Home Equity Line of Credit – Great Idea for Rainy Day Emergencies

Written by Charles Essmeier


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credit, onrepparttar other hand, givesrepparttar 141812 borrower great flexibility. The amount of money is capped at a certain amount, butrepparttar 141813 borrower writes checks to userepparttar 141814 money when they need it. The borrower only makes payments when he or she actually writes a check to use some ofrepparttar 141815 money, andrepparttar 141816 interest rate onrepparttar 141817 loan is adjustable. The line of credit isrepparttar 141818 perfect source of funds for that “rainy day” emergency. The costs of obtaining a line of credit are minimal, andrepparttar 141819 paperwork is much less involved thanrepparttar 141820 paperwork associated with obtaining a primary mortgage. The beauty of a line of credit is that there are no additional costs ifrepparttar 141821 money isn’t used. The homeowner is under no obligation to use any ofrepparttar 141822 money, but he or she can simply sleep soundly, knowing that it is available should an emergency arise inrepparttar 141823 future.

Americans, as a group, tend not to save much of what they earn. But even poor savers who own their own homes can prepare themselves for unexpected financial emergencies by taking out a home equity line of credit. One never knows when an emergency will strike, but it is always a good idea to be prepared to face one.



©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation information and HomeEquityHelp.net, a site devoted to information on home equity loans.


CLOSE first, THEN optimize the financing

Written by Gregg Winter


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In a hot, competitive seller’s market, cash isrepparttar very best thing –repparttar 141780 NEXT best thing is a lightning fast Bridge loan commitment, which can allow you to bid without needing a financing contingency.

There is a long list of possible reasons to obtain a bridge loan ranging fromrepparttar 141781 need to close ASAP because a bank is simply taking too long and your time-of-the-essence closing date cannot be moved even by one day,repparttar 141782 need or desire to buy out a partner,repparttar 141783 desire to recapture equity (often “trapped” byrepparttar 141784 prepayment penalties on long term fixed rate mortgages on assets like shopping centers, multifamily and office buildings) for a compelling business or buying opportunity,repparttar 141785 need to settle up withrepparttar 141786 IRS, orrepparttar 141787 need to fund emergency repairs…the list goes on and on.

Special mezzanine loan program for new construction:

In life in general,repparttar 141788 question often is: “what tool do I need right now to accomplishrepparttar 141789 job at hand?” Withinrepparttar 141790 specialized world of high-yield, short-term real estate lenders, W Financial Mortgage Fund sets itself apart by offering multiple tools, and in many cases, a complete capital solution. More often these days, it’s not an either/or proposition (i.e., private money OR bank money). We routinely arrange smoothly integrated mezzanine or subordinate debt packaged with low-rate first mortgage debt. The ideal financing solution can sometimes be a combination ofrepparttar 141791 two.

For example, we have a special construction loan program where a first mortgage construction lender will provide from 75% to 80% ofrepparttar 141792 development cost, and our Fund will provide another 10% - 15% as a mezzanine loan, requiring thatrepparttar 141793 Developer contribute at least 10% ofrepparttar 141794 equity. There is an intercreditor agreement already in place between W Financial Mortgage Fund (www.w-fund.com) and various construction lenders, allowingrepparttar 141795 process to proceed seamlessly and to provide higher leverage than would ordinarily be possible.

To conclude, Private Money is one more tool in your toolbox. It may be of strategic benefit to you and your team to learn aboutrepparttar 141796 current “state ofrepparttar 141797 art” of how deploying Bridge or Mezz money atrepparttar 141798 right moment can help your money-making strategy.

Gregg Winter President Winter & Company Commercial Real Estate Finance www.winterandcompany.com

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