Article Archive July, 2006

Is a Second Mortgage Right for You?

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- MortgageLoan.com | July 28, 2006

Knowing your mortgage options can only help your decision-making. When it comes to mortgage loans, understanding how the products work not only makes deciding on a loan easier, it can save you thousands of dollars. This article will provide you with an in-depth look at one popular lending option-the second mortgage.

A Refinance Checklist

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- MortgageLoan.com | July 28, 2006

One of the biggest headaches in the loan application process is producing verification documents for your lender. Borrowers are asked to provide proof of employment, income, assets…the requirements can go on and on. While it can make for a rather trying ordeal (particularly if you're not organized), the documentation is a necessary evil. One, it provides your lender with a degree of risk management; and two, it can prevent you from taking on too much mortgage debt.

Home Equity Loan instead of Bridge Loans

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Tom Kerr - MortgageLoan.com | July 28, 2006

If you're buying a new home, you may need to sell your existing one in order to finance your new purchase. Not everyone has enough money to straddle two pieces of property. Even if you've already found the house of your dreams, you may not be able to buy it if your first home is still on the market. When the timing of two real estate transactions is not ideal, you can use a home equity loan to bridge the gap. But you'll need to plan ahead.

Risks of Home Equity Loans

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- MortgageLoan.com | July 28, 2006

Home equity loans are great financial tools. However, if you abuse them, you may find yourself on a bridge over troubled financial waters. Here are four common mistakes people make that can cause serious problems. Avoid them, and you'll enjoy all the perks, while avoiding the pitfalls.

Top Three Reasons to Take a Second Mortgage

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- MortgageLoan.com | July 28, 2006

There are plenty of ways to tap the equity of your home, but not every one is the right option for you. The choice may automatically be made for you once you take a careful look at your borrowing options. Why should you take a second mortgage? Let's count the ways. Here are three reasons why a second mortgage would be your ideal choice.

Finding Funds: Second Mortgage or 401(k)

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- MortgageLoan.com | July 28, 2006

If you're on the prowl for cash, you may have considered borrowing from your 401(k) plan. Many financial planners would encourage you not to touch your nest egg, and for good reason. If you crunch the numbers and consider the costs of borrowing from your 401(k), a second mortgage proves to be a much better option.

Is it Time to Refinance Your Second Mortgage?

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- MortgageLoan.com | July 28, 2006

Refinancing fever hit its peak a few years ago because of rock-bottom rates. Now, the fever is back; but this time, it's because rates are rising steadily. Many people have already refinanced their first mortgages. Even so, now may be the right time to refinance a second mortgage or home equity loan, and consolidate junior loans into a single first mortgage.

Choosing the Right Home Equity Loan Option

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- MortgageLoan.com | July 28, 2006

There are a dizzying number of lending options available to borrowers. To help you narrow your focus, start with the end product: the cash. Do you want a lump sum, or would you prefer to draw the money out in smaller increments? This decision can help pinpoint the loan that's just right for you.

Shopping for a HELOC

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Greg Mischio - MortgageLoan.com | July 28, 2006

Although you may have knowledge and experience regarding how to shop for a traditional first or second mortgage, browsing around for a home equity line of credit (or HELOC) is a loan of a different color. The good news is that it's normally a much easier and less costly procedure, with some rather attractive perks.

Cash-Out Refinance or Second Mortgage?

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- MortgageLoan.com | July 28, 2006

Borrowing against the equity in your home is an easy way to access cash for a home improvement project or debt consolidation. The two most popular options are the cash-out refinance and the second mortgage. Both can get you what you need, but each has different factors that can influence whether it's the right loan for you.

Interest-Only Mortgage or HELOC? Which is Better?

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- MortgageLoan.com | July 28, 2006

If you find yourself in a cash crunch, you may choose to tap into your home's equity to find much-needed funds. A mortgage loan that allows you to pay back interest only during the first few years can be beneficial if you find yourself in this situation. The two most desirable options for people caught in this bind are either an interest-only loan or a home equity line of credit (HELOC).

Business Loan? Second Mortgage!

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- MortgageLoan.com | July 28, 2006

Small business owners and entrepreneurs sometimes get sweaty palms when faced with the challenge of making a convincing presentation to bank officers or private investors in order to get needed investment capital. Competition for funds is fierce. Even with a stellar proposal, many businesses are rejected when they ask for loans. But others get around the red tape by tapping into their home's equity.

Pay Off Interest Only Loan with Mortgage Refinancing

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- MortgageLoan.com | July 11, 2006

Interest-only loans have helped many buyers purchase more real estate than they may have been able to handle otherwise. They accomplish this by offering lower monthly payments and higher tax deductions. But many homeowners are now facing the interest-plus-principal phase on their interest-only mortgages. With rates on the rise, refinancing to a more traditional loan may be a timely choice.

Refinancing in Spite of Prepayment Penalties

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- MortgageLoan.com | July 10, 2006

Many homeowners wonder whether they can refinance their loans to lock in lower rates before interest rates climb higher. And because some borrowers have loans that include stiff penalties for early repayment, it may not seem like a viable option. Let's examine the issue of so-called "prepayment penalties" to see how they impact your financial freedom.