Cash Out Refinance – Home Equity Mortgage Loan or Cash Out RefinanceWritten by Carrie Reeder
There are some definite benefits to doing a cash out refinance. Just make sure that overall you are not going to be spending more money in fees and interest doing a cash out refinance as opposed to a home equity loan. When you do a cash out refinance, you are refinancing your entire loan. Let's say you owe $300,000 on your home and you want to get $10,000 in cash out. If in refinancing your rate will be same or higher, then you will be losing an extraordinary amount of money in fees just to get a $10,000 loan. In a case like that, you would definitely want to go with a home equity loan.Home equity loans are better if: 1. You have a large home loan yet only need to cash out of a small amount of equity 2. You need to borrow up to 100% of equity in your home 3. You want a revolving credit line 4. You want a payoff sooner, or longer than term of rest of your mortgage loan On other hand if you are: 1. Going to refinance anyway 2. Wanting to borrow a large percentage of your home’s equity 3. Refinancing for a much lower rate
| | Life After BankruptcyWritten by Chris Cooper
Bankruptcy and Credit - What Happens After Your Debts Are Discharged?Bankruptcy will remain on your credit report for ten years. But you may be able to get credit fairly quickly - almost immediately after a bankruptcy - although you will pay dearly for it. Due to anomalies in credit scoring process, you’re likely to have a better score than you had while you were struggling with debt. Also if you handle debt responsibly from then on, you will find your credit score will be close to prime within a few years. Credit scoring gives more weight to more recent events. So if you use of credit is down and you’re handling your debts responsibly, you score will go up. Remember you have to use credit to get a credit score. Many lenders love to extend credit to recent bankrupts. They know you have more free cash because most of your debts were discharged. They also know you can’t go bankrupt again for another seven years. So they will extend credit, usually with outrageously high interest rates. If you managed to keep your car and/or house through bankruptcy, your first step is to pay these bills on time. If you have to start fresh expect to pay. A car loan may carry a 21% interest rate. Credit cards you’re offered might have an interest rate around 24%. These rates will make it very difficult to stay on top your debt.
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