Cash is king. Most people are of the opinion that sellers may give a break when it comes to the price of the home up for sale if the buyer pays in cash. Depending on the marketplace’s temperature, paying in cash has immense benefits considering from the point of view of the seller.
Sellers Love All-Cash Offers- Know Why
Often sellers accept a purchase in all-cash over offers that are higher-priced with Continue reading
If you are looking to get a mortgage, there are two main avenues that you should explore. The first is using a mortgage broker and the second is a bank.
There are some mortgage brokers who operate as middlemen between the mortgage lenders and the banks. They help secure the financing for the homeowner. And then there are banks and lenders who deal directly with the homeowner to give the necessary financial loan on a retail level.
Around 10% of all home loan originations are by mortgage brokers. Let us take a brief look at how both operate. Continue reading
When it comes to real estate business, time and money is the name of the game, and in order to succeed in this business, chances are you will need financing. With more and more real estate investors searching for alternative financing options, other than bank loans, in order to finance their deals, private money lending has emerged as a viable option today. Often referred to as hard money loan, a private money loan is a real estate loan made by private individuals or group of investors. Unlike banks and other traditional lenders, private money lenders are primarily interested in the value of the property being used as collateral and put much less emphasis on a borrower’s credit report and debt-to-income ratio.
The American dream is an influence in so much of our lives. Even if it’s a little old school and achieving it seems a bit harder, there are certain benchmarks to “success” that still thrive. One of those is home ownership.
This is the foundation — the bedrock — of the American dream. White picket fences and a Victorian home are the ideals components of a successful life in the United States. This image is even reinforced in movies and television. Take a personal survey and count how many times the protagonist owns a home. Tony Stark is a homeowner. Homer Simpson is a homeowner. Spider-Man rents, but he’s young and you know he’s on the path to homeownership. Continue reading
In May of 1995, Patrick Combs was sitting there minding his own business when out pops this junk-mail check for $95,000, one of those tired promotional teasers from a tired promotional firm that promises the tired old world in cash and gifts.
On a lark, the San Francisco author — to whom the check was issued — decided to deposit the item at his tired old bank despite the “Not Negotiable” caution at the top. What followed was a series of errors that resulted in a $95,000 credit to his account, with the bank holding the bag. Continue reading
Being a first-time buyer can be a stressful experience for anyone in their 20s, 30s and beyond. But fear not, you are not alone. This article will provide a list of steps to help make that first foray into home ownership a little easier.
So, you’ve done it. A stable income, a stable relationship and you’ve escaped the clutches of your most recent landlord, who for some may even take the form of mum or dad. The world’s your oyster. And now you’re on the precipice of an exciting opportunity to buy your own home. Continue reading
Are you looking for a second mortgage? Before you start your search, find out everything you need to know.
Many people across the UK choose to look for a second mortgage, but why? It may seem like taking out another loan against your home is a ridiculous idea, but the fact is 1000s of people choose to go for a second mortgage. It can be a great way of freeing up some cash, to use however you see fit. Second mortgages shouldn’t be taken lightly, which is why we’re here to help.
In this post, we’re going to provide you with all the information you need to know about getting a second mortgage. We’ve spoken to an expert online mortgage broker, Mortgages. Online, and found out everything there is to know about getting a second mortgage. We’ve got all the info you need, below.
Why get a Second Mortgage?
It may baffle many already paying for their first mortgage but getting a second mortgage can be really handy for you. See, a second mortgage doesn’t replace your first one, and it’s considered an entirely separate and second debt. However, don’t let the word put you off, this ‘debt’ is a still a mortgage, secured against your home. You’ll have two loans against your home, but unlike your first mortgage, your second doesn’t have to be used to purchase a home.
A second mortgage can be used for anything, and we mean anything (as long as it’s legal). It’s just a way of borrowing some extra money but secured against your property. Many use their second mortgage for home improvements, to boost the value of their home. But, like we’ve said, your second mortgage can be used for anything.
The Requirements
Not anyone can just land themselves a second mortgage, there are some criteria you need to meet before you can free up the cash. You can see them, below.
This one is a given, but you need to have a mortgage and own your home. Because no home means nothing to secure the loan against which means you will not qualify.
Mortgage lenders just can’t grant you a second mortgage, they need to assess before lending you the money. Your income, outgoings and mortgage repayments will be reviewed, to make sure you can afford the repayments on your second mortgage.
Finally, you’ll need to have some home equity. If you’re not sure what this is, don’t worry, we’re about to explain. If your home has gone up in value, and your mortgage repayments are less than the value of your home, then congrats, you have equity.
Say your home is worth £200,000 when you bought it. And you borrowed £180,000 with a £20,000 deposit. If your home is worth £250,000 and your mortgage owed is at £170,000 it means your home equity is £80,000.
If you have all of these, then you can get yourself a second mortgage.
The Benefits and Risks
As with everything in life, there are pros and cons to getting a second mortgage. Find out the rewards and risks in this section.
Pros
When borrowing money, you normally find that if you put something up against the loan as collateral (your house), you’ll be more likely to be approved then with an unsecured loan. Because a secured loan means the lender’s investment is, well, secure, which means they’re more likely to hand over the money to you. So, if you’re in need of a loan, getting a second mortgage may be the answer.
Whilst remortgaging is replacing your mortgage, like we said above, a second mortgage is in addition to your current one. Sometimes, remortgaging isn’t cheap, so many find that getting a second mortgage is the best option for them.
Some personal loans may not offer you the right amount you need. With getting a second mortgage, you can typically borrow more than other lenders may be able to offer through a second mortgage.
Cons
Failing to make repayments on your second mortgage means that your home could be up for repossession. It’s the same with any secure loan. If you’re not meeting your repayments, eventually your property will be repossessed by the lender. So, it’s key to make sure that you can afford the second mortgage – hence, the affordability checks.
Many choose to seek a loan in order to consolidate other debt. However, by using a second mortgage to make small repayments on other debt, you could find that you’re paying a lot of interest. Because a second mortgage has a loan-term of around 30 years, which means you could be paying a lot of interest over that time. A second mortgage isn’t always the best option for repaying smaller debts.
If you want to move to a new house, whilst you’ve got a second mortgage, it can be difficult. Because you have 2 mortgages, which means selling your home means you have 2 to pay off, and still need a deposit for a mortgage on your new home. Consider the affordability before getting a second mortgage, especially if you want to move home in the near future.
There you have it! This is all you need to know about second mortgages. If you think you fit the criteria and could benefit from a second mortgage, it may be right for you. Always check you can afford the repayments as failing to make them means your home could be repossessed.
All information on second mortgages provided by Mortgages.Online.
What keeps the 20-something professionals from owning their own homes and apartments? A recent survey of the doctors in the USA shows that they do not finish paying the mortgage of their own homes or manage to buy an apartment by the time they are in their late 30s. In the last two years, the number of Continue reading
In case your start-up firm or small business is currently struggling to meet obligations, then you might be tempted by solicitations willing to settle the debt for you and in lower percentage. Well, you aren’t alone in such a scenario. Each year, around thousands of owners of small businesses will find them in such desperate conditions. There are some legitimate methods available of debt relief, which is used for helping small businesses to survive. But, the market is full of relief scammers too, whose main aim is to leave small businesses in the worst shape possible. They can further scar any reputable lending industry’s name. So before taking any decision, you might want to check out the deals first and evaluate the relief options. Continue reading
Building a firm right from the group is one of the most difficult practices you have to follow. Whether you are a legal or financial professional or not these steps are quite tough for the first timers. So, if you are actually thinking of launching a startup firm, good for you! Well, this task isn’t easy to be honest and you need to be sure of the right steps to take around here.
Just going for the basic steps won’t work this time. Furthermore, you don’t have the liberty to make any mistake. Therefore, be very careful before the matter gets out of your hand. Well, the market has so many options available when it comes to steps to launch you start up firm. You can follow these points just to be sure of your steps. Continue reading
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