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Avoid Foreclosure by Refinancing Your Mortgage

Posted by Oze Parrot on 7th June 2007

You are young, have a good job, work hard, raise a mortgage and buy a home, which is possibly the biggest single investment that you will ever make. That’s fine, the children are young, the job pays well, the mortgage repayments remain stable and you and your family are quite comfortable.

Money HouseSeveral years pass by, and for one reason or another, the mortgage repayments become a burden. There are a number of factors that contribute to this situation, your family is growing, inflation rates are increasing, the value of the dollar is decreasing, property values in your area are rising, along with council rates and also interest rates have escalated.

Unfortunately, any wage increases that you may have had, have not kept pace with your continually increasing household expenses. Without the aid of an unforeseen windfall, this means a drastic lifestyle change with the possibility of a foreclosure.

The alternative, of course, is to refinance your mortgage which will substantially lower your mortgage repayments, allow you to maintain your standard of living and secure your initial investment.

When refinancing your home mortgage there are several pitfalls to be avoided.

Be mindful of the fact that you will be doing business with this mortgage company or brokerage for many years so you will need to choose wisely. Make sure that you are dealing with a well known company and engage the services of a reputable financial adviser who will inform you of any terms or conditions, written into the refinancing company’s agreement, that may not be in your best interest.

An independent financial advisor will have a large number of money lending institutions from which to choose, and therefore, should be able to provide you with an acceptable refinancing plan.

There are many types of refinancing loans including, complete term loans, overdraft loans or loans with a redraw facility. Things to watch out for are the penalty clauses, the interest rate structure and the companies terms and services agreement.

Are there any penalties for early settlement? Make sure that the loan company is not enforcing exorbitant penalties for early settlement.

Are the interest rates fixed, if so, for how long? Make sure that the loan company does not have an interest rate hike built into the agreement after the first year.

A loan that has fixed interest rates could result in a great saving by reducing the amount of interest you will have to pay over the term of the loan. On the other hand, a fixed interest loan agreement will incur a higher monthly premium. A flexible interest rate is somewhat cheaper in the short term, but your premiums will increase accordingly with any increase in interest rates. It is therefore advisable to have your initial interest rate fixed for the first three years of the loan.

Seek advice from reliable sources. A reputable mortgage broker will professionally guide you through the steps that you need to take to refinance your mortgage, which will save your home from foreclosure, retain your lifestyle and possibly, save your marriage.

For further information visit our web site at: Home Mortgage solutions

Oze Parrot :-)

Niche Hunter

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Raising A Second Home Mortgage

Posted by Oze Parrot on 27th October 2006

A Second Home Mortgage is a loan, that is secured against a property, that is subordinate to another loan which has been previously Raised against the said property. The Second Mortgage therefore, will be settled after the first Mortgage, in the event of foreclosure.

Cash MoneyActually, a property can be mortgaged several times. The second and subsequent loans attracting higher interest rates because of the greater risk involved. Depending on the value of the property and the amount borrowed with the first Mortgage, there may not be enough funds to completely settle the second Mortgage if a foreclosure takes place during a market recession.

A Second Mortgages is called a subordinate Mortgage because should the loan be foreclosed, the first Mortgage is completely settled before the second Mortgage can claim. Second mortgages are higher risk loans therefore they command a higher rate of interest.

If the terms of a second mortgage are favorable, it may be possible for you to refinance the Mortgage. That is, if you wish to reduce your monthly repayments or you need to invest in another project. Refinancing is an alternative way of paying off a mortgage, reducing the current interest rate and reducing the monthly repayments. Raising a Second Mortgage is a great way to finalize all your debts and give you some cash in hand.

In most instances, a poor credit rating is not a barrier to Raising A Second Mortgage. A Second Mortgage can actually reduce your monthly repayments and put some money in your pocket that will enable you to carry out any needed home improvements, or maybe just buy the kids a treat. There are many Mortgage brokers that are prepared to present you with a variety of Second Mortgage or refinancing proposals. Take advantage of these services and don’t let a poor credit history deter you.

The lending market is quite competitive and many money lending organizations are in a position to approve A Second Mortgage or a refinancing loan within twenty four hours. You could have some extra cash in hand and be saving on your monthly repayments by tomorrow.

For further information visit our websites at:   Mortgages Guide And Mortgage Hunter

Oze Parrot :-)

Niche Hunter

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