Facts About A Home Equity Loan

by Doc Schmyz

Home equity loans are a great source of cash. However, before you plunge right into the process of drawing out a loan out of the equity of your property; you should take a look at the fine print and what it means to you.

Are you debating on getting a home equity loan? Home equity loans might be an easy to acquire type of loan, but somehow even a seemingly great deal might turn out to be bad if the process of getting one is not done right.

Let us look at the following areas to better understand the "speak" used for this type of loan.

Points

If you are charged 1 point, this would mean 1 percent of the loan. And so 1 percent of a 100,000 dollar loan is an up front charge of 1000 dollars. Do not worry, there are lenders that do not charge points.How are you affected by this? Most lenders charge a part of the loan for commissions for themselves and for their sub-agents. Actually such points vary from little to exorbitant; it all depends on the company.

Loan "rate" terms

It it a fixed or variable loan. If it is a fixed loan, then you do not have to worry about external forces such as economic situations directly affecting your interest rate. But on the other hand, if you have variable type of loan, you may actually have an initial good interest rate. Interest rates that go up naturally makes your monthly payments go up too in the process. So what do you want " a home equity loan with interest rate that stays the same all throughout the duration of the loan, or one with the possibility of going up anytime? Understand that more often then not, a variable loan starts out one or two percent lower then a fixed rate. The big question is where does it stop once it starts to adjust?

Pre Payment penalties

Perhaps it might be a concern if you earn penalties for paying off your loans early. You have to be aware that indeed, many second time loans have pre payment penalties. Pre-payment penalties lock you into paying off your loan over its entire duration, and if you still decide on paying it off early, the lending company will have to add a penalty, usually running to a thousand dollars.

Late payment fees

In some cases, while you may have a low interest rate, you may have a clause in the contract for the loan that will increase your interest if your late on a payment. In most cases this can add up to several thousands extra over the life of the loan.

Insurance

One thing you want to check for is if the home equity loan that you are prospecting has insurance costs hidden somewhere, a cost that you definitely do not want. You can have credit life insurance, which takes care of your loan in the event that you die. However, if in the case of home equity loan, if you feel that insurance is just added cost, then by all means avoid the lender that requires you to pay for them.

Home equity and Home Loan Equity Mortgage Calculators

by Matthew Sanz

There are several aspects you should be conscious of when buying a home and those include your home equity, debt-to-income ratio, terms and varying interest rates. Let home loan equity mortgage calculators help you with your real estate concerns.

Home Equity:

Home equity is often described as the current market value of a home subtracted by the outstanding mortgage balance. Basically, it is how much you own your home over a period of time and accumulation of payments made. Home equity loans are sometimes used to merge with other debts that have high interest rates as well as fund other expenses. The two types of equity loans are the home equity line of credit that allows you to have a loan of money using a credit card, and the second mortgage, which lends a lump sum that you can repay over a set period. You can obtain a significant amount of tax savings from home equity loans because paid interest is tax-deductible.

Types Of Home Loan Equity Mortgage Calculators

Whether you are planning to purchase or refinance your home, there are several types of mortgage calculators that you could use.

Here are some basic and enhanced home loan equity mortgage calculators and related mortgage calculators:

- Loan payment calculators " allow you to view the amounts of each payment applied to interest and principal, and determines your monthly payment. - Loan comparison calculators " help you decide which mortgage offer or plan is best for you. You can compare between fixed-rate mortgage and ARM as well as the different terms involved, whether it is a 10-year or 30-year mortgage. - Debt consolidation calculators " help you decide if you should merge your debt with a home equity loan. - Qualification Calculators " help you determine your loan to value ratio. - Credit Grade Calculators " can predict how lenders may assess your credit. - Payoff Calculators " determines the extra charges or payments attached to your loan. - PMI & Points-Related Calculators " help you with initial payments and mortgage rates as well as determines mortgage points. - Tax & Investments Calculators " show you your tax savings, cash flow, capital gains and total worth of your property investments.

Other Calculators

- Discount points calculators - Refinance calculators

How To Use Home Loan Equity Mortgage Calculators

When it comes to using a mortgage calculator, it could be a trial-and-error process. The mortgage calculator can be used to determine how much loans cost at different interest rates. It will often ask you for your desired loan term, expected interest rate and amount you need to get a loan of.

When using the calculator, you can begin with an estimate of how much you need to borrow, the price of the house and subtract from it the amount you want to pay towards the home when you purchase it. Try entering different terms and the current mortgage rates you are interested in until you can determine the best loan plan for you. Home loan equity mortgage calculators are found everywhere on the Internet and usually free.

Work Out Your Foreclosure And Keep Your Home

by Doc Schmyz

The last thing anyone wants to loose is your house. Unfortunately even though we know this fact, sometimes we tend to take our mortgage payments for granted and end up loosing our homes. In this case, a home foreclosure will happen. When a borrower fails to pay his or her mortgage for a number of payments (usually 3 or 4) the lender will issue a foreclosure by selling the house or repossessing it.

More often than not banks often lead the homeowners to believe that they don't have other options available. However there are other alternatives that homeowners can use to keep their house.

These are some of the options that homeowners can use.

Short stop

You can get a short refinance for the foreclosure of your property. If you don't want a new loan to cover an existing one, you can ask the help of a friend. A borrower's friend or relative can buy or pay off the mortgage.

Negotiate a payment plan

You (the homeowner) agree to pay a portion of the amount and agree to pay the rest in the following months. The homeowner shows proof of their income and pays a down payment. This is a much easier way and most lenders agree to this plan.

Change of plans

In some cases a temporary change in the terms of the loan can be given when properly negotiated. These changes include but are not limited to, amortization extension and reduction of interest rate. A foreclosure negotiator handles the job of getting these plans approved.

Third party sale

The property on foreclosure is sold to a third party. The proceeds will go to the mortgage lender as a settlement for the debt.

Friendly third party sale

The third party who buys the property sells it on foreclosure to clean the deed of other holders. Then the property is sold back to the borrower.

The above mentioned are just a few ideas of what you can do to keep your home if faced with foreclosure. Do not be afraid to ask for help. Be forward and upfront with your lender if you have fallen on hard times. If you have to take a second job to earn extra money then do it. It is far easier to work to stay out of foreclosure then to try and fix it once you have gotten a notice. Do not let your personal ego and pride cost you your home.

Understanding Riders on Mortgage Disability Insurance

by Brandon P. Nadeau
There exist only two mortgage insurance products. Mortgage life insurance pays off your mortgage if you pass on. This kind of insurance can be decreasing term or fixed; your type of mortgage will determine that. There is mortgage disability insurance, which is intended to guarantee that your home loan payment will be made in case you are disabled and unable to work.

But in addition to these plain vanilla variety of mortgage insurance products, homeowners have some choices about the full nature of their policy.

First make sure you understand whether you have picked a partial disability policy, with a predefined bebefit or a residual policy, that has an amount based on current salary.

A home owner could also choose a short term disability benefit whereby the policy would only pay benefits for a shorter, specified length of time, such as two years. If you have retirement funds and planned on early retirement, you may not have to have disability insurance to cover your home loan when you start that income stream.

Besides the types of insurance a homeowner can choose, there are number of optional features, or riders, that can be attached to a policy. They may be: guaranteed renewable policy, non cancelable policy, guaranteed future insurability, inflation protection and waiver of premium.

Inflation Protection

Purchasing this rider will mean that your benefit will go up as inflation goes up. This protects against the disability payments falling way short of the required payments in the future.

Guaranteed Future Insurability

A rider such as this will let the policy holder increase the amount of the policy if the value of the house grows, without having to reapply for the mortgage insurance.

Guaranteed Renewable Policy

As long as premiums continue to be paid, the insurance will be renewable, although premiums may be increased to maintain the same coverage.

Non-Cancelable Policy

A policy that is non cancelable carries a rider that fixes its renewability, and, as long as the premiums are paid, the premiums cannot be raised.

Waiver of Premium

Once you start collecting a benefit, the premiums are no longer due under this rider. This means that when you are disabled, you do not have to keep on paying the premiums on your mortgage disability policy.

Condo Rental Orlando

Condo Rental Orlando

by R. Kim

If your thinking about staying in a hotel when you travel to Orlando, Florida, you should consider staying in a vacation condos which are becoming very popular among today's visitors. Many of the private condo rental Orlando are cheaper than staying in a hotel near many of the attractions. You don't have to make any commitments, you can come and go as you desire.

Many of these vacation rental condos do not offer services of traditional hotels, it is more like a home away from home. They do not offer room services, you have to cook your own food or go out to local restaurants or order takeouts. It does not have check out times or you don't have to worry about maid services knocking on your door.

But you should make sure you do some research on these condo rental Orlando. There are many credible websites online that offer you many choices. Make sure the property is clean and legitimate. You can also view photos and get details about the property online.

Make sure the website and the property is legitimate, do your research. The website should give you accurate price and also look for photos so you can get a sense of what you are renting.

When you have booked your airline tickets, secure the dates by putting down a non-refundable deposit which will be applied against your total charges. To have an enjoyable time during the peak travel times, make sure you book your condo rental Orlando in advance. Many travelers will be trying to book, earlier the better.

It is cheaper to book some distance away from the major attractions, but do not stay too far away from the local attractions, you don't want to be driving too long. Once you have enjoyed these vacation rental homes, you will not stay at a local hotel anymore.

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