Second Christians Home Loans
Typically, second Christians home loans are mortgages, in addition to the first loan, taken out by homeowners against equity in their property. Equity is the difference between the market value of residences less the loan balance. For example, if the value of a house is $550,000 on today's market and the owners owe the bank $150,000, the equity, or interest in the property is $400,000. Homeowners can borrow or take out a second mortgage for all or part of the equity to make repairs or improvements, such as building a new room addition, garage or patio; pay for a child's college education; or save money for retirement. Loans can be also be extended as a line of credit. But second mortgages loans are usually financed at a higher interest rate than first mortgages and must be paid off within shorter terms. While it may be tempting, most borrowers refrain from taking hefty equity loans, simply because payments for two mortgages outweigh the benefits of access to a ready source of cash.
While second home loans can come in handy, if principle and interest amounts add up to an exorbitant monthly payment, borrowers may turn to other financing strategies. Sellers who want to make improvements before putting residences up for sale need to be aware that lenders will usually not grant home equity loans for property currently listed on the market. Mortgage brokers may recommend obtaining an equity loan several months prior to listing residences to avoid jeopardizing the chances of financing. Borrowers should remember that real estate professionals are adept at helping homeowners maneuver through complicated transactions and make wise choices. Those who receive sound advice can avoid making financial mistakes that will be deeply regretted in the future. "Hear counsel, and receive instruction, that thou mayest be wise in thy latter end. There are many devices in a man's heart; nevertheless the counsel of the Lord, that shall stand" (Proverbs 19:20-21). One drawback to taking equity out of the home is that potential buyers may balk at dealing with sellers who are carrying more than one loan. Logically, sellers obligated to two mortgages may have a tendency to price property than what it is actually worth to pay off creditors. Those higher prices could deter serious buyers and leave little bargaining power at the negotiating table.
When it comes to why borrowers opt for additional mortgages, the reasons for taking out second home loans are as varied as individual homeowners. Some want to pay off delinquent debts, purchase new furniture, pay for college expenses, or go on a dream vacation. But, money management gurus will recommend foregoing high-interest, long-term loans to finance frivolous purchases or fun adventures. If consumers don't want to wind up paying for a new car or a trip to sunny Hawaii for the next fifteen years, they need to reconsider motives for financing second home loans. On the other hand, if an equity loan is the only way parents can send junior off to college, then it's a good investment. Instead of depleting hard earned savings for books and tuition, a home equity loan can be spread evenly from month to month. That additional mortgage may actually be a better alternative than financing higher education through a conventional student loan. Of course, borrowers should check with local banks and online lenders to compare rates and terms for the best college financing.
Managing money is serious business with serious consequences. Borrowers should never take on more debt than they can safely handle. Second home loans can be a gamble against a waning economy and sluggish housing market. If two mortgages get too hot to handle, homeowners and lenders could wind up losing! Banks, credit unions, and mortgage lenders who extend credit for second home equity loans want to make sure that borrowers are able to repay mortgages without default; but life can be uncertain. Good people undergo life changing and challenging situations that can rob them of financial solvency. If chronic illness, job loss, or a spouse's death disrupts monthly cash flow, homeowners could find themselves facing foreclosure. Consequently, lenders of second home loans could easily find themselves in the precarious position of having to make good on a delinquent borrower's first note in order to protect their investment. Financial institutions may be forced to pay off original loan balances in order to keep investments from heading to the auction block; but borrowers can easily lose hundreds of thousands of dollars invested over the years.
Before considering second home loans, borrowers would do well to investigate less expensive options. Moonlighting at a part time job rather than taking equity out of the property might be a way to pay off lingering, delinquent bills. Students can start a college savings fund by socking away money from after school jobs, generous relatives, or short-term savings accounts, such as high yield money markets, certificates of deposit, or Treasury bills. And that trip to an exotic isle may just have to wait until Mom and Dad retire with a mortgage-free home. The best deterrent to incurring more indebtedness is to sit down with bankers or lien holders and assess whether taking out second home loans can be a blessing or a curse. Honest consumers will admit that spending money for expensive vacations, new automobiles, or recreational vehicles may have to be put on hold until the family's finances take an upturn. In the final analysis, if high interest rates and hefty principle payments overburden cash-strapped borrowers, refinancing may present a better option. Taking out loans with lower interest rates to consolidate and pay off charge card accounts, make home improvements, or take a weekend trek out of town are wiser choices than incurring additional long-term debt for frivolous expenditures.
Guaranteed Christian Second Mortgage LoansGuaranteed second mortgage loans, otherwise known as home equity loans, will allow a consumer to turn the equity in the home into cash that can be used for any purpose. When considering taking out a second mortgage loan, the first step is to know how much the home is worth. This is usually accomplished by having an appraisal performed on the property. If the appraisal value is higher than the first mortgage balance, there is equity in the home. These loans allow the consumer to make good use of the money for home improvements, remodeling, or to pay off other high interest debts.
If the home is worth one hundred thousand dollars and the consumer owes seventy thousand dollars on the first mortgage, refinancing will only offer eighty percent of the home value, or eighty thousand dollars. This would leave the consumer with ten thousand dollars in cashed out equity. With guaranteed second mortgage loans, in most cases, the consumer would be able to get thirty thousand dollars, which is all of the equity. The only drawback to this is that there be another monthly payment, but it may be well worth it if the cash is very important.
Pursuing second mortgage loans are very common in today's lending arena. People may need cash to pay off other debts or to make upgrades to their home. Others might use a second mortgage loan to cash in on their home equity to put money in savings or to pay for certain high dollar items that might be needed right away, such as a new vehicle. This process can be a great asset to a homeowner, especially if they plan on staying in the home. And if a homeowner is planning on selling in the future, it may be best to go ahead and get the equity out in the present time to make some improvements to increase the curb appeal of the home and likewise increase the chances of selling the home more quickly.
Repairing credit can be another important reason to pursue guaranteed second mortgage loans. If the consumer has charge-offs in his or her credit history and perhaps settled with the creditors, the equity in your home can be used to pay off these debts. This will clean up the consumers credit. Many debt management companies will offer the service of a second mortgage loan specifically for this purpose. In this situation, they normally find out what outstanding debts the consumer has and will pay the creditors directly, leaving the homeowner with the balance of the equity after the debts have been paid. Seeking this service can greatly improve a consumers financial situation as long as the equity is used wisely. "The law of the wise is a fountain of life, to depart from the snares of death." (Proverbs 13:14)
Second mortgage brokers assist the borrower who is looking for a home equity loan. They use their financial expertise and knowledge of the lending process, their human nature intuitiveness in matching lender and borrower, and their public relations skills to connect the two in an efficient and productive relationship. The financial professional who best meets the borrower's needs will secure the loan and then make follow-up calls to assure that the borrower has been provided with the best service possible. Not only does the second mortgage broker want his clients to be satisfied with the loan process, but he also wants to assure that the purpose of the loan is fulfilled. He makes sure that the chosen lender uses secure measures and has provided the best interest rate and terms.
Some prospective borrowers research the loan market on their own and transact their own deals. This is an option, but unless the borrower is familiar with the loan market and the rules and regulations of the industry, he might be better served by hiring a second mortgage broker. He is the best means to find the best lender for the home equity loan at the most efficient terms. Using a financial professional will eliminate a lot of extra work and research for the borrower. Second mortgage brokers network with lenders from across the nation and maintain a data base of lenders, their terms, fees, and rates. They will also know which type of clientele each lender will accept. When a borrower prepares to take out an equity loan, hiring a second mortgage broker will benefit those who can least afford to lose money on a new loan - whether the loss is taken on the terms of the loan, or the poor manner in which it could be presented to the borrower when explaining the repayment terms.
A consumer can locate second mortgage brokers by using the Internet. The first step is to narrow the online search to the immediate vicinity in which he lives, such as a suburban region or the area within a 50 mile radius of a rural community. Because rules and regulations vary widely from state to state and even from locality to locality, the financial professional needs to have an intimate knowledge of those rules and regulations. Some national companies have offices all over the country hire people who have this knowledge. That's where the second home mortgage professional really helps, by weeding out the lenders who don't have the right expertise.
The Bible is full of instruction to find the wisdom in seeking counsel in life matters. Proverbs 15:22 says, "Without counsel purposes are disappointed: but in the multitude of counselors they are established." Christians have no excuse when their plans fail and they do not consult God first and wise Christian friends or counselors. That is one reason why a Christian would want to seek the counsel of second mortgage brokers for this big decision.