Cash-out refinancing is a way of accessing home equity by taking out a new mortgage with a larger principal than the current one. The difference in principal in the two mortgages is available to you to use as cash to use for almost any purpose you choose.
You can use cash-out refinancing to obtain a new mortgage with a higher principal than what you owe. Let's suppose your home is worth $200,000, and you owe $100,000 in principal. Your equity is $100,000. If you have a $50,000 balance on a credit card that carries an 18 percent interest rate, you can refinance to a mortgage with a principal of $150,000 and receive the difference between your old principal and your new one in cash. In this case, the amount would be $50,000. You may then use that money to pay off your credit card.
Once this is done, you will no longer have credit card debt and, therefore, will have no monthly credit card payment. You will also have a better interest rate on your debt, so you will save quite a bit in interest each month. Even though you may pay more in your mortgage payment, you will be out of credit card debt, so you will have more money free each month.
To use cash-out refinancing you should:
1. Assess your debt load.
2. Talk with a lender about using cash-out refinancing.
3. Apply for the loan, go to closing and pay off your credit cards with the cash-out refinancing.
4. Save money each month by paying less in interest.
5. Control your spending.
The key to using cash-out refinancing is to be sure that you curtail your spending. If you use this strategy, but go back to your old spending habits, then you will have made a mistake. Not only will you have increased your mortgage, but you will have high interest credit card debt again. You can easily dig yourself back into the same hole, but this time you will not have the option of using your home equity to help yourself out. Also, remember that the loan is secured to your home with cash-out refinancing. That means you can lose your house if you default on the loan.
If you do use restraint with your spending, however, then cash-out refinancing can be a wise way to consolidate your debt. It can cut back your monthly debt expenses and allow you to pay off your high interest loans with a lower interest rate mortgage. Be sure to carefully consider whether cash-out refinancing is a good option for you before making your decision.
http://www.realestateinvestmentarticles.net/Article/real-esate-investment-loan---refinance----Cash-Out-Refinancing-As-A-Way-To-Get-Out-Of-Debt-/457
Wednesday, October 3, 2007
real estate investment loan : refinance - "Benefits Of Mortgage Refinancing"
Financial decisions are one of the most important decisions to make in anyone's life. Smart financial decisions go beyond the issues of normal savings or periodical investments. Sometimes you are faced with a tough decision in order to improve your personal financial situation. A mortgage refinance is one such aspect of your personal finance that can breathe some life into your stagnant financial situation.
Mortgage refinancing involves paying off your earlier debts with the new loan amount. You get to enjoy a number of benefits from refinancing your mortgage.
The most important advantage of home refinance is that it comes with a considerably lower interest rate. Homeowners generally have to carry a heavy mortgage payment every month, so homeowners are often on the lookout for ways to reduce their monthly mortgage payment. The only way of accomplishing this goal is through home refinancing at a lower interest rate, meaning lower mortgage payments.
The mortgage loans come with two types of interest rates, namely fixed rate and adjustable rate. Refinancing your mortgage also allows you to switch from a fixed rate to an adjustable rate of interest. The mortgages with adjustable rates are the most cost effective when the interest rates are low. In contrast, fixed rates mortgage loans are the wiser option when interest rates are high. It is also a good idea to change the mortgage from a fixed rate to an adjustable rate when the interest rate starts going down.
In many cases owning full equity of your home generally requires a period of over thirty years to pay off the mortgage. Refinancing your home allows you to cut the mortgage duration shorter by several years and you will be able to own full home equity in approximately half the time. This will save you thousands of dollars on your interest payments while building up your home equity over the years.
The best part of mortgage refinancing is that it provides you with a huge amount of extra cash. The equity you have built in your home over the years entitles you to this extra cash from refinancing. You can use this extra cash for many purposes, ranging from debt consolidation to home improvement to funding your children's higher education.
In a nutshell, if you want to make a smart financial decision that will allow you to save and gain some extra cash at the same time, there can be no better solution than mortgage refinancing.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-loan---refinance----Benefits-Of-Mortgage-Refinancing-/440
Mortgage refinancing involves paying off your earlier debts with the new loan amount. You get to enjoy a number of benefits from refinancing your mortgage.
The most important advantage of home refinance is that it comes with a considerably lower interest rate. Homeowners generally have to carry a heavy mortgage payment every month, so homeowners are often on the lookout for ways to reduce their monthly mortgage payment. The only way of accomplishing this goal is through home refinancing at a lower interest rate, meaning lower mortgage payments.
The mortgage loans come with two types of interest rates, namely fixed rate and adjustable rate. Refinancing your mortgage also allows you to switch from a fixed rate to an adjustable rate of interest. The mortgages with adjustable rates are the most cost effective when the interest rates are low. In contrast, fixed rates mortgage loans are the wiser option when interest rates are high. It is also a good idea to change the mortgage from a fixed rate to an adjustable rate when the interest rate starts going down.
In many cases owning full equity of your home generally requires a period of over thirty years to pay off the mortgage. Refinancing your home allows you to cut the mortgage duration shorter by several years and you will be able to own full home equity in approximately half the time. This will save you thousands of dollars on your interest payments while building up your home equity over the years.
The best part of mortgage refinancing is that it provides you with a huge amount of extra cash. The equity you have built in your home over the years entitles you to this extra cash from refinancing. You can use this extra cash for many purposes, ranging from debt consolidation to home improvement to funding your children's higher education.
In a nutshell, if you want to make a smart financial decision that will allow you to save and gain some extra cash at the same time, there can be no better solution than mortgage refinancing.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-loan---refinance----Benefits-Of-Mortgage-Refinancing-/440
real estate investment loan : refinance - "When Should You Consider Refinancing Your Home?"
Refinancing a mortgage will come up sooner or later in your mind - if you are buying a home. You hear about deals that your friends got, and you wonder if you could do the same. The truth is that it is more than possible - but it is not for everyone. There are individual and economic situations that apply that will determine whether or not it is the best way for you to go. Here are some thoughts to help you determine if you should consider it.
How Long Will You Stay?
Refinancing your home could be a good idea if you are planning on living there for a number of years to come. If, however, you think you might be moving in a couple of years, then it probably would not be to your financial advantage.
Refinancing will give you lower interest rates which will result in a savings - that is the good news. Fees are added to the refinancing process, like closing costs and points - that's the bad news. These fees that are attached usually means that it will cause you not to see any savings for the first three years or so, depending on how long you take the new mortgage out for.
What Interest Rates Can You Get?
When you are looking around to see if you can get a better deal, you naturally will consider the interest rate. Some say that the general rule of thumb is to try to get at least 1% lower than what you have now. This amount will add up to quite a lot of savings over the years. Shop around for the lowest rate you can get.
What Are Your Credit Ratings?
The best loans are given to those with the best credit scores. This means that if you want better terms on your loan, then you need to have a good credit rating. If your credit rating has slipped, it probably will not be a good time to refinance - because you will not be offered the rate of interest you want - if you are approved at all. Instead, it could profit you more to take the time to rebuild your credit first, or get a different type of loan.
How Long Should You Refinance For?
The length of time that you get your new mortgage for should depend on your financial ability. If you refinance for the long haul as long as you can get, say 40 or 50 years, then it will not mean any savings for you. Hopefully, by now you have built up some equity in your home. By increasing the time, you are simply increasing the amount of interest that you are paying - meaning that it will take longer for you to get out of debt. You should try to keep it as short as possible, without stretching your finances.
How Does This Compare?
With every mortgage, there are many companies that will try to take advantage of the buyer. The only way you could possibly know that, though, is by comparison shopping and understanding the mortgage process. By getting several online quotes, and comparing the interest rates and the fees, you will be able to quickly see who is offering you the best deal.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-loan---refinance----When-Should-You-Consider-Refinancing-Your-Home--/427
How Long Will You Stay?
Refinancing your home could be a good idea if you are planning on living there for a number of years to come. If, however, you think you might be moving in a couple of years, then it probably would not be to your financial advantage.
Refinancing will give you lower interest rates which will result in a savings - that is the good news. Fees are added to the refinancing process, like closing costs and points - that's the bad news. These fees that are attached usually means that it will cause you not to see any savings for the first three years or so, depending on how long you take the new mortgage out for.
What Interest Rates Can You Get?
When you are looking around to see if you can get a better deal, you naturally will consider the interest rate. Some say that the general rule of thumb is to try to get at least 1% lower than what you have now. This amount will add up to quite a lot of savings over the years. Shop around for the lowest rate you can get.
What Are Your Credit Ratings?
The best loans are given to those with the best credit scores. This means that if you want better terms on your loan, then you need to have a good credit rating. If your credit rating has slipped, it probably will not be a good time to refinance - because you will not be offered the rate of interest you want - if you are approved at all. Instead, it could profit you more to take the time to rebuild your credit first, or get a different type of loan.
How Long Should You Refinance For?
The length of time that you get your new mortgage for should depend on your financial ability. If you refinance for the long haul as long as you can get, say 40 or 50 years, then it will not mean any savings for you. Hopefully, by now you have built up some equity in your home. By increasing the time, you are simply increasing the amount of interest that you are paying - meaning that it will take longer for you to get out of debt. You should try to keep it as short as possible, without stretching your finances.
How Does This Compare?
With every mortgage, there are many companies that will try to take advantage of the buyer. The only way you could possibly know that, though, is by comparison shopping and understanding the mortgage process. By getting several online quotes, and comparing the interest rates and the fees, you will be able to quickly see who is offering you the best deal.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-loan---refinance----When-Should-You-Consider-Refinancing-Your-Home--/427
Refinancing: Does it go Better with Fixed Rate Mortgage or Adjustable Rate Mortgage is Better Option
Let us deal with an issue, which sounds simple but eventually brings out Refinancing as a solution to many issues. Suppose you mortgaged your home for say any financial reason. Now you are in a position to pay off this mortgage. This will definitely give you a feeling of security feel and peace of mind. But it will be like having hidden money that is not providing any return. Generally, it depends on your personal situation whether to continue with the mortgage or pay it off. If you have good and regular source of income and you invest in other areas such as real estate, stocks etc, or, if you want to live under your own roof and want to clear out all debts in future then it is better to pay off. But beware paying off your mortgage slowly can give you better dividends. The money needed to pay off the mortgage can be applied in other investment portfolios and give you better returns. Various tax deduction schemes are available for the mortgage interests.
Suppose you are on a fixed income and plan to live in your home for more than 12 years, you take up 20,25 or 30 year fixed mortgage plan. The long fixed term means there is no change in monthly installment or interest rate. Suddenly you realize that interest rates are dropping or your fixed income source has become shaky - then the only option left for you is to refinance your mortgage. The interest rate drops when you switch to refinancing, further dropping the monthly installment, and giving you a sigh of relief. Around a decade ago, paying off the mortgage was the primary financial goal of almost everyone. Even for shorter terms o say 10 to 15 years people took up Fixed Rate Mortgage. Shorter terms build equity faster and more amounts were diverted towards your principal amount, thus paying off the loan much faster. However, when compared with adjustable rate mortgage, it was more expensive than a shorter term adjustable program as it meant giving up a valuable interest rate tax deduction.
Ideally getting lowest fixed rate possible is the best way, but you also have to consider your situation. If you're in the first year of an adjustable rate mortgage (ARM) and you plan on moving in three years, it probably does not make sense for you to refinance. However, if the rate on your ARM is about to adjust and you think the rate will go up, then it may make sense to get a long term fixed rate mortgage, especially if you don't plan on moving in the next seven years or so. Then you can again go refinancing through fixed mortgage, in case rates drop further.
With Refinancing as a new road to savings, ARM i.e. adjustable rate mortgages of 2, 4, 6 or 7 years are becoming more popular. A short term fixed rate means interest savings during the initial interest rate period (up to 7 years) as compared to a 30 year fixed. An ARM that is refinanced every 3 to 5 years is the successful theory of many happy homeowners.
Refinance is a key part of business development strategy used by Nazir on a daily basis. Proper use of this financial instrument depends very much on the quality of information upon which any refinancing decisions are based.
http://www.realestateinvestmentarticles.net/Article/Refinancing--Does-it-go-Better-with-Fixed-Rate-Mortgage-or-Adjustable-Rate-Mortgage-is-Better-Option/392
Suppose you are on a fixed income and plan to live in your home for more than 12 years, you take up 20,25 or 30 year fixed mortgage plan. The long fixed term means there is no change in monthly installment or interest rate. Suddenly you realize that interest rates are dropping or your fixed income source has become shaky - then the only option left for you is to refinance your mortgage. The interest rate drops when you switch to refinancing, further dropping the monthly installment, and giving you a sigh of relief. Around a decade ago, paying off the mortgage was the primary financial goal of almost everyone. Even for shorter terms o say 10 to 15 years people took up Fixed Rate Mortgage. Shorter terms build equity faster and more amounts were diverted towards your principal amount, thus paying off the loan much faster. However, when compared with adjustable rate mortgage, it was more expensive than a shorter term adjustable program as it meant giving up a valuable interest rate tax deduction.
Ideally getting lowest fixed rate possible is the best way, but you also have to consider your situation. If you're in the first year of an adjustable rate mortgage (ARM) and you plan on moving in three years, it probably does not make sense for you to refinance. However, if the rate on your ARM is about to adjust and you think the rate will go up, then it may make sense to get a long term fixed rate mortgage, especially if you don't plan on moving in the next seven years or so. Then you can again go refinancing through fixed mortgage, in case rates drop further.
With Refinancing as a new road to savings, ARM i.e. adjustable rate mortgages of 2, 4, 6 or 7 years are becoming more popular. A short term fixed rate means interest savings during the initial interest rate period (up to 7 years) as compared to a 30 year fixed. An ARM that is refinanced every 3 to 5 years is the successful theory of many happy homeowners.
Refinance is a key part of business development strategy used by Nazir on a daily basis. Proper use of this financial instrument depends very much on the quality of information upon which any refinancing decisions are based.
http://www.realestateinvestmentarticles.net/Article/Refinancing--Does-it-go-Better-with-Fixed-Rate-Mortgage-or-Adjustable-Rate-Mortgage-is-Better-Option/392
real estate investment loan : refinance - "Mortgage Refinancing Common Questions"
When refinancing a home, you must pass a series of questions that a bank or loan officer will present you with. These questions are asked in order to make sure that you will be able to make the new payments on your home. Below are some questions that are important to understand when refinancing a home.
Refinancing your home is very similar to the basic mortgage process that you already went through. The good this is that the process of refinancing is typically faster and has fewer steps involved.
Why should you consider refinancing your mortgage? Well, there are several reasons that you might do this. One reason is that your financial situation may be different now than it was when you first got your mortgage. Refinancing may enable you to obtain new mortgage terms that match your new financial situation. Another reason you might refinance your mortgage is because interest rates may have has a significant decrease. Refinancing in this situation may allow you to significantly lower your costs. This will give you much more financial freedom. Other reasons for refinancing your mortgage include cashing out on tax-deductible savings, eliminating your mortgage insurance, and switching from an adjustable rate mortgage to a fixed rate loan.
There are a variety of positive benefits that come with refinancing a home. First of all, you can take advantage of lower interest rates, if they are there. This will enable you to decrease your monthly mortgage payments. This in itself is one of the number one reasons for refinancing. Another benefit of refinancing is that if property values have increased a good deal, you may be able to get rid of your mortgage insurance or escrow payments. You may even be able to get cash back.
To refinance your mortgage, you will need to show your lender a few things. These include a copy of your home's deed, your employment pay stubs from the last thirty days, your most recent W-2 form, your last quarterly statements from your retirement and mutual funds, and the last two month's bank statements from any checking accounts and savings accounts you may have.
When you refinance your mortgage, you will have many options to choose from. You may opt for a no point/no closing cost, which is a mortgage that has no fees that go along with it, except possibly the escrow fees. Or, you may opt for a zero point option. A zero point option is when you pay all of the closing costs. When you do this, these costs are typically put into the loan amount itself so you don't have to pay them right away.
If you are interested in refinancing your mortgage, speak with your lender about it, or research the benefits of this on the Internet. There are several companies online that can help you with the process and give you the advice that fits your personal needs. Everyone's situation is different, so be sure that you are doing what is best for you.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-loan---refinance----Mortgage-Refinancing-Common-Questions-/369
Refinancing your home is very similar to the basic mortgage process that you already went through. The good this is that the process of refinancing is typically faster and has fewer steps involved.
Why should you consider refinancing your mortgage? Well, there are several reasons that you might do this. One reason is that your financial situation may be different now than it was when you first got your mortgage. Refinancing may enable you to obtain new mortgage terms that match your new financial situation. Another reason you might refinance your mortgage is because interest rates may have has a significant decrease. Refinancing in this situation may allow you to significantly lower your costs. This will give you much more financial freedom. Other reasons for refinancing your mortgage include cashing out on tax-deductible savings, eliminating your mortgage insurance, and switching from an adjustable rate mortgage to a fixed rate loan.
There are a variety of positive benefits that come with refinancing a home. First of all, you can take advantage of lower interest rates, if they are there. This will enable you to decrease your monthly mortgage payments. This in itself is one of the number one reasons for refinancing. Another benefit of refinancing is that if property values have increased a good deal, you may be able to get rid of your mortgage insurance or escrow payments. You may even be able to get cash back.
To refinance your mortgage, you will need to show your lender a few things. These include a copy of your home's deed, your employment pay stubs from the last thirty days, your most recent W-2 form, your last quarterly statements from your retirement and mutual funds, and the last two month's bank statements from any checking accounts and savings accounts you may have.
When you refinance your mortgage, you will have many options to choose from. You may opt for a no point/no closing cost, which is a mortgage that has no fees that go along with it, except possibly the escrow fees. Or, you may opt for a zero point option. A zero point option is when you pay all of the closing costs. When you do this, these costs are typically put into the loan amount itself so you don't have to pay them right away.
If you are interested in refinancing your mortgage, speak with your lender about it, or research the benefits of this on the Internet. There are several companies online that can help you with the process and give you the advice that fits your personal needs. Everyone's situation is different, so be sure that you are doing what is best for you.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-loan---refinance----Mortgage-Refinancing-Common-Questions-/369
Finding a mortgage in Nashville
Weather you're purchasing a new home or looking at refinancing an existing mortgage it can be a big task. In order to find the best loan, a lot of research is required. Mortgage Nashville brokers are not hard to locate. You can simply do a quick search at any online directory to find local brokers. The problem with this is that it can be very time consuming, calling each broker requesting a quote and then comparing them to find the best deal. This can be a pain and I'm sure you have better things to do. Applying online is the best option, you fill out a 2 minute form and your info is automatically sent to Nashville mortgage brokers who are anxious for your business.
We did a quick search on Nashville mortgages brokers and found a lot of them. I'm talking about 50+ throughout the state of Tennessee. Would you really want to spend the time contacting them all searching for the best rates? Of course not. Here's is what I did last month when I was searching for a loan.
Step One: I had a meeting with a recommended broker, you can also request a meeting with your favorite Nashville bank and setup a meeting to discuss what types of things you are looking for in a mortgage. Then ask him to prepare a quote for you outlining the mortgage and what the payments will be like.
Step Two: I went online and filled out a few applications at mortgage quote sites. Over the next few days I was contacted by a few lenders with a quote.
Step Three: I compared all the quotes I received and found out I could save $150 dollars a month by going with one of the loan companies that contacted me. You can also use the quotes provided online to negotiate a better deal with a local mortgage Nashville lender. You could explain that lender A is offering a better deal and ask them to match it. You would be surprised how often this can work. Lenders want your business and will tailor a plan to your specific needs to get it.
There are many sites available online that allow you to get quotes from multiple lenders. My favorite site is The Loan House. You can get a Nashville mortgage quote in less than 2 minutes.
Mark Lambie is the founder of The Loan House a website that allows consumers to quickly and easily get home equity mortgage information.
http://www.american-lender.com/free-info/Finding-a-mortgage-in-Nashville.html
We did a quick search on Nashville mortgages brokers and found a lot of them. I'm talking about 50+ throughout the state of Tennessee. Would you really want to spend the time contacting them all searching for the best rates? Of course not. Here's is what I did last month when I was searching for a loan.
Step One: I had a meeting with a recommended broker, you can also request a meeting with your favorite Nashville bank and setup a meeting to discuss what types of things you are looking for in a mortgage. Then ask him to prepare a quote for you outlining the mortgage and what the payments will be like.
Step Two: I went online and filled out a few applications at mortgage quote sites. Over the next few days I was contacted by a few lenders with a quote.
Step Three: I compared all the quotes I received and found out I could save $150 dollars a month by going with one of the loan companies that contacted me. You can also use the quotes provided online to negotiate a better deal with a local mortgage Nashville lender. You could explain that lender A is offering a better deal and ask them to match it. You would be surprised how often this can work. Lenders want your business and will tailor a plan to your specific needs to get it.
There are many sites available online that allow you to get quotes from multiple lenders. My favorite site is The Loan House. You can get a Nashville mortgage quote in less than 2 minutes.
Mark Lambie is the founder of The Loan House a website that allows consumers to quickly and easily get home equity mortgage information.
http://www.american-lender.com/free-info/Finding-a-mortgage-in-Nashville.html
Change in Texas Law May Make Reverse Mortgages More Popular
Texas was one of the last states to allow homeowners to take out home equity loans. Laws going back to the nineteenth century strictly prohibited home equity lending, as legislators feared that unscrupulous lenders would take advantage of homeowners for the purpose of seizing their homes through foreclosure. This made it impossible for citizens of the Lone Star State to use their equity for home improvements, debt consolidation or paying medical bills, as homeowners in other states may do.
In 1997, the Texas constitution was amended to allow homeowners to borrow against their home equity. The amendment allowed for traditional term loans, lines of credit, and reverse mortgages, but did not allow a line of credit on a reverse mortgage.
In a reverse mortgage, owners of homes who are at least 62 years of age may borrow against the equity in their home. They need not pay the money back until they die, move or sell the home. Reverse mortgages have become quite popular in the last few years, especially in areas like California, where homeowners may be cash poor but may have a lot of equity in their homes. Nationally, nearly 90% of homeowners who take out a reverse mortgage do so with a line of credit. In Texas, however, the only options are a lump sum or monthly payments. There are several advantages in taking a reverse mortgage in the form of a line of credit, rather than a lump sum. The most significant is the fact that interest is only due when money is actually drawn from the credit line. This saves the homeowner substantial amounts of interest over the life of the loan when compared to a lump-sum payout. Reverse mortgages have been quite popular in Texas since the law was changed to allow them, but lenders say that the demand should increase substantially if lines of credit are allowed.
The Texas Legislature has recently approved a constitutional amendment that will allow lines of credit.for reverse mortgages, and this amendment is expected to be on the ballot in Texas this fall. This bill is expected to pass easily, and once it does, Texas may become the leading state in the country for issuing reverse mortgages.
http://www.american-lender.com/free-info/Change-in-Texas-Law-May-Make-Reverse-Mortgages-More-Popular.html
In 1997, the Texas constitution was amended to allow homeowners to borrow against their home equity. The amendment allowed for traditional term loans, lines of credit, and reverse mortgages, but did not allow a line of credit on a reverse mortgage.
In a reverse mortgage, owners of homes who are at least 62 years of age may borrow against the equity in their home. They need not pay the money back until they die, move or sell the home. Reverse mortgages have become quite popular in the last few years, especially in areas like California, where homeowners may be cash poor but may have a lot of equity in their homes. Nationally, nearly 90% of homeowners who take out a reverse mortgage do so with a line of credit. In Texas, however, the only options are a lump sum or monthly payments. There are several advantages in taking a reverse mortgage in the form of a line of credit, rather than a lump sum. The most significant is the fact that interest is only due when money is actually drawn from the credit line. This saves the homeowner substantial amounts of interest over the life of the loan when compared to a lump-sum payout. Reverse mortgages have been quite popular in Texas since the law was changed to allow them, but lenders say that the demand should increase substantially if lines of credit are allowed.
The Texas Legislature has recently approved a constitutional amendment that will allow lines of credit.for reverse mortgages, and this amendment is expected to be on the ballot in Texas this fall. This bill is expected to pass easily, and once it does, Texas may become the leading state in the country for issuing reverse mortgages.
http://www.american-lender.com/free-info/Change-in-Texas-Law-May-Make-Reverse-Mortgages-More-Popular.html
Boost Your Business with a Commercial Mortgage
Long term commercial finance, in the form of a commercial mortgage, offers many small and medium sized
enterprises (SMEs) the ability to invest in their business with new technology, new or refurbished
premises, or increased stock levels.
In the past, it tended to be only larger organisations with a proven track record who could obtain commercial mortgages. A large number of younger/smaller businesses were unable to obtain this type of commercial finance and, as a result, many businesses have been forced to rely on expensive short term finance or left to use their owners' residential property as security.
Fortunately, this gap in the market is now being targeted by specialist commercial lenders who are willing to serve the commercial mortgage needs of SMEs and owner-managed businesses.
The problem
In the past, it has been difficult for small business borrowers, self-employed traders, and
partnerships to raise commercial mortgage finance. This is because:
* Institutional lenders have focused on larger, corporate lending secured on the tenant covenant of investment properties. This sector is seen as being low risk and so has become a favourite of
many traditional lenders.
* The lending criteria of many mainstream commercial lenders disqualify applicants who do not have three years' audited account, those without business plans, or those with a less than perfect credit history. As the UK workforce migrates more towards self-employment, greater flexibility is required from lenders to assess each case on its individual merits. Until recently, this flexibility has been hard to find. Similarly, in the past, the requirement for three years' accounts has been a barrier to new or young businesses.
The solution
To address these problems, a number of commercial mortgage lenders now offer commercial mortgages with some or all of the following features:
* Available to small owner managed limited companies, partnerships, and self-employed sole-traders
* Self-certification option - no need for three years' accounts
* Finance available for any purpose - no bank imposed restrictions
* Mortgage arrears, CCJs, IVAs, discharged bankruptcy all considered
* Same day indicative offers
* Completion in weeks, not months
* Transparent mortgage tracking Bank Base Rate
* Mortgage term of up to thirty years
* Advances from £50,000 up to £1.5m
To find out more about how commercial finance could help you, whether you have an existing business or are just starting out, visit Online Commercial Mortgages.
http://www.american-lender.com/free-info/Boost-Your-Business-with-a-Commercial-Mortgage.html
enterprises (SMEs) the ability to invest in their business with new technology, new or refurbished
premises, or increased stock levels.
In the past, it tended to be only larger organisations with a proven track record who could obtain commercial mortgages. A large number of younger/smaller businesses were unable to obtain this type of commercial finance and, as a result, many businesses have been forced to rely on expensive short term finance or left to use their owners' residential property as security.
Fortunately, this gap in the market is now being targeted by specialist commercial lenders who are willing to serve the commercial mortgage needs of SMEs and owner-managed businesses.
The problem
In the past, it has been difficult for small business borrowers, self-employed traders, and
partnerships to raise commercial mortgage finance. This is because:
* Institutional lenders have focused on larger, corporate lending secured on the tenant covenant of investment properties. This sector is seen as being low risk and so has become a favourite of
many traditional lenders.
* The lending criteria of many mainstream commercial lenders disqualify applicants who do not have three years' audited account, those without business plans, or those with a less than perfect credit history. As the UK workforce migrates more towards self-employment, greater flexibility is required from lenders to assess each case on its individual merits. Until recently, this flexibility has been hard to find. Similarly, in the past, the requirement for three years' accounts has been a barrier to new or young businesses.
The solution
To address these problems, a number of commercial mortgage lenders now offer commercial mortgages with some or all of the following features:
* Available to small owner managed limited companies, partnerships, and self-employed sole-traders
* Self-certification option - no need for three years' accounts
* Finance available for any purpose - no bank imposed restrictions
* Mortgage arrears, CCJs, IVAs, discharged bankruptcy all considered
* Same day indicative offers
* Completion in weeks, not months
* Transparent mortgage tracking Bank Base Rate
* Mortgage term of up to thirty years
* Advances from £50,000 up to £1.5m
To find out more about how commercial finance could help you, whether you have an existing business or are just starting out, visit Online Commercial Mortgages.
http://www.american-lender.com/free-info/Boost-Your-Business-with-a-Commercial-Mortgage.html
Beware of Balloon Mortgages
This is a mortgage where the one payment, usually the last one is bigger than any other payments. Balloon Mortgages are usually set up like a regular 30 year mortgage except that at some date in the future, a large balloon payment will be due. The balloon payment is typically the entire balance of the mortgage. The due date of the balloon payment and it's relationship to all other monthly payments is spelled out in the terms of the mortgage agreement.
How are balloon mortgages structured?
They are usually quoted in terms such as 5/30, 7/30 or 10/30. This means that a large payment is due at the end of the 5th year (payment 60), the 7th year (payment 84) or at the end of the 10th year (payment 120). At this time, the entire loan balance is due.
Rollover Clause
First clarify with your Mortgage Lender or Agent that you are indeed signing up for a balloon mortgage. Then, get a rollover clause attached to your balloon mortgage agreement. The rollover clause says that at the end of the mortgage term, 5, 7 or 10 years, the loan will automatically rollover into another type of mortgage. This will protect your assets in case you are not able to come up with the full payment on the due date.
Anything you can do to protect yourself when you have a balloon loan is preferred, since most lenders are less likely to work with you to come to an agreement on the due date.
http://www.american-lender.com/free-info/Beware-of-Balloon-Mortgages.html
How are balloon mortgages structured?
They are usually quoted in terms such as 5/30, 7/30 or 10/30. This means that a large payment is due at the end of the 5th year (payment 60), the 7th year (payment 84) or at the end of the 10th year (payment 120). At this time, the entire loan balance is due.
Rollover Clause
First clarify with your Mortgage Lender or Agent that you are indeed signing up for a balloon mortgage. Then, get a rollover clause attached to your balloon mortgage agreement. The rollover clause says that at the end of the mortgage term, 5, 7 or 10 years, the loan will automatically rollover into another type of mortgage. This will protect your assets in case you are not able to come up with the full payment on the due date.
Anything you can do to protect yourself when you have a balloon loan is preferred, since most lenders are less likely to work with you to come to an agreement on the due date.
http://www.american-lender.com/free-info/Beware-of-Balloon-Mortgages.html
Become A Mortgage Auditing Specialist
According to U.S. Government Auditors more that 45% of all home mortgages and 75% of home equity loans contain miscalculations or errors in favor of the lender. These errors are costing homeowners to be overcharged billions of dollars per year, and with the number of home mortgages being refinanced because of low interest rates, the figures can only increase.
This problem presents a unique opportunity for entrepreneurs that would like to enter into the Mortgage Auditing Industry. As a mortgage auditor you will help homeowners recover refunds from errors that are due to them, these refunds average $1500 per homeowner.
Consumer Mortgage Reduction Service is looking for people willing to become mortgage auditors. No special skills are required to become an auditor and all processing and calculations are done by CMRS, and auditing specialist can earn up to $300 per client. So if you have the ability to market a program that will allow you to earn a substantial income, then mortgage auditing is for you.
To find out how you can start a successful career as a Mortgage Auditor, and start earning an income you can be proud of. Visit Consumer Mortgage Reduction Service‘s website to find out more at http://www.consumermortgagereduction.com
Consumer Mortgage Reduction Service provides entrepreneurs with the opportunity to start successful equity acceleration and auditing businesses. for more info visit: http://www.consumermortgagereduction.com
http://www.american-lender.com/free-info/Become-A-Mortgage-Auditing-Specialist.html
This problem presents a unique opportunity for entrepreneurs that would like to enter into the Mortgage Auditing Industry. As a mortgage auditor you will help homeowners recover refunds from errors that are due to them, these refunds average $1500 per homeowner.
Consumer Mortgage Reduction Service is looking for people willing to become mortgage auditors. No special skills are required to become an auditor and all processing and calculations are done by CMRS, and auditing specialist can earn up to $300 per client. So if you have the ability to market a program that will allow you to earn a substantial income, then mortgage auditing is for you.
To find out how you can start a successful career as a Mortgage Auditor, and start earning an income you can be proud of. Visit Consumer Mortgage Reduction Service‘s website to find out more at http://www.consumermortgagereduction.com
Consumer Mortgage Reduction Service provides entrepreneurs with the opportunity to start successful equity acceleration and auditing businesses. for more info visit: http://www.consumermortgagereduction.com
http://www.american-lender.com/free-info/Become-A-Mortgage-Auditing-Specialist.html
Bad Credit Mortgage Memphis
You've applied for a mortgage and you have been turned down. You believe that there is a Bad Credit Mortgage Memphis list keeping you from purchasing your dream home. What can you do? Take action by shopping around for other mortgage options. We'll share a few of them with you here.
If you have been turned down for a mortgage, the mortgage company must tell you why you were rejected. Rejection does not make you a bad person and rejection does not mean you cannot still get home financing. The following type of institutions may still offer you a mortgage even if you are on the Bad Credit Mortgage Memphis list!
1. A credit union. If you belong to a credit union, visit the loan officer and explain to this person that you believe you are on a Bad Credit Mortgage Memphis list and you want to find out if the credit union would consider extending a loan to you. The loan office will check your credit report and make a decision though you were rejected previously. Membership has its privileges and a Credit Union is a wise alternative for some consumers.
2. State government. Tennessee, like all states, has agencies in place to help residents obtain a mortgage. Contact your government offices to find out which agency can assist you. In addition, contact your state attorney general if you learn that you are on a Bad Credit Mortgage Memphis list and know that you shouldn't be!
3. Your church. Churches, parachurch organizations, and nonprofit associations may be of help to you too. Some of these heralded organizations have received government funds to be used to help residents of the community get key financial assistance. Check your phone book's white pages for local organizations or visit your public library for help. Research online too!
All in all, being on the Bad Credit Mortgage Memphis list does not mean you will not get a mortgage. You may need to receive some credit counseling first, but lenders are in the business to let you borrow money and help your local community to prosper. A little extra effort on your part can mean the difference between owning a home or renting.
Mark Lambie is the founder of The Loan House a website that allows consumers to quickly and easily get mortgage quotes and mortgage information.
http://www.american-lender.com/free-info/Bad-Credit-Mortgage-Memphis.html
If you have been turned down for a mortgage, the mortgage company must tell you why you were rejected. Rejection does not make you a bad person and rejection does not mean you cannot still get home financing. The following type of institutions may still offer you a mortgage even if you are on the Bad Credit Mortgage Memphis list!
1. A credit union. If you belong to a credit union, visit the loan officer and explain to this person that you believe you are on a Bad Credit Mortgage Memphis list and you want to find out if the credit union would consider extending a loan to you. The loan office will check your credit report and make a decision though you were rejected previously. Membership has its privileges and a Credit Union is a wise alternative for some consumers.
2. State government. Tennessee, like all states, has agencies in place to help residents obtain a mortgage. Contact your government offices to find out which agency can assist you. In addition, contact your state attorney general if you learn that you are on a Bad Credit Mortgage Memphis list and know that you shouldn't be!
3. Your church. Churches, parachurch organizations, and nonprofit associations may be of help to you too. Some of these heralded organizations have received government funds to be used to help residents of the community get key financial assistance. Check your phone book's white pages for local organizations or visit your public library for help. Research online too!
All in all, being on the Bad Credit Mortgage Memphis list does not mean you will not get a mortgage. You may need to receive some credit counseling first, but lenders are in the business to let you borrow money and help your local community to prosper. A little extra effort on your part can mean the difference between owning a home or renting.
Mark Lambie is the founder of The Loan House a website that allows consumers to quickly and easily get mortgage quotes and mortgage information.
http://www.american-lender.com/free-info/Bad-Credit-Mortgage-Memphis.html
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