Home Equity Loans

A dream home is the desire for every individual. Who doesn’t want to have a sweet home? However, buying a home is no mean task. There are quite a few hurdles to be crossed. In earlier days, finance was a major issue for buying a dream home. Even if finance was available, there were other difficulties that prevented one from buying a nice home. Also, in earlier days, people used to buy homes when they became old. They couldn’t realize that delaying such an important decision caused unnecessary financial strain. Living in rented accommodation meant either constant movement or problems from the landlord.

Times have changed. Today one need not have to wait long to buy a home. There are many mortgage loan options available to you for buying the dream home. Mortgage loans can be repaid your own pace. However, you need to be aware of the interest rates and how much extra you need to shell out to buy a home if you use the loan option. If you are self employed, then you might be worried about incoming stream of money, or fluctuating fortunes.

A Pay Option Mortgage Loan allows the complete flexibility to decide, every month, which of four mortgage payments you would like to make. This program is ideal for anybody that has fluctuating income such as the self-employed. Pay Option is also an excellent choice if you are looking to buy a new home and want the lowest possible monthly payment, or if you simply just want to lower your existing mortgage payment. The Pay Option Mortgage is a relatively new product that allows you four payment options each month.

There are many options in A Pay Option Mortgage Loan such as 15 year payment, 30 year payment, Interest only option and the 1% Minimum payment. The advantage with A Pay option Mortgage Loan is that you can choose from any one of the options for payment.

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Usually, to borrow loans the borrower offers the asset (in most cases his home) as collateral. At time, after borrowing a loan by offering his house as collateral, borrower again needs money to pay off the costly loan or for some other inescapable task. In such case when borrower’s house is already secured once, the borrower again offers his house as security to obtain a new loan, which is called second mortgage loan. A second mortgage loan is placed on second position in title. 2nd mortgages are subordinate loans of the existing 1st mortgage.

A second mortgage is a loan secured against your property which is already secured once. That is, a second mortgage is done in addition to the existing 1st mortgage. This loan is secured by real property with a mortgage note used as an instrument for repayment. The 2nd loan is also known as a subordinate lien and home equity loan. The second mortgage is held and recorded in 2nd position on the title of the property.

Difference between 1st mortgage and 2nd mortgage

If a borrower defaults on a 2nd loan the first mortgage lender is paid before paying the second mortgage lender when the asset is dispersed from foreclosure. Considering the risk factor added to these subordinate home liens, most lenders will charge a higher percentage of fees in addition to requiring the consumer to borrower at a higher interest rate than was offered with their 1st mortgage.

2nd Mortgage Loan: Purpose

Money borrowed from a second mortgage loan can be used for just about anything. However, most of the borrowers use the money received through 2nd mortgage loan to consolidate debt, do home improvements or pay tuition fee of their children. Whatever you decide to do with your loan proceeds it is important to remember that if you default on your payment you can lose your home so you will want to make sure that you are taking the loan out for a worthwhile purpose.

2nd Mortgage Loan: Loan amount & Cost

2nd mortgage are considered more risky than 1st mortgage and therefore most lenders offer 2nd mortgage at higher rate of interest. 2nd mortgages can have loans with both fixed and adjustable rates. 15 year amortization schedule is the most Common 2nd terms for repayment. Lenders offer amount upto 125% of the value of home equity. However, the loan amount also depends upon borrowers’ profile. Similarly, since a 2nd mortgage loan is considered risky, lenders charge higher interest rate to compensate for the increased risk.

Another advantage of a second mortgage loan is that the interest you pay back on the loan may be tax deductible. Consult your tax advisor regarding your personal situation but in most cases the interest is 100% fully deductible as long as the combined loan to value of your 1st and 2nd mortgage do not exceed the value of your home.

Features of Second Mortgage Loan

1 No initial credit check

2 in principle approval within 24 hours

3 Customized pricing

4 Rate Lock, if you choose

5 can consolidate all debts into this new loan within 3 business days

6 Amount and rate of interest depend upon borrowers’ profile

2nd Mortgage Loan: Eligibility

Accepting or rejecting applications of accepting application for 2nd mortage loan on a higher interest rate depend upon the profile of the borrower. The various factors which are considered while reviewing loan applications are:

1 Verification of income

2 Full time employment

3 Previous record of payments

4 Any recommendation

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Imagine if there was a way that could help you could reduce the term of your mortgage by up to Five Years? Just think - if you could reduce the term of your mortgage by up to five years earlier, then you could even retire earlier, or enjoy 5 years of better holidays, better cars…

What would you do with this advice- ignore it - and lose the chance to reduce your interest paid to those greedy Banks over a 25 year period - or grab something back for yourself?

What if all you had to do was to pay half your mortgage bi-weekly (fortnightly to our UK cousins) - and all these benefits would be yours…

Now, doing the math for bi-weekly mortgages might be too much of a hassle for the regular home buyer, but all a fortnightly mortgage is, is actually just your normal mortgage payment cut in half. Every other week, you pay one half of your normal mortgage payment.

Let’s say for instance you have a mortgage interest of 8% on your $100,000 home. By doing a bi-weekly mortgage on this instead of a 30-year loan, you can estimate with a bi-weekly mortgage calculator that the amount of your savings can reach up to $48,000. Plus, you can even make 13 full payments and pay off early on your home, so you can gain by paying less interest overall, and over a shorter term. Using a fortnightly mortgage rate calculator, you can see that bi-weekly payments will cost you $50 each month.

Interesting Facts You could reduce your overall interest paid by up to 23% by using bi-weekly mortgage repayments

If you don’t want the hassle of doing this yourself then contact your local broker, or visit some of the sites given on this page.

The Internet is a smorgasbord of mortgage calculators, including bi-weekly mortgage rate calculators. Below is list of websites that feature bi-weekly mortgage rate calculators for free use by their consumers.

Reduce-My-Mortgage.com Bi-Weekly Mortgage Rate Calculator

The Reduce-My-Mortgage website offers a bi-weekly mortgage rate calculator that allows you to enter your personal information so you can start calculating your bi-weekly mortgage payments. Their bi-weekly mortgage rate calculator also helps you determine how much you can save in both time and money.

The site also features an update corner where bi-weekly mortgage buyers are told about recent mortgage news. These news like the home loan errors found out by the CLA (Consumer Loan Advocates) helps the consumer realize the importance of using a bi-weekly mortgage rate calculators. In addition to helping you calculate your savings, this fortnightly mortgage rate calculator may also be used on Automobile, Boat, Student, and Business loans.

Vlender.com Bi-Weekly Mortgage Rate Calculator

Virtual Lender is a Turkish website offering solutions such as bi-weekly mortgage rate calculators for either the individual loan officer or the entire mortgage company. Their bi-weekly mortgage rate calculator helps consumers determine the amount and projected period of loan payments.

1Stop-MortgageCalculator.com Bi-Weekly Mortgage Rate Calculator

This website offers a monthly and bi-weekly mortgage rate calculator to help you determine your payments. The only thing you need to do with the 1 Stop monthly and bi-weekly mortgage rate calculator is enter the principal loan into the field provided. After that, also type in the interest rate and the loan term into the bi-weekly mortgage rate calculator and find out how much your monthly payment will be. Also, this bi-weekly mortgage rate calculator will also let you know how much you save if you use bi-weekly payments.

DinkyTown.net Bi-Weekly Mortgage Rate Calculator

The bi-weekly mortgage rate calculator of this website will show you the possible savings you can make with your type of mortgage loan. Accelerated bi-weekly mortgage payment is the technique used by this fortnightly mortgage rate calculator in order to determine the amount of savings. Bi-weekly payments usually work in only one way. They can accelerate your mortgage pay off by paying half of your normal monthly payment every two weeks. By the end of each year, you can see using a fortnightly mortgage rate calculator that what you have paid for is equivalent to 13 monthly payments instead of 12. This technique used by this bi-weekly mortgage rate calculator can take several years off your mortgage term and also save you thousands of dollars in interest.

So there you have it. The choice is yours…

You can Do Nothing - and what benefits will you get … NOTHING.

Or you can take easy steps to slash the horrendous amount of interest that you would normally pay over the life of your mortgage, and shorten the term you are paying for it for, and make the poor banks to to be the losers.

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