By Peter Gitundu
Getting loans can sometimes prove to be a tricky affair, especially if you have bad credit. Many lenders will consider you a high risk borrower once you present your financial records to them. They might ask you to provide collateral for the loan. If you are a home owner, your chances are better off because you can apply for home equity loans which are more accessible to people with poor financial records.
The home equity loans can be used to do a number of things, including paying fees for your children. You can also take the loan if you feel that your home needs a facelift or needs general repair. The loans guarantee you a large lump sum, the reason being that your home serves as security for the loan.
The lender is therefore assured that they have something to fall back on when and if the borrower who has bed credit records is unable to repay the loan. The value of the loan is is most cases 75-80% of the value of your home. The repayment period is usually on a fixed term but the interest rates are lower as it is with other secured loans. The interest also happens to be tax-deductible.
Before you can apply for the home equity loans, you are advised to carefully look at your financial position and determine whether this is what you really need. You might find that there are better options than this, especially considering that your home is at stake and your credit records are not favorable. You also need to look at your current mortgage balance because it will go a long way in determining just how much you can get.
Peter Gitundu Creates Interesting And Thought Provoking Content on Finance. For More Information On How To Manage Loans, Read More Of His Articles Here: EQUITY BAD CREDIT. If You Enjoyed This Article, Make Sure You SUBSCRIBE TO MY RSS FEED! To Receive My Most Recent Posts & Updates.
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Showing posts with label bad credit home equity loan. Show all posts
Showing posts with label bad credit home equity loan. Show all posts
Monday, September 28, 2009
Sunday, September 20, 2009
Bad Credit Home Loan Refinancing - Learn How it is Possible and Can Benefit You
By Julian Lim
There are many reasons that you may want to refinance your home. Perhaps you have a pressing medical need or to help a child with college expenses. Maybe you need to consolidate some bills or lower payments. While poor credit may complicate matters, it is possible to find bad credit home loan refinancing.
Many people begin looking for refinancing of a home through their bank. Unfortunately, with the recent events in the banking industry, banks have less money to loan. In addition, most banks have become very particular about which persons are given loans. If you have bad credit, you will not get a loan from a bank.
Just because you do not get a loan does not mean that your financial needs suddenly disappear. You will still have medical bills, the kid still needs to go to college, the bills are still there and the payments remain the same. The only difference is that you have exhausted the possibility of a loan through this particular bank. Just because one place says "no," however, does not mean that you should give up on the thought of refinancing your home. Instead of the bank, you should find a company that specializes in bad credit home loan refinancing.
Today many people are facing the tragedy of foreclosure. Economic times have caused people to face the threat of losing their long time family homes. Bad credit home loan refinancing is sometimes the only way to avoid foreclosure. By refinancing your home, you can pay off that mortgage that is threatening foreclosure; reduce your current payment and interest rate. It is like turning over a new leaf. You get to start with a clean record with the new finance company and the old loan is paid in full. In fact, if you have a second mortgage on your home, it may be possible to combine the two loans into one, with only one monthly payment.
If you need to refinance your home but your credit is far from perfect, then you will need Bad Credit Home Loan Refinancing. To find more about your options, visit http://www.homemortgageloan-refinance.com/Bad-Credit-Home-Loan-Refinance.php.
Article Source: http://EzineArticles.com/?expert=Julian_Lim
There are many reasons that you may want to refinance your home. Perhaps you have a pressing medical need or to help a child with college expenses. Maybe you need to consolidate some bills or lower payments. While poor credit may complicate matters, it is possible to find bad credit home loan refinancing.
Many people begin looking for refinancing of a home through their bank. Unfortunately, with the recent events in the banking industry, banks have less money to loan. In addition, most banks have become very particular about which persons are given loans. If you have bad credit, you will not get a loan from a bank.
Just because you do not get a loan does not mean that your financial needs suddenly disappear. You will still have medical bills, the kid still needs to go to college, the bills are still there and the payments remain the same. The only difference is that you have exhausted the possibility of a loan through this particular bank. Just because one place says "no," however, does not mean that you should give up on the thought of refinancing your home. Instead of the bank, you should find a company that specializes in bad credit home loan refinancing.
Today many people are facing the tragedy of foreclosure. Economic times have caused people to face the threat of losing their long time family homes. Bad credit home loan refinancing is sometimes the only way to avoid foreclosure. By refinancing your home, you can pay off that mortgage that is threatening foreclosure; reduce your current payment and interest rate. It is like turning over a new leaf. You get to start with a clean record with the new finance company and the old loan is paid in full. In fact, if you have a second mortgage on your home, it may be possible to combine the two loans into one, with only one monthly payment.
If you need to refinance your home but your credit is far from perfect, then you will need Bad Credit Home Loan Refinancing. To find more about your options, visit http://www.homemortgageloan-refinance.com/Bad-Credit-Home-Loan-Refinance.php.
Article Source: http://EzineArticles.com/?expert=Julian_Lim
Friday, September 18, 2009
A Bad Credit Home Equity Loan is the Answer
By Charlotte York
Having poor credit is an unfortunate predicament as it limits your ability to easily access financing when you most need it. Do you have adverse credit and are wondering how a bad credit home equity loan is the answer to aid your ailing finances? A homeowner who has been making regular mortgage payments will likely have built up some equity in their home. The equity in your home is the difference between the home's appraised value and the outstanding mortgage balance. It is challenging to obtain loans when you have bad credit but the probability of getting a bad credit secured loan like a home equity loan is easier.
Getting a home equity loan with bad credit is one of the better things you can do to start rebuilding your poor credit rating. You can use the loan proceeds to reduce or fully eliminate your outstanding unsecured debts that have been adversely affecting your credit score. These unsecured debts such as credit cards and personal loans have exceptionally high interest rates. Lenders can offer comparatively lower rates on a home equity loan because it is secured with an asset, and hence represent lower risk. Consolidating such prohibitive interest bearing accounts into a single home loan will not only save you in financing costs but will also improve your credit score.
Because home equity loans for bad credit are underwritten against your home, you need to consider the consequences of your inability to make good on payments. The lender will not hesitate to foreclose on your home should you default. Therefore, think carefully about your financial status and the potential outcome before choosing this avenue of financing.
Once you've decided that a poor credit home equity loan is right for you, you need to solicit offers from potential lenders. It's important that you research lenders and shop around for the best financing offer. As with most things, you will run into good lenders and bad lenders. There is no need to be hasty and rush into a contract that you may regret.
Charlotte enjoys sharing information on poor credit such as the merits of bad credit home refinancing and how a bad credit home improvement loan can add value.
Article Source: http://EzineArticles.com/?expert=Charlotte_York
Having poor credit is an unfortunate predicament as it limits your ability to easily access financing when you most need it. Do you have adverse credit and are wondering how a bad credit home equity loan is the answer to aid your ailing finances? A homeowner who has been making regular mortgage payments will likely have built up some equity in their home. The equity in your home is the difference between the home's appraised value and the outstanding mortgage balance. It is challenging to obtain loans when you have bad credit but the probability of getting a bad credit secured loan like a home equity loan is easier.
Getting a home equity loan with bad credit is one of the better things you can do to start rebuilding your poor credit rating. You can use the loan proceeds to reduce or fully eliminate your outstanding unsecured debts that have been adversely affecting your credit score. These unsecured debts such as credit cards and personal loans have exceptionally high interest rates. Lenders can offer comparatively lower rates on a home equity loan because it is secured with an asset, and hence represent lower risk. Consolidating such prohibitive interest bearing accounts into a single home loan will not only save you in financing costs but will also improve your credit score.
Because home equity loans for bad credit are underwritten against your home, you need to consider the consequences of your inability to make good on payments. The lender will not hesitate to foreclose on your home should you default. Therefore, think carefully about your financial status and the potential outcome before choosing this avenue of financing.
Once you've decided that a poor credit home equity loan is right for you, you need to solicit offers from potential lenders. It's important that you research lenders and shop around for the best financing offer. As with most things, you will run into good lenders and bad lenders. There is no need to be hasty and rush into a contract that you may regret.
Charlotte enjoys sharing information on poor credit such as the merits of bad credit home refinancing and how a bad credit home improvement loan can add value.
Article Source: http://EzineArticles.com/?expert=Charlotte_York
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