Tag archive for ‘loan’

Second Mortgages: The Essentials You Need to Know

by Admin - on Jul 5th 2016 - Comments Off on Second Mortgages: The Essentials You Need to Know

MortgageA second mortgage, also known as home equity line of credit (HELOC), is simply a second loan on your house. As with your existing mortgage, your home will secure your second mortgage. This means that your lender could legally take your home if you default on your mortgage. When this happens, your lender will sell your home to pay off your original loan and the remaining money from the sale (if applicable) will then go into your second mortgage.

Second Mortgage Basic Facts

Shantel Matagi and other lending institutions noted that many homeowners nowadays are considering second mortgages since the mortgage rate they’re being offered are lower, even if the property values are higher.

  • Second mortgages come in two primary types: home equity loan and home equity line of credit. With HEL, your lender will provide you money in a lump sum, which you’ll have to pay off in a predetermined time period at fixed intervals. The interest rate is usually fixed. An HELOC, on the other hand, functions like your handy credit card so you can spend cash whenever you need it. The interest rate is usually adjustable.
  • The amount you can borrow will depend on several factors — how much equity’s in your home, your loan to value (LTV) ratio, and your credit rating. Most lenders won’t lend you more than 75% or 85% of the LTV ratio of your combined first and second loans.
  • You can’t simply use funds from your second mortgage for anything. Plenty of homeowners use their second mortgage for huge expenses like repaying debts, purchasing another home, paying for college tuition, huge medical expenses, or home renovations. Essentially, you wouldn’t want to take out a second loan if you’re just planning on spending it on a grand vacation or other unnecessary expenses since you’ll be risking your house in the event that you default on your loan.

Many lenders offer second mortgages to qualified borrowers. With this in mind, you don’t necessarily have to take out a second mortgage from the same lender. The most vital thing to do is research your options, compare total fees and interest rates, and then decide which one will be best for your specific financial circumstances.

Mortgage Matters: Is It Still a Good Time to Refinance?

by Admin - on Mar 13th 2016 - Comments Off on Mortgage Matters: Is It Still a Good Time to Refinance?

Mortgage MattersThe interest rates on home loans dropped to record lows a couple of years ago, but the rate has risen since then. Nonetheless, mortgage rates are still favorable for many homeowners if they act now.

Here are some things you have to know if you are considering to refinance for your home in Apple Valley:

Good credit

You need to have good credit to apply for a conventional refinance. That means you have been paying your mortgage regularly and on time; in short, you have no history of bad debt. On average, people that have successfully applied for refinancing had a FICO score of 727. You can still qualify for a loan with non-traditional lenders, but the lowest rates are from conventional sources.

Equity

Generally, you need at least 20% of your principal loan paid up before you can qualify for refinancing. The average equity help for those who applied successfully for refinance is 31%. There are exceptions, of course. The rule of thumb is, the more equity you have, the better your interest rates will be. It also means you pay less every month.

Fixed rates

If you have a long-term loan you took out before the rates started dropping, you are likely stuck with high interest rates. If you can reduce it by just one percentage point from your rate, that can make a big difference to what you pay in total. For example, if you have a 30-year fixed loan at 5.6% interest a year, you might think you already have a good deal. However, you can pay about $110 for every $100,000 of your mortgage every month.

Jumbo payments

If you can afford jumbo payments, and you have a 30-year mortgage, you are definitely in the market for refinancing. The rates for these are good right now.

The interest rates for new mortgages and refinancing are still good for most homeowners today. Nonetheless, you have to decide if your circumstances make it practical to apply for one at this time. Make sure you choose a mortgage broker than can give you the best deal.

Need Fast Cash? How Title Loans Can Help

by Admin - on Feb 27th 2016 - Comments Off on Need Fast Cash? How Title Loans Can Help
Title Loans in UtahYou’ve probably heard stories about car title loans — some of them may be good or bad — and you might be thinking, why would anyone want to pawn their car? However, you should know that a title loan isn’t as risky or bad as some make it out to be if you utilize it appropriately and plan properly. 

Here are some viable reasons why you must give title loans a chance:

  • You don’t have to part with your car – Unlike when you pawn something valuable, such as jewelry; your lender won’t get your car as your loan collateral, only your title. Your car will only be repossessed if you don’t pay your debt, period.
  • Quick cash when you need it – You only have a few options for getting quick cash. However, utahmoneycenter.com reveals that if you utilize a good title loan in Taylorsville, you can get your cash the same day you filed for it.
  • The simplest lending process you can ever go through – You just bring in your car, along with the title as proof that you legally own your car and you get your money. Paperwork is extremely minimal since they have your car as collateral, which you’ll still get to keep.
  • It’s only a short-term loan – A big issue with conventional loans, aside from the inconvenient credit checking requirement, is that they’re normally huge loans that you’ll be paying off for many years to come. With a title loan, you’ll be debt-free once you pay back on your first due date, and you’ll only have to pay off interest.
  • Having no credit or bad credit isn’t a problem – Title loan providers won’t really care about your credit history and it won’t matter if you’ve previously made bad financial moves or if you don’t have that much credit yet. You can just use the car you already own to obtain a title loan.

So while auto title loans are oftentimes criticized and misunderstood, but it’s undeniable that it can help a lot of people in particular situations. If you have your own car, are dealing with credit issues, and don’t have cash that you really need for an important emergency situation, a title loan may just be the thing you need to get by.

Understanding the Differences Between Conforming and Nonconforming Loans

by Admin - on Nov 19th 2015 - Comments Off on Understanding the Differences Between Conforming and Nonconforming Loans

home financingThere is indeed no place like home. Finding your dream house may not be hard, but owning one is never easy. Usually, the reason is not having enough savings to pay for a new house. This circumstance is probably the motivation on how mortgage was developed.

Say you already found a lender or a broker; the next step is to check what type of loan you will get. If conforming and non-conforming loans are vague knowledge to you, take time to learn their basics so that you will be rightfully led to the one you want to take advantage of.

Conforming Loans

Conforming loans are mortgages that meet the guidelines set by home loan market drivers, Fannie Mae and Freddie Mac. The most critical condition for a loan to be considered conforming is the size. The Federal Housing Finance Agency (FHFA) fixed the limit or the maximum size of a conforming loan at $417,000. Loans below that figure are conforming fixed and anything above that are considered non-conforming. In areas with greater demand for housing, limits may be higher.

Nonconforming Loans

If you are buying a luxury primary residence, you might need a jumbo loan or a non-conforming loan. This type of mortgage exceeds the set loan limit. But, borrowers who take out mortgages below the limit can still be disqualified from getting a conforming loan when other guidelines are not met such as:

Low credit score or poor credit history
Bankruptcy within the previous two years
High debt with respect to income
Documentation Issues

For Borrowers and Lenders

Conforming loans are appealing for most borrowers because they are paired with lower interest rates and fees. Furthermore, lenders find conforming loans attractive because they can put these types of mortgage on the secondary market, free up capital, and then provide more loans. On the contrary, jumbo loans are hard to sell. As less funds become available, fewer loans are offered too. Lending companies offset this financial risk by charging the borrowers higher interest rates and greater fees and insurance requirements.

Getting a mortgage is a sensible way of fulfilling your dream to own a new home. Both conforming and non-conforming loans may be decent, but choosing one that fits your needs is a surefire measure not to mess up with your dues until the entire loan is settled.