and home improvement projects, among others.

HELOCs and interest rates

Unlike a conventional mortgage, the HELOC carries a variable rate of interest. While variable rate debt can be riskier, it's a good long-term companion to the fixed-rate debt of your conventional mortgage loan. A fixed rate mortgage insulates you from rate increases, but doesn't give you access to rate decreases. Over a complete cycle of rising and falling rates, the characteristics of the two instruments are complementary. Incidentally, your credit cards also have variable interest, but at rates much higher than a HELOC. This is why HELOCs are often used for debt consolidation purposes.

On a conventional HELOC, the interest rate will be quoted as a margin plus or minus the prime rate. As is true with all mortgages, the best rates are reserved for borrowers with excellent credit. Borrowers with bad credit will be offered somewhat higher rates.

Leveraging the time and energy you put into your first home mortgage loan to close a HELOC at the same time will increase your purchasing power and provide you with access to emergency cash. The other upside is the time you'll save, which is absolutely priceless. And since time is money, saving time also means saving money.

By Catherine Brock -

Home Equity: How To Know What You Have — And When It’s Smart To Use It

Home equity is the difference between the current value of your home and the balance you owe on your mortgage(s). Borrowing against the value of the available home equity is one of the most popular and savvy forms of credit. Why? Because it generally features lower interest rates, the freedom to use the money for any purpose, and potential tax benefits (consult your tax advisor).

First move: Learn how much home equity you have available

Here are 4 easy steps to finding out:

1. Check your mortgage statement or call your lender to learn your mortgage balance. The actual payoff amount will be somewhat higher, so round up the figure slightly. For example, you might round up a $153,000 balance to $155,000.

2. Estimate your current home value in one of two ways:

Call a local Realtor for an estimated market value

Online, enter Home Value Estimator or Home Value Calculator into your search engine, and visit one of the websites that offer this free service.

Either way, the estimate should be based on recent, actual home sales of comparable properties in your neighborhood.

3. Subtracting your mortgage balance from your estimated current home value can provide you with a ball park of how much equity you may have in your home…

4. Estimate the amount of home equity available to borrow by contacting a local lender. Answers may vary based on their home equity lending guidelines and average closing costs, so you may want to shop around.

There are many smart reasons to borrow against home equity.The most popular reasons are:

  • Consolidating high-cost debt to ease budget pressures.

  • Borrowing to make home repairs or improvements.

  • Financing a college education.

  • Repayment of medical expenses or other unexpected bills.

  • Capitalizing on a business or real estate investment opportunity.

No Equity Home Loan - Is A No Equity Home Loan Your Best Choice?

While there are many options available to the homeowner when it comes to borrowing money, one that is often misunderstood is the no equity home loan. It may seem like a great choice in your time of needing cash, but is it a good decision. Here are some points to consider.

One of the biggest points to keep in mind is that borrowing money comes with a price and in the even of a no equity home loan, it can be steep.

It's one thing to borrow a portion of the equity you have built up in your home, but to borrow more than its value is another story. You really need to give careful consideration before making any decision.

Expect higher interest rates

The APR on a no equity home loan can easily be up to 5% higher than on a standard home equity loan. Of course, this will vary depending on the loan terms, your current credit history, etc.


In almost all circumstances, a no equity home loan will require the borrower to have PMI, private mortgage insurance. This will add further costs to any loan.

Tax implications

You will need to check which your tax advisor, but any loan that is greater than what your home is worth will not be deductible on your taxes. Needless to say this can have a dramatic effect come tax time.

Selling your home

Be prepared to hang onto your home when you take out a no equity home loan. Why? Because you will owe so much more on the home than it is valued at. You would need to come up with the balance at closing time.

These are a few of the reasons why you should carefully consider whether a no equity home loan is right for you. In most cases it may not be.

All Rights Reserved Worldwide. Reprint Rights: You may reprint this article as long as you leave all of the links active and do not edit the article in any way.

By the way, you can learn more about a No Equity Home Loan as well as more information on everything to do with home equity loans by visiting us at

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Remodeling Costs: 3 Smart Solutions To Help Save You Time And Money

Remodeling costs are as hard to predict as they are to afford. That’s why it may be a good idea to consult with experienced home loan professionals before you undertake a remodeling project. They can offer solutions to help save you time — and money. Before you decide how to finance remodeling costs…

Here are 3 solutions to ask for by name:

A cash-out refinance

  • These are first mortgages that also allow you to borrow a lump sum from your home’s available equity. A refinance may let you improve the terms of your first mortgage while you get cash to pay remodeling costs — potentially killing two birds with one loan!

  • Typically, interest rate will tend to be less than nearly every other type of credit, and is usually tax deductible. (Check with your tax advisor for details.)

A home equity loan

  • Also called second mortgages, these allow you to borrow a fixed sum from your home’s available equity, while leaving your first mortgage in place if you like it as it is.

  • The interest rate and payment are typically fixed, lower than most other loan options, and tax deductible. (Check with your tax advisor for details.)

A home equity line of credit (HELOC)

  • A type of second mortgage, HELOCs allow you to borrow against a line of credit, much like a credit card, while leaving your first mortgage intact.

  • Because the money you borrow can be repaid and re-used during the draw period, HELOCs can be a convenient way to pay for remodeling costs.

  • The interest rate and payments fluctuate, but are generally lower than most other loan options, and the interest expense is usually tax deductible. (Check with your tax advisor for details.)

Shopping For A Home Improvement Loan? 3 Options You Mustn’t Forget

Home improvement loans are often what homeowners shop for when home repairs or remodeling projects are on the drawing board. That’s logical. And the loans that can be used to finance home improvements have skyrocketed in popularity. These days, the loans to remember are:

  • Cash-out refinance loans

  • Home equity loans (also called second mortgages)

  • Home equity lines of credit (”HELOCs,” another form of second mortgage)

Home equity is the difference between the current market value of your home, and the balance you owe on your mortgage. For people who have owned their homes for several years, home equity can sometimes be measured in tens of thousands — even hundreds of thousands — of dollars.

Equity can be tapped for home improvement loans 3 ways

1. Cash-out refinance loans. These are first mortgages that replace your existing mortgage and allow you to borrow a lump sum from your home’s available equity. If you qualify, a refinance may let you to improve the terms of your first mortgage; at the same time, you can get cash to pay for home improvements, or any other purpose. The cash is turned over to you when the loan closes. Interest rate tend to be lower than other types of credit, and are usually tax deductible. (Check with your tax advisor for details.)

2. Home equity loans. These are second mortgages that allow you to borrow a fixed sum from your home’s available equity, while leaving your first mortgage in place. The interest rate and payment are typically fixed, lower than most other loan options, and the interest expense is usually tax deductible. (Check with your tax advisor for details.)

3. Home equity lines of credit (HELOC). These second mortgages allow you to borrow against a line of credit, much like a credit card, while leaving your first mortgage intact. The money you borrow can be repaid and re-used during the draw period of the loan. This can be convenient for a multi-phased home improvement project. The interest rate and payments fluctuate, but are often lower than most other loan options, and the interest expense is usually tax deductible. (Check with your tax advisor for details.)

The Best Uses for Home Equities

There are number of ways in which Home Equity loans can be used to your advantage. Although you should never lose sight of the fact that home equities are debt, secured debt against your home, if utilized properly they can actually help to improve your personal finances. But always be careful; falling behind on a home equity loan can subject your dwelling place to the possibility of foreclosure. Let’s look at some of the most valuable and beneficial ways that these loans can be used.

One of the main uses of home equity loans for many people is for debt consolidation. This allows you to combine your credit cards, installment loans and other personal unsecured debt into one monthly payment which could be substantially lower than the sum total of those individual payments. Because of the money saved on a monthly basis, you’ll have more income at your disposal. These funds can be saved, invested, or used for any purpose that you see fit. And because mortgage interest, even on a second mortgage, is very likely to be lower than personal loan- and credit card interest, the total amount that you’ll pay in interest charges will be greatly reduced. In addition, using a home equity loan for debt consolidation can also improve your credit over the long term, because your lower monthly payment will make you less of a risk to lenders.

Another great use for home equity loans is home improvements and renovations. Your house is an investment, and the more you put into it, the more value it will give back to you. Adding improvements to your home can greatly increase its worth, both to you personally as well as on the housing market, and you could realize a very hefty profit if you someday chose to sell it.

You must, however, be extremely careful when making choices on what improvements to make. You should spend money to improve areas that will greatly increase the value of your home. Remodeling either a kitchen or bathroom will bring the most value to your home. Adding an additional bathroom will also add substantial market worth. A good rule of thumb is that every dollar of improvement money spent should raise the value of the home by at least two dollars. You’ll also want to make sure that the improvements you make enhance the beauty of the home. While adding carpet and paint won't greatly increase value, they will make the house more appealing and easier to sell if done properly.

Many people also use home equity loans to pay for the cost of higher education for their children. Like home improvements, using a home loan to pay college expenses can be an investment. It can keep your children out of debt. Of course, it can also backfire if the kids don’t graduate.

These tend to be the best uses for home equity loans. The equity that you use should provide the prospect of a long-term investment or benefit. Many people do use home equity loans to buy other things that they want or need, things such as a boat, a nice car, a vacation, or to cover major medical bills.


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