Home Equity Loan After Bankruptcy - Should You Use A Prime Or Subprime Lender? By L. Sampson

Right after a bankruptcy, your best choice for financing is a subprime lender. Subprime lenders are willing to lend to those with bad credit, even if a bank has turned you down. But if you have improved your credit with time, cash assets, or a high salary, you can get better financing rates with a prime lender.

Begin Your Credit History With A Subprime Lender

Subprime lenders are more lenient with their loan qualifications than prime lenders. As soon as your bankruptcy has finalized, you can qualify for a home equity loan with subprime lending companies.

Rates vary between 1% to 12% over prime rates. The first year after a bankruptcy, rates and fees will be at their highest. After 12 months and a positive payment history, rates will drop by a point or two. 24 months after your bankruptcy, your credit score is largely based on payment history, debt ratio, and income – not your past bankruptcy.

Terms and conditions are also more flexible with a subprime company. They are more willing to offer 100% financing. With some loans, you can include finance fees as part of the principal.

Apply For Prime Financing Sooner Than You Think

Prime home equity financing isn't just for people with perfect credit. You can qualify for prime rates even if you had a bankruptcy two years ago, a late payment on an installment or revolving account, or a debt ratio of 45.

Prime loans offer the lowest financing rates and fees. You are also subject to fewer fees in most cases. Prime lending offers traditional terms, which may limit how much you can borrow.

Where To Find Your Lender

With recent changes in the financing sector, most lenders offer both prime and subprime loans. While most traditional banks and credit unions will offer financing to those with poor credit, they won't always approve home equity loans for people with recent bankruptcies.

Start your financing search by asking for home equity loan quotes from all types of lenders. Be honest about your credit situation, income, and assets. That way you get loan estimates you can rely on.

With some time spent researching financing companies online, you can discover good terms for your next home equity loan.

Resource: http://www.isnare.com/?aid=75526&ca=Finances

Interest Only Mortgages - What You Need To Know Before Obtaining One By Joseph Kenny

Buying a home is a dream that just about everyone has. Unfortunately, many individuals are unable to afford a home without assistance. Even with financial assistance, in the form of a mortgage, there are still many individuals who find it difficult to own their own home. In recent years, the popularity of interest only mortgages has increased. Interest only mortgages are often viewed as a way to save homeowners money, but are they really?

Interest only mortgages are just what they sound like. For a period of time, you will only have to pay the internet rate of your loan. Instead of making large monthly payments, you will only have to pay the dollar amount of your interest. To many individuals, this means a large savings, but only in the beginning. After the interest only period has ended, you will be required to start making regular payments. Because full payments were not made in the beginning, your monthly payments will be higher than normal.

Saving money, even if only for a short period of time, is appealing to many individuals. That is why interest only mortgages are so popular. Unfortunately, many individuals end up in financial trouble because of them. In addition to experiencing financial difficulty, there are some individuals who have even lost their homes. That is why it is extremely important to fully examine and understand interest only mortgages before trying to obtain one.

In the past, interest only mortgages were only obtained by wealthy individuals. Many of these individuals could afford to make the higher monthly payments later on. Now, interest only mortgages are popular among individuals of all social standings. While interest only mortgages are pushed and offered to all, there are some who may benefit from them and others that may not. Before agreeing to an interest only mortgage, you are urged to determine what type of individual you are.

Most individuals get paid a certain amount of money each week. Others get paid commission or multiple bonuses a year. If you are one of those individuals, you may be able to benefit from an interest only mortgage. If you are sure that you will see an increase in income in the future, you may not have a difficult time making the higher monthly payments once the interest only period has ended.

If you live paycheck to paycheck or if you only receive a set amount of money each week, you may want to obtain a traditional mortgage. Too many individuals are purchasing homes that they cannot afford. This is often because interest only mortgages lead them to believe that they actually can afford them. If you cannot or do not expect to be able to afford your regular monthly mortgage payments, you are encouraged not to obtain this type of loan. Not paying your mortgage can result in damage to your credit and the loss of your home.

You should be able to determine for yourself whether or not you can benefit from an interest only mortgage. If you are unable to do so, you may want to consider seeking professional guidance. Real estate agents, accountants, and financial advisors may be able to offer you assistance with the process of buying and affording a home. Whether you seek professional assistance or not, you are advised to fully examine your decision. If you don’t, you can forever end up suffering the consequences.

Resource: http://www.isnare.com/?aid=74672&ca=Finances

Credit Card Debt Elimination - When To Consolidate Credit Card Debt By L. Sampson

Maybe you have a few too many credit cards, or perhaps you just can't keep your financial paperwork organized. When it seems like the bills are becoming overwhelming, you may want to consider consolidating your credit card debt. Here are some warning signs of debt overload:

You can't keep track of your bills.

If you have four, six or eight different account statements coming to your mail every month, it may be hard to keep track of when all the payments are due. Although an organized bill-paying system--including a calendar and central bill-paying location--can help, sometimes folks are just too busy or too overwhelmed to cope with all the paperwork. A debt consolidation service can help you organize your bills and limit your paperwork to just one single monthly payment.

You've stretched your budget.

Sometimes it might be a matter of spreading your money too thin. Have you ever waited to pay one bill because you needed the money to pay another bill? Have you ever borrowed from one credit card to pay another credit card company? If so, chances are your credit is overextended. If that's the case, a debt consolidation service can often help lower your interest rates and your minimum monthly payment, making it easier for you to pay your bill each month.

The phones have started ringing.

No matter what the reason--lack of organization or a stretched budget--once creditors start calling you and demanding payment, it's time to take a close look at your financial situation. At this point, you may have damaged your credit history and lowered your credit score. However, you can repair the damage with a debt consolidation company. The service can help you get your monthly payments back on track, and they can negotiate with your creditors so that fewer black marks are put on your credit report.

If you see any of these warning signs of debt overload in your own personal life, you may want to consider credit card consolidation. By utilizing a debt consolidation service--or consolidating your debt on your own with a loan--you'll improve your credit history, help avoid negative marks on your credit report and increase your chances of getting a favorable loan or credit card in the future.

Resource: http://www.isnare.com/?aid=75259&ca=Finances

Debt Counseling - How To Deal With Creditors By Bill Smith

Have bills being piling up lately and you are unable to make payments? Are you unable to make even the minimum payments on your credit cards? Are you not picking up the phone due to fear of the caller being your creditor? Does all of your debt problems lead to anxiety and depression?
Relax, there is hope.

Pick-up the phone.
Not picking up the phone is not the best of choices I would recommend. You never know, your creditor might be willing to reduce your obligations or slash down the late fees. Pick the phone and talk it out with your creditor and see what is in store for you.

Be calm and factual.
When you are calm, you can very well expect the other party to be calm as well. Be brief about not being able to make payments and be factual if there is any good explanation.

Convince the caller.
Convince the caller that you will start to make payments very soon. Create an impression that you are knowledgeable and trustworthy. The caller is just someone acting on behalf of your creditor and may very well not be your employer. Making his task easier will give you a breather. Give him a chance to respond better and before you know, he might recommend ways of getting out of the debt mess. More than your past history, your current calm attitude will go a long way in convincing the caller that you are more likely to cough up the money.

Explain your problems.
While explaining your problems be factual as far as possible. Give them events or dates when things started to get out of hand. Tell them the mistakes you had made and how you intend to pay them back. Do everything you can to improve your relationship with the creditor and avoid getting in hot water with them.

Suggest a time-line
Suggest a time-line during which you will start making payments and the amount you can currently afford to pay. Creditors will be more than willing to accept your time-line because frankly most of them do not have other options. Convince them you will stick to your schedule and cut out checks as soon as money is available.

Credit counseling.
If you think you will not be able to get out of your debt problems, contact a reliable credit counseling or debt consolidating firm in your neighbourhood. Consolidating your debts might be the answer to unlock the hidden equity in your home and free you from the debt burden. Even if you do not own a home, debt consolidators will still be able to help you with novel ways of reducing debt.

Resource: http://www.isnare.com/?aid=75824&ca=Finances

Low Rate Home Equity Loans - Refinancing For A Shorter Term And Better Rate By L. Sampson

Looking for a better rate is a common reason people choose to refinance their home equity loan. But did you know that shortening your loan term can save you more money than reducing rates? Combine the two and you will save yourself thousands in interest costs and trim years off your payment schedule.

Why Time Matters

While most people focus on comparing rates when looking at loans, they should be equally concerned about the length of the loan. The longer you pay interest on your home equity loan, the higher your interest costs, even with a low rate.

For instance, take a look at a $30,000 home equity loan. Its interest at 6% for 10 years equals costs $9967.43. Interest for a 5 year loan for the same amount but at 7% is just $5642.12 – saving you over $4000.

With some companies, you can also qualify for lower rates by choosing a shorter loan period. Adjustable rates can also reduce your rates, but with the chance that your loan term may be extended.

Rates Still Matter And So Do Lenders

There are a number of costs to consider when looking to refinance your current second mortgage. Interest, closing costs, and annual fees can all add up to thousands. That’s why it is so important to investigate different lenders before settling on a loan.

By looking at loan quotes, you can truly find the cheapest loan for your situation. Loan quotes also give you the opportunity to fiddle with loan terms without hurting your credit score. So with real numbers you can decide whether you want a fixed or adjustable rate, 5 or 30 year term, or a cash out option.

Make sure that you look at a number of lenders before signing a loan contract. Take a look at the lesser known companies, which often offer better rates to remain competitive. Recommended companies and broker sites are also a good option.

Consumers have more power today to find the best financing by going online. Reading informative websites, looking at instant loan quotes, and asking questions gives you the answers you need to make the right refinancing choice.

Resource: http://www.isnare.com/?aid=75537&ca=Finances