Refinancing may at times work to your advantage. Refinancing a second mortgage might sound a bit strange because you might have heard of refinancing a primary home mortgage but never a second mortgage. However, second mortgage refinance may not be as strange as it sounds because the concept is basically similar to that of refinancing primary mortgages. Refinancing your second mortgage simply means you may be taking on a new loan to pay for your...more
Foreclosure generally happens only to first mortgages as it is normally the first mortgage company that initiates the process. In rare cases, the second mortgage company may exercise the option of filing their own foreclosure to protect their interest in the property. In the event of foreclosure, usually only the first mortgage may get paid off through the proceeds of the sale. In many cases, the proceeds of the sale of the home may not even be...more
People usually opt for a refinance mortgage loan to reduce the amount that they are paying to their lenders for their home loans, or sometimes to remove a debtor from a mortgage if the need arises. A refinance mortgage loan usually comes with a lower interest rate that would successfully reduce the total amount that you pay to your creditor over a period of 20 or 30 years. Some people also sometimes opt for refinancing when they are unable to cope with the monthly commitment amount of their current loans, and seek to reduce the monthly payment by lengthening the duration of the mortgage loan. Generally, when you seek a financial organization with the intention of refinancing your mortgage, the lender would look for someone with a steady and consistent income as well as a high credit score. Another factor that could be important in determining if you can obtain a good mortgage refinance package if your debt-to-income ratio; the lower your ratio is, the better it would appear to the lender. Usually a credit score of above 700 and a debt-to-income ratio of 35% or lower is preferable when you seek home refinancing packages. However, before you seek a refinance home mortgage...more
Consolidating debts has become easy with the emergence of various methods and loans to enable individuals to pay for their other debts by applying for a new one. For many home owners, the preferred debt consolidation method is by taking up a loan on the equity of their home. However, you might want to take note that by putting your home up as...more
Sometimes in life you might find yourself in situations where you wish you had never gotten yourself into. But there are times when you may have no control over things in your life that you end up in such situations by no fault of yours. For example you might think that you are secured for life with a full-time job and steady income until your...more
A reverse mortgage is a unique type of mortgage that is designed specifically for senior citizens who are also home owners. It basically allows senior home owners above the age of 62 to convert a portion of their home equity into cash payments. The uniqueness of this type of mortgage is that there is no repayment required while the home owner is still living in the same house. This is the one feature that you may not be able to find in any other conventional type of mortgages. The benefits of this particular type of loan are that it is provided and insured by the US Department of Housing and Urban Development.In general, almost all types of dwellings may be eligible for a reverse mortgage as long as the borrower owns and occupies the home and the owner is at least 62 years old. It is often compared to home equity loans and second mortgages but the difference is that this type of mortgage pays you over time and is made available regardless of your income and debt-to-equity ratio. The amount borrowed may also be determined by the age of the home owner, the value of the home and the current interest rate. The loan is also not due as long as you live in the home. So there is basically...more
Subprime mortgages were designed to help people with poor credit buy their own homes. Normally, a home owner may be offered a prime mortgage but it requires the borrower to have good credit ratings and to make a substantial down payment. In contrast,...more
Mortgage is generally availed to own a house by most people. Mortgage may also mean a home loan. A person may not have enough money to own a house by paying the total cost of the house up-front to the seller. The buyer may have the capacity to...more
Refinancing your mortgage might need some careful considerations in order to be able to get the best offers and deals. Other than shopping for the best brokers or mortgage providers, the timing of your refinancing may be equally important and could...more
There are many circumstances under which people opt to apply for a loan. One of the reasons is to pay off debt. Sometimes it can be quite difficult keeping track of our many creditors and making so many different payments at any given time. To solve...more
A bit research on loan modification before making its application can make a great difference between the approval and rejection thus one should carry out proper research and study for the loan modification process before making an application.The...more
Loan refinance is often motivated by lower interest rate and in turn low payments. But there are lots of other reasons why you might want to refinance. Some may want to consolidate outstanding debt, such as combining a first and second mortgage into...more