Second Mortgage/Home Equity vs. Refinance
by: Benjamin Ehinger
Why should you take out a second mortgage or a home equity line of credit instead of refinancing?
Well,???You Shouldn?t!!
Why Not?
1. Second Mortgages usually have an interest rant that is twice or even three times as high as your first mortgage rate.
You can refinance instead and keep a very low rate.
In the long run a second mortgage will just cost you money in interest charges.
2. Home equity lines of credit are designed for mortgage account executives (salespeople) to sell you on using it like a credit card attached to your home.
They will try to convince you to use it over and over again.
3. A refinance loan is better for the equity in your home.
Very few companies will refinance your home at 100% of it?s value without forcing you to take out a second mortgage.
You don?t want to use 100% of your equity because that means you no longer have that equity to fall back on in emergency situations.
4. Second Mortgages and Home Equity lines of credit are designed to provide account executives (salespeople) with another tool to sway you into putting another commission in their pocket.
5. Your equity is a precious thing and should not be used for unnecessary add ons or impulse buys.
If you don?t need it and there is even a slight chance you can?t afford it, then don?t get a second mortgage to buy it.
The only reason that I would ever recommend a second mortgage or a home equity line of
credit is in an emergency situation.
Only when there is no other option and you must take out a loan would I recommend either one of these options.
About The Author
Benjamin Ehinger has an extensive mortgage background and has studied the industry for many years.
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What are VA loans?
What are VA loans?
by: Mark Lambie
VA loans are basically mortgages or home loans geared towards ex-military servicemen and women.
The VA loan programme was created in 1944, and was initially known as the Servicemen's Readjustment Act, to help returning servicemen settle down and purchase their first home.
There are, on average, over twenty-five million American who complete their military obligations each year.
You are eligible for a VA loan if you are veteran who has been honourably discharged.
The eligibility requirements vary, depending upon whether you served full-time or in the reserves, so check with your lender.
A VA loan will generally guarantee around 25% of
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VA loans are often made by a variety of lenders, such as banks and savings and loans institutions.
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Mortgages > What are VA loans?
Home Loan Refinancing ? When Do You Have To Close?
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by: Carrie Reeder
Refinanced mortgages have a couple of different rules when it comes to closing. For one, there is a mandatory rescission clause for primary residence mortgages that allows you annul your loan. You can also choose to close at anytime, which is beneficial if you think rates will drop in the near future.
Rescission Clause
With a rescission clause, you have three days after closing to cancel your loan if the property is your primary residence. Think of it as a ?cooling off? period. If you have second thoughts, you can annul the loan and recoup nearly all the fees.
Most often this clause comes in handy when homeowners are deciding to tap into their home?s equity, but then change their minds. Other times, a change in job situation or home plans makes the refinanced mortgage unnecessary.
Once you have annulled your mortgage, you will only have a short term hit on your...
Home Loan Refinancing ? When Do You Have To Close?
Mortgages > Home Loan Refinancing ? When Do You Have To Close?
Sub-Prime Mortgage Loans - Five Ways To Lower Your Rates On A Sub-Prime Mortgage
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by: Carrie Reeder
Sub-prime mortgages don?t mean you have to pay excessively high interest rates to buy a home. By taking time to do some research and pick the right terms, you can save thousands on your mortgage. The following five tips will help you get low rates with the right subprime lender.
Compare Lenders
The number one way to lower your interest rates on your sub-prime mortgage is to compare lenders before you apply. It sounds so simple, but too many homebuyers skip this step, costing them thousands.
Plan on taking at least a day to explore your options. The easiest way to look at financing packages is to request quotes online. While you are requesting quotes, take a look at conventional lenders as well. They often offer good rates and terms for those with adverse credit histories.
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Sub-Prime Mortgage Loans - Five Ways To Lower Your Rates On A Sub-Prime Mortgage
Mortgages > Sub-Prime Mortgage Loans - Five Ways To Lower Your Rates On A Sub-Prime Mortgage
Understanding A Second Mortgage
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by: Norman Fleming
A Second Mortgage is a Property Lien placed behind a First Mortgage
A second mortgage is a loan that you take against the equity that you have already built into your home by paying off some of the principal balance on your first mortgage loan.
Historically the total amount of debt from the first and second mortgage combined could not be more than 80% of the total market value of the home. However, record low interest rates and a competitive lenders marketplace have created a lending environment where some lenders are approving second mortgages that, when combined with first mortgage balance, is totaling as high as 130% of the home value.
However, financial advisors will tell you that carrying that much debt on your home is never a good idea.
Because a second mortgage is a property lien that is placed behind the first mortgage, this means that in the event of a default, after...
Understanding A Second Mortgage
Mortgages > Understanding A Second Mortgage
trucks Second Mortgage/Home Equity vs. Refinance Mortgages
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The latest advancement in the recording technology has transcended all boundaries and has brought convenience to your doorstep. The top American channels can be accessed and viewed at your leisure with the TIVO or the Digital Video Recorder.
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TiVo - A Revolution In Digital Video Recording plasma Second Mortgage/Home Equity vs. Refinance
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