By: Christen Scott
Second Mortgage Home Loan is given on the basis of the equity of your home. First of all you must understand what is the equity of home? Equity is the value of your home minus the loans you owe. Hence, you get amount for this loan on the basis of the equity of your home. Most of the times, this loan is used to consolidate the debts of high interest rates like credit card other then this, this loan is used for home renovations, improving property, raising funds, starting a new business, or buying a new property etc.
Second Mortgage Home Loan should not be confused with mortgage refinancing because these are two different loans. Mortgage refinancing is the replacement of old loan for new one at new conditions like interest rate and duration etc. But second mortgage loan is the new loan other then the loan you already owe to the lender. You have to deposit an additional monthly installment for this loan. Therefore you must calculate before applying for this loan that whether your pocket allows or not.
There is no such rule that you have to borrow this loan from same lender rather you can get this loan at competitive rate with other lenders. Duration of this loan depends on the repayment term. If, you want to get rid of the loan early, then you must pay heavy monthly installments and small installments for long duration which may be 15 to 20 years. Interest rate for this loan may be higher than your first mortgage but it is lower than unsecured loans.
7/08/2009
Some Facts On Plastic Surgery Financing
by : Devora witts
Plastic or Cosmetic Surgeries are elective treatments and therefore not covered by most health insurances or the NHS with few exceptions. Moreover, these practices tend to be quite expensive and thus, it is not strange that the financial industry has found a niche and created products to aid those who want these treatments but can not pay for them in full and need financing in order to afford them.
It is important to note though that plastic or cosmetic surgery financing is not widespread and therefore it is not as easy to get financing for these medical procedures as it is to obtain financing for making home improvements, buying a car or a home. However, there are alternatives that are widespread and easy to obtain and that can also be used to finance plastic or cosmetic surgery too.
Financing Through The Physician
Some physicians are willing to finance their fees so you can pay for their services in small installments rather than with a lump sum. This of course needs to be discussed and agreed prior to any treatment and the terms need to be clear to avoid legal problems. Depending on the agreement, there can be a charge for financing or not. Bear in mind though that most of them include the costs in the installments even if they claim not to charge for financing. There may be a discount for paying in full in advance.
Medical Loans As An Alternative
Medical loans are specially tailored for financing plastic surgeries and other elective procedures not covered by the NHS and sometimes not even by health insurance. Often, the physicians or the clinics they work for, agree with a particular lender for providing financing to potential clients/patients. These loans are personal unsecured loans that feature more advantageous terms and that are granted for the sole purpose of paying for the medical procedure. Thus, in most cases, the money will never be in your hands.
Personal Loans Other Than Medical Loans
Though medical loans are special personal loans, if your medical loan is not available through your clinic, physician and/or local lenders, you can always resort to traditional forms of financing. Personal loans can be used for any personal purpose and therefore, they can also be used for financing a plastic surgery or other elective treatment. There are different personal loan types and depending on your needs you should consider one or another:
Personal unsecured loans do not provide high loan amounts. Therefore, you can resort to them only for small plastic surgeries or cosmetic treatments that are not too expensive (Botox, nose job, lifting, etc.). Also, the repayment programs for these loans are not that flexible, you can obtain a five year repayment plan at most and the interest rate charged for financing is significantly higher than that of secured loans though lower than what it costs to finance with credit cards.
Personal secured loans are the right option for higher cost surgeries or cosmetic treatments. The money you can obtain when you offer collateral is significantly higher and therefore it is easier to afford more expensive treatments and operations.
Plastic or Cosmetic Surgeries are elective treatments and therefore not covered by most health insurances or the NHS with few exceptions. Moreover, these practices tend to be quite expensive and thus, it is not strange that the financial industry has found a niche and created products to aid those who want these treatments but can not pay for them in full and need financing in order to afford them.
It is important to note though that plastic or cosmetic surgery financing is not widespread and therefore it is not as easy to get financing for these medical procedures as it is to obtain financing for making home improvements, buying a car or a home. However, there are alternatives that are widespread and easy to obtain and that can also be used to finance plastic or cosmetic surgery too.
Financing Through The Physician
Some physicians are willing to finance their fees so you can pay for their services in small installments rather than with a lump sum. This of course needs to be discussed and agreed prior to any treatment and the terms need to be clear to avoid legal problems. Depending on the agreement, there can be a charge for financing or not. Bear in mind though that most of them include the costs in the installments even if they claim not to charge for financing. There may be a discount for paying in full in advance.
Medical Loans As An Alternative
Medical loans are specially tailored for financing plastic surgeries and other elective procedures not covered by the NHS and sometimes not even by health insurance. Often, the physicians or the clinics they work for, agree with a particular lender for providing financing to potential clients/patients. These loans are personal unsecured loans that feature more advantageous terms and that are granted for the sole purpose of paying for the medical procedure. Thus, in most cases, the money will never be in your hands.
Personal Loans Other Than Medical Loans
Though medical loans are special personal loans, if your medical loan is not available through your clinic, physician and/or local lenders, you can always resort to traditional forms of financing. Personal loans can be used for any personal purpose and therefore, they can also be used for financing a plastic surgery or other elective treatment. There are different personal loan types and depending on your needs you should consider one or another:
Personal unsecured loans do not provide high loan amounts. Therefore, you can resort to them only for small plastic surgeries or cosmetic treatments that are not too expensive (Botox, nose job, lifting, etc.). Also, the repayment programs for these loans are not that flexible, you can obtain a five year repayment plan at most and the interest rate charged for financing is significantly higher than that of secured loans though lower than what it costs to finance with credit cards.
Personal secured loans are the right option for higher cost surgeries or cosmetic treatments. The money you can obtain when you offer collateral is significantly higher and therefore it is easier to afford more expensive treatments and operations.
7/07/2009
Mortgage Refinance and Loan Modification Tips
by Anthony Russell
It makes no difference how careful people are while spending money, it's possible to incur debt. As per statistics, for the average family, the monthly mortgage installment turns out to be the biggest payment while redeeming the mortgage refinance loan. In case there's an emergency, or money needs to be borrowed for a settlement of credit card debt, it can disturb the balance between monthly income or cash inflow, and the monthly overheads. As a result, an affordable situation becomes highly unaffordable. So how should one cater to unavoidable circumstances?
The basic rule is to communicate with your creditors. The second rule is to keep on paying to the best of one's ability, to prevent the mortgage refinance loan liabilities from becoming unmanageable. When delinquency occurs, or if the debtor stops paying the monthly payments, it reduces the creditor's sympathy, and creates unhealthy grounds for solving your financial problems. In addition, being delinquent means you attract penalties as well as service charge, which will mount up your net payable debt.
The solution you may desire from your home mortgage refinance provider would be ideally a reduction in your home mortgage refinance loan monthly installments. It would be possible to avail this facility by extending the term of the mortgage loan, or by decreasing the interest rate. The question is why should a creditor modify your loan? The issue is for lenders the foreclosure option is tantamount to using a sledgehammer to crack a nut. If the lender is presented with a foreclose, there are negligible chances of recovering the bulk of the amount lent in the form of refinance home mortgage loan. So lenders are now thinking about providing some additional chances or options so that the debtor can work out something and redeem, rather than get stuck up with litigations and a potential loss in recovery through judicial proceedings. It turns out o be more cost-effective to recover less from a borrower, rather than spend money to recover through legal suits and face the dilemma of selling or not selling the security.
To successful redeem the mortgage; the first step would be to learn what is required to qualify for a loan modification program, and how to meet the prerequisites. The following insights can help you select amongst the many loan modification companies, and help you prepare for your mortgage loan modification programs:
# Presentation
Each creditor has his or her own loan modification guidelines and policies. It's required to spend the required time and effort to educate yourself about how the mortgage modification process actually works, and find out what your creditor is hoping to see in your application before approving it, and what other options are available to pay the dues.
# Debt ratio
It's the ratio, which lets you know how much you owe in comparison to your monthly income. Your lender will determine a new target amount, which will ideally be a percentage of the gross monthly income. By availing a longer loan term, or doing a principal forbearance, you can improve upon your chances for a successful mortgage loan modification.
# Disposable income
How much do you spend each month? Loan modification application includes a financial statement, which represents a detailed breakdown of your income and expenses. The applicant has to show the monthly bills and expenses against the monthly income, and prove it's possible to redeem. This assures the lender that you extra liquidity and are not a risk in being delinquent, if granted the home loan modification.
# Hardship letter
To avail financial hardship benefits, a detailed explanation of your current situation, and why you want to keep your house, and your future plans will help your lender understand how you are facing payment difficulties. Draft your letter to the point, and include enough documentation to avail your refinance mortgage claim by modifying your refinance mortgage loan. A well-written hardship letter plays an important part for a successful application.
It makes no difference how careful people are while spending money, it's possible to incur debt. As per statistics, for the average family, the monthly mortgage installment turns out to be the biggest payment while redeeming the mortgage refinance loan. In case there's an emergency, or money needs to be borrowed for a settlement of credit card debt, it can disturb the balance between monthly income or cash inflow, and the monthly overheads. As a result, an affordable situation becomes highly unaffordable. So how should one cater to unavoidable circumstances?
The basic rule is to communicate with your creditors. The second rule is to keep on paying to the best of one's ability, to prevent the mortgage refinance loan liabilities from becoming unmanageable. When delinquency occurs, or if the debtor stops paying the monthly payments, it reduces the creditor's sympathy, and creates unhealthy grounds for solving your financial problems. In addition, being delinquent means you attract penalties as well as service charge, which will mount up your net payable debt.
The solution you may desire from your home mortgage refinance provider would be ideally a reduction in your home mortgage refinance loan monthly installments. It would be possible to avail this facility by extending the term of the mortgage loan, or by decreasing the interest rate. The question is why should a creditor modify your loan? The issue is for lenders the foreclosure option is tantamount to using a sledgehammer to crack a nut. If the lender is presented with a foreclose, there are negligible chances of recovering the bulk of the amount lent in the form of refinance home mortgage loan. So lenders are now thinking about providing some additional chances or options so that the debtor can work out something and redeem, rather than get stuck up with litigations and a potential loss in recovery through judicial proceedings. It turns out o be more cost-effective to recover less from a borrower, rather than spend money to recover through legal suits and face the dilemma of selling or not selling the security.
To successful redeem the mortgage; the first step would be to learn what is required to qualify for a loan modification program, and how to meet the prerequisites. The following insights can help you select amongst the many loan modification companies, and help you prepare for your mortgage loan modification programs:
# Presentation
Each creditor has his or her own loan modification guidelines and policies. It's required to spend the required time and effort to educate yourself about how the mortgage modification process actually works, and find out what your creditor is hoping to see in your application before approving it, and what other options are available to pay the dues.
# Debt ratio
It's the ratio, which lets you know how much you owe in comparison to your monthly income. Your lender will determine a new target amount, which will ideally be a percentage of the gross monthly income. By availing a longer loan term, or doing a principal forbearance, you can improve upon your chances for a successful mortgage loan modification.
# Disposable income
How much do you spend each month? Loan modification application includes a financial statement, which represents a detailed breakdown of your income and expenses. The applicant has to show the monthly bills and expenses against the monthly income, and prove it's possible to redeem. This assures the lender that you extra liquidity and are not a risk in being delinquent, if granted the home loan modification.
# Hardship letter
To avail financial hardship benefits, a detailed explanation of your current situation, and why you want to keep your house, and your future plans will help your lender understand how you are facing payment difficulties. Draft your letter to the point, and include enough documentation to avail your refinance mortgage claim by modifying your refinance mortgage loan. A well-written hardship letter plays an important part for a successful application.
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