Refinancing Your House - How to Know Whether to Refinance or get a Second Mortgage
February 28, 2010
Refinancing your house’s mortgage is not the same thing as getting a second mortgage. While both allow you to cash out your home’s equity, terms and rates differ between the two types of loans. To know which financing option is best for you, learn each loan’s features and pick the one that best meets your needs.
Refinancing Your Mortgage
Traditional refinancing is basically replacing one mortgage loan with another. Typically, refinancing lowers mortgage payments through lower interest rates or longer loan terms. You can also cash out part or all of your home’s equity while refinancing.
Refinancing requires paying closing fees. To recoup these costs, you usually need to stay in the house for a couple of years. However, you will save money with better terms than if you choose a second mortgage.
Second Mortgage Option
Second mortgages, also known as home equity loan, have slightly higher rates than mortgages, but you have less or no closing costs. Second mortgages also only charge interest on the amount you borrow, not the total amount you are approved for. You can take out your equity over the course of several months or years. Terms vary widely between second mortgage lenders, so watch out for balloon payments or repayment fees.
How Your Credit History Can Affect Your Life
February 28, 2010
Your credit history is an important aspect of your life. Maintaining your credit rating is very important to your future and to your lifestyle. A poor credit history can mean denial of credit, high interest rates, and could possibly affect your ability to get a new job or apartment. If you are unsure of your credit score or credit history in general, it is a good idea to find out the contents of your credit report and to monitor any changes in your credit report carefully.
You credit history affects your quality of life. Make sure you understand what is in your credit report and take steps to correct any inaccurate information it may contain.
Being denied credit is an unpleasant experience. Not realizing in advance what your credit history is can be even worse. Your ability to obtain credit cards, get a new job, and purchase a home can be hindered by the information in your credit report. Your credit report contains a variety of information including your payment history with your creditors, the total amount of debt you have, mortgage information, collection accounts, and public records. Taking control of your credit history can make your life easier and less stressful. The information contained in your credit report is the key to your quality of life.
Home Mortgage Refinancing - Things to Consider When Looking to Get Cash Out on a Refinance
February 27, 2010
When you refinance your home mortgage, lenders often tempt you with the option of cashing out part of your home’s equity. Cash at a comparably low interest rate may seem like a good option, but make sure you will financially benefit from it first.
Raising Your Home’s Value
Only some home improvements raise the value of your home. Bathroom and kitchen upgrades are one example of this. However, with most remodel jobs, you will not see a financial gain. If you are using your home’s equity to fund projects, make sure that your investment will pay off.
Saving On Interest Payments
Paying off credit cards with your home’s equity will save you money in two ways. First of all, you will save on interest payments. Secondly, the interest you pay on your mortgage is tax deductible, unlike credit card interest.
PMI Penalty
Private mortgage insurance kicks in if you borrow more than 80% of your home’s value. These extra payments can add up to several hundred dollars a year, so be careful how much you borrow. Other lines of credit may be more cost efficient when you factor in the cost of PMI on your mortgage.
Money Matters - Really!
February 26, 2010
One of the biggest challenges facing black RELATIONSHIPS today are finances. Many people mistakenly feel that money does NOT matter. In fact, money matters the MOST! Why? Most people do not have a clue about their own financial destiny.
You know you want to own a home and save some money toward retirement but have you PLANNED what it is you are saving each month and how that money will assist you in the future. Do you have a PLAN to empower yourself financially by NOT depending on your JOB to pay your salary and that’s your only source of income. Times have CHANGED. Jobs come and go(and so do SPOUSES). To protect yourself financially you need to be proactive and not depend on anyone else to solve your financial issues.
Auto Loans: Top 5 Tips For The Best Rate
February 25, 2010
You’ve got your eye on that shiny new Lexus - okay, maybe it’s a Kia, but it’s perfect and you want it to be yours, all yours - as soon as possible. At the same time, you certainly don’t want to be saddled with paying nearly double the car’s value by the time you finish paying off the car loan. Here are five tips to help you get the best possible interest rate on an auto loan to put the car of your dreams in your driveway.
1. Check your credit rating.
If you don’t already know what’s in your credit report, this is a good time to find out. Before you apply for an auto loan, get a copy of your credit report to find out what surprises may be lurking in it. You may just find out that it contains erroneous information that should be corrected, or that there’s something negative on it that can be either explained away or fixed easily with a couple of phone calls or letters. Either way, it always helps to know what the credit reporting agencies are saying about you before you start shopping around for a loan.
Refinancing Online - Tips For Getting a Low Interest Rate When Applying Online
February 24, 2010
Refinancing online is a great opportunity to find low interest rates. Online mortgage lenders provide information about rates and fees for easy comparisons. However, to find the lowest interest rates, you will need to do more than just surf sites. The following tips will give you the edge in your refinancing search.
Clean Up Your Credit
You make think your credit history is good, but what does your credit report say? Errors on credit reports are not uncommon. Left uncorrected, you will be forced to pay higher interest rates.
So before you begin your application process, request your free credit report from one of the three agencies. If you find any errors, file a consumer dispute with the credit reporting agency. Next, contact the creditor to resolve the error. Your last option is to file an explanation on your credit report.
Compare Closing Costs and Interest Rates
The biggest benefit to refinancing your mortgage online is the ability to compare fees and interest rates. You can save yourself thousands of dollars by searching for the lowest loan costs.
Restore Your Credit Rating And Reduce Your Debts
February 23, 2010
Your credit rating affects many areas of your life. Opening new credit accounts, buying a home or car, getting a new job, and receiving discounts on insurance rates are just a few of the things that are impacted by your credit score. Millions of people have inaccurate information, errors, and out dated information on their credit report. These errors can cause your credit score to drop dramatically, which adversely affects numerous aspects of your life. Credit repair services can help you raise your credit score and get rid of old accounts and inaccurate information.
Creditors often report information that is incorrect and you may even have accounts on your credit report that do not belong to you. Even credit accounts that are listed correctly can be removed form your credit report if the creditor cannot prove the information is accurate and up to date. You can legally rid yourself of many items on your credit report and raise your credit score. This will enable you to make important purchases and take advantages of discounts that would otherwise be unavailable to you. The major credit bureaus control a major portion of our lives. It is important to be diligent in monitoring your credit report and make certain any inaccurate information is removed.
Getting That Car Loan: Simple Interest Is The Best
February 23, 2010
So here’s the situation: you are buying a car but you don’t know what type of auto loan offers you should go for. What should you go for?
The answer is simple enough: get a simple interest loan.
What is a simple interest loan anyway?
A simple interest loan is a loan where you pay interest only on the original principal of the loan.
The good thing is, 90% of all auto loan offers are simple interest loans, although there are some lenders who are pushing loans that are not. You should never agree to an auto loan that is not a simple interest loan.
The second thing you DO NOT want on your auto loan is pre-payment penalties. A loan without pre-payment penalties means that the lender will not charge you an extra fee if you pay the loan off early either through refinancing or other means.
Remember that it is always easiest, and refinancing will save you the most money, when a simple interest auto loan with no prepayment penalties is refinanced with another simple interest auto loan at a lower interest rate.
Refinancing After Bankruptcy
February 22, 2010
Refinancing after a bankruptcy can seem like an especially difficult challenge, but it doesn’t have to be. Six months after your bankruptcy has been finalized, you can find lenders willing to refinance your mortgage. In fact, refinancing your mortgage can help rebuild your credit to good standing in two year’s time. The following steps will help you find the best refinance lender while helping your rebuild your credit record.
Preparing For Refinancing
Right after bankruptcy, you have six months to prepare to refinance your mortgage. Begin by establishing good payment history by regularly paying your bills and current mortgage. This is also a good time to open a credit card account to start establishing good credit history.
If possible, also start building up a savings account. The more cash assets you have, the better your application will look. Consider having a garage sale or taking a second job to raise funds.
Researching Lenders
Once you are ready to refinance, research mortgage lenders and their rates. Online mortgage websites allow easy comparison shopping. Look at both interest rates and fees of refinancing quotes. Usually a slightly higher rate with low fees is the best deal.
Cutting Credit Card Costs
February 21, 2010
What are the APRs charged by the credit cards in your wallet? If you are paying more than 12% interest on any of them, you are probably paying too much. The prime rate is currently in the single digits, so credit card companies that charge above 13% APR are overcharging. If you have good credit, you should be able to find a credit card with an APR below 12%. Shop around and get the rate you deserve. Do not be afraid of asking for a lower rate on your current credit card if you think you deserve it. A lower interest rate can cut your credit card costs significantly.
Another action you can take to save money is transferring your outstanding balances to a credit card with a low APR. Many credit card companies offer low APRs on balance transfers, and taking advantage of those offers can save you a lot of money. You need to make sure, however, that the special balance transfer rate is not temporary. Otherwise, you will need to transfer your balance again once the offer expires. You also need to find out if either credit card charges a fee for transferring a balance. The fee might be higher than the money you will save from the lower APR.
