Home Equity Loans

Home equity loans are loans that are issued out to individuals in need of money, against the security of their residential houses. In this kind of loans, the houses of the borrowers are kept as collateral against the sum borrowed by them.

Home equity loans, in recent times has emerged out as the main source of finance to people who are in desperate need of cash. More and more of individuals are increasingly resorting to home equity loans for their financial needs, the main reason being the collateral and security factor.

Usually, to take up a loan of such huge amount, people have to sell off their assets and dispose of their belongings to raise the finance, for their needs. But, the one standing character of home equity loan is the fact that, the borrower needs not to submit extra collateral except the house against which he is getting the loan, like he needs to do for getting any other loan credited in his account.

Also equity home loans are really beneficial and affordable since the interest that accrues, actually accrues on the amount that the borrower has drawn till that time, or while repayment of the loan, the borrower needs to pay the interest only on the amount that is yet to be repaid. All these enticing factors are drawing more and more number of individuals, looking for a loan that involves easy repayment terms.

The best part of home equity loans is that of revolving credit, once the amount of loan that the lender will lend to the borrower has been fixed by the lender, calculating on the value of the home against which loan is sanctioned, the borrower needs not to borrow the entire amount at the same time but can actually draw according to his needs, and pay the interest only on the amount that he has drawn till that time and not the entire amount of loan that has been sanctioned.

Lenders who want to attract more and more borrowers also give the borrowers many schemes, which make the repayment of the loan all the more easy. The fact that borrower needs not give any other collateral, or pay any extra interest makes the entire thing even more easy for the borrower.

Day of Reckoning

Told my current lender that I found a better deal on my current mortgage with another institution. If they want to keep me and not have me transferred out, they have to match my new offer.

Afterall, it is troublesome to refinance or switch and it is always good to stick to the exisitng ones if they can offer you better perks.

So will be meeting up my consultant tomorrow for a further discussion on how he can help me in this matter.

To conclude : never be afraid to ask as ultimately you are the person servicing the mortgage loan.

Second Mortgages

Second mortgage is one of the things that come naturally once you have not planned the whole mortgage package. However all is not lost, the thing that one has to do is to make the most of the opportunity that is in hand.

This is how the second mortgage system runs, once the first mortgage is not paid back and the owner is bound to take the 2nd mortgage. However there are many things that are related to the second mortgages. The first is that once the second mortgage is taken, it pays of the first mortgage, but as you can see that as the mortgage amount that is being lent to the borrower is very high, i.e. it is the total of the first mortgage and its interest and then the second mortgage interest and its amount. This means that the interests rates will be extremely high, and unless the person cannot come up with an appropriate solution the owner can claim foreclosure on the borrower and then eventually get your property on the first mortgage which will be in the good shape as the second mortgage has paid it all.

So the basic thing is that second mortgage should not be taken unless it is completely required. However if you have no other way out, there are market plans such as the bad market credits which can help you in such situations and there are other lender which would agree on lesser interest rate then the bank itself or major lenders, as they would first check all your record and then give you an interest rate that would become a difficulty to pay.

Unless you want to take the second mortgage make sure that you have some amount of money coming your way and try to get rid of the second mortgage as soon as possible; however here is another thing that one has to decide, and it is indeed a very critical one. If you have failed to pay your first mortgage and the only option left is the second mortgage, the mind usually stops to work, and you get confused with everything. The think that you should think of is whether your financial situation is going to get good, or is there any option that you can get a refinance to your mortgage. If none of these things is happening that the wise choice would be to just sale the place which the mortgage plan that is available or hand it back, it may require some legal documentation but the biggest step is your mental state. However this only remains as a suggestion. The main decision lies in the borrowers hand, and every person’s financial condition is only clear to him.

The next thing, which is good news, is that there are various companies opening day by day, offering you incentives that were unknown and unheard of in the previous days, and that is the thing that can help you spice up in our quest to find the best 2nd mortgage deal. Each of the firms has sites on the internet, so you won’t even have to go and visit them personally a general view and careful analysis of the entire plans will give you the best second mortgage package ever. However the most important thing is that if you really want your dream home or any other thing on which you have taken the mortgage to stay under your hands, then the second mortgage is more of blessing that can help you gain the ownership once again.

Will update on a regular basis.

So stay tuned !