Home | Resources | Directory | Site Map  


Relationship Marketing is key to your business strategy. Use these resources to learn why it is important and how you can improve the service you provide your customers and clients.


How to Refinance A Second Mortgage

The first mortgage on a home has the term of typically 15 to 30 years. The monthly installments are divided over this term such that by the end of the term mortgage is paid off. However, over the years the equity that is the interest on property increases, as there is an appreciation in the value of home. This provides the owner with an option to take a loan against this equity in case he is in need of money. This loan is taken in addition to the existing mortgage on the home and such a loan is called second mortgage.

It has a higher interest rate and is for a shorter term. Or if a person is not able to pay these installments a balloon payment option i.e. a large single payment at the end of the term is also available. Even after a second mortgage, suppose you are not able to fulfill your financial commitments and other debts then refinancing the second mortgage is a popular solution that could prove ideal for you. Through refinancing second mortgage you can enjoy good interest rates plus more convenient repayment terms.

These factors offered by second mortgage refinancing improve the debtor's money in hand as well as offer low monthly payments. When you go for an unsecured loan one has to give high monthly payments and high interest rates. However if you take up refinancing, second mortgage loans are often the most effective and affordable solution, as they allow you to borrow the money with no extra rates on your loan. As compared to other unsecured loans, a second mortgage loan is secured on your home, thus providing the lender with more security and he can therefore offer far better rates of interest. Refinancing second mortgage loans provide a far longer repayment period than other unsecured loans. Moreover they are a good option available for people with a bad credit.

Since these loans are secured against an asset they provide you with low interest rates and very low monthly repayments as compared with a loan that was not secured. The blend of these factors helps to make these loans far better value for money. Now an important point is that with a second mortgage the refinance amount is secured against your property, and therefore failure to keep up with repayments on the second mortgage could result in you losing your asset. So it is vital that you ensure that you can comfortably repay the loan before making any commitment. Refinancing second mortgage packages provide affordable solutions to those needing finance at manageable rates.

Now, if you're refinancing your second mortgage, you should know about the Home Ownership and Equity Protection Act of 1994. The law addresses certain deceptive means in refinancing second mortgage. It amends the Truth in Lending Act (TILA) and establishes requirements for certain loans with high rates and/or high fees. Here's what loans are covered, the law's disclosure requirements, prohibited features, and actions you can take against a lender who is violating the law. The law covers a loan if it meets the following tests: 1)An original mortgage on the property, the annual percentage rate (APR) exceeds by more than eight percentage points the rates on Treasury securities of comparable maturity. 2)A second mortgage or a refinance second mortgage, the APR exceeds by more than 10 percentage points the rates in Treasury securities of comparable maturity.

On these loans and refinances the lender must 3)Give you a written notice stating that you can withdraw even though you've signed the loan application. You have three business days to decide whether to sign the loan agreement. 4)The notice must warn you that, because the lender will have a mortgage on your home, you could lose the asset, if you fail to make payments. The lender must disclose the APR, the regular payment amount (including any balloon payment where the law permits balloon payments), and the loan amount. You may have the right to sue a lender for violations of these new requirements. In a successful suit, you may be able to recover statutory and actual damages, court costs and attorney's fees.

In addition, a violation of the high-rate, high-fee requirements of the TILA may enable you to cancel the loan.

Refinance is a key part of business development strategy used by Nazir on a daily basis. Proper use of this financial instrument depends very much on the quality of information upon which any refinancing decisions are based. For your better decisions, visit refinance now at http://www.123refinancenow.com

Relationship Marketing

Increase Productivity with Better Office Design - An open floor plan, natural light, movable furniture, informal meeting rooms and roomier office space will allow increase productivity and a better bottom line.

Gulf Shores Alabama Real Estate - Gulf Shores Alabama Real Estate Alabama is a great place to make your home and from Gulf Shores AL real estate to Orange Beach Alabama real estate and Baldwin County AL real estate listings, you will find everything you need for you and your family to live a happy life.

Tips Buying Your Dream Home - Even if it is not easy for everyone to buy a house, it is in fact easier than ever to get a home these days with most lending institutions and banks to be more liberal than ever to provide housing loans and mortgages.

A Positive Outlook at the Spiraling Real Estate Market - The world is facing serious challenges at the present, but just like in older times, obstacles must also come to pass.

Hard Money Loan Basics - Hard Money can be a quick way to supply everything from residential homes, to industrial properties to new home building.

RelationshipMktg.com © Copyright 2024, All Rights Reserved.