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 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.low interest rate loan,personal loans,equity loans,home loan,car loan,equity loan,home equity loans,student loan,auto loans,bank loan,business loan,cash loan, fast loan,loans for bad credit,loans with bad credit,refinance.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 federallybacked 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. 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.personal loans,equity loans,home loan,car loan,equity loan,home equity loans,student loan,auto loans,bank loan,business loan,cash loan, 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 30year 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 cashout refinance is another common refinance nance. A cashout refinance means borrowing more than the amount one's home is currently worth, up to an allowed maximum. The cashout 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 cashout 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 cashout 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 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, pay day loan,small business loans, student loan,emergency loan,short term loan,debt consolidation,low rate loans,quick loans 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.

MORTGAGE CALCULATORS

One of the easiest ways to choose rate types and mortgage terms is to determine how much you want to spend on a house and how much you can afford on a monthly basis

If you need help running the numbers there are many different mortgage calculators online that can do the work for you

Because there are so many things to consider before getting a mortgage you may want to use different calculators for different purposes For example a mortgage amortization calculator can help you determine what type of loan term is best for you by estimating how fast you can pay down your mortgage and build up equity Mortgage rate calculators on the other hand can help you determine what type of interest rate is best for your financial situation

Such calculators can be great tools for homebuyers who want to educate themselves prior to taking out a mortgage loan However you must keep in mind that these calculators do not take every cost of homeownership into account Mortgage insurance taxes remodeling and maintenance costs may not be figured into the calculations Because these costs can really add up on a monthly basis they should be carefully considered when determining how much house you can afford

A mortgage calculator is a tool that can be used by mortgage companies realtors people working in the business world and any other individual who is interested in determining the monthly payment that is associated with a potential or current loan Without using a mortgage calculator the process of determining the monthly payment on a loan would be much more complicated time consuming and maybe even impossible for anyone who is not a numbers person

Almost Everything Can be Calculated

Not only can a mortgage calculator be used to calculate the monthly payment on an amortized loan principal interest but a mortgage calculator can also account for property taxes that are charged on a yearly basis and the cost of homeowners insurance and add those numbers into the loans projected monthly payments

It is also possible to use a loan calculator to figure out how much income is needed in order to qualify for a particular loan amount Most mortgage companies will only permit a person or a married couple to borrow a certain amount of money and that amount is determined by that person or couples monthly income monthly investment income and total amount of other types of debt

Calculators Provide Estimated Numbers

When a mortgage calculator is used to determine what a monthly payment will be on a home loan its important to remember that the numbers the calculator produces are only estimates

The actual monthly payment may be higher or lower than what the calculator says because there may be closing costs and other fees added to the total amount of the loan Also if taxes and homeowners insurance costs will be added into the equation the numbers for the calculation may not be definite numbers The real numbers will probably be similar to what a mortgage calculator determines but the actual dollar amount may be slightly varied

Making Larger Payments than Required

Amortized mortgages have a predetermined monthly payment due for a set number of months However some mortgages allow the borrower to pay additional principal each month in order to lower the total loan amount Also some lenders will allow the borrower to make mortgage payments every two weeks instead of once a month Paying every two weeks may seem impractical but over the course of 30 years it can reduce the total amount of the loan by a significant amount

Mortgage calculators can be used to determine how much a loan would be reduced if additional principal was paid each month and or if payments were made to the mortgage company every two weeks instead of every month If the amount that the calculator determines is a significant amount of money borrowers may choose to use either of these two methods to shave years off the length of the mortgage and or save a significant amount of money on interest