Personal Finance Journal

The last couple of months have been a rough time for both lenders and borrowers as the credit markets have been in a bit of turmoil. The fact remains, however, people still need cheap mortgages and they still occasionally need loans. If you’re in the market for some financing you can’t really let the fact that the market is changing stop you from pursuing a loan.

You want to make sure as you search of loans, whether they’re personal loan or secured loan, that you’ve done your research and found a qualified lender. There are some great lenders still providing quality loans and great rates on mortgages. There are also some untrustworthy lenders who are looking to take advantage of the tumultuous market. If you do your homework and thoroughly verify your lender, there is no reason why you can’t secure a loan you need.

Once you’ve found a prospective lender, make sure you continue to do your homework. Be sure there aren’t any claims against this company and that they are a reputable lender. Don’t hesitate to ask lots of questions and get quotes and rates in writing. Once you’ve verified the lending company is worthy of your business, make sure you stay involved in the lending process and that the terms of your loan don’t change.

The real estate market has been hot for many years. The real estate market stayed hot even though the economy has been on a virtual roller coaster. This has resulted in a large number of mortgage lenders entering the market with varying mortgage programs for people with different economic backgrounds and credit histories. Continue reading »

Before you borrow money on your home’s equity, think twice so you don’t end up paying more than you expected.

According to the Federal Trade Commission, homeowners-particularly elderly, minority and those with low incomes or poor credit should be careful when borrowing money based on their home equity. Certain abusive or exploitative lenders target these borrowers, who unwittingly may be putting their home on the line. Abusive lending practices range from equity stripping and loan flipping to hiding loan terms and packing a loan with extra charges.

When not to agree to a home equity loan:

- If you don’t have enough income to make the monthly payments.

- If the loan terms are incredibly unfavorable to you, with enormous up-front costs and high interest rates (sometimes exceeding 50 percent).

- If there are discrepancies between the promised or stated interest rate and the annual percentage rate (APR) figure required in all consumer loan contracts (Truth in Lending). If that figure is significantly higher than the rate stated in the contract, the loan contains hidden interest charges.

- If you can�t determine who the lender is. A lender could be nothing more than a few individuals in for a quick score. Does the agent have an office? Is the company an old and established one with community ties?

- If you haven�t read or if you don�t understand the loan terms or you�re being pressured into signing the loan document.

- If the loan includes extra products you don’t want.

What to do before you Agree to a home equity loan:

Have a financial adviser such as an attorney or accountant review all papers before signing anything. Paperwork for a loan contract is often technical and unclear. Read all items carefully. If you need an explanation of any terms or conditions, talk to someone you can trust, such as a knowledgeable family member or an attorney. Keep careful records of what you’ve paid, including billing statements and cancelled checks. Consider all the costs of financing before you agree to a loan.

Article by Chileshe Mwape of Banking-News.org.uk.

More and more lenders are offering home equity lines of credit. By using the equity in your home, you may qualify for a sizable amount of credit, available for use when and how you please, at an interest rate that is relatively low. Furthermore, under the tax law-depending on your specific situation-you may be allowed to deduct the interest because the debt is secured by your home. Continue reading »

If you have a recent bankruptcy on your credit and are looking to get financing for a home, there is hope. Buying a home with bad credit will just put more emphasis on the other two factors needed to get a mortgage loan, which are; income verification and a down payment. Continue reading »

There are many benefits to interest only mortgage loans. There are many situations where an interest only mortgage loan could be best for you. Continue reading »

If used properly, there may not be a more effective financial option a homeowner can exercise than to take a second mortgage on their property. More and more American consumers have become aware of revolving debt and the implications it can have on them and their loved one – not just now but in the future. Continue reading »

There are literally hundreds of home loans available but lets just look at the three main categories. Continue reading »