Posts Tagged ‘Equity Loans’

Personal Loans: Where To Find Them

June 17th, 2010



So, you are in need of some cash. Your family members, friends, neighbors, even your golfing buddy are all tapped out. Trouble is, your car payment is due in 3 days and you can’t be late. That Pontiac Solstice sitting in your drive is a great ride, a chick magnet, and more precious to you then food. Okay, a bit of an exaggeration, but you get my point: you need money and you need it now! Personal loans abound and they are one solution to a crisis situation. Is a personal loan right for you? More importantly: exactly what are your options? Read on and I’ll show you the way!

Payday Loans: Payday loans have gotten a lot of press over the past few years as they are a great way to secure personal loans quickly and easily. However, fees and interest rates are high so if you aren’t planning to pay it off within a few days you’ll end up paying extra charges.

Cash Advances: Credit Cards are another way for you to secure a personal loan. By drawing on your card’s cash advance feature, you can borrow a few hundred to a few thousand dollars without seeing a loan officer. You’ll pay a fee for the privilege and the interest rate on a cash advance is quite high. However, if you can pay the loan off quickly it could be a viable personal loan alternative for you.

Equity Loans: If you own a home, your house may have some equity in it. Some lending institutions are so eager to lend money to you that they’ll approve a loan on the spot. Be careful: the rate could be high and you are putting your house on the line. That Pontiac Solstice convertible may not be worth that sort of aggravation!

Friends, Family Members: Ah, now for a test of your familial relationships. Ask Mom, Dad, Gramps, Aunt Bea, or Sis for the funds. That cold hard stare back from them probably means “no” but it could mean yes if you whimper. Groveling could help too. Seriously, a family loan could mean a low or zero interest rate for you. Better than the rate the loan shark guy at work wanted to charge you, right?

Retirement Funds: More than likely you won’t be able to tap your retirement funds within three days time, but borrowing from your 401(K) can be a wise decision. Just remember to pay the loan back with interest to avoid tax penalties. Besides, that Pontiac Solstice will look pretty ratty when it comes time to bid your work place good-bye.

Yes, you do have choices when it comes time to securing a personal loan. Some options are better than others so it behooves you to check the fine print when seeking personal loans. Personal loans can be a good option for you for the short term, but likely a long term solution could involve you getting rid of that pricey Pontiac Solstice!

By: Matthew Keegan

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Loan Refinance

January 22nd, 2010



There are many ways in which Loans can be categorized. When we say Loan, we are talking about big Loans, not payday Loans. If we categorize them based on their nature, there are 4 types: Mortgage Refinance Loans, Home Equity Loan, Debt Consolidation Loans and Personal Loans.

Whatever the type of Loan, the process involves certain procedural steps.

A Home Equity Loan is a type of Loan in which the borrower is expected to repay a fixed amount of money over a fixed time period. This is confirmed by a `line of credit’, an agreement that is signed by the borrower. However, there is a flexibility option in which the borrower can pay interest only on the amount used.

A Debt Consolidation Loan is the best option if the person is repaying several different Loans simultaneously, such as numerous credit card balances. The debt consolidation process combines all these into one Loan. In other words, the person gets one monthly statement and pays only once a month. Though debt consolidation is a good option, there are limitations. If the Loan is stretched out over a longer time period, the interest may become higher.

Next is the Personal Loan. It includes any large amount of Loan meant for higher studies [Student Loans], starting a business, or other options.

Whatever the type of Loan Refinance, credit situation tracking remains of fundamental importance. Though this can be done by one’s self manually, or by hiring a Loan professional, there are excellent alternatives available today, with many computer tools such as Microsoft Money 2005 Deluxe. They come with price tags in the $30 – $60 range.

By: Ken Marlborough

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Mortgage-Refinance Loan Can Put Cash in Your Pocket

December 24th, 2009



Do you need cash? Here’s a mortgage for you. If you are not in a good position to take an equity line of credit on your home, because you have not built enough equity or a poor credit situation is making bankers steer clear of you, altogether, there is another option — the cashout refinance.
This loan does what the equity line does in most cases, but it is not an interest-only loan, and it has conventional mortgage terms. The advantage for people without enough equity and less than perfect credit is you can get at what little equity you do have by refinancing to a new conventional mortgage, taking cash out at the close of the loan.

Here’s how it works.

Let’s assume you have a home valued at $110,000. You owe $86,000, and you would like to get $8,000 in cash to pay off two small credit cards with high interest and to do some minor rehab work on you home. With your B credit rating, banks won’t give you 100 percent of your equity or even 95 percent, so an equity line won’t work.

However, you will qualify for a 90 percent cashout refinance loan. In order to keep your costs down, you combine this strategy with another one, an adjustable rate mortgage, and this helps you maintain a low monthly payment.

You need about $4,000 to close the loan (remember it’s a conventional mortgage with all the closing costs — equity loans can be closed with no costs at all). The closing costs, though, will be financed into your new loan, so you don’t have to come out of pocket with any money.

So, you get a new mortgage for $99,000, which pays off your old fixed rate mortgage loan, covers the closing costs and, best of all, leaves you with $9,000 in cash — $1,000 more than you actually need.

The ARM rate is probably one percent less than your old fixed rate, so your payment will stay close to what it was. Plus, you eliminate monthly credit debt, so you have created even more cash! This is just an overview of a very powerful loan.

By: Mark Barnes

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