Consumption and Real Estate
Archive for June, 2010
Home Loans & Equity Advice : How to Calculate Home Equity Loan
01 year ago
by admin
in Loans and Mortgages
Calculating a home equity loan requires knowing the interest rate of the loan, the term and amount. Formulate a home equity line of credit payment schedule, which differs from a home equity loan, with advice from a licensed mortgage broker in this free video on home loans and equity. Expert:. . .
Mortgage applications rise 9 percent after rates fall
01 year ago
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in Loans and Mortgages
Mortgage applications rise 9 percent after rates fall
WASHINGTON — Applications for mortgages rose last week as consumers refinanced their loans at the lowest rates in more than 50 years. The Mortgage Bankers Association says overall applications increased nearly 9 percent from a week earlier. But the growth in borrowing came from applications to refinance home loans and …
Read more on Richmond Times-Dispatch
Choosing Heloc Over Equity Loans
01 year ago
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in Loans and Mortgages
One thing about owning property is that it helps in getting loans. One can easily obtain secured loans by using the house as collateral. Moreover, secured loans are a lot more affordable than the unsecured variety. Those who have no mortgages to pay should take a look at the secured loans. Those who are still paying off the mortgage installments can make use of the equity on their home to make use of the various other available options. More importantly, these days, there are far more options than just home equity loans. There are other lines of credit that one can go in for.
HELOC or Home Equity Line of Credit is among the various new options being used instead of the home equity loan. In the case of HELOC, the bank provides a number of equity checks that can be issued as and when to take a loan depending on one’s equity balance. These equity checks, typically allow us to draw on a specified equity amount. The great thing about HELOC is that we are not required to draw out a single large amount. The checks give us the freedom to draw only the required amounts at the time.
This also means that the interest amount that we pay every month varies depending on the amount of loan taken. Moreover, the rates of interest for home equity lines of credit are variable. They are affected by market fluctuations. Thus, you might find yourself paying a higher interest rate one month, and a considerably lower one in the next. However, while making your final choice, make sure that you go with the one that charges a lower APR overall. Also, make sure that you are aware what the cap is on the interest that will have to be paid by you. This rate cap is different across states and lenders.
Thus, a HELOC is very different from the traditional home equity loan. Whereas HELOC allows one to advance oneself varying loan amounts over a period of time, a home equity loan amount is obtained at a single time. Just as HELOC has variable rates, a home equity loan has always had fixed rates of interest. This rate will not be subject to ups and downs depending on market conditions. As far as repayment terms are concerned, a home equity loan involves fixed monthly payments that are made throughout a certain number of months. In HELOC, repayment is much more adjustable. Overall, the two are very different, and which one you choose would depend on your own particular needs.
Cheap mortgages slash cost of running a home
01 year ago
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in Loans and Mortgages
Cheap mortgages slash cost of running a home
LONDON (SHARECAST) – Homeowners have seen the cost of running a house tumble by 6% since 2008, or 9% allowing for inflation, thanks to rock bottom interest rates.
Read more on ShareCast
When to Consider Home Refinance
01 year ago
by admin
in Loans and Mortgages
When to consider home refinance is something that a lot of people struggle with. Any time you are dealing with your home and your overall finances timing is important because it can mean that you can save a lot or just a little. Each person will need to determine on their own, possibly with the help of a mortgage bank, when is the right time for them to refinance, if there is a right time for them. When considering if now is the time for you, you should know that not everyone ever wants or needs to refinance their mortgage.
Is it Time for Home Refinance?
It may be time for your home refinance for you when you have an adjustable-rate mortgage and your rate is about to increase. This is a good time to refinance because it can save you hundreds or even thousands of dollars, especially when you consider how much you could save over the course of the loan. When you have an adjustable-rate mortgage you will need to be a bit more careful about refinancing because the normal rules, like not accepting the refinance offer unless your interest rate is two or more percentage points less than your previous loan, do not apply to you. You simply need to look at the overall cost of each loan and determine if you really can save any money or not.
It may also be time for you to refinance if you would like to substantially lower your monthly payment. Many people find that they need to reduce their monthly mortgage payment after they have been in their home for a few years to help pay for school or even pay off other debts. You can look to see what it out there and see if you can improve upon your current interest rate. Your ability to get a better rate will be dependent upon many factors, including current market rates, your credit, how long you have been in the home, and your income. If you choose home refinance at the right time, you may be able to save up to three percent on your interest rate, which can be a huge savings!
Another time that you may want to refinance is if you want to reduce the term of the loan. For instance, if you have a 30 year loan and your financial situation has changed and you would like to pay off your home in 15 years without a penalty, you may want to refinance and go with a 10 or 15 year loan. This type of refinance will mean larger monthly payments, but you’ll have the home paid off in half of the time that you had originally planned, which can mean huge savings for you in the end.
As you can see, there are some occasions when it makes sense to refinance. Even though there are some situations where refinancing really does make the most sense, you should still shop carefully and make sure that you are getting the best deal for your situation. Remember that not all home refinance loans are created equal, so you should shop around and compare the offers that come your way. This way you can be sure that you will get the loan that will offer you the most stability in conjunction with the savings that you are looking for.
Understanding the Difference Between a Simple Purchase Loan and an Owner Builder Construction Loan
01 year ago
by admin
in Loans and Mortgages
If an owner builder understands the differences between his construction loan and other, simpler types of mortgage financing, then he will be much better prepared when starting his planning and financing. Owner builder construction loans are a more complicated process than a standard mortgage to purchase or refinance a home. Therefore, they will require a longer preparation and underwriting time.
If an owner builder does not account for some extra time required in his financing and planning stage, he runs the risk of falling behind schedule on the construction project or, worse, losing the land that he wants to build on. Therefore, understanding the reasons why an owner builder construction loan requires a longer timeline will save an owner builder from potential disaster.
The first, and main, reason that your owner builder loan will take longer than a simple purchase loan is that you, the owner builder, will need a longer time to prepare for it. Unlike standard mortgages, an owner builder construction loan will require you to choose your home plans and put together a detailed budget to build the house.
There is no way around it. You will need extra time to find the right home plans for your dream house. Depending on the source of the blueprints, an owner builder can take anywhere from a week to a couple of months to get the home plans finalized.
If you are purchasing plans from an online source, then you will have your blueprints within a week or two. However, if you decide to make modifications to the plans, it could take a month or more to get the revisions. Likewise, if an owner builder needs to get those online blueprints engineered to meet local building codes, then he needs to account for extra time to do this.
Whereas online blueprints can be a fast process, an owner builder who hires an architect to design his home from scratch may need a couple of months to get it right. The length of this process will depend largely on the amount of time that your architect requires for the design, as well as the number of revisions that you request as the future homeowner during the design process.
Now that you have your blueprints finalized, your job as the owner builder is to put together budget numbers to build your dream home. It’s not a complicated process, but it does require time for you to get written price quotes from your local sub-contractors. The best way to do this is to provide a set of blueprints to the sub-contractor and wait for him to get back to you with a written estimate for his labor or materials.
The budgeting and bidding process can take an extra few weeks for an owner builder. But, if you don’t take the time to do it right, you will be setting yourself up for failure during construction. That’s why it’s so important for an owner builder to understand the extra time required in his planning as compared to a simple purchase or refinance loan that doesn’t have any blueprint or budgeting requirements.
In addition to a longer planning phase, an owner builder construction loan will also have a slightly longer underwriting timeline. The extra time requirement is due to the fact that owner builder loans basically require two underwriting approvals – one for the borrower’s qualifications and one for the project itself.
In other words, even the most qualified owner builder client is not going to get through underwriting if he is building a home with a sub-par appraisal or budget. On the other hand, a very weak borrower will not get approved in underwriting just because he is building a home with a great budget and appraisal. Therefore, both sides of the underwriting approval process are equally important.
The extra time needed for owner builder planning and underwriting is not a big deal as long as you understand the reasoning behind it and plan accordingly. If an owner builder understands the timeline, he can plan for a successful project. But, an owner builder who thinks his construction loan is the same as a simple purchase or refinance mortgage is going to set himself up for failure right from the beginning.
Connecting Debt With Financial Freedom
01 year ago
by admin
in Loans and Mortgages
Many people can always identify with the weight and meaning of debt. From nations, to families and in the personal level, debt seems to be a negative force that is forcefully designed to limit our lifestyle. Therefore, one of the main reasons in achieving financial freedom is to become free of debt.
However, in discussing a changing mindset towards financial freedom, becoming debt-free is not really the ultimate goal to describe financial success. In fact, more and more people acknowledge that debt can just be as useful as saving in creating wealth. As an example, the most powerful country in the world actually runs on debt. Thus, changing our attitude on money and debt in particular will help us develop a mindset towards financial freedom.
Good Debt
Debts are classified into good debts and bad debts. Good debts are useful tools in advancing one’s productive intentions. For example, debts that are used for good investments are actually more powerful than doing nothing with our cash except to hold it. In other words, good debts are usually called productive financing.
These productive financing can include education plans which help you become a more productive individual and earn more money. Another productive financing includes useful insurance policies. What is most important in good debt is that the return for your investments should outweigh the cost of debt that financed your investment.
Self-made millionaires see debt as a tool to succeed instead of an unnecessary hindrance. People who find opportunities and act on it are likely to succeed even if it involves borrowing money. What is most important is applying sound financial strategies to make sure that the debt incurred is transformed into a roaring impact.
Bad Debt
Meanwhile a bad debt is known as a liability rather than productive financing. There are many reasons why seemingly good debts can turn bad. One of the reasons is incurring too many good debts to a point that it is not economically responsible. People who posses the millionaire’s mindset know too well that debt is just as good a tool as the result it creates. In an abstract sense, debt should not be considered as a savior or an end to all your financial hurdles.
Debt is a cost
We all know the nature of debt. Debt is a credit in the present to be paid in the future. However, a millionaire’s mindset will see debt as a necessary cost. In this light, debt is just as trivial as any cost. You can choose to buy something now or pay for it later. In the end, they are both deducted from you. In order to be free of debt and be on your way to financial independence, treat debt just like you treat every other cost. What is most important is that you do not let the hesitation to incur debt scare you into making wise financial decisions.
Debt-Free? Cash Poor!
In order to achieve financial freedom, one must not overrate the risky aspects of debt. Some people who force their lifestyle into paying outstanding debt end up putting off money that could have gone to savings for the future. There is no elementary arithmetic formula to express the management of saving for the future and paying for debt. However, there are many ways to balance different financial techniques in order to achieve financial freedom despite having debt.
Remember that financial freedom is being over the limitations of money. Debt should not be a hindrance in making money work for you.
Mortgage activity rises as rates fall
01 year ago
by admin
in Loans and Mortgages
Mortgage activity rises as rates fall
WASHINGTON, June 30 (UPI) — The volume of applications for U.S. mortgages rose in the week ending June 25, as long-term interest rates fell, an industry group said Wednesday. Mortgage – United States – Business – Financial Services – Interest rate
Read more on UPI
What Is Home Equity And Why Should You Care?
01 year ago
by admin
in Loans and Mortgages
You might have heard a lot about the home equity loan from friends or co-workers, but still you are not sure what it is and how it works. But really, what is a home equity loan? To understand what it is and how it works, first we need to know what home equity is. To be able for you to have home equity, of course, you should have or own a home. Your home can be your best asset and no matter how much money you are making at present, the time will come when you need a considerable amount of money – not just a little extra – but a large amount of money. And don’t say that that’s not going to happen, because we don’t know what the future has in store for us.
Home equity is the difference between the current market value (appraised value) of your home and the outstanding mortgage balance. Therefore, if -
Your home’s appraised value is $ 100, 000
Your outstanding mortgage balance is $ 50, 000
Your home equity is $ 50,000
Now that you know what home equity is, it’s time for you to ask “what is a home equity loan”? A home equity loan has two major types; the home equity loan and home equity line of credit. A home equity loan or a home equity line of credit allows you to borrow money using your home’s equity as collateral. Both types actually put your home in the hands of the lenders. If you are not able to pay your dues, this could mean the loss of your home. So, be very careful in dealing with this kind of loan.
To compute for your potential credit, most lenders set a percentage of your home’s appraised value minus the balance owed on mortgage. The exact amount in which you can borrow also depends on some factors like your ability to pay, debts, and other financial obligation. Given the above example:
Your home’s appraised value $ 100, 000
Percentage x 80 %
Percentage of appraised value = $ 80, 000
Less balance owed on mortgage – $ 50, 000
Your potential credit is $ 30, 000
Now that you know what home equity and a home equity loan are, the next thing you should be asking is, which home equity loan is best for you? To find which home equity loan is best for you, determine the purpose of your loan and how long you want to pay it, in terms of years. In order for you not to get hooked-up on debt for a long time, borrow only the amount you need for a specific purpose only.
Kentucky commercial second mortgage
01 year ago
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in Loans and Mortgages
www. lendinguniverse. com Kentucky commercial second mortgage, www. youtube. com , hard money, commercial property loans, loans stated income, commercial mortgage rates, commercial property loans, money lenders, new construction loan www. youtube. com money to loan, commercial second mortgage,. . .
