Secured Loan Information
November 28, 2008
Quite simply a secured loan is loan that a homeowner can take out that is secured against the value of their property assuming there is enough equity left in the value of the property once any outstanding mortgage is taken into consideration. For instance a secured loan lender in this current financial climate would not be comfortable securing a loan against a property if the total borrowings of the mortgage and the proposed secured loan went over 75% of the value of the property, so if a homeowner owned a property worth £100,000 and had a mortgage of £50,000 (50% of the value) then a a further 25% could be potentially borrowed (£25,000).
Be very clear however a secured loan is in effect a second mortgage and shows on a credit check as such hence any non payments could result in a repossession of the borrowers home so do not take out a secured loan unless you are sure you can meet the monthly payments, secured loan providers will consider those with poor credit however the criteria (due to the current financial climate) is becoming very stringent as lenders are now very unwilling to risk having a bad debt on their books. Read more
Can I Get a Fresh Start Loan
November 27, 2008
If you have damaged credit from a combination of late payments, going over the limit on your credit cards, or filing bankruptcy, you may be in the market for a fresh start loan. A fresh start loan can help you find financing for purchases that you need to make while helping you to raise your damaged credit score up from the ashes.
A fresh start loan can be used for nearly any purpose. You might want to do some home improvements or remodeling, or perhaps you are in the market for new furniture or appliances. Fresh start loans are also ideal for financing your next travel adventure, or to pay for education expenses. Another great idea for the fresh start loan is to consolidate other debt – such as expensive credit card debt or past due bank loans. Read more
About Vehicle Title Loans
October 13, 2008
Many families in Missouri are choosing to obtain vehicle title loans this holiday.
Is this a good idea?
It can be just as long as they get one without a high interest rate and pay it off within a month. If they’re even one day late, they can be charged for extremely high fees. The countless vehicle title loan lenders in and around Kansas City, MO charge a variety of different interest rates. The rate of interest can be anywhere from 22%-25%, especially in Kansas City area.
So how much money are the families borrowing?
It really depends on the value of their vehicle, and whether or not it’s clear of any liens. If the owners can prove that they’re really the title owners, and if the car or other vehicle is new, they can borrow quite a bit. They’ll then have anywhere from a few weeks to a few months to pay back on the vehicle title loan. Read more
Cheapest Secured Loan
August 15, 2008
A lot of companies use the words cheapest secured loan in their ads. But, in most cases, they’re just ways to attract borrowers. Because these cheap secured loans bring with them benefits, a lot of people trust these ads and will be persuaded by them, because they want to believe. In time, they will be disappointed in most cases. In many cases, they don’t learn the lesson of looking around and picking the best option until they get burned.
First thing you should know when looking for the cheapest secured loan is what you want. List your borrowing requirements before you start looking for options. How much money you’re looking for, over what period of time you want to repay it, what monthly rate you want to pay, whether you want to take the loan from a bank or an online lender, etc. Read more
Personal Home Loan
August 6, 2008
Increasing the loan eligibility:
The simplest way to enhance loan eligibility is by clubbing incomes of your spouse, father, mother or son. Joint loans enhance loan eligibility.
Before you apply for a home loan, repay all other outstanding loans. This way you can afford to keep a sufficient portion of your salary towards repaying your home loan debt. Clearing other debts like personal loans or simply deferring them will make you eligible for a greater loan amount.
Finally, opt for a longer tenure. This reduces your EMI burden and makes you eligible for a bigger loan amount. Read more
What Exactly is a Loan Modification
August 3, 2008
A mortgage loan modification is something you’re going to hear a lot about in 2009. This program, not fully invented yet, is a process whereby the lender agrees to modify the existing terms of your loan. Many times there is an interest rate reduction, reinstatement and often-missed payments are forgiven.
You can apply for a Mortgage Loan Modification yourself, but it’s grueling work. Even professionals like us have a hard time negotiating with these lenders and an emotional attachment to the property in question would make an already stressful situation that much harder.
Lenders have a Loss Mitigation Department, which handle these requests, but trying to get through to them is nearly impossible, unless you have already missed a payment. Then, the keen interest is triggered and all of a sudden they want to speak to you. Read more
Loan Modification is the Light at the End of the Tunnel
July 21, 2008
Many Americans have been left seething with the recent $700 Billion bailout/stimulus plan. You and I, the tax payer ultimately are left to foot the bill for the banks mistakes. Good,bad,or indifferent to the situation, no one was complaining about getting their stimulus checks. I didn’t get a stimulus check, and I agree with the goverment for not giving me one. Sure, an extra $600.00 would have been nice but I did not need it. I exceeded the income threshold for my filing status.I do belive my taxes should go to help those who have made less, and has a family that may be losing their home. The stimulus check of $600.00 surely helped a struggling homeowner, but likely would not get them caught up with their bills. In there current economic times it is very easy to get caught in debt. The credit gravy train has stopped.Now the goverment is stepping up and doing what americans are supposed to do. Help the poor,the tired,the hungry and those that may be facing foreclosure. When I asked one of my clients “Why would you borrow 450K against your house when you only make 45k per year?” His reply was simple ” I did not think the bank would let me borrow more than I could afford.” I would have thought that that too If I didn’t have the benefit of being a banking insider. The whole scenario is remincient of the “Friends dont let friends drive drunk” ad campaigns. One would think your bank wouldn’t let you borrow more than you could afford, Right? Just like the friend that wouldn’t let a friend drive drunk Right? Wrong. The banks are not your friends, they are in the business of taking your money and making more of it. In the early stages it was lucrative to allow people to borrow more than they could afford. Banks made money hand over fist selling these loans as mortgage backed securities on the secondary market. Why? Because the investors had no Idea what exactly they were buying or the risk. They only knew they had derivative to protect them on a default and could swap loans. After all, the bond ratings on these securities were AAA stautus. Fast forward to ING’s near collapse,Bear Stears,Merryl, etc… They were the underwriters of the derivatives. So If they become insolvent, there is no choice but to go back, and rework the loan portfolios. Read more