Wednesday, November 28, 2007

Information About Your Home Mortgage Loan Closing Costs

A home mortgage loan broker should provide you with information about your mortgage loan closing costs. Sometimes you can't predict all the little extra costs involved in closing a mortgage loan. Especially if it's the first time you've gotten a mortgage loan, or it's the first time you've used a particular broker.

Knowing what costs are involved is necessary - you need to know the full expense of getting a mortgage loan in order to see if you can afford to get one when you want to. If a broker won't tell you about the closing costs involved (and especially about their broker fees) it's best you move on to another broker.

Just so you're aware, closing costs for a home mortgage loan generally include:

  • Mortgage loan broker fees
  • Mortgage loan lender fees
  • mortgage loan legal fees
  • Mortgage loan registration fees
  • Disbursement fees

Tuesday, November 27, 2007

What is a Debt Consolidation Loan?

Do you sit down at the end of the month only to stress about the shear number of bills you have? Are most of your bills in the form of credit card payments or other debt obligations? Are you noticing that your interest rates vary for each different debt.? Would you like to potentially save money? Would you benefit by having all of your debt on one single account and by having only one bill to pay? If you answered, yes, to any of these questions, then a debt consolidation loan might be for you. Find out exactly what a debt consolidation loan is in this article.

A debt consolidation loan is a type of loan that takes all of your debt and consolidates it into a single loan. The main advantage is that you have only a single payment to make towards your debt each month. If you've had student loans and have consolidated them into a single consolidation loan, then you know the benefit already. However, there are a couple different types of consolidation loans that you need to consider. These are secured and unsecured consolidation loans.

Secured consolidation loans are loans that you put up collateral for such as real estate. There are several advantages of a secured consolidation loan over an unsecured consolidation loan. The main advantages include having generally lower interest rates, lower monthly payments and overall better loan terms. The major disadvantage is that if you default on your loan, you will lose whatever you put up as collateral.

The second type of debt consolidation loan is an unsecured loan that puts all of your debt into a single loan. While these generally have higher interest rates and less favorable loan terms than a secured loan, if you have no assets or are afraid of losing your real property, then the unsecured loan might be for you.

Remember, taking out a debt consolidation loan should not be a used to overcome poor debt management skills. If you are having serious financial trouble because of your debt, then you need to seek professional debt counseling in order to find more long-term solutions such as learning how to manage your money and your credit. If you don't learn to manage your credit and money and minimize your debt, a consolidation loan will not help you in the long run. In fact, a consolidation loan has the potential to make your debt situation worse if you are not practicing good management skills.

By Robert Livingston

Sunday, November 25, 2007

Home Equity Loan

Are you looking for a home equity loan? If so, all you need is the equity in your home to get started.

Home equity loans are a great way of accessing cash to remodel, refurbish, and reinvest if you so desire. So, what do you need to do to get your home equity loan?

The first thing you need to do is talk to a trust loan officer or lender. Your loan officer will take a home equity loan application, run your credit report, and help you determine the amount you would like to borrow and discuss the different home equity loan products available and their costs. Today lenders offer low cost and no cost home equity loans saving borrowers lots of money. Your lender will also discuss various interest rate options with you as well.

Factors that determine the interest rate on your home equity loan are your credit scores and the amount of equity you wish to borrow. The higher your credit score the lower your interest rate will be on your home equity loan. Loan to value is important too. If you have a home worth $500,000, a first mortgage of $300,000, and are borrowing $100,000 for your home equity loan you have a combined loan to value of 80% which qualifies for a lower interest rate than a combined loan to value of over 80% (the lower the combined loan to value the lower the interest rate).

Now that you have some of the home equity loan basics, pick up the phone and call your lender to get started on your new home equity loan.