Home Loan Lenders - Finding The Best Home Mortgage LenderWritten by Carrie Reeder
The process of obtaining a mortgage or home loan can be very stressful and quite time consuming. Finding best lender for your situation requires research and comparisons between lenders and loan packages. You may be searching for a first time home loan or to refinance your existing mortgage. Compare lenders carefully and find best possible terms available to you.
If you have poor credit, you will pay a higher rate of interest than those with good credit. The amount of your down payment will also affect interest rate you receive. The larger down payment, lower interest rate. A small down payment will mean you pay more interest and your payments will be higher. You can get either a variable interest rate that changes over length of your mortgage, or a fixed rate that never changes. Do not hesitate to ask questions of your lender and make certain you clearly understand terms offered to you.
The amount of interest you will pay on your home loan not only depends on your credit score, but your debt-to-income ratio as well. This is amount of money you make each month as compared to amount of your monthly debt. Car payments, student loans, and credit card balances are all considered in determining your debt-to-income ratio. If your monthly income barely pays your monthly expenses, you will pay a higher interest rate than someone who's income surpasses their monthly obligations. Mortgage lending is a highly competitive industry and lenders are offering a variety of loan packages to fit almost any income level and credit rating.
Home Equity Loans - How To Use Your Home's Equity To Consolidate DebtWritten by Carrie Reeder
If you've got a wallet full of credit cards, and monthly payments on them that total more than 25% of your monthly income, chances are that you've considered debt consolidation loans or some other means of taming your credit card debt. But did you know that a home equity loan is another way to get money that you need to pay off your creditors, reduce your monthly payments, and get out from under weight of all those monthly payments?
A home equity loan is essentially a second mortgage taken out with your house as collateral. Because loan is secured, you'll have a much more favorable interest rate. And those lower rates will translate to a lower monthly payment overall. You'll wind up with one creditor, one monthly payment, and more money in your pocket each month.
There are some definite advantages to taking out a home equity loan or line of credit to get out of debt, and one very big danger. By trading your unsecured loans (your credit card debts) for a secured loan, you are putting your house on line. Why? Because if you don't make payments, lender has right to take your home from you and sell it in order to collect on loan. But if you've got at least 20% equity in your house, and are certain that you'll be able to meet monthly payments, then taking out a home equity loan to pay off your debts may be a good choice for you.
Once you've decided that a home equity loan is an acceptable risk for you, you'll have a few other decisions to make.
All home equity loans are not created equal! There are two types of loans, and you'll need to decide which one is right for you.
A flat home equity loan is a standard loan for a fixed amount. The amount will be limited by amount of equity you've invested in your house. If you use up entire amount of your loan and need more money, you'll have to apply for another loan.