2nd Chrisian Mortgage Refinance
A 2nd Christian mortgage refinance lending transaction is considered by many homeowners for a number of reasons. It may be used to take advantage of a lower interest rate than when originally the 2nd mortgage loan was purchased. The second loan could be secured because the original length of the lending agreement has expired and more time is needed for the debt being repaid. It may also mean that a homeowner wants to cash in on some of the equity he has in a residential property and chooses this type of lending agreement. There are plenty of things to think about when applying for such a lending agreement.
The term 2nd mortgage refinance may apply to a homeowner who is seeking a cash out lending agreement option and so seeks to reconfigure the first property lending agreement in such a way as to keep the lending payments as close to the original as possible but pocket all of the equity from the second time a person mortgages his house. If an owner has paid on the house lending agreement a long time or had made a substantial down payment to pay for a large amount of house equity, a 2nd mortgage refinance can be a real life saver if a sudden and unexpected expense suddenly arises. After all, financial experts inform us that seventy percent of all Americans live pay check to pay check and that means that only a small minority of US citizens has money saved in the bank for such issues and a loan is the only way to cover these sudden situations.
The term 2nd mortgage refinance may also mean someone wishing to configure their second mortgage which can be a real mortgage or a home equity line of credit. If a person has his eye on a house but does not have the down payment money required for a conventional loan, the decision may be made to apply of a second property lending agreement to make the down payment. Sometimes the lenders of primary mortgages frown upon this practice, but if an individual's debt to income ratio is within acceptable boundaries, the practice can but not necessarily will be overlooked. For example, a hundred thousand dollar house requiring a twenty percent down loan for a bank to give a low fixed interest rate may allow a second mortgage loan to fund the needed twenty thousand dollars. However, if the money for the second lending agreement is tied into the equity of the house as a secured loan, the water could be muddied in terms of bank acceptability. Each bank is different and so plenty of homework will have to be completed by the borrower ahead of time.
A home equity loan is also called a second mortgage and is tied directly to the equity a person has in his place of residence. So a 2nd mortgage refinance can apply to the borrower seeking to get a better interest rate, or enlarge the amount of the original lending agreement or lengthening the time of the original borrowing period. In the case of the borrower wanting a better interest rate much care should be taken to find out whether all of the closing costs of the 2nd mortgage refinance will be offset by the lower interest rate charges over the life of the lending agreement. IN other words, if the closing costs of a new home equity loan are two thousand dollars, and the lower interest rate will save twenty two hundred dollars during the life of the loan over the old interest rate, is it really worth the hassle? "Likewise I say unto you, there is joy in the presence of the angels over one sinner that repenteth." (Luke 15:10)
For the homeowner seeking a 2nd mortgage refinance in order to extend the life of the loan, there isn't much upside to the decision other than the fact that he will probably postpone the foreclosure of their house. A small ten thousand dollar second property lending agreement that defaults can result in the foreclosure of a house which is worth one hundred fifty thousand dollars. Granted, a number of things can be done to prevent this from happening, but not being able to meet a second lending agreement pay off deadline could bring on the deck of cards scenario. This occurrence might be most likely to happen if the second mortgage has lower payments for a fixed amount of time and a balloon payment at the end. Finally, a 2nd mortgage refinance loan to enlarge the amount of the equity being cashed out doesn't have much good news either because the owner must basically start over again in terms of paying for the house. Unless there is a dire emergency supporting such a lending agreement, there could be plenty of buyer's remorse in the years to come.
In many cases, a second mortgage refinance only makes a bad situation worse. Borrowing money may be quite the normal thing to do in American life, but the decision has enslaved literally tens of millions of people who can't afford to get sick and miss much work because of no savings due to high amounts of debt. Being enslaved to other things can even be worse. Pornography, lust, approval, shopping, drugs, guilt, shame, religion and other issues enslave as many or more people as debt. The Bible talks about believers being bond servants, which was a slave who was given his freedom after years of captivity, but out of love for the master remained as a household employee. God doesn't want people enslaved to the chains of religion, but He certainly desires that Christians be bond servants to Him because He first loved us.
Second Mortgage Christian Home LoanA second mortgage home loan is usually referred to as a home equity loan or line of credit that can provide a homeowner with a large amount of cash for any reason. These loans typically have lower interest rates and offer additional tax benefits for the homeowner. At the same time, this lending requires that the property itself be pledged as security for the debt. However, the house is put at risk if the borrower is late or cannot make the monthly payments. Some second mortgage home loans can allow for a final (balloon payment) which lowers the monthly payment amounts.
If the borrower sells the home, they must first pay off the first mortgage, then payoff the second. A second mortgage home loan typically is reserved for homeowners who desire a fixed interest rate, need a lump sum, and want to make regular amortized payments monthly. Some second mortgage home loans may extend for as long as 15-20 years, other may be shorter term in nature. Discussing the purpose of this lending with a counselor will determine which type of lending is best and how long repayment should be. It is important to get advice and help from professionals, but especially to get God's counsel. "Counsel is mine, and sound wisdom: I am understanding; I have strength" (Proverbs 8:14).
Most lenders will charge a variety of fees for originating the equity loan. Parts of these fees are called "points". One point is equal to one percent of the amount borrowed. For example; a homeowner taking out $50,000 would pay a $500 point fee. The number of points a lending institution or mortgage company charges will vary. It is a good idea for a homeowner to shop around before applying. Second mortgage home loan fees can vary substantially between lender, as well as the interest rates offered.
Many states have regulations that limit the amount a lender can charge a homeowner for this type of lending. It is advised that a borrower check with their state's consumer protection office or banking commissioner to discover the limit. Interest rates for second mortgage home loans are determined by the borrower's credit score and the amount of equity in the property. For example; if a borrower has a high credit score and has $50,000 in equity in their house, but requests a second mortgage home loan of only $25,000, they are sure to get a good interest rate. It is advised that homeowners know their credit bureau scores before shopping around for rates.
Second mortgage loans with bad credit are available from multiple lenders who specialize in offering home equity loan services to homeowners with low FICO scores. These monies can be used for many different reasons. Banks and other lending companies today are offering many packages that can be used for emergencies, home and car repair, and college student assistance, among other things. Even people with poor repayment histories can qualify for these funds. In fact, a second mortgage loan with bad credit is designed for people who, for whatever reason, have a poor FICO score.
The rationale for getting a second mortgage cover reasons from an emergency situation to a large cash purchase. Homeowners in need of cash can use the equity in their current house to get more money, using the equity as collateral. Illness, loss, and natural disasters can happen at anytime, and homeowners may find that they are in a great need of cash to take care of these unfortunate circumstances. Getting a second mortgage loan with bad credit could bring in the cash needed to pay for the emergency, or pay for the living expenses until financial situations are better.
There are hundreds of companies that offer second mortgage loans with bad credit. With the convenience of the Internet, interested homeowners can easily browse online for information, terms, and quotes from providers that offer financial services to meet their needs. After fully researching their options, borrowers can apply easily right in the privacy and no-pressure environment of their own homes.
It should be noted that a second mortgage loan with bad credit will cost more in interest fees and, perhaps, in other charges such as closing costs than a conventional mortgage would. Hefty penalties for late or missed payments may also be levied. This is the reality of having a poor payment history with other creditors. "Be not deceived; God is not mocked: for whatsoever a man soweth, that shall he also reap," (Galatians 6:7).
Defaulting on Christian second mortgage loans with bad credit can result in the loss of a home, as is true with principal mortgages. The lien holder will repossess a home and sell it to make repayment. Those considering this financial step should carefully take into account all options before committing to the financial agreement. While second mortgages can offer homeowners the opportunity to rebuild their credit by making timely payments, an additional financial obligations can also put the home at risk.