Mortgage & Refinancing Information

Luxury Real Estate Information


Rancho Palos Verdes, California Homes
Palos Verdes, California Homes
South Bay, California Homes
Luxury Mexican Beachfront Homes

Featured Properties


Oceanfront Estate Near Trump National

Related Information


Loan Information
Real Estate Information
Mortgage Refinance Information

Home Equity Loan Risks


Home equity loans give individuals a tool to extend their existing credit line by securing debt on the equity value of their existing homes. This access to easy and cheap money can lure the borrower into securing a debt for reasons which otherwise could have been funded through wise money management.

Following are some home equity loans risks:

Risk of losing one's home:

The biggest risk involved in home equity loans is that of the borrower being rendered homeless. In the case of the borrower being unable to make timely payments of the interest and the principal, the lender can claim the existing house of the borrower. Thus a default in payment can lead to the loss of the home, which is used as collateral for the loan.

Hidden loan conditions:

Consumers who do not pay careful heed to the fine print may fall prey to the intrinsic conditions of the home equity loan, particularly those pertaining to principal and interest payments. For example, a balloon payment of the principal may add to the debt burden of the borrower and the inability to make the payment may result in foreclosure and thus loss of the borrower's house. The lender may also impose legal and procedural fees later on in the term of the loan, which may affect the actual amount payable by the consumer.

Higher interest payments:

If the equity loan is financed at a floating or variable rate, then it is subject to changes depending on the interest rate scenario in the economy. This may be because the interest payments fluctuate out of the bounds of the borrower's reach.

Besides these major risks, the home on which the loan is secured cannot be leased during the term of the loan. The loan on home equity will also effectively increase the time required to pay off the debt on the existing home.

Many times, the easy availability of an equity loan can tempt a consumer to take the loan for day-to-day expenses, which actually add to his existing debt burden.

The investment made by the money raised through raising an equity loan should be financially more rewarding than the interest paid on the loan.

All these factors should hence be taken into consideration before taking a home equity loan.

Home Equity Loans - Rates, in depth articles and professional second mortgage advice. Find the lowest home equity loans rates and lenders.


MORE RESOURCES:

4 ways to get the best mortgage refinance rate
Bankrate.com
If you can shave at least one-half of 1 percentage point off your current mortgage rate, it can be worth your while to trade in your existing home loan for a new one. Here are some tips for getting the very best refinance rate.

and more »


The News International

World Bank, NBP discuss strategies to boost housing finance
The News International
He mentioned certain other challenges being faced by PMRC in starting its operations. Pakistan Mortgage Refinance Company along with World Bank is planning to sign a MOU in the near future with NBP along with other commercial banks to implement the ...
World Bank promises support to expand mortgage lending in PakistanDAWN.com
World Bank explores housing financeThe Express Tribune

all 3 news articles »


NBC New York

Better Get Baquero: Bills Keep Coming After Leased Car Is Returned
NBC New York
He started worrying about how it would affect his credit and his mortgage refinance -- so he turned to News 4's Better Get Baquero consumer investigative team. He wanted to know how the paperwork got lost and for GM Financial to correct the billing to ...

and more »


Boost in collateral, not 'feeling richer,' drives consumers to borrow as home prices rise
Phys.Org
Kleven and his co-authors were able to find a natural experiment in the United Kingdom's mortgage refinance market from 2005 to 2015, a period that encompassed the Great Recession and the recovery that followed. In particular, Kleven said, most U.K. ...

and more »


AmeriServ Financial Reports Earnings For The Third Quarter And First Nine Months Of 2017
Markets Insider
For the third quarter of 2017, the decrease was due to lower revenue from mortgage related fees ($63,000) and residential mortgage loan sales into the secondary market ($43,000) as a result of reduced residential mortgage refinance activity in the ...

and more »


National Mortgage News

Rising rates reduce refi application share below 50%: MBA
National Mortgage News
The share of mortgage refinance applications dropped below 50% for the first time since the start of September, as interest rates rose to a six-week high. The refinance application share decreased to 49% from 50.1% the previous week, according to the ...

and more »


11 Ways to Get the Lowest Mortgage Refinance Rate
NerdWallet (blog)
In the hunt for the lowest mortgage refinance rate, there are some things you can control and some you can't. Rates moving up just when you're about to refi? Can't control that. But there are at least 11 things you can do to get the best mortgage ...

and more »


Kieber: What are your numbers? (column)
Summit Daily News
That is how we are being tracked and the same is true when applying for a home mortgage refinance or a new home mortgage. When it comes time to start the process to obtain a new mortgage there are three numbers that I look at first: your credit score ...



Rising Home Values Can Boost Your Mortgage Refinance
Huffington Post
Rising mortgage rates are cutting the flow of mortgage refinances to a trickle. By now, many people who could have benefited from a lower rate have done so. However, if you're thinking about refinancing but are hesitating because of interest rates ...

and more »


Christian Science Monitor

11 tips to get the lowest mortgage refinance rate
Christian Science Monitor
The best way to earn the lowest rate on a mortgage refinance is to knock out the dents in your credit score and polish it up. Some steps can be as simple as making timely payments on your existing debt and perhaps paying down some balances. Other moves ...

and more »

Google News

home | site map
© 2006 TIGER MEDIA