PERSONAL LOANS

A personal loan from a lender such as a bank or credit union is dubbed a personal loan because it is an unsecured loan which is not backed by some form of collateral Personal loans can be used for any reason but the interest rates on these types of loan are generally rather high compared to other types of loans personal loans,equity loans,home loan,car loan,equity loan,home equity loans,student loan,auto loans,bank loan,business loan,cash loan The amortization of personal loans varies with the interest rate usually lower for loans with shorter terms.A personal loan from another person whether its a friend family member or some other benevolent person willing to loan you money for a down payment may or may not include interest payments and might not have a formal repayment structure The terms of this loan depend on the agreement between you and the person lending the money for the down payment. When you apply for a personal loan an inquiry appears on your credit report This means that even if you dont want your mortgage lender to know that you are applying for a personal loan to cover the down payment it will probably still be discovered whether or not the account has even shown up on your credit report at the point you apply for a mobile home mortgage It is better to be upfront when applying for the mobile home loan instead of attempting to covertly borrow the down payment funds. haracter loans are extensions of funding that are granted based on factors other than the declaration of collateral. Generally, a character loan is granted when the lender determines that the loan will be repaid in a timely manner without the need for some sort of security. Signature loans are one common form of the character loan.A lender may choose to extend a character loan based on a couple of factors. First, the lender may be very familiar with the reputation of the borrower, and have every confidence in the ability of the applicant to repay the loan according to terms. This approach was often employed with long standing clients of local banks in times past, and continues to be somewhat common in many smaller bank chains. The lender often will have dealt with the borrower in the past, and have found the business relationship to be mutually beneficial. When this is the case, there is usually not any problem in obtaining the character loan.The second factor has to do with the personal credit history of the applicant. Even if the lender has not had prior business dealings with the borrower, it may still be able to obtain a character loan based on this consideration. By checking the credit history of the individual, the lender can get a good idea of the current level of indebtedness in comparison to income and how well the applicant keeps up payments on current debts.

Persons who are able to obtain character loans tend to exhibit a great deal of business and financial integrity. The dedication to repaying debts on time and keeping finances in order will often increase the confidence level of many lenders, and at least open the door for negotiations. When this high level of credit worthiness is coupled with possessing an excellent reputation in the business community, the potential for being able to obtain a character loan is very good. A loan is a financial transaction in which one party agrees to give another party (the borrower) a certain amount of money with the expectation of total repayment. The specific terms of a loan are often spelled out in the form of a promissory note or other contract. The lender can ask for interest payments in addition to the original amount of the loan (principal). The borrower must agree to the repayment terms, including the amount owed, interest rate and due dates. Some lenders can also assign financial penalties for missed or late payments.Because a loan can contain many hidden costs such as interest payments and finance charges, many people tend to avoid applying for one until it becomes absolutely necessary. Purchasing a new vehicle or home almost always necessitates some form of financial loan, whether it be a bank mortgage or a private loan with the seller. Financing a higher education may also require a federally-backed student loan. Interest rates on these types of large loans can be fixed at the time of the application or may vary according to the federal prime interest rate.There is a very important legal difference between a gift and a loan. A very generous relative or friend may give you $5000 for car repairs, for example. If there is no expectation of repayment, the money can be considered a gift. The giver could not sue for repayment later in a civil lawsuit. But if the lender designates the money as a loan and the borrower pays back even one dollar, the money can be considered a legal loan and the lender can demand repayment any time. Small claims courts spend much of their time determining whether or not a transaction involving money was a gift or loan. This is why paperwork is essential when making private loans to friends or relatives.

Secured loans are those loans that are protected by an asset or collateral of some sort. The item purchased, such as a home or a car, can be used as collateral, and a lien can be placed on such purchases. The finance company or bank will hold the deed or title until the loan has been paid in full, including interest and all applicable fees. Other items such as stocks, bonds, or personal property can be put up to secure a loan as well.Secured loans are usually the best way to obtain large amounts of money quickly. A lender is not likely to loan a large amount without more than your word that the money will be repaid. Putting your home or other property on the line is a fairly safe guarantee that you will do everything in your power to repay the loan.Secured loans are not just for new purchases either. Secured loans can also be home equity loans or home equity lines of credit or even second mortgages. Such loans are based on the amount of home equity, or the value of your home minus the amount still owed. Your home is used as collateral and failure to make timely payments can result in losing your home.

REFINANCE

When an owner obtains a new first mortgage on his real estate, the homeowner has undergone a home refinancing. Simply put, think of home refinancing as trading in an old first mortgage for a new first mortgage.To refinance a home, the homeowner must apply for a new mortgage. During the application process, the subject home will undergo a new appraisal to determine its value, and the homeowner's credit file will be reviewed. The lender will also order a title report on the property to search for any other liens that may appear. fast loan,loans for bad credit,loans with bad credit,refinance loan, secured loan,student finance,unsecured loan Assuming all these items meet with the lender's approval, the loan will be approved. Once approved, the homeowner will meet typically at the office of the lender or title company to sign the new mortgage. The proceeds of the new loan will be used to pay off the old first mortgage as well as any additional mortgages and liens on the property. Accordingly, the only mortgage showing on the home after the refinance will be the new loan itself. Homeowners frequently seek to refinance their home when interest rates fall below the rate they had on their mortgage when they first bought their home. For instance, if a homeowner had a 30-year mortgage at 8% and a loan of $100,000.00, it would be wise to seek a refinance if the interest rates fell to 6%. The savings in such a situation would be $134.00 per month. Over the life of the loan, the savings could reach a total of $48,240.00. If the loan was for $200,000.00, the monthly savings would be $268.00, an almost $100,000.00 savings over the life of the loan. Accordingly, when determining if it is worthwhile to refinance a home, the homeowner should weigh the long term savings against the costs involved in the refinance and the length of time the homeowner intends to stay at the home to insure that the refinance is worthwhile.Costs typically involved in a refinance include: points, document preparation fees, tax service fees, title expenses, appraisal fees, and other lender's costs. Of these, the "points" are typically the most expensive. Using the $100,000 loan example again, for a refinanced loan with one point (1%), the homeowner would pay a fee of $1,000.00 to secure the loan. If two points (2%) are being paid, then the homeowner would pay $2,000. A refinance constitutes obtaining financing through a new mortgage loan for the purpose of paying off an existing mortgage loan. Though there are numerous ways to proceed with a refinance , there are two basic types, and the reasons for refinance nancing depend on individual financial situations.A straight refinance is the most common refinance nancing situation. A straight refinance means a borrower is only refinance nancing the exact amount he or she owes on an existing mortgage. Often, people do this to change either the terms of their mortgage loan or their interest rate. A refinance that carries a lower interest rate than a homeowner’s current interest rate saves the homeowner money over the course of the loan, and sometimes lowers his or her monthly payment. People sometimes proceed with a refinance to extend the terms of their loan, which can also lower monthly payments, but this is a situation that should be avoided when possible, unless the interest rate can simultaneously be reduced. A cash-out refinance is another common refinance nance. A cash-out refinance means borrowing more than the amount one's home is currently worth, up to an allowed maximum. The cash-out refinance differs from a straight refinance in that the homeowner is not just borrowing the amount he or she owes on a current mortgage, but also borrowing against the equity in the home. People might use a cash-out refinance to pay for college, make home improvements, or consolidate debt. The last option is not usually recommended, and should be pursued with caution and under the advisement of a financial planner or councilor. The conditions for approval of a refinance are slightly different than for a purchase loan. Most lenders will not allow a homeowner to refinance nance 100% of the home’s value. Offers from lenders that allow refinance nancing based on 100% or more of the home’s value should be examined closely, and one should never borrow more than the home’s actual market value. A refinance , either cash-out or straight, should benefit the borrower by lowering his or her mortgage interest or providing access to equity at a lower interest rate than a conventional loan. A qualified lender will discuss your situation with you and present you with options that are financially in your favor. If the lender only seems interested in closing the loan, look for a different lender.

DEBT CONSOLIDATION

Debt consolidation is a debt reduction system that allows consumers to combine their assorted unsecured debts into one payment. Instead of sending out payments on six or seven bank and store credit cards, for instance, you would make one payment to the debt consolidation company and that company would then disperse the funds for you.This money management system can be extremely advantageous to the consumer as the debt consolidation company will generally negotiate a reduced interest rate, a reduced balance, a lower monthly payment, eliminate late fees, and set a term when the debt will be paid off in full. This may save the consumer large sums of money in the long run. A financial management system like this is far superior to paying the education loans,home improvement loan,housing loan,pay day loan,small business loans, student loan,emergency loan,short term loan,debt consolidation,low rate loans,quick loans minimums on a credit card every month and watching as the balance continues to grow through the years. Mortgage loans and car loans are not subject to consolidation as these loans are secured. Unsecured loans like bank credit cards affiliated with Visa and MasterCard, and assorted department store credit cards (Marshall Field, Dayton's, Lord & Taylor, etc,) are typically the items put into a debt consolidation program.Creditors view debt consolidation positively since the consumer is showing a strong, good faith effort to take responsibility for and pay his or her debt. While a bankruptcy allows consumers to wipe out their debt and start fresh, it also tends to destroy a consumers credit background. After a bankruptcy, a creditor will have difficulty establishing credit for almost seven years. With a debt consolidation, on the other hand, a consumer can greatly reduce his or her debt, combine multiple payments into one payment, and preserve their credit background by avoiding bankruptcy. There are debt consolidation companies in almost every city and town in the United States. The Internet also lists such companies that are willing to help consumers begin to eliminate their debt.

COLLATERAL LOAN

Collateral loans are also called a secured loan. It is a loan obtained from a banking or other financial institution, where in exchange, the creditor may sell that which is offered for collateral if the loan is unpaid. A collateral loan is often offered at a lower interest rate than an unsecured loan, because there is a guarantee of repayment should the borrower default on the loan.

A collateral loan may use different things to secure the loan. Often people use stocks or bonds to establish a collateral loan. They can use their ownership in property, where a portion of perhaps a home, or a piece of land, is set up as collateral. If the borrower defaults, he must sell the property to pay back the loan, and the lender has rights to sell the property also, even if only a portion of the full value belongs to them. In these cases, a lender would sell the home, and give the previous owner the monies not offered on collateral.

A collateral loan may also be based on expected collateral, like the expected return on a harvested crop, or on an investment. Occasionally, one can use property like high valued jewelry as collateral, or other high valued goods. This is rare, as most collateral loans are based on paper assets, or on real estate.

If the collateral given decreases in value and the borrower defaults, he or she will still be responsible to repay the amount at which the collateral was previously assessed. For example, a person borrows $100,000 on a home of the same value. If the home decreases in value, say to $75,000, the borrower must still pay back the full amount, as dictated by the terms of the collateral loan. If a borrower has defaulted on the collateral loan, his or her home will be sold. However, the borrower will still owe the lender $25,000. This may require the borrower to sell more possessions or enter bankruptcy.

HOME LOANS

A home equity loan can provide the cash you need for home improvement college tuition debt consolidation and much more If you are interested in finding out how you can tap into your equity with a loan read on to learn more.Most people purchase a home as a place to live but homes can also serve as an investment This is because homes are constantly increasing in value As you make monthly mortgage payments you decrease the amount owed on the principal The result is equity The amount of equity that you have built in your home depends on how much you still owe on the house and how much the house is currently valued at For example if your house is appraised at $100 000 and your current mortgage balance is $60 000 then you have $40 000 in home equity Your home equity can be withdrawn at any time All you need is the proper loan.Home equity loans are similar to a second mortgage You borrow money from a lender using your home as collateral You must then pay back the cash that you borrowed The time frame that you have to pay back the money depends on the terms of your loan Some loans have terms as short as one year while others have terms that last up to 20 years.In general equity loans are relatively easy to obtain and is often easier to qualify for than a first mortgage This is because you already own the house and carry most of the risk If you default on your home equity loan your lender can seize your home and sell it to recoup the loan amount. Home equity can be tapped into in two ways that are often confused loans and home equity lines of credit Though both methods of financing use the equity that you have built up in your home they work a bit differently Home equity loans are lump sums of cash that are given to the homeowner upon approval Home equity lines of credit on the other hand are revolving lines of credit that work similarly to a credit card Though you will be approved for a specific amount that can be withdrawn at any time you wish you will only make payments on the money you use If you never use any of the funds that are available to you through your home equity line of credit you will never have any payments.Though both methods of financing have their advantages there are also drawbacks to each Before deciding between the two avenues you should do some research on each option to determine which one best fits your financial situation.

A home equity loan allows homeowners to access the equity in their primary residence without having to sell the property. Equity is the difference between what a home is worth and what is owed against it. Traditionally, home equity loans were called second and third mortgages.

Equity in a home comes from two sources. Mortgage payments, over a period of time, reduce the amount owed against a property, and real estate appreciation increases the gross value. After several years of making mortgage payments, the equity accrued can be substantial. For example, a home purchased for $250,000 with a zero down payment mortgage and appreciating 5% a year may have $50,000 in equity in as little as five years.

Banks and finance companies often given favorable rates on home equity loans as real estate is perceived to be a very stable investment. This is especially true when the economy isn't struggling, as real estate has a long history of appreciation.While home equity loans have favorable rates relative to auto loans or credit card debt, the rates are still higher than for a first mortgage. A home equity loan can be turned into a first mortgage through a process known as refinancing.There are many different lenders who now specialize in home equity lending The lender that you choose will be one of the most important decisions that you can make during the process Not all home equity lenders are legitimate and choosing the wrong one could be devastating to your finances To make sure you choose a reputable lender you will need to do your homework. Start by contacting traditional lenders as well as online lenders Ask for free rate quotes from several lenders and then contact the Better Business Bureau to check for any complaints on these companies Once you have narrowed your choice to three lenders or less begin making comparisons between the interest rates lending fees and loan terms and conditions that are being offered to you Choosing a lender who provides low interest rates and reasonable lending fees can save you hundreds or even thousands of dollars over the life of your home equity loan