If you need to borrow money, Home Equity Credit Lines can be
one of the options available to you. This Line of Credit Home
Equity is a loan granted to the borrower with his home as
collateral. Home Equity per say is the difference between the
worth of your property and the amount you owe on your mortgage.
Of late many people are opting for Home Equity Lines of Credit
because of its ease of acquisition and flexibility. If you use
the equity of your home as collateral in a loan, you have
access to a large pool of funds which you can use to expand
existing business or undertake a new one whilst still owing
your home. If you negotiate well, you can obtain Line of Credit
Home Equity far exceeding the current price of your home. Again,
you have the advantage over other kinds of borrowed funds
because you enjoy low interest here. The biggest advantage for
Home Equity for small businesses owners especially is that the
interest on Home Equity Credit Lines is treated as tax
deductible. This simply means you can take out the interest
payments as an expense before you declare profits, thus leaving
you with more money as net income.
Line of Credit Home Equity is the best option for a business
with homes which needs long term capital. As the homes increase
in value, the loan interest decreases in value with the effect
that businesses gain over the long term.
Home Equity loans need to be contracted with great care. Look
around for the best plan or terms so you don't risk defaulting
on the loan. If you default on the loan, your home may be
foreclosed. Foreclosure is the process of offsetting a debt
with the sale of a borrower's home. The forced sale comes about
because you have irreversibly used the home as collateral in the
agreement and have authorized the lender to take over the house
in the event you are unable to pay up on the interests.
When it comes to using your home as collateral for a loan,
there are two major options: Home Equity Line of Credit and a
Home Equity loan.
Home Equity Lines of Credit are used for any kind of expense at
all such as home improvements, educational and medical expenses
and small business expenses. You make monthly payments at
varied interest rates. If you are not the type that worries
about changing payments and interest rates, then you may go for
this option.
On the contrary, Home Equity loans gives you access to funds
which need to be expended in a lump sum such as the expenses in
connection with buying a new car or starting a new business. In
this type of loan, interest payments are fixed. If you want a
predictable payment, then this is the option for you.
In Summary...
Home Equity Credit Lines have helped many businesses and
individuals get access to large pools of funds for business
expansion or acquisition of another home. This ease of access
must be balanced with the fact that persistent default in
payments can result in the loss of your home.
For more free-reprint articles by Colin P please visit:
http://www.isnare.com/?s=author&a=Colin+P
Monday, September 26, 2005
Sunday, September 25, 2005
Mortgage Research Good News For House Buyers
Figures from the Council of Mortgage Lenders show that in July
gross lending in totalled £25.2 billion, with fixed rate deal
mortgages are at their most popular for nearly six years.
Nonetheless, "July's growth in lending to individuals slowed
from the recent trend," said British Bankers Association (BBA)
spokesman David Dooks, "this could have reflected consumers
waiting for the widely anticipated cut in interest rates."
Miles Shipside, Commercial Director of Rightmove (
http://www.rightmove.co.uk/ ), comments, "The belated but
welcome drop in interest rates will be a real boost for
sentiment in the market and a springboard for a better 2006."
However, more than half of all mortgage lenders have failed to
pass on the full Bank of England interest rate cut to
borrowers, and those that haven't done so already look unlikely
to do so in the future.
"How these things usually work is that if the lender is going
to pass on the full cut they announce so fairly quickly", Ray
Boulger of John Charcol mortgage advisers.
Several lenders stated the rates on fixed mortgage deals from
some providers had already started to drop in anticipation of
the cut in interest rates earlier this month, while others
argued that replicating the rate cut is not necessary because
they did not pass on past increases.
A few lenders, including the Halifax, the UK's largest mortgage
lender, immediately reduced its rates, but others have held off
cutting borrowing costs or have trimmed them by less than the
bank's quarter of a percent.
Despite the rate cut anticipation and the increases in the
take-up of fixed rate deals, the British Bankers Association
(BBA) said that net mortgage lending by its own members slowed
down last month.
Rightmove in its latest house price index has indicated that
house sales have slowed down. The numbers of completed sales
for the three months from April to June are the lowest since
1998. To improve the chances of achieving sales, many new
sellers are adjusting their prices in an attempt to undercut
the competition. Asking prices have now dropped by an average
of 1.2% over the past two consecutive months.
Rightmove believe that the housing market is gradually
recovering, but "there is currently too much unsold property
still available to expect anything other than a continuation of
static asking prices this year".
Miles Shipside adds, "Sellers are finally becoming more
realistic on their asking prices, which when combined with
cheaper mortgages and rising wages, means that more buyers can
now afford to enter the market." He went on to point out that,
"We still need more first time buyers for the long term health
of the property market."
Financial comparison site, Moneynet (
http://www.moneynet.co.uk/ ), puts the current first time
buyers' average joint salary at £39,382, with an average
mortgage amount required of £135,239 constituting a 66%
borrowing on the cost of a property. This means that with
sellers asking prices remaining static, or even falling, and
wages gradually rising, for many potential first time buyers,
there is an increase in the realistic prospect of getting onto
the property ladder.
Halifax hoped that the interest rate reduction by the Bank of
England would, "reduce mortgage payments as a proportion of
gross income for the average new borrower from 20% to 19%, the
average for the past 20 years and well below the 34% peak in
1990".
With the mortgage market especially competitive at present and
rate comparison sources easily accessible, lenders who do not
offer reasonable rates are liable to lose out. All this appears
to be good news for buyers as Rightmove states, "there are now
clear signs that the market is making sensible adjustments in
prices to improve buyers' affordability."
About The Author: Richard lives in Edinburgh, occasionally
writing for the personal finance blog Cashzilla (
http://cashzilla.blogspot.com/ ), and thinks "Half Man Half
Biscuit" were a good band.
gross lending in totalled £25.2 billion, with fixed rate deal
mortgages are at their most popular for nearly six years.
Nonetheless, "July's growth in lending to individuals slowed
from the recent trend," said British Bankers Association (BBA)
spokesman David Dooks, "this could have reflected consumers
waiting for the widely anticipated cut in interest rates."
Miles Shipside, Commercial Director of Rightmove (
http://www.rightmove.co.uk/ ), comments, "The belated but
welcome drop in interest rates will be a real boost for
sentiment in the market and a springboard for a better 2006."
However, more than half of all mortgage lenders have failed to
pass on the full Bank of England interest rate cut to
borrowers, and those that haven't done so already look unlikely
to do so in the future.
"How these things usually work is that if the lender is going
to pass on the full cut they announce so fairly quickly", Ray
Boulger of John Charcol mortgage advisers.
Several lenders stated the rates on fixed mortgage deals from
some providers had already started to drop in anticipation of
the cut in interest rates earlier this month, while others
argued that replicating the rate cut is not necessary because
they did not pass on past increases.
A few lenders, including the Halifax, the UK's largest mortgage
lender, immediately reduced its rates, but others have held off
cutting borrowing costs or have trimmed them by less than the
bank's quarter of a percent.
Despite the rate cut anticipation and the increases in the
take-up of fixed rate deals, the British Bankers Association
(BBA) said that net mortgage lending by its own members slowed
down last month.
Rightmove in its latest house price index has indicated that
house sales have slowed down. The numbers of completed sales
for the three months from April to June are the lowest since
1998. To improve the chances of achieving sales, many new
sellers are adjusting their prices in an attempt to undercut
the competition. Asking prices have now dropped by an average
of 1.2% over the past two consecutive months.
Rightmove believe that the housing market is gradually
recovering, but "there is currently too much unsold property
still available to expect anything other than a continuation of
static asking prices this year".
Miles Shipside adds, "Sellers are finally becoming more
realistic on their asking prices, which when combined with
cheaper mortgages and rising wages, means that more buyers can
now afford to enter the market." He went on to point out that,
"We still need more first time buyers for the long term health
of the property market."
Financial comparison site, Moneynet (
http://www.moneynet.co.uk/ ), puts the current first time
buyers' average joint salary at £39,382, with an average
mortgage amount required of £135,239 constituting a 66%
borrowing on the cost of a property. This means that with
sellers asking prices remaining static, or even falling, and
wages gradually rising, for many potential first time buyers,
there is an increase in the realistic prospect of getting onto
the property ladder.
Halifax hoped that the interest rate reduction by the Bank of
England would, "reduce mortgage payments as a proportion of
gross income for the average new borrower from 20% to 19%, the
average for the past 20 years and well below the 34% peak in
1990".
With the mortgage market especially competitive at present and
rate comparison sources easily accessible, lenders who do not
offer reasonable rates are liable to lose out. All this appears
to be good news for buyers as Rightmove states, "there are now
clear signs that the market is making sensible adjustments in
prices to improve buyers' affordability."
About The Author: Richard lives in Edinburgh, occasionally
writing for the personal finance blog Cashzilla (
http://cashzilla.blogspot.com/ ), and thinks "Half Man Half
Biscuit" were a good band.
Saturday, September 24, 2005
Bad Credit Loans: Be Careful!
If you've gotten yourself over your head in debt, and suddenly have a need for cash right away, it is possible to get a loan for bad credit. Loans for bad credit will not give you a worse rating if you require a non-bad credit loan later down the road, and they will get you some money very quickly - perhaps too quickly.
But how could a loan for bad credit be too quick? Well, if you decide to get a bad credit loan, apply, and then suddenly - WOW - you have the money the next day, have you really thought out this bad credit loan adequately? Have you researched all of the other bad credit loan options, or did you just pick the first one that struck your fancy? Did you ask around, surf the Internet, and talk to your banking institution before applying for that bad credit loan? Did you do some reading at the library, crunch some numbers, and talk to your family about this bad credit loan, first?
If you think about it for a bit, there will be an interest rate with your bad credit loan - probably more than with any other loan you carry. It's a risk for a lender to extend credit to someone with bad financial history, so they overcompensate with higher interest rates. Rates as high as 15 point over prime, at times. Do you really need to go into more debt asking for a bad credit loan, just to pay off another bill? Isn't there another way?
This can all become a huge problem if you eventually need more money because of your bad credit - which means another loan. And then another, and another. you get the drift. Your interest on a $3000 loan could be as high as $500, not including the actual bad credit loan repayment itself. Can you afford this? All for a bad credit loan debt.
This cycle may only become a problem if you manage your bad credit loans poorly, or borrow more money than you can afford to pay off. To avoid these types of bad credit loan issues, ONLY borrow what you can afford - just because the process is super quick, doesn't mean you need to come to a decision just as quickly. Take your time. Research everything well. Talk it over with friends and family. Make sure your payments won't be over your head, especially with all of your other debts. A bad credit loan is a serious thing - don't enter into it lightly.
Perhaps talk to some friends or family first, instead of adding to your debt and asking for a bad credit loan. Maybe if you take this choice, or perhaps try and find extra income instead, you can avoid the whole bad credit loan trap, forever. And with less bad credit comes a lesser need for a loan - and the cycle stops.
For more more information about bad credit loans offers please visit http://www.moneytipsdaily.com/Money-Tips/Credit-and-Loans-have-Become-a-Buyers-Market--Are-You-getting-the-Best-Deals-for-Yourself.html
But how could a loan for bad credit be too quick? Well, if you decide to get a bad credit loan, apply, and then suddenly - WOW - you have the money the next day, have you really thought out this bad credit loan adequately? Have you researched all of the other bad credit loan options, or did you just pick the first one that struck your fancy? Did you ask around, surf the Internet, and talk to your banking institution before applying for that bad credit loan? Did you do some reading at the library, crunch some numbers, and talk to your family about this bad credit loan, first?
If you think about it for a bit, there will be an interest rate with your bad credit loan - probably more than with any other loan you carry. It's a risk for a lender to extend credit to someone with bad financial history, so they overcompensate with higher interest rates. Rates as high as 15 point over prime, at times. Do you really need to go into more debt asking for a bad credit loan, just to pay off another bill? Isn't there another way?
This can all become a huge problem if you eventually need more money because of your bad credit - which means another loan. And then another, and another. you get the drift. Your interest on a $3000 loan could be as high as $500, not including the actual bad credit loan repayment itself. Can you afford this? All for a bad credit loan debt.
This cycle may only become a problem if you manage your bad credit loans poorly, or borrow more money than you can afford to pay off. To avoid these types of bad credit loan issues, ONLY borrow what you can afford - just because the process is super quick, doesn't mean you need to come to a decision just as quickly. Take your time. Research everything well. Talk it over with friends and family. Make sure your payments won't be over your head, especially with all of your other debts. A bad credit loan is a serious thing - don't enter into it lightly.
Perhaps talk to some friends or family first, instead of adding to your debt and asking for a bad credit loan. Maybe if you take this choice, or perhaps try and find extra income instead, you can avoid the whole bad credit loan trap, forever. And with less bad credit comes a lesser need for a loan - and the cycle stops.
For more more information about bad credit loans offers please visit http://www.moneytipsdaily.com/Money-Tips/Credit-and-Loans-have-Become-a-Buyers-Market--Are-You-getting-the-Best-Deals-for-Yourself.html
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