Home Loans and Mortgages by wanghonghx

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              What You Need to Know About
               Home Loans and Mortgages


Topics Covered:

    Home Loans: A Basic Introduction
    Home Loan Programs
    Mortgage Loan
    Unsecured Consolidation Loans
    Unsecured Debt Consolidation Loans
    30-Year Home Loans
    Bad Credit Home Loans
    Mortgages For People With Bad Credit
    Washington Home Loans
    Sallie Mae Loan Consolidation
    Second Mortgage Loans
    California Home Loan Mortgage Rates
    Lending Money
    Refinance Home Loans
    Interest-Only Home Equity Line of Credit
    Home Loan Interest Rates




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                   What You Need to Know About
                    Home Loans and Mortgages


Home Loans: A Basic Introduction

Over the past several years the demand for home loans has increased. The main reason for this
is probably that the availability of these loans in the market has increased. Home loans are
nowadays available in the market at pretty low and attractive rates. Home loans have turned
out to be a boon for millions of people, all of whom want to have a home of their own, but
most of whom cannot afford to pay for that home outright.

Buyers nowadays don’t have to think about the source of money for their homes. Home loans
have made the life of a lot of buyers very easy. But, the buyers should be careful while opting
or going for a home loan. They should first, make a thorough research of the prevailing interest
rates in the market, and then opt or go for any home loan. Borrowers can even go for home
loans, by undertaking mortgages. In this, the borrowers take a loan after pledging or securing
any asset or securities of theirs, against the sum borrowed by them.

While going for a home loan, individuals should take care of the other various aspects relating
to the home loan. An individual before going for a home loan should take care, before deciding
the principal amount that he is going to borrow as a home loan. Otherwise the person may end
up taking a loan with a higher principal amount and then end up paying more interest for the
amount that he had borrowed unnecessarily.

The second aspect that the borrower should consider is the interest factor associated with every
home loan. Interest is an unwanted burden that comes attached with the home loan. Interest is
the extra amount that the borrowers have to pay, for taking the loan from the lender. The
borrowers motto should be take a loan, which carries the lowest interest rates. For this, the
borrower should make a complete research of the prevailing interest rates in the markets so
that he does not get cheated by the home loan lenders.

Borrowers should also consider the aspect of the term associated with the loan that he has
undertaken, otherwise they may end up paying or repaying the loan for 30 to 35 years, just
because of the fact that the loans conditions had stated that the principal amount has to be
repaid on fixed amount over 30 years installment basis.

Home loans are a boon for people, but they should be careful before opting for a home loan.



Home Loan Programs

You have found that dream home, now which of the home loan programs is right for you?
There is no simple answer to that question; home loan programs need to be studied to choose
what is best. This all depends upon your individual family preferences and financial


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circumstances.

Some factors to consider when choosing from the different home loan programs. Your current
financial situation, do you expect this situation to change? How comfortable are you with a
changing mortgage payment? A fixed rate mortgage can save you thousands in interest over
the period of the loan, but it will also give you higher monthly mortgage rates. An adjustable
rate will start you out with lower monthly payments but you could face higher monthly
payments if the rates change.

You have decided which type of loan is best for you, now you need to choose which of the
more popular home loan programs, is the best one for you.

Conventional loans are secured by government-sponsored lenders. They are also known as
government sponsored entities (GSE’s). They can be used to purchase or to refinance single
family or 4 plex homes with a first or a second mortgage. There are limits that are adjusted
annually on an if needed based on the national average of new homes. You would need to
check what the current year’s limits are for an accurate amount if you were to choose this type
of home loan program.

FHA loans are programs to helping low income families become homeowners. By protecting a
mortgage company from default they encourage companies to make loans to families that may
not meet normal credit guidelines. Some of the highlights of these loans are. Lower down
payments can be as low a 3% versus the normal 10% requirements.

Closing costs of up to 2 or 3 per cent of the home value can be financed, this reduces the up
front money needed. The FHA also imposes limits on the fees from the mortgage company
such as the loan origination fee can not be more than 1% of the amount of the mortgage.

VA loans are available to military veterans who served on active duty and were discharged
under conditions other than dishonorable. The dates for eligibility are WWII and later. World
War II (September 16, 1940 to July 25, 1947), Korean conflict (June 27, 1950 to January 31,
1955), and Vietnam era (August 5, 1964 to May 7, 1975) veterans must have at least 90 days
service. Veterans with service only during peacetime periods and active duty military personnel
must have had more than 180 day’s active service.

There are other eligibility requirements. If you think you may be eligible contact your local or
state veterans’ administration representative. The biggest factor in a VA loan is that no down
payment is required in most cases. There is no mortgage insurance payments needed, closing
costs to the buyer are also limited. You can negotiate rates with the lender and you then have
a choice of payment plans with up to a 30-year loan.

The last loan program we will mention is called a sub-prime loan. This is a loan for people with
poor credit who would not qualify for a conventional loan or a VA or FHA guaranteed loan.
These loans normally will require a higher down payment and have a larger interest rate. This
is because of the risk involved to the mortgage company.

These loans should normally be considered for a limited amount of time such as 2 to 4 years. It
is a good way to improve your credit situation and then refinance with more favorable terms.



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We have shown finding or planning that new dream house is just the beginning of the journey
into your new home. The right answer to the question, which of the home loan programs is for
you, takes research and an honest look at your personal situation.



Mortgage Loan

In the past decades, it was believed that a mortgage loan is a mortgage loan no matter
whichever is chosen. But this theory is not workable anymore because of the many mortgage
loan products available in the market. So, before choosing a mortgage loan, it is very important
to decide which one is right for you.

Finding the right mortgage loan means balancing your mortgage options with your housing
requirements and financial picture, now and in the future. Also the right mortgage is not just
having the lowest interest rate but much more than that. And this “much more” will be
determined by your personal situation. Your personal situation and your limits to pay for
monthly mortgage payments can be evaluated by answering the following questions:

   What is your current financial situation (including income, savings, cash reserves and debt-
to-cash ratio)?

   How you expect your finances to change in the coming years?

   Have you a plan to return the mortgage loan before retirement?

   How long do you intend to keep your house?

   How comfortable you are with your changing mortgage payment amount?

The answers to these questions will give you the idea of your financial position. Now the next
step is to decide two key options:

   Mortgage length

   Type of interest rate (fixed interest rate or adjustable interest rate).

The length of mortgage loan can be minimum 15 years; can be 20, or at maximum 30 years.
While selecting a fixed or adjustable interest rate you should be aware of the facts that the
adjustable interest rate mortgage is more risky because the interest rate will change, while a
fixed-rate loan offers more stability because of the locked-in rate.

You will be able to pay off a shorter-term loan more quickly, but your monthly payments will be
substantially higher. Long-term fixed-rate loans are popular because they offer certainty, and
many people find that they are easier to fit into their budget. Although, in the long run they will
cost you more, but you will have more available capital when you need it, and you will be less
likely to default on the loan should an emergency arise.



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In the light of above mentioned aspects, it is clear that the key to select the right mortgage
loan for your needs should fit comfortably into your entire financial picture, that is having
payments within your budget and comfortable level of risk connected to it.



Unsecured Consolidation Loans

Bills are piling up, and paying them all takes just about all the money you make – or worse, it
takes every penny. Not only are there credit card bills screaming for attention, but utility,
medical and store cards are all due now. Oh, and don’t forget the money you owe your brother-
in-law and the fact that you’re going to need to replace your windshield now. It adds up, and
will it ever go away?

A loan would help you get back on your feet, help you get ahead, and help you begin to build a
stronger financial future. But it takes collateral to secure a loan, right? And you don’t own a
home so you have no equity to borrow against. In fact, looking around, you have nothing to
offer as collateral.

There’s good news. There is such a thing as an unsecured debt consolidation loan, and it may
be worth it for you to pursue this option for managing your debt. Lenders who offer unsecured
debt consolidation loans do not require any collateral against the loan; they look at you and
what your credit and employment history say about you. If you have been making regular
payments to all your creditors and if you have a stable employment history those factors can
work in your favor, showing that you as an individual are a good risk.

There are also lenders out there who will give you an unsecured consolidation loan in spite of
your credit and employment history, if you need a clean slate in more ways than one.

Unsecured consolidation loans are intended to please your creditors by paying them all off, and
to please you by putting some quality back in your life in the form of greater peace of mind.
Instead of a long line of creditors calling and sending letters and constant reminders that you
owe money, you have one obligation, one monthly payment. Gone is the uphill battle with late
and over the limit fees. Imagine the long-term savings just by eliminating those fees from your
life!

Be aware, though, that lenders attach higher interest rates to unsecured consolidation loans.
They take a larger risk when they lend money without security, and to compensate their
interest rates will be higher than on loans with collateral.

Keeping in mind the greater risk lenders take with unsecured consolidation loans, loan amounts
by necessity are limited to lower amounts. Depending on the company, the limit on the amount
they will loan unsecured may be as low as $1,000 or as high as $20,000.

Living with debt is just part of living nowadays, but when your debt outgrows your budget the
quality of your life can become anything but good. There is a difference between managing
your debt and drowning it. Managing debt translates directly into quality of life, and the first
step to making sense of all your outstanding bills and loans may be consolidating them all



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under one loan. The interest rate may be higher, but an unsecured consolidation loan is far
better than bankruptcy.



Unsecured Debt Consolidation Loans

Bankruptcy is an ugly word, but a very real possibility to many people struggling to pay a
laundry list of bills that never seem to end. At times, that pile of bills seems impossible to deal
with, a mountain you’ll never get out from under without taking drastic measures. But
bankruptcy isn’t the only alternative to a life chained to the never-ending cycle of bills, late fees
and more bills.

Think about consolidating your debt in a single loan, a form of refinancing that helps you put
your finances back in your control and your life back in order. But refinancing is for people who
own a home, right? What if you don’t have a home, or you don’t want to risk losing it by putting
it up for collateral? That’s where an unsecured debt consolidation loan comes into play.

Unsecured debt consolidation loans do not require collateral. You can pay off all your other
creditors and keep your house – or lack thereof – out of it. Lenders are able to stay in business
by covering their risk with higher interest rates than they offer on secured loans.

But this can still translate into lower monthly payments for you, especially if your credit cards
carry high interest rates to begin with and you’ve fallen into the trap of paying late and accruing
late payment fees. Those disappear when you pay off that debt with the moneys from the loan
and you are competitive and you may be able to negotiate a better interest rate.

It helps to have a good unsecured debt consolidation loan. And don’t forget, shopping around
always pays off; lenders do look at your credit score since lenders do look at your credit and
employment history when they consider you for a loan.

If you shop around, negotiate, and still find that the interest rate is not going to make enough
of a difference in your monthly payment to make life comfortable again, consider choosing a
long-term loan. While you will generally end up paying out a greater total amount by the end of
the loan, lengthening the life of your unsecured debt consolidation loan will lower your average
monthly payment. That right there could make all the difference in the world.

Unpaid or slow-paid bills wreaking havoc on your credit score? Some lenders will consider you
despite your credit history. A good employment history proves stability, and even if you don’t
have the best employment history there are, again, lenders who will offer unsecured debt
consolidation loans to almost anyone. While the interest rates are higher and the limits to what
they’ll loan are lower, your credit score will improve when you get the loan, and having all those
creditors paid off will do nothing but increase your credit score.

If your bills are getting the best of you to the point that you’re actually considering bankruptcy,
stop. Gather up those credit card bills, utility bills, department store card bills, medical bills and
any other bill that’s costing you sleep at night. Look into an unsecured debt consolidation loan
and see how easy it can be to save your credit and peace of mind.



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30-Year Home Loans

It used to be the first choice of most borrowers, because since the total payments are spread
over a longer period of time with the interest rate set for the entire time of the mortgage. 30
year home loan rates are an industry standard but is it the right choice for you?

The 30-year home loan is an industry standard, but is it the right choice for you? Because the
total payments are spread over a longer period of time and the interest rate set for the entire
time of the mortgage. This was the first choice of most homeowners.

As we mentioned, the plus side for a 30-year home loan is lower monthly payments. This
attraction is somewhat dimmed by the fact that you pay thousands extra in interest. But, your
interest is 100% tax deductible which does lower your after tax cost.

It offers you some flexibility so that if your financial situation changes and you have more
money you can pay it off in less than 30 years, this while keeping the low monthly payments.
Your payments are smaller so in reality you can purchase a larger roomier home.

To show an example of the interest difference between 30 year home loan rates and one of the
other rates. On a 30 year, 100,000 dollar loan using 7% interest rate your monthly payment of
interest and principle would be $665.30 dollars. Over the next 30 years you will have paid
$139,511.04 in interest alone. Now with a 15-year home loan rate on the same amount you
will pay $871.11 per month and over the next 15 years, you would pay $56,799 in interest.
This would save you $82,712 dollars.

If you have the will power to invest the savings from the monthly payments, it still could be a
good choice to go with the 30-year mortgage. Especially if you can find an investment that the
long-term payoff matches or exceeds what you would save in a 15 year mortgage. Another
factor to consider is how fast you want to accrue equity in your home or to own it out right. 30
year home loan rates take much longer to build equity.

30 year home loan rates are certainly attractive and the vast majority of home buyers get 30-
year loans because that is the longest home loan available today. Experts agree if they could
get a 35- or 40-year loan, they probably would. There are many other options to consider.
Probably the biggest question you have to ask yourself when considering a loan is what are
your financial goals?

What loan plan will help you the most to reach that goal? It is clearly to your advantage to look
into other loan options for the best loan available for you and your financial goals. It may
surprise you that because of your personal situation there may be other plans more suitable for
you.



Bad Credit Home Loans

A "bad credit home loan" is a loan that one can get despite having a bad credit rating. Many
lenders offer a bad credit home loan knowing fully that their loan is secure, since it is taken on



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mortgage of your home.

A bad credit home loan is an instrument of opportunity for those who have a bad credit rating
and would like to drop out of their debt and start on the road to good credit building. By getting
a bad credit home loan you can lower your monthly payments by consolidating all your debts
and also enjoy a lower interest rate on the current debt.

The consolidation and paying off your current debts by getting a bad credit home loan is a
major step towards credit repair. Moreover, if you can keep up the payments on your second
home loan for about six months to a year, you will see a remarkable change in your credit
score.

The most popular options available on bad credit home loans are cash out mortgage refinance
and home equity loans. Both options allow you to cash in on the equity already paid into your
home mortgage and use it to get yourself out of debt. It’s best to deal with a mortgage
company online to avoid bank associate’s talk around and skepticism. It’s also easier to
compare various offers from different lenders to make sure you are not being cheated. Please
keep in mind the following while filling up forms for online mortgage:

a. Make sure you read the articles on online mortgage at the bad credit home loan lender’s
websites. By this you can educate yourself on various types of financing and be informed and
up to date on fees and current lending rates

b. While applying for online quotes, do not opt for a generic estimate which is based on your
monthly income and bills, fill out detailed information whereupon you can get a real accurate
quote.

c. Try and get to the total bad credit home loan cost i.e. including the closing fees, application
fees, any other charges, interest charged, amortization and loan fees etc.

d. After applying, do not forget to keep all records received from the lender and follow up with
weekly phone calls to make sure things are moving on time.

e. After the completion of a bad credit home loan, plan to refinance in about three years, by
which you should be back in good credit, if you have kept up regular repayments. This will help
in reducing your short time debt and maximize your future credit rating.

Use your bad credit home loan to the maximum advantage to get your credit rating back in line.
This will help you plan a secure future for you and your family.




Mortgages For People With Bad Credit

The most important factor that determines whether a person can procure a loan for himself or
not is the fact, whether is past credit history is stable enough or not. All factors depend on his
past record of handling credits. A bad credit history implies that his appeal for a loan would be
rejected and won’t be met in most of the places.



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And the worst part is that, if the concerned individual in his past has ever been declared as
bankrupt or had a foreclosure, then for sure the borrower would face difficulties when he tries
to get a financing for a home mortgage purchase, home equity or second mortgage loan. But
the rumor that home loans are not available for people with bad credit history is just a baseless
myth.

These loans are available to people with bad credit history too. The way, however, to find such
a loan, is to be to be persistent in looking out for such kind of loans, because there are home
mortgage loans for people with bad credit.

The basic problems involving, the process of procuring loan arises from the activities of sub-
prime lenders. These are those lenders who actually work really hard for fetching loans for the
people with bad credit background and low credit score and then the charge absolutely
unreasonable price for the job.

Borrowers should be careful of borrowing money from sub-prime lenders, as they can charge
high interest rates, which, comparatively are too high than the market rate. Not only this, but
these lenders also charge unreasonable pre-payment penalties. Online articles are posted in
websites to inform the borrowers about their existence and caution them.

However, it’s not absolutely impossible to find lenders who give out loans at reasonable rates
and agreeable charges, to people who have a bad credit history. All a borrower needs to do is
look around and talk to different mortgage brokers, which would prove to be helpful to find a
lender, that can get them an approved loan with a reasonable interest rate and fair terms of
repayment.

Things that the borrower, should make sure about, are that he makes use of the lowest interest
rate and terms possible. Specifically a borrower with a bad credit history and bad credit score
should make sure that he sends an application for loans to a number of different lenders, since
it would be sensible for him to make comparison between different mortgage loan quotes, so
that he makes sure that he chooses the best one.



Washington Home Loans

An interest-only loan has become a very popular choice of the many Washington home loans
that are available. What is making this type of loan so popular? What other options are
available to potential Washington homebuyers?

If you have a desire for a lower initial monthly payment, lower payments over a shorter period
of time, the possibility that if rates improve your rates could go down giving you lower
payments, the fact you may qualify for an even higher loan amount which would allow you to
purchase a larger house than originally thought, this may be an option you should investigate.
There are a couple of other things you may need to consider. Your payments may change over
time.




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There is also the potential for higher payments if the rates go up. These interest only loans are
normally interest only for a specific period of time. The normal time is 4 to 11 years then the
payment is raised to a normal level. This type of an option can be placed on any type of
mortgage so you still will need to plan carefully since it will resort back to the original mortgage
you have.

The best candidate for an interest-only loan would be someone who could afford to pay for the
home with a typical fixed-rate, 30-year mortgage. The reason they would choose an interest
only is it is part of a financial plan they have for the future.

Washington home loans are made available thru several other programs. The Homeownership
Opportunity Initiative was created to make home financing more available and easy for working
families. They also have the HomeSite program. This unique program is based on need and
provides the home owner opportunity to modest income first time home buyers.

A bit about down payment assistance and what it means. Most of the Washington home loans
have programs to assist with down payment issues. Many people believe this is free money,
most of the time it is not. Many of these programs are actually a second mortgage that has low
interest rates or deferred payments.

Now you may be able to qualify for a Grant. This does not have to be paid back. It is normally
paid back if you sell your home within a certain amount of time however. Most of these
programs have income restrictions. These normally require buyers to be below 80% or at 80%
of the Area Median Income to qualify.

So along with the normal loans such as a standard 30-year mortgage Washington also allows
the buy a choice of several other programs to assist in getting the house of your dreams. It is
suggested before deciding on any of the Washington home loans, you develop a financial plan
and speak to a mortgage professional with any questions that you may have.



Sallie Mae Loan Consolidation

When your student loans get the best of you and you’re wondering how you’re ever going to
get out from under all that debt, take a look at loan consolidation. It may be the answer to a
number of your problems.

Turn to Sallie Mae loan consolidation for a way to pay off your federal student loans, improve
your finances, and put a little extra money in your pocket every month. A Sallie Mae loan
consolidation replaces your existing multiple student loans with one loan, usually with a
dramatically lower interest rate – as low as 4.75%.

The difference a few percentage points can make in monthly payment amounts can mean the
difference between scraping to pay bills and actually having a little extra pocket money.

It is not uncommon for a borrower to get a fixed interest rate that is up to 0.6% lower than
their current rates. According to federal regulations, calculating the interest rate on a



                                                10
consolidated loan disbursed on or after July 1, 1994 involves the weighted average of the
interest rates of the old school loans you are consolidating under the new one, rounded up to
the nearest one-eight of one percent. Fixed interest rates on a consolidated loan cannot exceed
8.25 percent.

Every July 1, the interest rates on federal student loans are subject to change according to the
annual fluctuations of short-term federal securities, and with them your monthly payment. One
of the benefits of a Sallie Mae loan consolidation is that the interest rate is locked in for the
length of the loan. While interest rates may be lower some years, when you are locked into an
interest rate at least your payments will be predicable and will not rise in the years when the
interest rates do.

A Sallie Mae loan consolidation also offers the opportunity to increase the length of the loan.
The longer you have to pay it off, the smaller the monthly payments will be. Remember though,
lengthening the life of your loan may mean paying out a larger total amount over time.

Applying on-line for a Sallie Mae loan consolidation is free, there are no fees, and there are no
credit checks. A few minutes of your time can get you smaller monthly payments and better
credit scores; when your Sallie Mae loan pays off your old student loans, your credit report
reflects those paid off debts.

Things happen in life and in a crisis sometimes, those student loan payments don’t get made on
time, or at all. If you have used up your deferment and forbearance options on current loans,
consolidating your debt under one Sallie Mae loan may mean a fresh start and a clean slate. If
you are facing a situation where defaulting on one or more of your current loans is a very real
possibility, acting now to take advantage of a Sallie Mae loan consolidation may save you a lot
of problems and help you out of an overwhelming situation.

If you decide that a Sallie Mae loan consolidation is what you want, there are four options for
repayment plans, the Standard Repayment Plan, the Extended Repayment Plan, the Graduated
Repayment Plan, and the Income Contingent Repayment Plan.

The Standard Repayment Plan offers fixed monthly payments, but the life of the loan is limited
to 10 years. The Extended Repayment Plan also offers fixed monthly payments, but spreads
them over 12 to 30 years, depending on the total amount borrowed, which lowers the amount
of the monthly payments. The Graduated Repayment Plan also spreads payments over 12 to 30
years, but the monthly payments increase every two years.

The Income Contingent sets a payment plan that is calculated on your annual gross income,
family size, and total consolidated loan debt, figured into a period of 25 years to pay it off.

A Sallie Mae loan consolidation may be the best option for you, but be sure to explore your
options thoroughly to make sure you get the best loan for your situation.




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Second Mortgage Loans

An individual’s home is the biggest asset that one has at his disposal. A home to back you up
when you need a loan is one of the greatest advantages of home ownership. In recent years,
there has been a major boom in the amount of people looking to use their homes as a way to
get access to extra money when they need it most. One of the best ways to do this is through a
second mortgage.

Second mortgage loans are loans that are made in addition to the first mortgage, and it is
usually based on the amount of equity that the borrower uses to build into his home. Usually
it’s required to fund home renovations. Since the borrower has already been through the
process once, the underwriting that is required to get a second mortgage is much simpler than
it was the first time around when the borrower had taken the first loan.

The cost of the transactions involved will be lower when the borrower applies for the loan the
second time. This usually happens for the fact that interest rates on the second mortgage are a
bit higher than they were on the first one. But then, there are some positive points too. For
example, the fact that the interest paid on the loan may be tax deductible. In most cases the
interest is 100% fully deductible as long as the combined loan to value of the 1st and 2nd
mortgage does not exceed the value of the home.

On a second mortgage, one borrows a fixed sum of money against the home equity, and pays it
back after a specific time. The amount borrowed will be combined with the amount the
borrower still owes on his first mortgage. But there are a few things that one should keep in
mind.

First of all, one should not take a second mortgage on his home unless one has made payments
on the original mortgage balance for a good amount of time. One may be able to get a second
mortgage if one does not have much equity, but then the loan rates will be much higher, and
the amount that one can borrow much lower. It will essentially be a waste of time and money.

A second mortgage is a loan that is secured by the equity in ones home. While obtaining a
second mortgage loan the lender places a lien on the borrowers’ house. This lien will be
recorded in 2nd position after the primary or 1st mortgage lender's lien, hence the term second
mortgage. Second mortgages aren't for everyone. Borrowing more than 80% of the home's
value will subject the borrower to private mortgage insurance. The monthly payments should
also be a factor. If one refinances in the future, he will have to pay off the second mortgage.

Loan proceeds from a second mortgage loan can be used for just about anything. Many
consumers take out 2nd mortgage loans to consolidate debt, do home improvements or pay for
their children’s college education. Whatever one decides to do with the loan proceeds it is
important to remember that if one defaults on then payment then he can lose his home. So one
would want to make sure that he is taking the loan out for a worthwhile purpose.

Thus we see that a second home loan can be of great help to the borrowers, although the
borrower must take steps to ensure that he does not squander away the advantages of second
mortgage.



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California Home Loan Mortgage Rates

The California Home Loan Mortgage Rates are low at this point in time. The California Home
Loan Mortgage Rates are connected to the national interest rate and controlled by national
housing market interest index. The national interest rate is controlled by secondary markets,
which are closely monitored by the Government since the whole economy depends on them.
The economy at this time coupled with the housing market situation has brought about this
change in California Home Loan Mortgage Rates.

Home Loan Mortgage Rates in California do not really appeal to a prospective buyer especially if
he is from a different state. These rates can inject more frustration than excitement into his life
since the cost of living in California is high in comparison to other states. It really takes a lot of
intellect and skill to play around with different options to reduce interest rates and payments in
order to make California Home Loan Mortgage Rates affordable.

The California Home Loan Mortgage Rates fluctuate daily. In order to get the feel of it, it is
advisable to wait and watch and see the trend before making a decision. These mortgage rates
come in with a variety of different options. There are interest only rates, standard fixed rates,
adjustable rates and variable rates. All these rates have to be taken into account while making
a decision in order to get the best rates possible.

Interest only California home loan mortgage rates are the lowest since the buyer or borrower is
paying only the interest component. This apparent low level of payment options makes it
interesting and attractive to borrowers

A standard fixed mortgage rate gives the maximum security to the homebuyer in freezing the
interest rates, i.e. the interest rates will neither raise nor fall. They will have a consistent,
preplanned repayment schedule throughout the loan term. The term comes in different sizes
viz. 15, 20, 25, 30, or 40 years. A fixed California home loan mortgage rate follows the national
housing interest index faithfully.

Mortgage rates that are variable or are adjustable carry a lower interest tag; normally 2%-3%
lower than the fixed rates. They begin as fixed for a short period, which is predetermined,
usually 2, 3, 5, or 7 years, after which they start fluctuating in accordance with the current
market California home loan mortgage rates.

The borrower has certain options here; he can refinance for a new loan, sell the home, or start
repayment of the new variable or adjustable rates. Buyers planning to invest in property for a
short period often choose the variable or adjustable mortgage rate because of the lower
payments they offer during the starting years of the loan.

Lower California home loan mortgage rates are always attractive to borrowers because they are
mostly on the higher side due to higher cost of living. The best way to ensure a low California
home loan mortgage rate is to possess a good to excellent credit score. These credit scores
directly determine interest rates and the better the score, the lower the California home loan
mortgage rate.




                                                 13
Lending Money

When a friend or a family member asks you for money you can be faced with a delicate
situation. Thinking it is your duty to help that person, sometimes you end up hurting yourself.
Try, when you can’t resist a close person, to analyze first all the data of the problem.

1. Analyze with your heart and mind

Look at the situation with the objectivity of a bank, combined with the sympathy you feel for a
friend. If your heart and head agree you probably are not making a mistake helping him. If one
of them tells you “No!” there is probably something wrong.

2. Consult with someone else

If a friend asks you for money, ask a third person and rely on his or hers objectivity, a person
that can be another friend or a family member with a trusted intelligence.

3. Don’t be afraid to say no

Never hesitate to refuse someone if the situation involves too many risks. Search for other
helping options for that person. Conduct the conversation in such a manner that your friend will
understand you are refusing the request not the person that made it.

4. Lending equals giving a gift?

You can suggest to that person that, if his of hers financial situation improves in the future, you
will be glad to get a present that would equal the money you lent to them.

5. For your safety, sign a contract.

When you are about to give away significant amounts of money, sign, each of you, a contract
that settles the conditions and the return date of the money, and also their total amount.



Refinance Home Loans

There are several reasons that people may look to refinance home loans. Probably the most
common is to take advantage of lowered interest rates. Some of the other reasons people
refinance home loans is to pay off high priced credit cards, make home improvements, and
rebuild credit rating that has taken a turn for the worse.

What is involved when borrowers look to refinance home loans? When you refinance you
normally just pay off the old mortgage and sign a new mortgage. Now this will also mean most
of the same costs you had when you signed the original mortgage. Depending upon your State
or the terms of your mortgage you may pay a penalty for paying the note off early.




                                                14
Individuals who refinance home loans look at several things before doing so. Look for a
company that may be willing to waive the normal fees. These include such things as an
application fee, legal fees and appraisal fees. This are all normally associated with closing fees
on a new mortgage. This could save thousands of dollars. It would give you a higher monthly
payment but this could be still acceptable with a small rate decrease.

How long do you plan on staying in your home? If the answer is just a few months the
monthly savings may not have time to catch up to the costs involved if you were not able to
secure a loan from a company who will refinance home loans but will not waive fees involved.
What are the new rates? As a rule try and find a rate that is minimum 2 points below your
current mortgage rate.

Some who refinance home loans do so with the intention of building equity in their home faster.
Now with this type of loan your month cost will be higher even with a lower rate. The benefit is
you build equity faster and pay less interest over the length of the mortgage. If you wanted to
refinance a 30 year mortgage to a 15 but the cost was to high you may want to check about a
20 year mortgage to still be able to take advantage of the lower rates.

The last important point to remember with companies who refinance home loans. Try and get
a guarantee on the rate so that it is locked in during closing. This will keep the rate the same
even if it should go up prior to your closing. You could even try and see if they will agree to a
rate decrease if that should occur before closing. The refinance of home loans is competitive
enough that if a company will not do either of those options. You may want to check with
another company. The ultimate goal is to reduce your payments or to increase the equity of
your home in a shorter time.



Interest-Only Home Equity Line of Credit

For the homeowner in search of a home equity line of credit the availability of interest-only
home equity credit lines has drawn the interest of many who seek to benefit from the value of
their homes. The name itself sounds too good to be true. A look at the details could cause the
homeowner to think twice before seeking an interest-only home equity line of credit. Or those
same details might spur the homeowner to contemplate yet another home equity line of credit.

Banks tend to offer the homeowner more than one-way to obtain an interest only home equity
line of credit. One bank for example has advertised the existence of one plan whereby the
homeowner gives payments that cover the Prime plus 5% for five years. Then in the next ten
years, the homeowner pays a floating interest rate, a rate that is determined by the Prime rate.

Yet that same bank also offers an alternate way for obtaining an interest only home equity line
of credit. Under this alternate procedure the homeowner pays 5.75% APR for one year. Then
after that first year the homeowner faces a percentage increase each year until the rate is
6.75% APR. In the sixth year of this particular line of credit the homeowner pays 6.65% every
month until the credit line has been paid off.




                                               15
The homeowner should also consider some of the other approaches to the offering of a home
equity line of credit. For example, some banks will offer a draw period at the start of the period
of the credit line. During this draw period, the homeowner can withdraw funds for making
advances, for repaying advances or for advancing the line of credit. The draw period is followed
by a period of repayment.

Each type of home equity line of credit offers the homeowner a way to reap added benefits
from the existing credit line. For example, the homeowner could choose to increase the
insurance deductibles, knowing that a line of credit had been made available. The higher
deductibles would guarantee a decrease in the premium payments on the insurance policy.

A home equity line of credit could also be used to buy discount credit cards at a store of the
homeowner’s choosing. In addition, the possession of a home equity line of credit gives the
homeowner the ability to make purchases with a Rewards credit card and to then pay the card
payment with the check obtained through the credit line.

Once the homeowner has negotiated all of the intricacies of a home equity line of credit then
that homeowner is ready to use multiple economic tactics in order to make more money from
what he has available. He will be ready to prove the old saying: You have to have money to
make money.



Home Loan Interest Rates

Thinking of buying or building that perfect home? Before you sign on the dotted line some
research into home loan interest rates will be needed. This will give you a much better chance
of obtaining some interest rate savings.

To begin finding the best home loan interest rates you will want to study the current rates and
rate movements or trends. Home loan interest rates generally reflect the over all picture of
interest rates. They basically will follow Wall Street Securities with their rise and fall.

Home loan interest rates combined with your individual financial status would then determine
how much you can borrow. This would have an impact on how much house you can buy.
Higher interest rates would mean you may have to settle for a bit smaller home than you
originally had planned.

One of the things that you may consider to lower home loan interest rates is to consider if you
are willing to pay points or not. A point is 1% of the total loan amount. It is the up front fee
that would reduce your monthly interest rate and the total amount of interest over the length of
the loan.

By paying points you are essentially buying your way to a better rate and trading between
paying now vs. paying later. Paying points should only be considered if you plan on keeping
the loan for at least four years. The reason this is suggested is gives you time to get back the
upfront money with the lower monthly payments.




                                               16
Another factor to consider in regards to home loan interest rates length of loan. A typical 30
year mortgage will have a higher interest rate than that of a 15 year mortgage. The 30-year
mortgage will have lower monthly payments but you would pay thousands of dollars more in
interest rates over the life of the loan than that of a 15 year mortgage.

Also a higher down payment would have a positive effect on home loan interest rates. This
down payment would typically need to be 20 percent or more. This would furnish you with
more equity in your home giving you a much better interest rate.

Most lenders offer a variety of options to help assist you with home loan interest rates. When
shopping around make sure you are looking at comparable points and rates amongst the
different lenders.

One of the final things in regards to considering with a home loan interest rates is, do you want
a fixed rate mortgage or an adjustable rate mortgage. A fixed rate will allow you more money,
is fixed throughout the life of the loan. This kind of loan the interest rate stays the same. The
other is a variable rate has the possibility of going up or down bed By paying points you are
essentially buying your way to a better depending on the current market.

Do your homework on home loan interest rates, choose between one of the many programs
offered and then decide on how much a down payment you can afford. In the long run this
research will pay off handsomely for you.




                                               17
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