Mortgage and Refinancing Information Channel:

We would like to thank the local libraries, schools, and universities for recommending students to visit us when doing research on any of our information topics.
 Please check back frequently as new topics are added and current topics are updated daily.

Home or Investment Property Equity: Be Sure the Bank Gives You All that You Deserve

Home equity is your own personal money machine. If you want financial freedom, a home equity loan is probably the best way to achieve it. You can pay down credit cards, pay off cars, both at high interest rates, or you can actually use your home equity to invest and build the money into a fortune. The biggest problem people run into with home equity is that they don't have enough of it. Sometimes, the problem may be with your bank and not with your equity.

In order to know how much equity you have in your home, you must first know what you owe on your mortgage and then how much your home is worth. Here's the secret to getting the most equity out of your home or investment property. Let's say you own $100,000 on your home or investment property, and you believe it is valued at $150,000. If a bank will loan 90 percent of the value, they'll give you $135,000 minus what you owe, or a $35,000 equity loan.

But wait just a minute. Let's suppose the bank tells you that they believe your home is valued at $130,000. Now, they'll give you a home equity loan of just $17,000 (117k minus the 100k that you owe). That's a whopping 18k less than what you thought you were getting.

The answer? Educate your lender. This happened to me recently. The lender had my home valued at $15,000 less than I said it was. So, instead of giving up on my home equity loan, I simply educated the lender. I explained that I $25,000 in simple appreciation, based on the 4 percent that homes in my neighborhood receive. Then, I said I had $12,000 worth of improvements in the past two years. Finally, I asked for a complete appraisal, instead of the recent sales in the neighborhood that the bank was using. Now, this increased my closing costs a bit, but it was well worth it. In fact, a couple of days later, the lender called to inform me that the full appraisal came in $7,000 higher than the number I gave them. Now my equity loan was even bigger than I had originally hoped - 90 percent of 7k gave me an additional $6,300!

You see, our instinct is to always trust that the lenders and mortgage brokers know more than we do. In many cases, this is not true.

Mark Barnes is an investment real estate and real estate finance expert. Get his free mortgage finance course at http://www.winningthemortgagegame.com. Mark is also the author of the new novel, The League, a shocking, sports-related conspiracy. Learn more about his suspense thriller at http://www.sportsnovels.com.

MORE RESOURCES

used office furnishings-supplies-equipment-desks-cubicles-service-counters for sale in Akron Ohio   Die cast model cars for sale in Akron Ohio  
used cars for sale in Akron Ohio   unfurnished homes for rent in Akron Ohio

RELATED MORTGAGE AND REFINANCING ARTICLES: Home Equity Line of Credit - Finding The Best Home Equity Lender Borrowing against the value of your home using a revolving credit account is known as a home equity line of credit. Lenders offer home equity lines of credit in several ways with either fixed or variable interest rates. What is a Mortgage? A mortgage is a loan, usually from a bank, finance company or building society to help you buy your home. A mortgage is a loan, from a bank or building society that is secured against your house or flat. Jacksonville Florida Real Estate Mortgage Home Loans - Get the Best Rate Every time There are hundreds of mortgage companies in the Jacksonville real estate market. All claiming to have the lowest rate and excellent customer service. Before You Buy Before you start looking for a home, figure out what you can realistically afford to pay per month. Check out the market in the area you want to buy. Home Equity Loans A home equity loan allows you to cash-in on the equity you have built-up in your home. The funds you receive can be used for debt consolidation, home improvement, college education, investments or any purpose. Mortgage and Credit Card Companies Under the Spotlight on Consumer Charging For the first time since May 1996 reports have indicated that wage increases have risen faster than house price inflation. According to Nationwide, "The overall picture remains one of a gently softening market". Home Loans For People With Adverse Credit History Whether you are planning to purchase a home for the first time or refinance an existing mortgage, plan on comparing lending companies before you accept a financing offer if you have adverse credit history. Sub prime lenders specialize in offering loans to people who have a high-risk credit history. Know Your Mortgage Fees, and You'll Never Pay Too Much for Your Loan If you buy new windows, you'll not only pay for the windows, you will also pay an installation fee. When you purchase a car, you pay tax, title, assumption fee, etc. Tips for First Time Home Buyers When looking at tips for first time home buyers, you've come to the right place. Many people are looking all over the Internet for reliable information. Lesser Known Facts About Home Equity Loans Refinancing your debt via a home equity loan shifts your debts loan to your home. The flip side to such a move is that your home is on the line. The Mortgage Loan Application Online - Save Time & Money By Applying On The Internet "You can save time and money by applying for a mortgage loan online." This often touted tagline seems like a gimmick, but it's true. Self Employed Mortgage Loans - A Survival Guide When you're self employed you have numerous advantages. As you are a free agent, you will write off every deduction you can on your tax return. Remortgages Guide Outlined below is a useful remortgages guide. Remortgaging has become increasingly popular due to the relatively simple and flexible process. Selling Your Business Note Before I go further, let me ask a question- if you won the lottery tomorrow, would you take the payout in a lump sum or in monthly payments? Most people would take a lump sum because even though it might be less than the total prize, they would have control over a large sum of money now and could let the time value of money go to work and increase their winnings. So why then would you opt to get paid on your business sale over several years rather than take a lump sum payout? The answer is probably because you didn't know that you could get cash for your business note. Home Equity Loans Categories Fixed Rate Mortgages: These loans have a fixed rate of interest over the entire term for which the loan has been disbursed. The term for these mortgages is typically between 10 to 30 years. Reverse Mortgage - Be Sure You Need It Before Applying For One Reverse mortgages used to be considered the last resort of desperate retirees who needed to borrow against their home equity in order to pay for medical expenses. With home prices across the country rising at astonishing rates, more and more retirees, aged 62 and over, are taking out reverse mortgages to fund better retirement living. Home Mortgage Interest Rates: How to Compare Whether you are looking to purchase your first home, sell your current home and purchase a new one, or you are wondering whether or not you should refinance your existing mortgage, it is beneficial to compare current home mortgage interest rates from several companies to be sure you get the best deal possible. They can be researched very easily online, and you can tailor your search to give you accurate rates based on the state that you will live in, whether you are buying or refinancing, and the amount of the loan. Mortgage Elimination- A Horrible and Sure Way to Lose Your Home to Foreclosure "Own your home free and clear in 3 to 4 months. Note paid in full!" How does this statement sound to you? Does it bring out a sentiment of grand larceny or does it peek your interest as a means to quickly and legally increase your personal net worth? Would it be moral to cancel a debt you made in such an easy and unfathomable manner? Most importantly, if you were behind on your mortgage would you pay someone $3,000 to perform this elimination service for you? Unfortunately, the answer for many homeowners is "Yes". How Much Home Loan Can I Afford? Have you ever asked yourself how much home loan can I afford? If you know how much of a payment you qualify for before shopping for a home, your purchase will go much smoother and it can save you a lot of headaches. How would you like to find the perfect place to live then not know if you can qualify for the loan? Long before you even start looking for your home, you need to know how much home loan you can afford. Repayment Remortgages is The Cure For Outdated Endowment Policy If bulls and the bears of the stock market have no effect on your mortgage plan then you must apply for endowment to repayment remortgage. An endowment mortgage is a financial product offered mainly in the UK.

HOME | SITE MAP © 2012 - 2023 All Rights Reserved Increase pagerank with HitsSurfer