It’s easy today to apply for second mortgages. Using the internet, mortgage brokers and other resources, you can easily get a few quotes to compare in a relatively short period of time. Although its easy, its still a good idea to make sure you get the best second mortgages possible for you, though.
Here are a six tips for finding the best second mortgages.
1. Watch out for adjustable second mortgages rates and find out how they work. It could cost your thousands if you don’t do so.
2. Don’t be tempted to exaggerate your income to secure second mortgages. Work out your budget and stick to it. Remember your house is often collateral for second mortgages and you could end up loosing it if you can’t repay the second mortgages loan.
3. To get the best second mortgages its also a good idea to make sure you have the best possible credit rating. A good rating could get you better rates which could benefit you in the long run. Use a reputable credit company to get a copy of your free credit scores and then use their services to improve your credit rating.
4. Always read the second mortgages loan documentation before you sign for the loan. If you don’t understand something then ask. A misunderstanding could cost you thousands.
5. Don’t sign blank documents – not for a loan for anything else for that matter – would you sign a blank cheque?
6. Avoid brokers who:
• Make promises they don’t keep
• Pressure you into signing for a mortgage
• Offer deals that are too good to be true – they probably have a catch
• Loan clauses which include arbitration
With two bachelors degrees, one in business one in law, Brigitta writes articles on various topics.
For more information please visit our website or our loans website
Mortgage cover – or mortgage payment protection insurance (MPPI) as it is usually sold – can make all the difference to you losing your home or keeping it if you find that through some reason such as becoming ill, unemployed or having an accident that you cannot work for a period of time. The cover would pay out usually for up to a period of 12-24 months which gives you enough time to get well or find another job and get back to work.
While the cover should be classed as essential it is only worthwhile taking if taken the right way. Good quality, cheap mortgage cover is available but you will typically have to go to an independent specialist adviser for the cover. You can a quote for mortgage payment protection cover from an independent online provider and compare it to the quote offered by your bank or lender. An independent provider can in most cases offer you cheaper premiums along with their expert advice on insurance products which means that you get the best deal available and a policy that is suited to your particular needs.
Mortgage payment protection insurance is usually offered alongside your mortgage when you take it out, but the high street lenders premiums are always sky high when compared to an independent provider. The high street lender uses many tactics to try and get you to take out the insurance alongside you mortgage and some will even try persuading you that the cover must be taken there and then or you cannot have the mortgage.
While some lenders will want you to have protection you should know that you can choose to go independently for your cover and it is not compulsory.
So if you want the cheapest mortgage cover that is available then forget the high street lender and instead go to an independent provider. Mortgage cover is confusing and, as the media regularly highlights, only a specialist can provide the best quality product for the cheapest premiums while answering any questions you may have regarding the product.
Cheap mortgage protection is one of the most underrated forms of insurance and protection on the market today. Consumers often do not believe that it is completely essential if you own your own home, despite the fact that it can help to protect the single biggest investment that the majority of people will ever make in their lives.
In fact, cheap mortgage protection could feasibly enable an individual to keep the roof over their head should they be unable to work due to unforeseen unemployment, long term illness or accident.
Sadly, many people who become out of work due through no fault of their own can often find that their home, which they have worked long and hard for, eventually gets repossessed if they cannot manage to keep up the mortgage repayments.
The benefits of cheap mortgage protection are immense. The first and main benefit that all homeowners should consider is the fact that it could actually keep a roof over their heads should they be out of work for a period of time through no fault of their own. In fact, cheap mortgage protection would take the stress of being unable to make repayments off an individual. Very few people would have enough savings to live off while they got well or found themselves another job and the State benefits would not even make a dent in helping towards a mortgage repayment.
Secondly, cheap mortgage protection can last the lifetime of a mortgage. It is designed to protect home repayments for the life of the mortgage, although it will only pay out for one twelve or twenty-four month period usually. The cover will only be cancelled before the end of the term of the mortgage if you cancel it yourself or you make a claim
Finally, cheap mortgage protection can remove some of the stress placed on a homeowner ill equipped to cope with financial difficulties on that scale. The peace of mind it gives is most definitely a major benefit!
The dream of owning a home is something that is on just about everyone’s lifetime goal list. It’s one of the things that in some ways signals that we have made it in life and can bring great pride and a sense of accomplishment to many. For many who pursue that dream it can be a confusing undertaking if they are not prepared for the home buying experience. Without a doubt one of the most confusing and often misunderstood parts of the home buying experience is the mortgage process. Sadly, most of us do not have the money to just buy a home outright, so we turn to mortgage lenders to help us finance the home of our dreams.
One of the first things anyone who is interested in owning their own home should understand is the role credit plays in the mortgage process. You are getting ready to ask a lender to make a sizeable loan to you for an extended period of time – often upwards of 30 years. For them to take on this risk, they need to evaluate your creditworthiness – or your ability to pay the money back. They typically look at items such as your credit report which lists how you have dealt with other creditors in the past, your total household income and the price of the home you are willing to buy and where it is located. Based on this information they then decide on whether to extend you the loan and at how much interest.
Interest is an important concept to understand because over the lifetime of the loan you can expect to pay back double the amount of the loan value based on the interest rate – that $150,000 house has suddenly cost you $300,000. Your goal in the mortgage process is to get the absolute lowest interest rate you can.
You also need to know how much house you can afford. Most mortgage lenders typically look for you to spend no more than 30% of your monthly income on house payments. Of course, the longer the mortgage term and the lower your interest the more house you can afford to buy. It is important to buy something you can easily and comfortable afford – the last thing you want to do is find yourself in a crisis situation unable to pay your monthly mortgage payment!
Next, be sure you have saved up a sizeable cash reserve before jumping into the home buying process. You are going to have to pay things such as closing costs (which can be upwards of 5% or more) and pay as much of a down payment as you can to reduce your loan amount as much as possible. You then will want to have a little reserve left over to furnish your new home and take care of any needed repairs – remember, you own it now and it is up to you to repair it if something breaks!
If you are confused about the mortgage and home buying process, don’t feel as if you are alone. Many people share the same concerns and fears as you do. Often times in your community there are local first time home buyer groups that meet with experts from the banking and real estate industry there to answer your questions. Ask your realtor about whether such a group exists and when the next meeting is. The home buying process doesn’t have to be a terrifying experience, and if you come prepared you can win big by getting the best deal possible on your mortgage while getting the house of your dreams.