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Posts Tagged ‘refinancing’

Manufactured Home Mortgage Loans Overview

August 28th, 2017 Comments off

Today, more and more people are now purchasing mobile homes or manufactured homes. Besides, by purchasing ready-made homes, you will save money, and time consumed on construction. These two reasons are why increasing numbers of people are now purchasing mobile or manufactured homes even if they are not really going to use its mobile features.

People say mobile homes lose value over time, therefore they say it wouldn’t be wise to take out a mortgage or loan against a mobile home. What everyone really wants to know is if it’s actually a decent idea to invest in a mobile home.

The answer to this question depends on how you get the home situated. It is a fact that mobile homes do depreciate over time that may reach a point where it will be impossible to take a loan, mortgage or home equity loan against a the mobile or manufactured home. However, you have to remember that there are some manufactured or mobile homes that do appreciate in value over time.

These homes are almost always on fixed foundations. Manufactured homes not on fixed foundations are the ones that will depreciate. So you simply can situate your home on a fixed foundation to help appreciate its value.

That means after a few years of on time mortgage payments the equity in your home will increase.

You need to understand that the manufactured home equity is quite different from a regular home equity loan program. The equity on a mobile home is equal to the numerical difference between the value of the mortgage and the appraisal value of the home.

For over a period of time of paying your mortgage on a timely basis, you will see that the equity will build up. You need to understand that the equity is a financial asset which you can use as collateral when taking out loans in the future. For manufactured or mobile home equity, you will see that the equity loans can be as high as 85% or even 100% of the total value of the equity on the home. This means that you can have access to most of your home’s equity.

This does depend on something however. That thing is your credit score of course. If your score is good you will get a larger portion based on your equity. It also is dependent upon the policies of your lender.

To take a loan with your home as collateral while you’re paying a mortgage, it is recommended that you get a home equity loan. It is much more quick and easy than other loans if your credit score is good and your mortgage is always up to date.

These are the obvious reasons to keep in mind when you take a loan on your manufactured home.

It’s important than your manufactured home will appreciate in value. As stated earlier, placing your manufactured home on a fixed foundation will substantially increase the value and equity of your home so long as your mortgage payments are on time. That way, when it comes time to take out your home equity lone it’ll be far easier to access funds equal to the equity of your home.

For more info about manufactured home mortgage loan, please visit http://manufacturedhomeloan.org/

When Is Home Refinancing The Right Decision?

May 20th, 2017 Comments off

Homeowners it seems are forever on the lookout for ways to cut down on their bills. And home refinancing has become the method of choice for many. But be careful before you jump into any deal. There are times when refinancing can end up costing you more than you save on your monthly bills. Let’s begin by examining when a new loan makes sense.

Start by looking carefully at your current loan. Do you have an adjustable rate? If so you may end up saving money by locking in a low fixed rate. The only time an adjustable rate is good is if you get the loan when rates are high. Having or getting one now however, with rates the way they are, is probably not a wise choice. Shifting to a low fixed rate can save you thousands over the course of the loan. Make no mistake, the rates will go back up eventually. That’s not a prediction, just a fact that rates change. When they do go up, it won’t bother you because you’ll be locked in at a great rate.

Another good time to refinance is if you have a balloon payment that will be due soon, and you simply don’t have the funds available. Finally, if your current mortgage has a rate higher than the current market, then seriously look into refinancing. Even a savings of 0.25% can make a huge difference over the course of a 30 year loan.

Of course that all sound great but naturally there are some things to look out for as well. Carefully examine the closing costs. Refinancing is not free and some of the costs associated with it can be pretty significant. Once you know the costs, do some figuring to determine how long it will take to to recover that money from the savings you see each month.

The reason this is so important is because people rarely stay in one house for the duration of their loan. If moving is something you might be doing in the near future, you’re simply giving away money. You should be reasonably sure you’ll be in your current house at least long enough to make up what you spend in closing costs.

Also determine if your new loan has a pre-payment penalty. Most of them will, at an average cost of 2-5 years. This can hurt your bank account in two ways. Again if you are moving and will be taking out a new loan, or if you simply decide you want to pay it off early. Either way, you have to consider the money you will spend in penalties and compare it to how much you are saving monthly.

Of course the most obvious thing to look at is your monthly payment. Many people choose a cash out option when refinancing. This means money in your pocket now, but it also means a higher balance on your loan. Even if your interest rate goes down, it is conceivable that your monthly payment will actually go up. The best situation is to get a rate significantly lower while using a cash out option. This means money now and lower payments, even with a higher balance.

Home refinancing can be a great way to cut down on your monthly expenses, and also give you some spending money if you need it. But doing it at the wrong time and under the wrong conditions can cost you money that we’re sure you don’t want to give away. Always check your savings against any fees and penalties, as well as other factors such as a potential move. If everything checks out in your favor, don’t just go with the first offer you receive. Shop around. You’ll be surprised at the difference in rates in terms that exist. And get recommendations from friends and relatives as well.

Good decisions can be extremely beneficial to your financial well being.

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The Reason Why Refinance Is A Great Idea.

February 2nd, 2017 Comments off

The recommendation of many experts is for homeowners, unable to cope with the country’s economic see-saw trends, to refinance their mortgage which is constantly at risk from the unpredictable adjustable interest rates. Of course, not many see why refinance is the most recommended option, and it takes them a while to appreciate its features, mainly because they need to understand it more.

Residents can opt for refinance for different reasons. Initially, they might want to do this to bring down their monthly payments. A second reason would be the chance to change their terms from an adjustable interest rate to a fixed rate. It is also possible that the third reason would be to allow them access to any accumulated equity they may have on their house, and finally, the fourth reason would be to cancel the burdensome mortgage insurance fee. If you are from the United States, a refinance is an option that will always be available to you. You can get a Philadelphia refinance, a Nashville refinance, or a refinance for any other place in the United States.

How exactly does refinancing work for a homeowner with a 30 year loan? If you got approved for your loan before the sub-prime mortgage crisis, then you were probably given an interest rate of over 7%. If you look at the current rate today, you will find out that it is now pegged at about 4 to 5% which is at least a 2 percentage point off the old rates. Thus, if you refinance your loan, you can lower your monthly payments, and end up saving in the long run.

Of course, there are other factors you need to be aware of that will dictate how much lower your monthly payments will go.

If you compute how much you will be charged for the refinance, and forecast how long it would take you to pay it off, then you will be able to know at what point you broke even as far as the refinance fees are concerned. If your computation brings you to a period on or before 20 months for break even, then you should seriously consider the refinance since you would have paid off the additional expense early and still have quite a number of years to go for your loan to be completely paid.

You should also consider the kind of rate you are getting. An adjustable interest rate may give you the benefit of low monthly payments, but you are vulnerable to rate adjustments which can happen on a regular basis. Your other option would be to shift to a fixed rate, or a combination of both.

An adjustable rate mortgage (ARM) could be your first rate when you start your new refinance agreement, then after several years, you could shift to a fixed rate. If you plan to move out within 5 years time, then this plan will work best for you.

On the other hand, if your plans are for a lengthy stay, it might be better to get a fixed rate throughout the term. At least, this way you know exactly what you are paying every month. If you want, you could pay the closing fees ahead to lower your monthly dues. Making customized arrangements on your refinance plan with your broker is very easy to do. Just make sure that the lines of communications are always open and clear so you get to discuss different creative ideas and that you have sufficient time to plan everything properly.

There is one other option you should consider which is your home equity because if you have accumulated at least 20%, you can request for the mortgage insurance fees to stop, or you could use your equity to fund some other expense if you cash in on it. There are more ways to work out your mortgage through finance, and you can learn by logging on to mortgagesandhomeloans.net.

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What Are The Various Uses For A Remortgage And A Secured Loan?

June 2nd, 2013 Comments off

As both secured loans and remortgages require to be secured against a cast iron guarantee,namely a property in this instance,these home loans are only available to homeowners.

The asset is generally the main residence of the applicant but some remortgage and secured lenders advance these products on holiday homes.

Remortgages and secured loans have a great deal in common and in particular they have the link that they have a multitude of uses.

Remortgages and secured loans can be used to buy vehicles whether it is a car, motor home, motor bike or even a boat that takes your fancy.

Funding home improvements with a secured loan or a remortgage can be the most cost effective way as repayments can be made from a five to a twenty five year period thus making the home improvements affordable.

Taking out remortgages or secured loans as a means of funding home improvements will get you a good deal when buying the materials needed and the carpenter, etc. will also reduce his rate.

Another popular reason for taking out remortgages and secured loans is to clear off debts on personal loans, credit cards, etc.This low interest route will grant enormous savings and make life simpler.

To a great extent it is only the borrower himself who can make the decision as whether a remortgage or a secured loan is better.

Whichever one you choose depends on which one suits you best. Seeking the opinion of an expert remortgage and secured loan broker can help you decide.

Remortgages normally take over a month to pay out where as homeowner loan funds cann be received in just over two weeks.

You can find these experts on the inter net by typing in such keywords as secured loans, remortgages, homeowner loans, mortgage brokers, etc.

Remortgages, Mortgages And Secured Loans Are All Forms of Home Loans

February 28th, 2013 Comments off

There are a number of different loans that have so much in common that they are linked by the common name of home loans.

These home loans are all connected to property and that is the reason for the general term.

Some of the home loans included in the group known as home loans are secured loans , A.K.A. homeowner loans, as well as mortgages and remortgages.

In spite of the fact that mortgages, remortgages and secured loans have a lot in common they are used in different ways.

Mortgages are the home loan that everyone needs to either get on to the property ladder or to buy a second, third or fourth property, etc.

Most people move to a different property after a number of years and so they have to apply for a number of mortgages over a period of time.

Mortgages are normally set at their original rate for a certain number of years during which they would have to pay a penalty if they settled the mortgage early, and this applies to both tracker and fixed rate mortgages.

However after the agreed period most homeowners decide to remortgage rather than stay with their own mortgage provider, making a remortgage the moving of a mortgage from one mortgage lender to another.

On some occasions a homeowner arranges a remortgage to obtain a better interest rate than the SVR of his current lender and at other times he wants to raise additional funds for various purposes.

Homeowner loans or secured loans are very much like remortgages but they do not replace the existing mortgage but stay as a separate entity behind the current mortgage which stays exactly as it was.

Both remortgages and secured loans can be used for many purposes including fitting a new kitchen or bathroom , building a conservatory to buying a caravan, going on a cruise or almost any other reason.

A very popular use for both secured loans and remortgages is for debt consolidation which is the combining of expensive credit card debts and personal loans into the one and a low interest remortgage or homeowner loan replaces all other debts.

Looking to find the best deal on homeowner loans then visit www.championfinance.com to find the best remortgages for you.