Can A Second Mortgage Get You The Cash You Need ?

by Ken Black
A second mortgage is a secured loan (or mortgage) that is second in line to another loan against the same property. Here are the details.

In real estate, a property can have many loans against it. The loan which is registered with county or city registry first is called the first mortgage. The loan registered second is called the second mortgage.

With these loans, if it goes into default, the first mortgage gets paid off first before the second mortgage gets any money. Thus, these home equity type mortgages are riskier for the lender, who generally charges a higher interest rate.

When you purchase a home for the first time, it can be a very confusing and often stressful time. There are so many things that you need to know, and often, it is not until you need the information that you realize just how little you know about being a homeowner. As you get more familiar with being a homeowner, you realize that there are many different things that you must know and understand in order to keep your happy home.

Homeowners know that paying a mortgage can leave very little money for anything else. When they want to make repairs, or additions to their home, they often struggle with how to come up with the money.

Taking a second mortgage out on your home may be the solution to finding the funds to do repairs that are necessary. You are basically using your home as collateral so it is not often that people are turned down for a second mortgage.

A home refinance loan like this is financing that can be obtained by a home owner by using the equity already built into their home. It can have either a fixed or adjustable interest rate, so it is very important that you research the lending companies that you are interested in. Choosing the right lending company is crucial. Compare all of the interest rates, fees and charges that may be incurred, as each company has different terms for their loans.

There are many advantages to a second mortgage, the greatest being that you are able to use the loan money for anything that you choose. Whether it is for repairs, vacation, or even the start a college fund for your children, the choice is yours. A second mortgage is a great way to find funds for unexpected repairs or emergencies.

Many homeowners choose to use a second mortgage to consolidate all of their debt. In some instances they can even include the first mortgage. By doing this, they lower their payment substantially.

A second mortgage works basically the same way as a first mortgage. If you fail to repay the loan, you may be putting your home in jeopardy of being repossessed, so it is important that before you go this route, be sure that you will be able to make the payments.

Sit down and figure out what your bills are each month, and try to work a second mortgage into it. If you are having a difficult time, try using some of the funds from the second mortgage to take care of rotating accounts such as credit cards. If you eliminate part of the bills, your payments may be lower, and you may have a little more money after bill paying.

Homeowners know that tax time is a very stressful time of the year. If a second mortgage was taken out for the tax period, it may be possible for the homeowner to use the money that was repaid for the second mortgage as a tax deduction. Your tax advisor can advise you about how much you can claim.

There are some instances where it is possible to use 100% of the funds. However, this can only be done if the combined interest rate on both the first and second mortgage does not exceed the value of the home.
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How To Refinance My Home Mortgage

by David Faulkner
If you're looking at refinancing your home loan then it can be very confusing to think about the process of refinance.

Mortgage refinance basically means taking out another loan which will cover all of your other debts, to pay them off. You can get a secured loan, this means that should you be unable to pay, the loan is secured against your home.

Mortgage refinancing simply means that you pay off your existing mortgage with the money you get from refinancing your home. People often do this to lower the interest rate they have to pay, and therefore reducing the amount of money that their loan actually costs them.

It is also possible to get some money out of your property by refinancing. There are a few important steps to be aware of when refinancing

1. First you get the loan application and then complete it. This can be very difficult to do, I hate all forms! 2. The loan consultant then offers many different mortgages to you 3. You must carefully decide which mortgage is right for you 4. Complete the documentation that you need to apply to that specific loan 5. When you receive the disclosures for the loan, including all legal information, terms and other forms you must complete these and send them back to your loan consultant. 6. The loan consultant will then set up an appraisal company to contact you. This appraisal company is responsible for valuing your home. This is an essential step as you need to find out how much your home is worth now. 7. Your loan consultant pays off your old loan with the new one you've just taken out, and then process the loan file. 8. The underwriters of the loan will get all the information they need from the loan consultant. They will either approve the loan, or request extra information they need. If they do require any additional information then your loan consultant will give them your contact details. 9. The completed loan document is then sent off to the company that is issuing the title, or the lawyer who is responsible for closing the loan. 10. You have a 3 day cooling off period during this time. This is when you can cancel the loan without any obligations. 11. The refinance process is complete, and you have refinanced your mortgage.

If you are interested in refinancing your mortgage, then you should defiantly consider using a trustworthy mortgage company, or somebody that you have already done business with. You should be able to find a trustworthy mortgage broker, however if you do struggle, you can use one of the many online mortgage comparison services.

The online comparison services are very easy, they only take a minute to do and you get a list of suitable mortgages.
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Interest Only Mortgages - Are they right for you?

by Jim Wilson
An interest only home equity loan yields extraordinarily low monthly payments for you. Instead of paying big payments you can basically apply your money to the interest on the account. An interest only home equity loan is a powerful possibility for various people in general although not a promising notion for some of us.

Pressured to Make Mortgage Payments?

when I worked as a loan officer for a loans company ten years ago I would converse personally with clients who were stressed to make their mortgage payments. The organization would permit the straining families to make interest payments instead of the full monthly sum. If you only pay the interest, the payment is decreased. The families in peril liked being able to do this occassionally to save additional cash although it in truth hurt them in the long haul. The principal on the account doesnt get reduced when you only pay the interest on the account.

Why an interest only Home Equity Loan?

Therefore why in the world would any person desire an interest only home equity loan? There are several folks who fair better on this form of loan basically due to their wage. An individual who earns big chunks all of sudden then nothing for more than a few months is better off realizing an interest only household equity loan. when you have an interest only mortgage then you are guaranteed to only pay what you absolutely must. Once you get that big check you have been watching for you can apply a giant total to the principal on the account. With an interest only home equity loan, the family can have peace of mind during the times of year no money is coming into the household.

Do You Receive Lump Sums?

Ordinary careers that meet up with uneven incomes include sales positions. Several sales people who work on commission have to wait for a long time to see the fruits of their labor. Illustrators and book writers are in many instances paid a sum up front and an additional amount when the book is finished. Various recently wed couples who expect that their income will climb over time may want to look at getting an interest only home equity loan. Though, press on with caution. After a couple of years you will have to refinance or pay a lump portion on the mortgage. The monthly payments may go up drastically as well.

The appeal of the interest only home equity loans is wonderful because we like the feeling of having control of our money. Many of the folks who are interested in the interest only mortgage regularly imagine that they will be disciplined enough to make spare payments on the principal. That is a bet that I wouldnt take.
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Mortgage Tips For The Greenhorn

by Ajeet Khurana
In California we see amazing weather, great natural beauty, and many cultural offerings. It is not surprising that it is the most populated state in America. At the same time, one of my other places to reside at is Arlington Heights in Illinois. Though these two places are located far apart, there are similarities between them. Many of the homes in the state of California and in the city of Arlington Heights are the most coveted, though not necessarily the most expensive. Unless you are extremely wealthy, you will undoubtedly require a mortgage in order to buy a home. When shopping for a mortgage, you might be attacked by a barrage of unfamiliar terms. Here is a 3 step guide to buying a home in California, Illinois or anywhere else, along with some terms that will help you along the way.

1) In a surging home market, it is tough to choose the kind of house and size that you can afford. The first thing you need to do is find out how much of a mortgage you can afford. This will be a determining factor when you get approved. There are many mortgage calculators on the Internet that you can use to find out how much you can handle.

2) Your next aim should be to find the best mortgage that meets your specific needs. Right now, loans and mortgage companies will compete for your business, so start looking for a mortgage that will be suitable for you.

3) Once you have done that, you need to rate shop for mortgages. California and Illinois offer a wide variety of mortgage directories on the Internet where you will have access to the lowest possible rates published from hundreds of mortgage brokers and companies that are updated every day. The moment you find a suitable rate, get in touch with the company.

Useful Terms

Fixed Rate: This means your interest rate will not change for the length of the loan. Given today's economic volatility, this could be a great alternative for you. Fixed rates protect you from rate increases, but if interest rates fall you will be stuck.

Term: This is the length or life of your loan. Thirty years is the industry standard, but many 15 and 20 year terms are available. The shorter the term, the more your monthly payments will be.

Rate Reduction: This will happen if you go for a shorter-term loan. A small rate and a short term will reduce the amount that you pay on your loan than if you borrowed just as much over a longer period.

ARM: An adjustable rate mortgage. Your interest rate will flux with the economy and will be lower than a fixed rate. It may also help you to apply for larger loan amounts or have lower payments. You will generally see a rate cap in your terminology here as well. This means your interest rate cannot exceed a certain amount, and you are safe from extreme market changes. With the flux of the market place, buying a home is not simple, and you should take all aspects into consideration. Try to find out about these concepts even before you embark on your mortgage shopping spree.
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Property, Houses & Mortgage Consolidation

by Allen Jesson
Probably the most common way people manage their debts is by consolidation into their mortgage.

Buying a property these days is no easy affair. For first time buyers it is even harder as they rarely have any equity to put down as a deposit and the quicker they save for a deposit the faster house prices rise. Whilst It is very difficult for first time buyers it is equally important for them to get on the property ladder. Renting a property is normally just as expensive as a mortgage if not more and it is simply money down the drain for the tenants with all the profits going to the owner of the property.

Some mortgage company's will offer special schemes involving cash back deals or other incentive deals for first time buyers. However it is advisable if you do decide to enter into a mortgage arrangement that is not a standard repayment to get independent advice to ensure there are no hidden costs along the way.

An example of this would be if you were buying a new house and the builder or seller were offering carpets, washing machines, cookers etc whilst this may sound a very good offer and attractive to first time buyers you would be better off asking the vendor for further money deducted from the house and not taking the offer of the included goods as you will be paying for them over twenty five years together with interest if they are included as part of the house sale.

Once you are on the property market your house will increase in value and the equity in it will be yours and more importantly you will be able to use this equity to consolidate any outstanding debts you may have incurred along the way.

It is true to say that there is no guarantee your property will increase in value just like any investment there are risks to consider. That said investing in property is probably one of the most secure ways to ensure a return on your cash as at the end of the day and whilst the market may fluctuate from time to time, people will always need somewhere to live and therefore ultimately your property will increase in value.

Once you have a foothold on the property ladder and have owned your property for say a couple of years you should have built up some equity together with some debts incurred in buying new bits for your home.

In order to realise the equity you do not need to necessarily sell the property. You could simply approach your mortgage company for an increase on your borrowing to either consolidate any outstanding debts or for any building improvements you may wish to make to your home.
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Mortgage Lessons from Joe Girard

by Tom Domin
Mortgage Lessons from Joe Girard

Joe Girard was a car salesman. During his selling career he sold 13,001 cars, all of them at retail. And, all of them one car at a time...no fleet sales, no multiple sales, and no wholesale sales. He personally sold more cars during his career than most dealerships sell in their lifetime.

During the years 1963 to 1977, Joe Girard sold more cars on a one-on-one basis than anyone else in the world. On his best day he sold 18 automobiles. His best month, he recorded 174 sales. His best year...a total of 1425 vehicles. All in all, he averaged about 6 retail sales per day. An amazing accomplishment!

All of Joe's sales have been certified by "The Guinness Book of World Records" and the accounting firm of Deloitte and Touche. Today, his record remains unbroken. Joe Girard was inducted into the "Automotive Hall of Fame" on August 7, 2001.

Just as a little background, Joe Girard was born in a Detroit ghetto in 1927. He shined shoes, delivered papers for the Detroit Free Press, washed dishes, acted as a delivery boy, and assembled stoves.

Then one day in 1963 at the age of 35, Joe Girard got a job selling automobiles for a Detroit car dealership. With a telephone, a phone book, a lonely desk tucked away in a vacant corner of the dealership, Joe's career began. It was January, a traditionally slow month and the manager was reluctant to hire him. Joe had to actually beg him for the job.

By the end of business his first day, Joe Girard sold his first automobile. He had to borrow $10 from his manager so that he could take some groceries home for his family. During his second month, Joe sold 18 cars and trucks.

Just when Joe was feeling good about himself, he was fired for being too aggressive. Some of the other salesman had complained to the owner of the dealership.

Knowing he could sell cars, and a determination to succeed, Joe had no problem finding employment with Merollis Chevrolet in Eastpointe Michigan, and the most amazing sales record in history had its beginning.

This is the breakdown of what he sold:

1963 - 267 cars and trucks 1964 - 307 cars and trucks 1965 - 343 cars and trucks 1966 - 614 cars 1967 - 667 cars 1968 - 708 cars 1969 - 764 cars 1970 - 843 cars 1971 - 980 cars 1972 - 1208 cars 1973 - 1425 cars (record year) 1974 - 1376 cars 1975 - 1360 cars 1976 - Over 1200 cars 1977 - Over 1200 cars

If you don't think this is significant, remember these were actual sales, not deals or giveaways. Second, Joe was the number one salesman in the country every year from 1967 to 1977. The magnitude of that feat almost defies description. And third, despite the fact that there were two recessions during his first eleven years, he sold more cars every year than he did the previous year.

It's told that on Saturday mornings, a line of people would form at the entrance of Merollis Chevrolet long before the scheduled opening. Everyone was waiting for Joe Girard to come to work and they wanted to talk to him about buying a car. Every one of them rebuffed offers of help from co-workers. They only wanted to talk to Joe, no one else would do. Over a period of fifteen years he averaged over 900 cars each and every year.

On January 1, 1978, Joe Girard retired from selling cars to focus on writing, teaching and motivating. His works include:

"How to Sell Anything to Anybody," "How to Sell Yourself," "How to Close Every Sale," and "Mastering Your Way to the Top."

Stories abound about how Joe Girard "originated" his business. One of which details the fact that he was an avid Detroit Lions fan and a season ticket holder. He always opted for a seat in the upper deck so that when the Lions scored, he threw a hand full of business cards over the railing to the football fans below. He used both sides of his business card and always offered some type of "freebie" if they looked him up within the next week.

Just so you know that one isn't even on my list of "101 Ways to Originate Mortgages." If you try it, be careful of your local littering laws. However, using both sides of a business card is on my list.

At this point you're probably asking...OK, how did he really do it? Well, the answer is so simple you'll immediately wonder why you're not doing it too. Then again...maybe you are. Here's the answer:

Joe Girard made it a point to capture and record the contact information of every person he met or talked to. Then over the months ahead, and for each and every month thereafter, he sent each one of them a card. He sent the obvious cards for all of the major holidays. But he also sent birthday and anniversary cards. He sent Fourth of July, Groundhog Day, and Washington and Lincoln Birthday cards. Everyone Joe knew received a card each month and two in December because it was Christmas.

He sent the cards with a simple handwritten note and his signature on the inside. It read:

"I like you - Joe Girard"

I know what you're thinking...if someone did that today, they would probably be arrested for stalking. Yes, things have changed drastically since the 60's and 70's, but the basic idea has not.

Joe Girard simply did what all of us in the Mortgage Business should be doing...building and maintaining a contact list, a database, a mailing list, or whatever you want to call it. Goodness, you can even call it Tom's list if you want...I won't object.

With cards arriving every month, Joe's contacts almost considered him a member of the family. When they thought of a "new car" they immediately thought of Joe Girard.

And, that's exactly what should happen when your contacts think of a mortgage. They should think of you...not the bank at the corner of their street...and, not the mortgage person they heard advertising on their local radio station. They should think of you.

The point is this, if you don't have a list...start one immediately. If you have a list, set up a program to contact them once a month. The old adage that says "It's all in the list" is true regardless of the product or service you are marketing.

In the final few years, Joe Girard had two assistants working for him. The size of his monthly mailings had to be huge...many thousands I'm sure. And, all of it done before the personal computer and "Windows" was even a twinkle in the eye of Bill Gates.

So, here are a couple of the lessons learned from Joe Girard:

1. You absolutely positively need a database. According to national averages, each contact on your mortgage list will make some type of mortgage decision about every five years. When they make that decision, you should be the one they call. Continually add, update and maintain your list.

The result...if your database has 500 contacts, somewhere between 15 and 20%, will make some type of mortgage decision in the next year. That's a total of 75 to 100 potential mortgages just from your list. Now...will you get them all? Of course not! But, if you do your job...you're entitled to your fair share.

2. Design, implement, and maintain a viable program to effectively communicate with your database each and every month. It will be like putting money in the bank. The dividends will be huge.

Send cards, letters, mortgage articles, and mortgage news snippets. Continue to send your contacts good information and implement a good postcard generating kit. You'll be rewarded many times over.
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How To Get A Commercial Mortgage Today

by James Copper
A loan in which real estate is used as collateral - a guarantee that the loan will be repaid and on time - is usually called a commercial mortgage. While it is much like a residential mortgage, the difference is simply that the collateral and the building purchased with the mortgage is used for commercial rather than residential purposes.

A loan would be considered a commercial mortgage if, for instance, an entrepreneur were moving from his home office to a storefront retail, office or warehouse location due to the growth of her business.

If, however, she simply wanted to expand her home office by another few feet and needed a mortgage loan to do so that loan would probably be considered a residential rather than commercial mortgage.

Another difference between a commercial mortgage and a residential mortgage is how the financial institution looks at the ability to pay the loan. The okay for a residential mortgage, as well as the rate, are determined by the borrowers financial situation - her or his credit history, and current ability to repay the debt.

When considering a commercial mortgage, however, a lender would look at the value and quality of the property being purchased by way of that commercial mortgage, and its ability to bring in revenue.

Rental property in a market that is glutted would be looked on less favorably even when the borrower has sterling credit than a mortgage for commercial rental property in a town that has a scarcity of rentals and people moving in all the time.

Even if the borrower had less than perfect or even some bad credit, he or she would be favored over that person with perfect credit in the town that doesnt bode well for full rental occupancy.

Commercial mortgage loans are charged a considerably higher rate of interest than are residential mortgage loans. These are nearly always fixed rate loans, however, which means that that borrower pays the same interest rate throughout the life of the loan.

There are some capped or variable rate commercial mortgage loans, but theyre not in the majority.

If you are an experienced home owner and mortgage borrower that is just setting out to secure a commercial mortgage for the first time you may be unpleasantly by how much more complicated and time consuming the commercial mortgage process is than its residential counterpart.

That is because the legislated guidelines require lenders to rely on the propertys stability and income history as a means of determining its potential for future profit. It is only after this revenue potential has been determined to be promising that the credit history, financial strength and assets of the commercial borrower are even looked at.

The commercial mortgage application is extensive enough that youll probably benefit from working with a commercial mortgage broker. Youll probably have to provide financial history about the property and your own situation for the last two years.

The format in which this information must be provided is generally quite strict and an experienced and knowledgeable mortgage broker will get you past these commercial mortgage hurdles and on your way to a great fixed or variable rate commercial property mortgage.
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How To Use A Remortgage Loan To Your Benefit

by James Copper
A remortgage loan is a loan that a home owner gets to pay off their current mortgage. Home owners get remortgage loans to help them reduce their interest rates and save money.

There are many ways a remortgage loan can benefit a home owner besides allowing them to get a lower interest rate. When remortgaging a hoe owner should take advantage of the perks a remortgage loan has to offer.

Before remortgaging, a home owner should know that the best time to remortgage is when the interest rates are at an all time low. They should lock in at a fixed rate and take advantage of the low interest rate.

There is often a small window of time to take advantage of rock bottom rates, so it is important for the home owner to move fast so they can get the best deal.

Initially the remortgage loan is going to be very beneficial. The immediate thought of the home owner is that they are saving money in the overall purchase price of their home. The interest rate is a large expense tacked onto the price of a home purchase. By getting a lower interest rate the cost of the loan just went down.

Besides lowering the overall cost, though, a remortgage loan also helps to add a little extra money into the monthly budget. The cost of the monthly mortgage payments are determined by taking the whole loan amount and dividing it by the number of years of the mortgage. With less money owed due to the lower interest rate, the money payments are going to be less.

A home owner can really take advantage of this extra money. One idea is they can start saving it. If they were making their previous loan payments with no problem then they really do not need the extra monthly money.

It is ideal to start saving it. This extra money will accrue over time and can then be used as emergency money or vacation money or for whatever the home owner may need it for.

Another idea is if the home owner has had problems making their previous payments then the extra money can go into the monthly budget to help balance it out better.

The home owner will then feel a little less stressed about paying their bills and taking care of expenses because they will have that extra money.

Additionally, the extra money can be used to put back into the house. It can become hoe improvement money that is used to take care of all the little things homes need done form time to time. It is a great way to help build equity in the home.

A remortgage loan can be very beneficial in more than just the obvious ways. It is something that every home owner should consider when the timing is right to remortgage.

The extra money from a remortgage loan can go a long way towards making the life of the home owner much better and much more enjoyable.
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