Debt Consolidation Refinance Loans can Lower your Debt
The term Debt Consolidation Refi Loans refers to that loan which helps you to cut your debt faster by lowering the interest rate on your principal amount. Thus it will enable you to reduce years of your payment schedule for the equal amount that you are, now paying. Along with this you can also lessen your costs of mortgage with the help of low rate of refinancing.
Cashing Out Equity Can Save You Money
If you want to make of the cheapest financing available to you, then securing your debt consolidation loan through the equity of your house is a good option. By this you can go for single digit mortgage rates by trading in your double-digit credit card rates. You also need to decide whether you want one or two mortgages in order to obtain the most out of your cash out refi. So if you refinance your original mortgage, you can succeed to get an overall lower rate. On the contrary, if you have good rates at present, it might be better to remove a second mortgage. Having separate mortgages with higher rates can be sometimes cheaper for you.
Selecting the Right Refi Terms
Just like rates, terms are also important in trying to reduce your debts. Preferably you would like to get out of your debt as early as possible with a short-term loan. This however does not mean higher payments. Nevertheless, with lower rates and with the same monthly payment, you can choose a loan years, shorter. Low payments with adjustable rates are also offered by home loans, but there remains a possibility of your rates becoming increased. Fixed rate loans give security of understanding your rates and payments.
Lenders Make the Difference
All loan-lending companies are not same. Every financing company has its own method of determining rates of loan and closing costs. So to get the best refi deal for your credit conditions you must ask for a loan estimate. Within a very short period you can get various offers from many lenders, and then you can go for a side-by-side comparison to choose the best alternative. In this way you can recover thousands on the cost of your loans. After you set your mind you can complete your application for loan online for speedy approval. And in less than two weeks all the necessary paperwork needed for your loans would be completed and your bills can be paid off.
By: Gibran Selman
100% Home Loan Financing – Flex your Muscle
With the current “mortgage meltdown” we hear so much about these days, your average consumer thinks that the days of 100% financing have gone by the wayside. True, you are hard pressed these days to find a bank or lender that will want to carry a second mortgage that combined with a first mortgage adds up to 100% financing. That’s because if there is a default, sitting in second lien position is particularly dicey. Too much risk is involved. And since, in recent history, that scenario of the 80/20 combo was the most common 100% financing vehicle available to a certain group of consumers (non first time homebuyers), there’s a misconception out there that 100% options are all but dried up.
But, a-ha! There is hope for someone who has great credit but prefers to invest his/her assets elsewhere when rates are so low. It’s called the Flex 100. And it can apply to purchases and refinance transactions.
I heard an analyst mention on television the other day that mortgage money is so cheap right now it’s like a sale at Macy’s. That made me chuckle, but it’s true. In which case, why not invest your money elsewhere if you qualify for 100% financing. After all, the homes are still appreciating in most areas, but not at the stellar rate we saw in the past.
The Flex 100 requires you to invest $500 of your own cash towards the transaction, so I guess it’s technically not 100% financing, but it’s pretty darn close. And no, you don’t have to be buying your first home to get this deal. You can actually have owned a home in the past three years! However, it does apply to financing your primary residence only. You can’t get this deal for that nice cabin in Gatlinburg you want to use on the weekends or for that great rental down the street you think you can get a good deal on. You’ve got to live in the house to qualify for this financing.
But you can do a refinance, as long as it’s not a “cash-out,” meaning you’re not paying off debt or taking equity out of the property. It must be a rate term refinance only. However, you can pay off that second mortgage or home equity line of credit you hate, IF you obtained that 2nd lien mortgage when you got your first mortgage (a piggy back closing, we call it). Or to make it clearer, you originally had that 80/20 combo mentioned earlier. If you got that home equity mortgage a month or two after your initial closing to build a deck or payoff a credit card, than it that won’t work for a Flex 100 refinance.
What about your credit score? Well, it will affect the price you get, but there is no “minimum” credit score required for this program. You just have to get an approval through the automated underwriting system required. But be realistic – if you’ve got “iffy” credit, you probably won’t get an approval. A borrower with a credit score below a 620 would probably have to have a low loan to value or debt to income ratio for a chance of an approval.
A Flex 100 may or may not make sense for you. But hey, at least you know it’s an option. Your lender should be able to help you determine if this opportunity to flex your mortgage muscle makes sense for you.
By: Kristin Abouelata – Home Loans
Tips to Find Bad Credit Mortgage Refinance Loan
Getting a home loan with bad credit has actually never been easier than it is today. Here are some tips to help improve your chances of success:
Find A Good Real Estate Deal – If you can find a property that has some equity in it when you purchase it, you may have an easier time getting financing on that property. To the lender it may be almost as good as if you had some kind of down payment on the property. Some lenders will consider the properties loan to value ratio when they consider the loan. Talk to your mortgage broker and see if this factor could help you get qualified.
Try Creative Financing – See if the seller would be willing to carry back a second mortgage on the home. This is where you set up a contract or agreement with the seller that you will pay them monthly payments, including interest of, let’s say, $150/mo on $10,000 dollars of the price of the property, as a second mortgage. Then, to make it nice for the seller, perhaps put in the agreement that the entire amount is due in full within 2 years or something. That should give you plenty of time to refinance and then the seller doesn’t feel permanently locked into the contract.
Save For A Down Payment – There are lenders who may be able to qualify you for 100% financing, even with low credit scores, but your interest rate will be much lower if you can put even 3-5% down. If possible, try to save as much as possible for a down payment. Sometimes it may be better to wait about 3-6 months to get into a new home loan if it means the difference of having a down payment. The interest rate could be quite a bit better because of that factor. However, if you don’t want to have a down payment, you can always refinance later for a lower interest rate.
Shop Around – There are some mortgage brokers out there that you will talk to who will say, “I can’t help you, and if I can’t help you, no one can help you.” But, if you persist in talking with other brokers, 10 minutes later you could be talking to someone who knows a way to help you, no problem. Most brokers feel that if they can’t help you, no one can. However, the ironic thing is that each broker is varied in the types of loans they can do. Some brokers have relationships with flexible mortgage lenders and others do not. I recommend applying online to mortgage services that will submit your application to multiple lenders. That way, your credit is only pulled once, and you can analyze offers from multiple lenders. To see our list of recommended bad credit mortgage lenders, visit here bad credit mortgage lenders.
Improve Your Credit Score – There are some really simple ways to improve your credit score without spending too much time at it. All 3 major credit bureaus now have areas on their websites where you can dispute incorrect items on your credit. The process is very quick and easy. Make your current payments on time to help your score. Keep your number of credit inquiries down. Too many inquiries can hurt your credit score. If you want to buy a house, don’t apply for any credit cards, auto loans or any other type of loan if you can avoid it. For your reference, here are the links to all 3 major credit bureau’s
websites: www.loansolutioncenter.com/cashout_refinance.htm .
If you really do want to get into a home, don’t let bad credit stop you. There are lenders out there who can help you, it just takes some persistence. Apply with multiple lenders. Like I said, apply with mortgage services that specialize in bad credit mortgage loans and will submit your application to multiple lenders with only having one credit inquiry.
By: Gerald Bouthner