Tapping into the equity in your home when you need cash can be a smart move. It offers potential tax savings, and second mortgage rates may well be lower than credit card interest rates. If you're thinking about borrowing against your home's equity, you should know how much equity you have to borrow against.
Your friendly realtor may be able to give you a market value for your home, and you may even know the amount that your neighbor sold his house for last year. Unfortunately, a lender isn't going to accept either of those figures. He's going to want an appraisal.
Understanding appraisals
An appraisal is different from a home inspection. It won't tell you whether all the wall sockets are working, or whether the chimney is sound. It will, however, give a professional estimate of your home's market value.
The appraiser will look at your property and check sales figures for other homes in the same area. He will then adjust for differences between the homes. After a thorough examination, he will deliver an estimate of your home's current value.
The final report will include information on the home's flaws, such as a crumbling foundation, and a list of issues that might be dragging down the value of the home, such as poor street access.
What you'll pay
The price of an appraisal varies from market to market and is affected by the size and complexity of the job. A home with a guesthouse and a studio over the garage will cost more to have appraised than a standard three-bedroom, two-bath home. Count on spending at least several hundred dollars, no matter what type of place you call home.
Finding an appraiser
Ask friends, relatives and coworkers for recommendations. You can also go online, where there are several directories of property appraisers.
By knowing how much your home is worth in the eyes of a lender, you'll know how much equity is available for you to borrow when you apply for a second mortgage. If you're in need of money, this information can be invaluable.
http://www.mortgageloan.com/appraisals-for-second-mortgages
Wednesday, May 2, 2007
Appraisals for Second Mortgages
Tapping into the equity in your home when you need cash can be a smart move. It offers potential tax savings, and second mortgage rates may well be lower than credit card interest rates. If you're thinking about borrowing against your home's equity, you should know how much equity you have to borrow against.
Your friendly realtor may be able to give you a market value for your home, and you may even know the amount that your neighbor sold his house for last year. Unfortunately, a lender isn't going to accept either of those figures. He's going to want an appraisal.
Understanding appraisals
An appraisal is different from a home inspection. It won't tell you whether all the wall sockets are working, or whether the chimney is sound. It will, however, give a professional estimate of your home's market value.
The appraiser will look at your property and check sales figures for other homes in the same area. He will then adjust for differences between the homes. After a thorough examination, he will deliver an estimate of your home's current value.
The final report will include information on the home's flaws, such as a crumbling foundation, and a list of issues that might be dragging down the value of the home, such as poor street access.
What you'll pay
The price of an appraisal varies from market to market and is affected by the size and complexity of the job. A home with a guesthouse and a studio over the garage will cost more to have appraised than a standard three-bedroom, two-bath home. Count on spending at least several hundred dollars, no matter what type of place you call home.
Finding an appraiser
Ask friends, relatives and coworkers for recommendations. You can also go online, where there are several directories of property appraisers.
By knowing how much your home is worth in the eyes of a lender, you'll know how much equity is available for you to borrow when you apply for a second mortgage. If you're in need of money, this information can be invaluable.
http://www.mortgageloan.com/appraisals-for-second-mortgages
Your friendly realtor may be able to give you a market value for your home, and you may even know the amount that your neighbor sold his house for last year. Unfortunately, a lender isn't going to accept either of those figures. He's going to want an appraisal.
Understanding appraisals
An appraisal is different from a home inspection. It won't tell you whether all the wall sockets are working, or whether the chimney is sound. It will, however, give a professional estimate of your home's market value.
The appraiser will look at your property and check sales figures for other homes in the same area. He will then adjust for differences between the homes. After a thorough examination, he will deliver an estimate of your home's current value.
The final report will include information on the home's flaws, such as a crumbling foundation, and a list of issues that might be dragging down the value of the home, such as poor street access.
What you'll pay
The price of an appraisal varies from market to market and is affected by the size and complexity of the job. A home with a guesthouse and a studio over the garage will cost more to have appraised than a standard three-bedroom, two-bath home. Count on spending at least several hundred dollars, no matter what type of place you call home.
Finding an appraiser
Ask friends, relatives and coworkers for recommendations. You can also go online, where there are several directories of property appraisers.
By knowing how much your home is worth in the eyes of a lender, you'll know how much equity is available for you to borrow when you apply for a second mortgage. If you're in need of money, this information can be invaluable.
http://www.mortgageloan.com/appraisals-for-second-mortgages
Are all Second Mortgages Created Equal?
Americans place a high premium on being number one. But, there's one arena-mortgages-in which being number two isn't so bad, especially for you, the consumer.
Compare Mortgage Rates
A second mortgage is a second lien on your property. Lining up right behind your first mortgage, it allows you to borrow against the remaining equity in your house. For example, if your house is worth $200,000, and the principal balance of your first mortgage is $160,000, you have $40,000 in equity remaining. With a second mortgage, you can tap that remaining $40,000 via a home equity loan.
There are two types of 2nd mortgages, each allowing you to take advantage of different types of mortgage rates. They've been developed to attract consumers during both high and low interest rate climates.
Fixed-Rate Home Equity Loan: In regards to second mortgage rates, this type of equity loan is fixed. Since your rate is set in advance, your monthly repayment is stable. This provides you with a hedge against rising interest rates. Even though the rate might be higher than that of your first mortgage, the smaller means that your monthly payments won't be as hefty.
Home Equity Line of Credit (HELOC): By far, the more flexible of the two loans is the HELOC, which works a lot like a credit card. You're given a credit line and you can borrow against it. When you withdraw funds, you begin paying interest. While you do have greater flexibility with the HELOC, you're subject to variable 2nd mortgage interest rates. As a result, when rates spike, so do your payments.
Being number two isn't so bad when it means helping you meet your financial needs. Fixed-rate home equity loans and HELOCs are second mortgages that can help you consolidate debts or free up cash for home improvements or college tuition. That's why, for many consumers, second mortgages are a first-rate financial solution.
http://www.mortgageloan.com/are-all-second-mortgages-created-equal
Compare Mortgage Rates
A second mortgage is a second lien on your property. Lining up right behind your first mortgage, it allows you to borrow against the remaining equity in your house. For example, if your house is worth $200,000, and the principal balance of your first mortgage is $160,000, you have $40,000 in equity remaining. With a second mortgage, you can tap that remaining $40,000 via a home equity loan.
There are two types of 2nd mortgages, each allowing you to take advantage of different types of mortgage rates. They've been developed to attract consumers during both high and low interest rate climates.
Fixed-Rate Home Equity Loan: In regards to second mortgage rates, this type of equity loan is fixed. Since your rate is set in advance, your monthly repayment is stable. This provides you with a hedge against rising interest rates. Even though the rate might be higher than that of your first mortgage, the smaller means that your monthly payments won't be as hefty.
Home Equity Line of Credit (HELOC): By far, the more flexible of the two loans is the HELOC, which works a lot like a credit card. You're given a credit line and you can borrow against it. When you withdraw funds, you begin paying interest. While you do have greater flexibility with the HELOC, you're subject to variable 2nd mortgage interest rates. As a result, when rates spike, so do your payments.
Being number two isn't so bad when it means helping you meet your financial needs. Fixed-rate home equity loans and HELOCs are second mortgages that can help you consolidate debts or free up cash for home improvements or college tuition. That's why, for many consumers, second mortgages are a first-rate financial solution.
http://www.mortgageloan.com/are-all-second-mortgages-created-equal
Refinancing in Spite of Bad Credit
For millions of Americans, a home mortgage provides a gateway to the American dream. It's more than shelter and a place to raise a family; it's also a sound financial investment. For those who've stumbled financially and incurred bad credit, a home mortgage can also be a stepping-stone to better and brighter days.
Compare Mortgage Rates
While the knee-jerk reaction is to believe that you can't qualify for a loan just because you have bad credit, you'll be surprised at how many lenders have specific programs designed to get you back on your feet.
Bad credit mortgage, good common sense
There are plenty of lenders who are eager to provide a debt consolidation loan to a prospective borrower. From a business perspective, you can't argue with their rationale. They realize that if they can help you consolidate your debts and get your finances back in order, despite having a bad credit score, you'll likely be loyal to that lender when your credit rating is healthier.
Lenders understand that, even though you have bad credit, your life must go on. That's why they offer a wide variety of lending products. A first mortgage cash-out refinance allows you to tap equity for short-term cash while consolidating your debts. If you have a good rate on your first mortgage, you might opt for a second mortgage-a variable-rate home equity line of credit or a fixed-rate home equity loan. There are plenty of options on the market-shop around and find the one fine-tuned for your situation.
Bad credit doesn't have to be a lifelong nightmare. By using your home's equity to get a debt consolidation loan, you can turn your finances around and enjoy the same perks of the American Dream as all those credit A-listers
http://www.mortgageloan.com/refinancing-in-spite-of-bad-credit
Compare Mortgage Rates
While the knee-jerk reaction is to believe that you can't qualify for a loan just because you have bad credit, you'll be surprised at how many lenders have specific programs designed to get you back on your feet.
Bad credit mortgage, good common sense
There are plenty of lenders who are eager to provide a debt consolidation loan to a prospective borrower. From a business perspective, you can't argue with their rationale. They realize that if they can help you consolidate your debts and get your finances back in order, despite having a bad credit score, you'll likely be loyal to that lender when your credit rating is healthier.
Lenders understand that, even though you have bad credit, your life must go on. That's why they offer a wide variety of lending products. A first mortgage cash-out refinance allows you to tap equity for short-term cash while consolidating your debts. If you have a good rate on your first mortgage, you might opt for a second mortgage-a variable-rate home equity line of credit or a fixed-rate home equity loan. There are plenty of options on the market-shop around and find the one fine-tuned for your situation.
Bad credit doesn't have to be a lifelong nightmare. By using your home's equity to get a debt consolidation loan, you can turn your finances around and enjoy the same perks of the American Dream as all those credit A-listers
http://www.mortgageloan.com/refinancing-in-spite-of-bad-credit
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