Mortgage Home Equity Loans - refinance selling

girasol2525 asked:


Ramon owns a home that was appraised for $132,600. The balance remaining on his existing mortgage is $43,260. Ramon’s credit union is willing to loan an amount up to 70% of the appraised value of a home. Based on this information, what is the maximum potential amount of credit that’s available to ramond for a home equity loan?

Manuel

BirdogsID asked:


Where can I get my share of the mortgage bailout funds? My home was overvalued by bank of america and I am going to be foreclosed on, not to mention, I am in texas and there is a law that you can not have a (home equity) loan higher than 80% of the value.
Bigtodda–YUP. I am making my payments on time. But hell if I could get my house paid off, why not try it! I am going to be paying for it through my taxes, and so are my kids and grandkids. Might as well have something to show for it. =)

Lester

Addison Clark asked:




A reverse home mortgage is a loan that has features that make it reverse of the traditional loan. Instead of having to make monthly payments on a mortgage, you can receive payments. Instead of having to turn your income into equity, you can turn your equity into funds that you can get while you have the home.

This is what most people like about the idea of a reverse mortgage because they are able to get the payments that they need. It can make it a valuable loan option and after spending a lot of years making payments on your home loan, you can be able to have the money that you have earned and not have to pay on the loan.

You have to meet the age requirements in order to qualify for a reverse home mortgage and you also have to meet other requirements in order to be eligible to receive the loan. If you are trying to decide what kind of refinancing you want to do on a home, you may want to consider the reverse mortgage if you need the money and want to use the equity that you have built up in your home. You still need to maintain the other aspects of your home, but with the reverse mortgage you are able to get the loan and not have to pay on it or pay on it until you no longer have your home.

When you want to find a way to get payments on your home loan and you are able to qualify to get a reverse home mortgage, it can be a way for you to receive the payments that you need while you do not have to pay on the loan. If you want to learn more about how you can get the home loan that you need, and see what kind of interest rates are available for a reverse home mortgage, you can go online and search for information that can help you. You can decide if it is going to be a good loan choice for you and if you are able to get the loan. A reverse home mortgage can be the right choice for people who have been paying on their home for many years and want to be able to receive the payments in the equity that they have.

Julia

Barry Byers asked:




Second mortgage. The term used to have negative connotations - people with a second mortgage were assumed to have extreme financial difficulties and poor money management skills.

That perception has changed for many reasons. Housing prices have reached record levels. The price of fuel for cars and home heating has gone through the roof. Even food prices have jumped substantially over the past couple of years.

All of that would be manageable if incomes had kept pace with price increases, but they haven’t. The end result is that a lot of families are struggling, even those with “good” salaries.

Rather than being seen as a failing, a second mortgage is now seen as a sound strategy for getting one’s financial house in order.

How Debt Consolidation Works

Many people today are faced with multiple debts. Here is a typical example. In addition to a monthly mortgage payment, people may have a car payment and personal loan and credit card debt, each requiring monthly payments of their own. Even keeping track of these payments can be problematic.

Debt consolidation is, as the name implies, a way of clearing all of these smaller debts so you are left with one sum, payable as one monthly payment.

You may be familiar with one version of consolidation currently offered by some credit card companies. Here’s the deal: they offer a time-limited low interest rate when you transfer the balance from one or more of your existing credit cards to their card. The theory is that you will be able to reduce the amount of interest you pay each month.

The only problem with that strategy is that even their lower rates can be high, and with the average deal being available for only about 6-9 months, you need to get your debts paid off quickly. Plus, there may be an annual fee which further erodes your savings.

A second mortgage, on the other hand, provides you with the money you need at interest rates more in line with standard mortgage rates. Imagine paying 6% interest instead of the 12%-18% that banks typically charge for a credit card.

How Second Mortgages Work

If you have equity in your home, you can take out a second mortgage to borrow against that equity.

Equity is the difference between your current mortgage debt and the current appraised value of your home. Let’s say you have $25,000 equity in your home. You could borrow that amount through a second mortgage and use it to pay off $25,000 worth of debts.

Instead of your personal loans and credit card debts continuing to accrue large interest charges, you can pay them off and be left with a low-interest mortgage payment instead of all of those individual, high-interest debts.

Conventional wisdom states that because a second mortgage entails slightly more risk for the lender (it is paid off after the first mortgage in the event of a foreclosure), the interest rates are higher than for a primary mortgage. While that may be true most of the time, mortgage brokers can often negotiate lower rates and more favourable terms.

If you need assistance with your debts, a second mortgage may be the answer. Speak to your mortgage professional and financial advisor to learn more.

Tom

turnherelocal asked:

“A mortgage specialist will help you get a home loan quickly at the best rates and terms for any financial situation. Prequalify, apply and get approved for mortgage home equity loans. Purchase or refinance your real estate loan, home equity loan or

Andre

Mary Wise asked:




Being a First Time Home Buyer can increase the difficulty in the process of obtaining finance, not only due to the lack of credit history that it implies but because of the inexperience and lack of knowledge on the field. Following, you will find some tips to help you get started.

The Down Payment Issue

A Down payment in the range of 10% to 20% is usually required for obtaining a home loan to buy a house. There are also closing costs that you’ll need to pay in order to secure the loan. If you add up these two factors, very few can afford putting down so much money.

The financial industry, however, has found a solution to this problem and offers a new financial option. Zero Down Mortgage Loans are meant for those who cannot put away enough money for a down payment. With these loans you can finance 100% of the property’s value. Moreover, for those who cannot even raise the money for closing costs, there are lenders offering 103% or 105% Finance Home Loans. The extra percentage is used for covering the closing costs which will then be included in the overall debt that you’ll have to repay in monthly installments.

Drawbacks of Lack of Down Payment

Zero Down Mortgage Loans sound tempting but though not having to put money down in order to purchase a house can seem to be a fabulous waiver, it has many drawbacks and unless strictly necessary, it should be avoided by all means possible.

A down payment has not only direct positive financial consequences but it also can be a positive factor when the lender has to decide whether to approve your loan or not and on what terms. When the lender has to consider your application, a down payment tells him that if you were able to save enough money to make a considerable down payment, you’ll probably be able to meet your monthly payments without any difficulty.

A down payment will also imply that you have the ability to obtain finance elsewhere and so, the lender will try to offer you a more tempting loan proposal in order to keep you as a client. Those who can offer a down payment always get a considerably lower interest rate than those who cannot.

As you can see, a down payment reduces dramatically the risk implied for the lender in the financial transaction, and thus, you’ll be able to get a better deal on your loan. A down payment won’t only reduce the interest rate you pay; it will also lessen all the other loan requirements and will turn the loan terms more flexible. You’ll be able to get stretchy monthly payments and larger loan lengths too.

Home Equity Loans

If you wanted to use that money for making home improvements or for other expenses, you don’t need to worry. Once the deal is closed, the amount you had to put down will become home equity and you’ll be able to request a home equity loan for the difference between your home value and the amount owed on the mortgage. These loans are secured and carry low interests; they are the perfect solution if you ever need the money you used for the down payment.

Teresa

mckgolfman m asked:


I have a condo that I rent out and I have a line of credit that is at a lower interest rate than my mortgage. I am thinking about taking out some of that money to lower my primary home’s mortgage principal. I would still make the same payments and I think the tax situation with the interest on both loans is a wash. The credit line would not amortize the same as a structured mortgage, so more of the payment would go towards the principal instead of interest at first, so I think I can come out way ahead in the long run. Am I right? Are there any pitfalls I am not considering?
How can you say a mortgage and home equity line of credit amortizes the same? A mortgage has interest calculated the entire length of the loan and you pay it up front while the line of credit has an interest rate on the principal each month that is reduced by the amount I pay in excess of the prior month’s finance charge.

Debra

Tony Newton asked:




You’ve probably have heard of home equity conversion mortgage or HECM. This was introduced by the government through the Federal Housing Administration as a way to assist senior citizens to secure loans. This is a federally insured government program which makes it easier for senior citizens to use their home equity value in order to take out a loan.

What are the Benefits of a Home Equity Conversion Mortgage?

This federal program is distinct in so many ways. First off, the borrower is not required to pay off the loan on the condition that the home he place as collateral is his primary residence. This is entirely different from a traditional loan where you would be required to give monthly payments. You also place your house at risk because the lender would place a lien over your property.

HECM is completely different. As you withdraw your money from the loan, the amount of your home equity proportionally decreases. What happens if you have completely used up your entire home’s equity? The government’s insurance would sustain your loan so you would still be able to withdraw money from your loan. In fact, you would still be able to receive payment even if your lender goes bankrupt or goes out of business. You don’t actually place your house at risk with HECM. Your real estate title stays with you.

The second unique feature of HECM is the term of its repayment. The terms and conditions of an HECM are pretty convenient and reasonable. The borrower has various terms of payment to choose from which includes opting for equal monthly payments or a line of credit type of payment.

The amount of the loan that a borrower can apply for varies depending on several factors which include:

a. The applicant’s age at the time of the loan application

b. The amount of house equity

c. The limit of FHA HECEM loan in the region

d. Current market interest rates

The drawback, however, to this type of loan is that you may completely diminish your home’s equity that there’d be nothing left for your children. Fluctuating and harsh interest rates may also affect the amount of your loan to the extent that the interest alone could largely decrease your house equity.

Understanding the Requisites of HECM

You actually continue to receive loan payments as long as you comply with the requisites of HECM. In fact, you could continue to receive HECM payments for the rest of your life upon the condition that you continuously comply with the requirements for HECM payment. In order to avail of HECM, however, you should be able to comply with the following prerequisites of home equity conversion mortgage include:

a. The applicant is 62 years old or older

b. He should be the owner of the house

c. He should be actually residing in the house

d. He must have a small mortgage balance

e. He must attend counseling sessions about HECM before he actually applies for a loan

Home Equity Conversion Mortgage continues to gain popularity. Many senior citizens resort to applying for home equity loan as an additional source of retirement fund. It is believe that HECM would soon play a significant role in the lending industry.

Leonard

jacque1016 asked:


Example: Previous value of house $300K and currently paying in mortgage, current value $200K and applied for loan modification, after 2-4 years from now $400K. Will the $200K additional value be considered as equity or AUTOMATICALLY be added in the owners debt/mortgage?

Anne

Jay Tillotson asked:




Back in 2007, a new mortgage appeared on the market which seemed like a godsend for first-time buyers - the 125% mortgage. The idea was that you could borrow the full cost of the property, plus 25% more to give you some spare cash. Therefore, a mortgage on a