House Loan Mortgage.Com - Articles, News and Resources on Home-Loan

Welcome to House Loan Mortgage.Com

Home-Loan Article

Mike Hamel

Home Equity Loans Make Financial Sense

The optimum word in "home equity loan" is equity. Start with the

fair market value of a home, subtract the mortgages (first and

second) and any liens against the property, and what you have

left is the equity. This equity can be used as collateral to

secure cash in the form of a loan or mortgage.

The amount borrowed is based on a percentage of the appraised

value of the home. The percentage rate can vary from 75% to

125%. The length of the financing will also vary. The two main

types of home equity loans are fixed rate loans and adjustable

rate loans.

Fixed rate loan - provides a fixed amount of money at a fixed

rate of interest, repayable in equal payments over the life of

the loan. Fixed rate financing costs more in set-up fees and

comes at higher interest than adjustable rate loans. But if

homeowners stay put and interest rates go up, they will save

money over a comparable adjustable rate loan.

Adjustable rate loan - the interest rate goes up or down

according to the index upon which it is based. Adjustable rate

loans will have a cap on how high the interest rate can go.

Usually called ARMs (Adjustable Rate Mortgages), this type of

loan has lower up-front costs and starts at a lower interest

rate than fixed rate financing. This means lower initial monthly

payments.

According to the Consumer Banker Association, the top ten

reasons for getting a home equity loan are:10. Vacation 9.

Medical expenses 8. Business expenses 7. Household expenditures

6. Investment 5. Major purchase 4. Education expenses 3.

Automobile purchase 2. Home improvement 1. Debt consolidation.

Debt consolidation, the most popular reason people cash out

their home equity, is a smart form of financing because of the

money it can save. For example, say you owe $15,000 on a credit

card that charges 17% interest. If you get a debt consolidation

loan at 9% interest and pay it off in five years, you'll save

you over $30,000!

If you're paying more than 15% interest on anything, you should

seriously consider a debt consolidation loan. The right terms

could drop your monthly payments by 35% - 50%, depending on

interest rates, origination costs and tax consequences.

Even for people who have bad credit or who have filed for

bankruptcy, a home equity loan is not out of reach. It can be a

good way to make a fresh start. Websites like

www.easyhomeequitymortgages.com/ help borrowers with bad credit

get the home equity loan that best fits their unique situation.

About the author:

Mike Hamel is Senior Writer for Sales and Marketing LLC

(www.salesandmarketingllc.com), an Internet marketing company

offering everything from website development and optimization to

creating and monitoring cost-effective ad programs. Their

specialty is improving visitor-to-sale conversion rates using

proprietary software and advanced SEM techniques.

Mikehamel@salesandmarketingllc.com.

Home-Loan News

Parish seeks OK on home loan bonds (New Orleans Times-Picayune)

The Finance Authority of St. Tammany Parish will ask the state Bond Commission on Nov. 16 for final approval to issue up to $70 million in tax-exempt bonds to finance a low-interest home loan program.

Read more...

---

Federal Home Loan Bank of San Francisco Releases September 2006 Cost of Funds Index (Business Wire via Yahoo! Finance)

SAN FRANCISCO----The Federal Home Loan Bank of San Francisco announced October 31, 2006, that the 11th District Monthly Weighted Average Cost of Funds Index for September 2006 is 4.382%.

Read more...

---

RBI review cheers home loan buyers (IBN live)

The good news for home loan buyers is that the lending rates are expected to remain stable in short-term.

Read more...

---

Bell to leave Federal Home Loan Bank (Cincinnati Business Courier)

Sandra Bell, executive vice president and chief financial officer of the Federal Home Loan Bank of Cincinnati, is leaving the bank "by the mutual agreement of the parties," according to a filing with the Securities and Exchange Commission. Her last day will be Nov. 30.

Read more...

---

SBI follows suit, ups home loan rates (The Times of India)

MUMBAI: Your dream house will now cost more. Following the trend set by major housing finance players like HDFC and ICICI Bank, State Bank of India, the largest bank in the country, on Tuesday increased its home loan rates by 50 to 75 basis points across maturities.

Read more...

---

The Mortgage Depot Streamlines The Tennessee Home Loan Process (PR Web via Yahoo! News)

(PRWEB) November 1, 2006 -- The Mortgage Depot (www.

Read more...

---

The Mortgage Depot Streamlines The Tennessee Home Loan Process (PR Web)

The Mortgage Depot has grown dramatically over the past several months, thanks to a quick and easy application process that takes less than two minutes. Due to this increase the company has updated its web site, hired more employees, and is now ready to offer more services and products to more customers across the country (PRWeb Nov 1, 2006) Trackback URI:

Read more...

---