Posts Tagged ‘Mortgages’

Bridge Mortgages Now Offers Fixed Home Equity Loans with Low Intro Rates

Posted in Home Equity Loans on 05/23/2011 04:59 am by admin


Bridge Mortgages Now Offers Fixed Home Equity Loans with Low Intro Rates

New York, NY (PRWEB) March 2, 2007

Bridge Mortgages began offering their new fixed rate home equity loan that provides a low introductory interest rate. The second mortgage lending team at Bridge has just released a new home equity product that offers a reduced intro rate for 6 months. The intro mortgage interest rates start as low as 6.25%. These home equity loans are 2nd lien installment mortgages with fixed interest rates with simple interest amortization.

According to mortgage consultant Sandy Sarconi, “This equity loan is perfect for my clients financing second home construction.” Sarconi continued, “6 months of low interest rates allow borrowers to complete their home improvement projects and still have a fixed rate payment at the end of the day.” This home equity loan has the characteristics of a home equity line of credit, but the interest rate is fixed so there is no fear of rising payments over the years.

Bridge is offering these introductory rates to homeowners with good credit scores ranging from 620 to 800. The 6.25% intro rate is offered to qualified borrowers with all combined loan to values not to exceed 100%. Applicants with a bad credit score may still qualify for other subprime refinancing products.

Fixed Rate Home Equity Loan Highlights

On all home equity loan programs eligible for this intro rate, our underwriting will use the higher of the two middle scores regardless of income. There are no cash out restrictions. There are no assets and reserves verified or even required for that matter. In addition, Bridge Mortgages continues its tradition of their second mortgage loans having no mortgage insurance required.

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What is Second Mortgages?

Posted in Second Mortgage on 04/26/2011 06:55 am by admin


What is Second Mortgages?


A second mortgage is simply a new mortgage placed against a property where there is already a first mortgage loan in place. It would not replace the first mortgage but is added onto the property title as a second charge.

First mortgage lenders have priority over the second mortgage lender. If the property is sold or goes into default the first bonded holder is paid.

If the second mortgage were to go in to default, the secondly mortgage lender would basically have to pay off the first mortgage loan to gain access to their collateral.

Lenders, therefore, consider seconds to be riskier loans.

Are There Different Types of Second Mortgages?

There are generally two types of second loans

1. Home Equity Lines of Credit.
A home equity line of credit (HELOC) will be set-up with a maximum limit available for the homeowner to draw against. It usually has an open term and can be drawn upon like a credit teasing. You can normally access the funds by writing a cheque, making a cash withdrawal or completing an online account transfer. This type of am is used in cases where homeowners may need access to funds but they subsidize no interest on the funded till they withdraw them.

Most HELOCS are based on the banks prime rate and can be interest lone payments. Interest payments are made monthly on the outstanding balance for that month. There is considerable competition among banks and lenders for these HELOC mortgages.

2. Home Equity Loan

A more traditional second mortgage loan is the home equity loan. Home equity loans are fixed-rate loans with set payments each month. The interest rate is usually higher than that of a first mortgage but may be less than that of a HELOC. The benefit of the home equity loan is that it amortizes to a zero balance over the term of the loan. This type of loan is more common for people who need access to large amounts of funds at one time for such things as home renovations, large consumer purchases and college tuitions.

Your choice between these types of mortgages will depend on your individual needs, your budget along with the terms conditions imposed by individual banks or lenders.





Related Second Mortgage Articles

 

Finding The Best Home Equity Loans

Posted in Finance on 11/10/2010 04:21 pm by admin
Tony Newton asked:




There are decisions when made could affect your life for a long time. For instance, deciding to take out a loan, a home equity loan, would affect your finances for a considerable number of months or years. If you end up with a bad loan, you could even lose your home. Unfortunately, many people are losing their homes all over the country. Perhaps, they just didn’t have the money to pay for their loans; or perhaps, they just ended up with a bad loan with bad interest rates and terms. It is important, therefore, to seek for the best home equity loans to avoid being saddled with a bad credit.

Understanding the Basics of Home Equity Loan

There are many things that you would consider when you take out a home equity loan. First and foremost, you would have to determine your mortgage payment plan. Essentially, if you have an already existing mortgage, you could look at your home equity loan as you second mortgage because you actually places your house as collateral for your loan. In the event that you are not able to pay for your loan, you also place your house at risk. This speaks volume of the same mortgage scenario; thus, it is a second mortgage.

Many people take out a home equity loan for many reasons. Some take out loans to pay their way through college. Others would take out loan to renovate their homes or to refinance their mortgages. When people speak of equity, this generally refers to the difference between your house’s fair market value and the balance of your unpaid mortgage. The smaller your mortgage, the bigger your equity; and your chances of securing a bigger home equity loan are better. The maximum amount of loan that you can take out usually depends on your house equity and your credit score. In fact, even with a bad credit score, you could take out a loan if you have a good house equity value.

The best home equity loans in the market are the loans that have the lowest interest rates, highest maximum payouts and most reasonable terms and conditions. You’d find a lot of lenders but only few would be willing to extend the best rates and terms in the market. This is why it is very important that you compare home equity loans so you’d know which one to get and which lender to go to.

Locating the Best Home Equity Loans

At first, locating the best home equity loans may seem intimidating. You probably would not know where to go, whom to approach and talk to. Fortunately, your options are not limited to local lenders. You can now go online and secure a loan. The advantage to online lenders is that they basically charge lower interest rates than local lenders. To start off the process of applying for a home equity loan, you need to request loan quotes from various lenders both local and online. Of course, this is easier if you are doing it online. You wouldn’t have to go to one place to another to secure a loan. If your local lenders have websites, you can also reach them through their websites so you need not go to the bank or their offices to secure quotes.

Nellie
 

Home Equity Loan Comparison – Finding the Best Loan For Your Money

Posted in Finance on 09/17/2010 02:33 pm by admin
Eddie Lamb asked:




A loan based on the equity of your home is an idea that has had much more interest in recent years. In an economy that was increasing with housing market values rising, the homeowner could assume that a second mortgage would be easy to obtain. A home equity loan comparison between possible types of mortgages and rates in those days would have produced a lengthy list. Today, market prices on housing have reached a plateau, or are falling in some locations. Obtaining home equity loans at present may be more difficult than they were previously.

Defining Equity

Home equity loans are funds loaned against the equity of your home. In an ideal world, home equity comes from three sources. First, the underlying mortgage over time will be reduced because it is being paid off. At the start of the mortgage period, most of the monthly payments are applied to interest and very little against the principal. In a standard mortgage, the monthly amount applied to the principal will increase more rapidly as time goes by.

The second way that equity in a home grows is due to an increase in the market valuation of the home. If the house is worth more and the amount owed remains the same, it is an automatic increase in the home’s value. If the house was sold at the higher market price and the proceeds applied against the mortgage, the homeowner would receive more cash because of the increased equity.

Finally, the home’s equity can be increased by making improvements to the property. Improvements are expected to increase the potential market price of the home by more than the expense of the improvements. Home improvement projects are one of the major reasons for obtaining equity loans.

Why a Loan is Obtained

A loan on the value of the equity, sometimes called a second mortgage, is usually taken out when the homeowner needs significant cash with a relatively low interest rate. A homeowner may discover that home equity loans have lower interest rates than all but a few credit cards and other installment debt. Cash from a second mortgage may be used to zero out high rate credit cards or other charge cards.

Sometimes money obtained from the loan is used to pay for schooling for the homeowner or family member. If major medical expenses have accumulated, a home value loan may be used to eliminate these debts. Any large outlay of cash that is not available through other means can be covered through a loan against the equity of your home.

Factors to Consider

Some of the components that enter into the picture during the application for a second mortgage are the loan amount, the interest rate, the term of the loan and creditworthiness of the borrower. The lender will undoubtedly call for an appraisal to determine if the increased market value provides equity that is more than the value of the second mortgage principal amount.

On the borrower’s side, a home equity loan comparison means looking at the entire personal financial picture, both in the present and in future projections. The homeowner must consider the ability to repay, whether or not the costs and fees applied to the loan will outweigh the immediate benefits, and the terms of the loan itself. As with any legal document, make certain you understand the true cost of the loan and all the terms that go along with it.

Pauline
 

The Terms of Home Equity

Posted in Loans on 03/28/2010 05:18 pm by admin
Greg Smith asked:


Home equity is the value that your home has due to the payments that you have made on your mortgage. A home equity loan will enable you to borrow money using the equity that your home has as the collateral. It can be confusing to deal with all these terms but the reality of the situation is that you have to arm yourself with the knowledge of these terms. It is important to learn the definitions and understand what they mean when you are thinking of sourcing a home equity loan.

One of the first terms is collateral. This is the property or asset that is put as the guarantee that you will repay your debt. If this debt is not repaid then the lender is able to take the asset and use it to attain their money. With home equity loans the asset on the line is your home and you can be forced to move out of the home and lose the home if you default on the loan. The equity simply of your home is calculated simply as the difference between the worth of the home and the amount you owe on the mortgage.

You can use a home equity loan, which is a second mortgage to turn equity into cash, and this money is made available to spend on many items such as debt consolidation, home improvements, college or any other expense that you may have. There are in reality two main types of home equity debt. These are known as home equity loans which we mentioned previously and home equity lines of credit. These are often confused but they are not identical even though they are both secured by your property.

The typical home equity loan or line of credit is repaid in shorter times than mortgages. They are set up to run 15 years rather than 30 years but can be significantly shorter or longer depending. A home equity loan is a lump sum that is paid off over a set period. This is at a fixed interest and steady installment per month. This is one time and you cannot borrow again. The home equity line of credit operates a lot differently. There is a revolving balance that lets you borrow a certain amount for the duration of the loan or other set time limit. You withdraw as you need and pay off the principal and reuse.

There are various benefits and disadvantages of these two but this really depends on your unique situation. While there is more flexibility with the home equity line of credit there can also be some downsides due to the fluctuating interest. The home equity loan also has its disadvantages as it is possible to pay only interest and not principal and remain in debt. Whichever you opt for you must be aware of all the possibilities and how to avoid the downfalls. This can help you use either to your advantage and assist in keeping you away from the possibility of losing your home.



OTTO
 

will a lender modify my home loan even if im not in default?

Posted in Renting & Real Estate on 03/10/2010 01:29 pm by admin
JUICER asked:


I have 2 properties in florida. one is investment and the other is second home. I have not defaulted on any of my loans and both me and my wife have credit scores of 760 and above. I am spending more than i earn right now to maintain these mortgages and fear that if the one with a payoption arm recasts i will go into foreclosure. can i modify even though i am not in default as of right now? there is no equity in the home the mortgage is now more than the home is worth. what are my options? what are the repercussions for homowners who just stop paying their mortgages? can they foreclose on my primary if i stop paying my investment home? please advise.

COREY
 

A friend of mine owned two homes. Can they sell one and payoff the other without incurring taxes?

Posted in Renting & Real Estate on 01/22/2010 02:16 pm by admin
vishrit asked:


Hi there, a friend of mine owned two homes with mortgages on both. He lived in one home (Primary Residence) and his wife (Works for a non-profit company) goes and works out of city for two days a week and she lives in that second home while she is out of town. Recently, the friend died and his wife wants to sell one house and use the equity to pay-off the mortgage on the other house. Will she have to pay taxes or is there some kind of survivorship/death laws that help a widow out? They live in Ventura County, CA

Thanks!

QUENTIN

 

mortgage qualification for new home when current home not sold?

Posted in Renting & Real Estate on 12/29/2009 09:23 pm by admin
Yves g asked:


Hello,

I’d like to understand (at a high level) the rules that lenders apply to qualify you for a mortgage in the following situation. You own a house that you plan to sell and are looking for a new one and would possibly use an equity loan for the down payment. Do you have to get approve for 3 mortgages at one? Do lenders use the same debt/income ratio when it is clear you plan to sell the 1st house and if so what ratio are used? Can the approval be contingent on the sale of the first house prior to buying the second one? Even if I close on the same day or close on the sell prior to buying, in all likelihood, I need to get pre-approved prior to officially selling my first home.

Any other concepts that I am missing?

SAMMY

 

I need legal advice?

Posted in Renting & Real Estate on 12/22/2009 12:47 pm by admin
Sunny asked:


When I bought my house it was with two mortgages. A regular mortgage and a home equity line of credit mortgage. Now that i am selling the home, the realtor and I realized that the second mortgage was never recorded with the mortgage company. Can I sue the mortgage company for the amount of the second mortgage since it was their error?

ERROL
 

forclosure or bankruptcy?

Posted in Personal Finance on 10/10/2009 08:01 pm by admin
lb1 asked:


here is my situation, I have two rental homes. One that has o equity. One home literally has negative equity with a 30,000 mortgage and the other has approx. 25000 value with a 60,000 mortgage.

The first home is un rentable and the second home has been vacant for 1 year. (have not been able to find tenants)

Until now I have been able to pay the mortgages to avoid damaging my credit. I just lost my job and am not sure what I should do as I wont be able to pay the mortgages much longer.

I want to keep my own home.

What do I do, just let the rental homes forclose? file bankruptcy?
What is the best option as I am not sure what to do?

JARVIS

 
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