Christian Cash Out Loans
Christian cash out loans can be defined either as a refinance or a home equity mortgage, but in either case, Christians use them to take advantage of equity money in real estate property. These notes can be very useful when running into unexpected financial emergencies, financing a college education or adding an addition onto a home, remodeling or maybe buying a new car. In any of these cases and many more, they make these lending agreement possibilities a reality. So how do these types of situations work? "Therefore being justified by faith, we have peace with God through our Lord Jesus Christ." (Romans 5:1)
Mr. and Mrs. Jones are nearing retirement and would like to give to the grandchildren some money for college. They have very little savings but have a fairly substantial house worth about three hundred thousand dollars, of which they still owe one hundred thousand dollars. A bunch of money would allow the Jones the opportunity to refinance their house again for three hundred thousand dollars. In the case of this couple, the interest rates of present day are three points below the original mortgage rate making their monthly payment much lower. After the origination costs are figured in, the Jones will be able to give each of the four grandchildren about forty five thousand dollars for college expenses. It can only be hoped that these young people appreciate the sacrifice made for them!
A second of funding options for the Jones is a home equity or line of credit. In this scenario, the Jones get funds for the amount of profit they have in the house and use it for whatever purpose desired. The downside to this plan is that the couple will have an extra payment each month in their budget and the interest rate for typical may be higher than a refinanced mortgage. On the other hand, interest payments made could be tax deductible, offsetting to some degree the higher interest rate. But there may be a third option for this very family devoted couple and that could be an interest only note.
For this scenario to work, the Jones would have to secure a mortgage company that would refinance their three hundred thousand dollar house for interest only. It would allow Mr. and Mrs. Jones to do two things. First it would provide them almost two hundred thousand dollars for their grand children's education and then give them, for at least ten years, as much as a thirty percent lower mortgage payment than they had before their choice of agreement was struck. Since there would be major tax implications for any of these options, much research and care would have to be devoted by this fictitious couple before any decision could be made. In the meantime the grandchildren wait anxiously with bated breath.
One of the issues from some Christians in regards to one of the optional debts is the speed with which all of the paperwork can take place. Getting money may involve an appraisal of property that could take up to a month. In fact, mortgages are often eight to ten weeks in formulation and the same can often be said for home equity. When a mortgage is refinanced to get equity out of the property, it can take place in just a couple of weeks in many cases. However there are other disadvantages of the cash out refinance. Whenever a domicile is refinanced for any reason, closing costs are going to be encountered. Closing costs are usually described as points and each point is one percent of the full total, so three points on a one hundred thousand dollar place would be three thousand dollars of closing costs.
Cash out money typically does not have closing costs. Instead, as mentioned above, another monthly payment is placed on top of one's place. All of these questions about what to do come down to one issue: is what will be purchased with the monies out of a lending agreement worth a very long term payment? A vacation, a wedding, a car, a boat or a questionable investment can all be very fleeting and transitory. The possibilities of paying on a wedding for thirty years right alongside a joint may be motivated by an overwhelming love for a child, but how will that help when retirement rolls around? A sport car may indulge the senses for the moment, but can the same be said seven years from now when the odometer shows forty thousand or a hundred thousand or more miles?
The Bible reminds its readers that there is pleasure in sin for a season. Anyone standing up and saying that sinners aren't having fun are fooling themselves! On the other hand, God declares that a season is all anyone gets when it comes to enjoying rebellion against Him and that there is a day of reckoning, not only at death, but in the next season of life when the chickens come home to roost. Just like dough that is used for temporary pleasure has a long term cost that might be excruciating later on, living like God doesn't exist will not only cost a person the joys of heaven, but sin filled living now will always come back to haunt a person even in this life. Don't be fooled by the down in the mouth, sour faced people that call themselves Christians. Real believers have not only great fun and laugh and enjoy life, but they possess a joy that is unexplainable and anyone can have this same experience when surrendering their lives to the lordship of Jesus Christ.
Christian Cash Loan CompanyUnexpected expenditures can be paid through a company to get a fast advance usually within 24 hours. The businesses that specialize in quick funding has streamlined the process to allow the borrower to have the dollars in less than 48 hours. Notes are always collateralized, which means that interest bearing cash advances require something of worth to be placed as intent to repay. For example, the standard mortgage is collateralized by the house itself. If the borrower does not repay the bank like he promised, the joint will be taken away in foreclosure. Much the same way, an automobile is collateralized by the car dealer or bank when lending dollars. If the owner does not make the regular payments, the car will be repossessed. A bank is no different. There are many acceptable forms of collateral to obtain quick monies.
There are requirements that are common among all same day lending institutions. There is a minimum age requirement for borrowers. These requirements are set by the state authorities and lending regulatory boards. Usually the minimum age is at least 21 or 22 years old. All these firms have a minimum monthly income. It is typically around the state guidelines for poverty. For example, if $650 per month was the state's poverty line, then the firm would require the borrower to earn at least $650 per month to obtain funds. In addition, all same day lenders require that the borrower be at his or her job for a minimum amount of time. Sometimes this minimum is 6 months, but sometimes it is only 3 months. If the company plans to electronically deposit and debit from the borrower's checking account, then the account number and bank routing number will also be required.
That being said, a company may require or accept a different form of collateral than another. The first type of asset is the borrower's pay check or anticipated salary. If someone needs money fast for an unexpected car problem or an emergency dental procedure, he or she may be unable to wait for a week until pay day. Emergencies will not wait until the victim or patient has dollars and the time to handle the unfortunate circumstances. For this reason, same day lenders are willing to offer the borrower dough within 24 hours of the application. The borrower simply visits a company or finds one online. A submission form will be required from the debtor. These forms ask about address, length of residence, employment, length of employment, salary and schedule of pay check allotment from the employer. Luckily, a person's credit score is seldom required. This allows individuals with damaged credit to still have access to money in the event of a tragedy or emergency expense. Part of the submission process will also include submitting pay stubs, bank account numbers and perhaps even phone numbers of references. Ideally, the pay day lender simply wants to see that the debtor has the salary to support the payments that will be resulting from the advance. This sounds exacting, but in the long run the borrower will be happy that their salary was matched with a more appropriate amount.
After the cash note company processes a submission form and checks the references, a check will be drafted or a transfer will be made into the borrower's checking account. The funds usually go in as cash or secured funds, so that the debtor has instant and full access to the money right when it is deposited. This avoids the standard banking hold placed on personal check deposits. If the dough is directly deposited into a checking account, more than likely it will be this same checking account that the company debits for the monthly payments. Obviously, the borrower will have to agree to the terms of repayment. This repayment agreement includes the interest rate, payment amount and account to be debited.
Another form of collateral often accepted is a borrower's vehicle. There are a few stipulations governing the use of a car for collateral transaction. The debtor has to actually own the car. An auto that is still owned by the bank is not sufficient for funding. This is due to the fact that if the borrower defaults it cannot truly be repossessed, because there is still a lien holder in possession of the title. For this reason, the title will be required to prove that the person owns the vehicle. For obvious reasons, the individual cannot ask for more money from the lender than the car is worth. Typically though, same day loaners only offer amounts under $1,500.
The third type of acceptable lien is an income tax form stating the amount of the return. A business can work with tax agencies to give the borrower an advance on the amount of the eventual income tax return. For example, if a Christian is guaranteed to get $850 back from the IRS, but simply cannot wait for 6 weeks in order to fix their situation or pay off the emergency room bill, a company or tax representative will advance them the money. In the mean time, the borrower will owe either a hefty fee or interest payments to repay the services of the lender. "The rich ruleth over the poor, and the borrower is servant to the lender." (Proverbs 22:7) When the income tax return comes, it is the legal property of the lending institution. However, at that point the individual is now safely out of a jam and moving on with life.