Second Mortgage/Home Equity vs. Refinance
by: Benjamin Ehinger
Why should you take out a second mortgage or a home equity line of credit instead of refinancing?
Well,???You Shouldn?t!!
Why Not?
1. Second Mortgages usually have an interest rant that is twice or even three times as high as your first mortgage rate.
You can refinance instead and keep a very low rate.
In the long run a second mortgage will just cost you money in interest charges.
2. Home equity lines of credit are designed for mortgage account executives (salespeople) to sell you on using it like a credit card attached to your home.
They will try to convince you to use it over and over again.
3. A refinance loan is better for the equity in your home.
Very few companies will refinance your home at 100% of it?s value without forcing you to take out a second mortgage.
You don?t want to use 100% of your equity because that means you no longer have that equity to fall back on in emergency situations.
4. Second Mortgages and Home Equity lines of credit are designed to provide account executives (salespeople) with another tool to sway you into putting another commission in their pocket.
5. Your equity is a precious thing and should not be used for unnecessary add ons or impulse buys.
If you don?t need it and there is even a slight chance you can?t afford it, then don?t get a second mortgage to buy it.
The only reason that I would ever recommend a second mortgage or a home equity line of
credit is in an emergency situation.
Only when there is no other option and you must take out a loan would I recommend either one of these options.
About The Author
Benjamin Ehinger has an extensive mortgage background and has studied the industry for many years.
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Refinancing Costs - What To Expect
Refinancing Costs - What To Expect
by: Carrie Reeder
Refinancing your current mortgage is a wise financial decision if you can recoup the costs of a refi. An average refinancing deal, you can expect to pay between two and six percent of the loan amount if fees and points. On average if you can lower your interest rate by two points, then you will usually come out ahead in the end.
Normal Mortgage Costs
Refinancing your home is just like taking out your mortgage the first time. All the loan costs you paid for your original mortgage, you will have to pay again. Usually these had up to $2000 in fees plus at least one point. Fees will be included for application, appraisal, survey, attorney review, and title search.
Besides the loan origination fee of 1%, you can also expect to pay a couple of points for lower rates. Points are flexible though. You can choose to pay no points for a higher rate, or a couple of points for lower rates....
Refinancing Costs - What To Expect
Mortgage > Refinancing Costs - What To Expect
Shop Around for a Mortgage
Shop Around for a Mortgage
by: Jennifer Hershey
If you have decided to take the leap into home ownership or you are interested in refinancing your current mortgage, one of the first things you will need to do is track down a mortgage.
I honestly can?t tell you just how many mortgage companies there are in the United States, but I can tell you this, there are a lot of them.
Mortgage companies also come in a few different forms. You might recognize one as your local bank, but there are also wholesale lenders who use not only there own loan officers to originate mortgages, they will also use mortgage brokers. Than you have your retail lenders, who use only their own employed loan officers.
Because there are so many mortgage companies out there, the industry has become highly competitive.
So before you commit to the first lender you approach and start filling out applications, look again, and consider shopping around. Like I said,...
Shop Around for a Mortgage
Mortgage > Shop Around for a Mortgage
The Online Mortgage Application Is The Best Option For Good & Bad Credit
The Online Mortgage Application Is The Best Option For Good & Bad Credit
by: Carrie Reeder
Are you ready to fill out a mortgage application and get your home loan process going? Consider applying for your mortgage online in order to get the best interest rate and the best loan program for you.
There are many mortgage companies online that will offer you the option to complete your mortgage application online, which is very convenient. However, make sure that the mortgage company you apply with can provide you with multiple offers for one application.
The benefits to completing a mortgage application online with a company that will provide you with multiple offers are:
More Programs Available For People With Bad Credit - Credit problems are very common. One of the best ways to get approved for a mortgage loan with bad credit is to try a company online that will provide multiple lender offers. They just have more loan programs to choose...
The Online Mortgage Application Is The Best Option For Good & Bad Credit
Mortgage > The Online Mortgage Application Is The Best Option For Good & Bad Credit
Discount Points May Be Wise When Purchasing a Home
Discount Points May Be Wise When Purchasing a Home
by: Charles Essmeier
There are many expenses one must pay when closing on a mortgage. Some of these include taxes, a down payment, loan origination fees, and miscellaneous fees for couriers, copying or other office expenses. No one likes paying these costs, but they are part of the process of taking out a loan. There is one item that can be paid for at closing that may be worthwhile, however, and that is something known as "discount points."
Discount points are a fee paid to the lender in order to reduce the interest rate on the mortgage. A "point" is one percent of the loan amount; in exchange for paying one or more points, the interest rate on the mortgage may be reduced by an agreed upon amount. Since this fee can easily run in the thousands of dollars, it would make sense to first determine if it is a good idea to pay the lender to reduce the interest rate.
The key to this equation...
Discount Points May Be Wise When Purchasing a Home
Mortgage > Discount Points May Be Wise When Purchasing a Home
Discount Points May Be Wise When Purchasing a Home
Discount Points May Be Wise When Purchasing a Home
by: Charles Essmeier
There are many expenses one must pay when closing on a mortgage. Some of these include taxes, a down payment, loan origination fees, and miscellaneous fees for couriers, copying or other office expenses. No one likes paying these costs, but they are part of the process of taking out a loan. There is one item that can be paid for at closing that may be worthwhile, however, and that is something known as "discount points."
Discount points are a fee paid to the lender in order to reduce the interest rate on the mortgage. A "point" is one percent of the loan amount; in exchange for paying one or more points, the interest rate on the mortgage may be reduced by an agreed upon amount. Since this fee can easily run in the thousands of dollars, it would make sense to first determine if it is a good idea to pay the lender to reduce the interest rate.
The key to this equation...
Discount Points May Be Wise When Purchasing a Home
Mortgage > Discount Points May Be Wise When Purchasing a Home
Cash Out Refinance - Things To Know About Refinancing Your Mortgage To Get Cash Out
Cash Out Refinance - Things To Know About Refinancing Your Mortgage To Get Cash Out
by: Carrie Reeder
A cash-out mortgage allows you to refinance your mortgage and pull out part of your equity. Before deciding how much to cash to use, be aware of the impact of PMI and equity amounts. However, you may find the benefits of refinancing outweigh the costs.
Cash-Out Mortgage Basics
With a cash-out mortgage, you can refinance for lower rates or to just get part of your equity out. Once the refinancing process is completed, you will end up with a check. You can decide to take up to 90% of your home?s equity in some cases. However, cashing-out a large percent of your home?s value will impact your refinancing rate and might require you to carry private mortgage insurance (PMI).
The Cost Of PMI
Just like with a regular mortgage, you will be required to carry PMI if you take out more than 80% of the home?s value. PMI protects the mortgage...
Cash Out Refinance - Things To Know About Refinancing Your Mortgage To Get Cash Out
Mortgage > Cash Out Refinance - Things To Know About Refinancing Your Mortgage To Get Cash Out
When to Get a Second Mortgage
When to Get a Second Mortgage
by: John Mussi
If you find yourself struggling to make ends meet, in need of some additional money for home repairs or home improvements, or just find that you have some financial need that you can't fulfill with your standard wages, you might want to consider taking out a second mortgage on your home.
Of course, when many people think of a second mortgage they think of the scenario that's usually presented in movies and on television of individuals drowning in debt who have had to take out several mortgages simply to stay afloat.
While this may be the case with some individuals, most people who take out a second mortgage do so simply as a means to cover expenses or to begin new projects using a form of collateral that is both high in value and easy to find a lender for.
Below is some additional information that will tell you exactly how a second mortgage works and how to get the best deal on your...
When to Get a Second Mortgage
Mortgage > When to Get a Second Mortgage
How To Qualify For A Home Mortgage Loan
How To Qualify For A Home Mortgage Loan
by: Jeff Slokum
Are you considering applying for a mortgage loan to purchase your first home? If so, you should read the following tips below that will make the process easier!
If You Have a Good Credit History It Is Easier To Qualify For a Mortgage
By far the easiest way to qualify for a home mortgage loan is by establishing a good credit history. To establish a good credit history you need to be able to demonstrate responsible repayment of smaller loans, such as credit cards and car loans. The building of your credit history begins the day that you put the very first debt into your own name. For many Americans, this is at the age of eighteen.
Have a good solid credit history, shows the home mortgage lender that you take financial responsibility seriously. This makes you, what the lender terms, a low risk borrower. That is to say that you as a borrowers are a relatively low risk in comparison...
How To Qualify For A Home Mortgage Loan
Mortgage > How To Qualify For A Home Mortgage Loan
Dog Training Aids
Dog Training Aids
by: Dana Goldberg
You may think that dog training aids are out there for you to spend money and not actually reap any benefits from. That is not the case. Dog training aids are there to help you succeed in teaching your dog, this could be teaching him obedience, agility or any other type of teaching you want to do. There are many aids available but only a certain few will work with your dog and his temperament.
I find the best training...
Dog Training Aids Mortgage
Mortgage > Dog Training Aids
H2S Overview
H2S Overview
by: Austin Culley
The following is a brief overview of Hydrogen Sulfide (H2S) as it pertains to work safety in the oil and gas industry.
H2S is naturally formed when bacteria break down organic material in the absence of oxygen. This formation can occur deep within the earth, such as in volcanoes and in crude petroleum, or relatively close to the surface in swamps, sewers, wells, and hot springs. Known by other names such as Hydrogen Sulphide,...
Mortgage H2S Overview oil prices
Mortgage > H2S Overview
What To Look For When Purchasing A Fruit Basket
What To Look For When Purchasing A Fruit Basket
by: John Marcus
Fruit baskets are excellent gifts for all occasions. Whether you choose to purchase a fruit basket for a birthday, holiday, or any day, the receiver will surely enjoy the beautifully packaged basket of goodies. When looking for a fruit basket for a friend, family member, co-worker, or neighbor, consider the contents carefully, as well as the size and overall appearance.
The first thing to look...
Mortgage fruit
Mortgage > What To Look For When Purchasing A Fruit Basket
Types of Batteries
Types of Batteries
by: Jeff Anderson
Are you confused by the terms thrown around on batteries.such as Magnesium or Zinc-Carbon? We will walk you through a brief definition of each type of Alkalinee Batteries. Types of alkaline non-rechargeable batteries include:
Zinc-Carbon. Zinc-carbon cells, also known as "Leclanch?" cells, were the first widely used household batteries. Rated at 1.5 volts per cell, they are much lower in cost compared to alkalines,...
Mortgage
Mortgage > Types of Batteries
PDA Batteries
PDA Batteries
by: Angela Oliver
Choosing a battery and Increasing battery life time
PDA batteries vary by brand. Depending on the type of PDA you have. Some of the most popular brands are Compaq PDA and the Blackberry, T-Mobile sidekick. Brands like Compaq and HP have many different PDAs so when purchasing a PDA battery is important to choose the correct model number.
PDA?s use Lithium ion batteries. These types of batteries are more in demand since...
PDA Batteries
Mortgage > PDA Batteries