A home equity mortgage in today’s marketplace is more difficult to locate, but still not impossible. Determining when the right time to make such an effort is more complicated. The number of reasons for obtaining such a mortgage is as varied as the people who are looking for mortgages. Although hindsight is always better than foresight, picking the right time to take advantage of the equity in your home by taking out a mortgage is more likely when you understand the factors of the loans and determine whether or not you should take out the loan.
When Rates are Low
When you are looking for the perfect time to obtain a home equity mortgage, it seems like a logical assumption to pick a time for acquiring the mortgage when the rates are at their lowest. Obviously, you are never going to be certain the rate is as low as it will ever be. However, if the rates are not much higher than the best credit loans, it may be a good time to apply for your new equity loan. When rates are low overall, you will certainly pay less than if you were to acquire the same loan when interest rates are higher.
When Housing Prices Dip
Looking for a home equity mortgage when the prices on houses dip is another way to save money on your mortgage. Of course, it is impossible to know when the prices are at their lowest point, but if you are watching the housing market, you will get a feel for small movements in the market. You can take advantage of these dips in order to save a little money on the price of your mortgage. Sometimes there is a steady movement in one direction or the other with housing prices. You will still be able to pick up a better price by watching for the small dips in the market.
When You Outgrow Your Present Home
Getting a home equity mortgage when you are in the situation where you have outgrown your present home makes a lot of sense. The right time to get a new mortgage in this instance is to do so when you are ready to make the move to larger quarters. You may also choose to improve the value of your existing property by renovating the home and replacing dated features. This type of mortgage provides you with the cash value of the equity of your home. Even if the space is just barely adequate, you can always find a balance amount.
When you Move
Finally, a home equity mortgage may be a good idea when you move. Finding a home that has a large amount of equity means you don’t have to go to an outside loan for the cash you need. Instead, you take out cash from the equity of your home. The money can be used to get housing improvements made, to add additional living space or to purchase furnishings that are known for credit cleansing.
Home Equity Mortgage – 4 Tips That You Should Follow Closely
05-11-2009 by admin16.4% APR $5,000 Auto Loan.HELP!
17-09-2009 by admin
Are you the victim of a high interest rate auto loan? If so, the following email discussion may help you. Read on:
DEAR LoanResources.Net:
I was very impressed with your article entitled “8 Point Checklist, Evaluating Online Lenders.”
I have tried several sources to refinance my auto. I only have 2 more years to pay $245.04 a month. I owe 4,414.00 on the car loan.
This may not seem like a lot of money but I would like a lower interest rate on my car loan which is now $16.4% APR.
I want to still pay it off in 24 months but at a lower rate so that I can use the money saved to help pay off other bills.
In my internet searches, the auto refinance loans required that you borrow more money than I need. I tried to search for unsecured personal loans on your website and they also required that I borrow more money.
I have a very good credit record and I am working to get some of my bills paid off.
Is there anything you can suggest so that I can get a lower rate auto loan for under $5,000? Any assistance will be appreciated.
Thanks. Geraldine W.
DEAR Geraldine:
Sorry I have not gotten back to you sooner. I took a couple weeks off to be with family…Thanks for the compliment on the article!
Anyway, I read your email and I do indeed have a suggestion or two that I’m happy to share.
A COUPLE THINGS INITIALLY:
1. First, you’re paying a very high interest rate at 16.4% APR for an auto loan! I’m going to assume that your statement as to your good credit is accurate. If that’s true, then you do indeed need to fix this.
2. Since you only need $5000, with the intention of paying it off in 2 years or less, I don’t think you should look for a refinance auto loan or a refinance on your home. Indeed, the bank is going to want to loan you much more money, usually at least $25,000. While a refinance or equity loan on your home does offer tax benefits, we’re only talking about interest on $5,000 over the course of 2 years. I have another idea you may not have considered.
HAVE YOU CONSIDERED?
Have you considered just putting the balance of your car loan on a credit card that has a lower interest rate?
1. Credit Cards are, indeed, unsecured lines of credit with financial institutions.
2. They are the perfect financial vehicle for a $5,000 transfer of debt, with added flexibility, and you should be able to find an interest rate between 9 to 11%, and better, on average.
3. IN ADDITION! Once approved, the bank will usually give you blank checks for balance transfers (sometimes they’ll just do it for you right over the phone)…,
4. AND GUESS WHAT? The majority of the time, the incentive interest rates on the balance transfers are EXTREMELY low; sometimes zero percent for up to 6 months to a year.
5. IN ADDITION! you can apply for incentive cards that provide rewards for your spending….free airline miles, cash back programs, etc. I use the American Express Blue, and I get cash back of up to 3% on everything I spend. So, for $5,000, 3% cash back, AMEX(TM) pays me $150.
How do you like them apples? The bank pays YOU to borrow money.
RECOMMENDED PLAN OF ACTION:
So, Geraldine, here’s what I recommend you do:
1. Go back to our website, and explore the credit card offers we’ve recommended. We’ve picked out what we think are the best offers, and there are a LOT of them, so think of it as a much needed shopping trip! Pay particular attention to our links for “incentive cards”. We have two pages of them.
2. Apply for whatever card or cards suit your tastes and needs. There are so many great reward cards. Limit yourself to only your imagination.
3. Get approved, receive card, and receive balance transfer checks.
4. Pay off loan to 16.4% bank!
5. Pay off credit card loan (with extremely low rate and incentives), at your leisure!
…And enjoy the fact that you just made an excellent financial move, saved money, made money, and gave yourself the flexibility to manage your debt on your own schedule…
Hope this helps…Let me know how it all works out.
We’ve enjoyed providing this information to you, and we wish you the best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.
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