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Mortgage Bridge Loans
If you are buying a new home while trying simultaneously to sell your old one, a mortgage bridge loan could help you span the gap. Get competitive offers on these loans here.
Read full post here. (c)
Home Equity Loan instead of Bridge Loans
If you're buying a new home, you may need to sell your existing one in order to finance your new purchase. Not everyone has enough money to straddle two pieces of property.
Read full post here. (c)
The Refinance Trap of Debt Consolidation
As a Long Island mortgage broker, for years I have been advising past and potential new clients on the advantages of refinancing their current mortgage as a tool for debt consolidation. The theory behind this promoted two advantages to the borrower. The first is that a borrower could wipe out high interest revolving credit debt and fold it into a new mortgage with a much lower interest rate. This could save the borrower hundreds of dollars per month. The second advantage is that the interest on consumer debt is not tax deductible while mortgage interest is tax deductible, thus lowering the borrower's income tax debt. This appeared to be a win-win situation. The borrower was able to lower the monthly debt and save money on taxes. Based on what has happened over the past 2 years, Long Island mortgage brokers, such as myself, probably did their clients a disservice in encouraging them to refinance. What is wrong with refinancing as tool for debt consolidation? The answer is plenty. First of all, many borrowers, when they did refinance would have a higher mortgage and a higher mortgage payment than they did before. This was offset by the savings they would have by wiping out their revolving consumer debt, leading to a lower monthly expenses overall. This was a trap. Quite often, the borrower would start using the credit cards again and go back to the same consumer debt they had before. Now they would have the same monthly payments on their credit cards with a higher mortgage payment. This only increased their debt burden, not lessen it. If home prices were rising and their credit remained good, they could refinance again, setting off another round of higher mortgage balances, higher mortgage payments and diminishing equity on their home. This was strategy heading for disaster. Here on Long Island mortgage balances were going up and so were home prices. Finally, when the gravy trained stopped, borrowers could not refinance any more and were stuck with a debt burden they could not handle. Instead, we should never told them to refinance as means of lowering payments. Suppose they never refinanced. There would have come a point where their credit cards would have been maxed out and they could not incur any further debt. Responsible spending would have been imposed on them. Secondly, even if they were responsible borrowers, suppose they suffered a loss of income and could not pay the consumer debt and mortgage payments. At least the borrower could just make the mortgage payments and still have equity on the home. A borrower could just not make the consumer debt payments. Of course, there may been collections and judgments, but the borrower would not lose the home. By refinancing and throwing consumer debt into the mortgage, the borrower does not have this option. In many parts of the country as well as Long Island mortgage foreclosures have occurred precisely for this reason. I still see many ads extolling the virtue of debt consolidation by refinancing. I believe this kind of marketing should stop. It is destructive to the borrower. If a borrower can actually lower their mortgage payment by refinancing, that is fine. Otherwise, the borrower is being led into a trap that could lead to the loss of their home. To obtain free information on the advantages and disadvantages of refinancing, go to http://www.longislandmortgagetoday.com
NAVIGATION
Introduction to Home Mortgage Refinancing
Introduction to Refinancing Mortgages
Refinance Rates - Pay Back Strategies - A New Look
Interest Only Loan Refinance
Refinance Auto Loans and Its Benefits
When is it Worth it to Refinance?
The Advantages And Disadvantages Of Refinancing
Apply For FHA Loans - FHA Loans Are Easier To Qualify For
Getting Bad Credit Auto Refinancing
Turning Property Into a Rental Investment
Special Considerations for Mortgage Refinancing
Reverse Mortgage What You Should Know
Four Refinancing Home Mortgage Loan Tips
Refinancing Homes - Things You Can Do to Get the Best Deal
Current Mortgage Rate Predictions
Loan Modification - Streamlined Modification Program Help
2nd Mortgage - Better Than Refinancing
Best Places to Refinance Auto Loans
A Review of Mortgage Finders Network
How Much Mortgage Can I Afford?
Fixed Rate Mortgages: Back To Basics
The Four Most Important Questions to Ask Before Refinancing Your Mortgage
It is Possible to Refinance While House is in Foreclosure?
Refinancing Your Home Mortgage
Be Careful When Comparing Mortgage Rates
Obama's Homeowner Stability Plan - How Can President Obama's Stimulus Package Save Your Home?
FHA Home Loan Options For Refinance Or Purchase
Three Tips For Refinancing Online
Refinance Auto Loans - Setting Aside the Debt Burden
Mortgage Loans After Bankruptcy - 3 Tips on Getting Approved
Credit - Mortgage - Part 1
Car Loan - How to Re-finance Or Pay Off Early?
3 Signs Of A Refinancing Scam
When to Refinance Your Mortgage?
Refinance Your Mortgage, Even With Bad Credit
Took Up a Cash Handout Previously and Having Trouble Refinancing?
In Foreclosure & Need to Refinance? Your Current Lender May Help Refinance
Mortgage Refinancing - 5 Things to Avoid
Get Mortgage Rates at 3%
New Mortgage and Mortgage Refinance Tips For 2009
Car Loan - How to Re-finance Or Pay Off Early?
In Foreclosure & Need to Refinance? Your Current Lender May Help Refinance
Reverse Mortgages - Knowing Your Needs
Avail Affordable Home Refinance in Just Few Clicks!
The VA Streamline Refinance Program - A Fast and Easy Alternative to Conventional Refinancing
Refinance or Second Mortgage? Combining 1st & 2nd Mortgages Together
Home Mortgage Refinancing Loans For People With Bad Credit
Mortgage Rates at 1.5% in This US Recession Are Your Best Investment For 2009
How to Refinance Home Loans
Relevancy Is the Key to Success With Google AdWords - Part 3
Mortgage Stimulus Plan From Obama Allows 4.5% Refinancing
Why Refinance?
Mortgage Refinance - Pay Less Lender Fees
Refinance Under 5%?
When is it Worth it to Refinance?
The Basics of an FHA Loan
How to Choose the Right Mortgage Lender When Refinancing
Refinance Rates
What You Need to Know About Refinancing
The Federal Loan Modification Program - Qualification Standards
Important Tip For Starting the Loan Modification Process
Commercial Mortgages
When is it Worth it to Refinance?
The Refinance Trap of Debt Consolidation
Help With Home Mortgage Refinancing
When Should You Refinance Your Home Mortgage?
SEO is Not Dead!
Home-Equity Debt Consolidation - 3 Processes to Consolidate Your Debt With Your Home-Equity
How to Read a Truth-In-Lending Statement
It is Always Better to Obtain Car Finance Through a Local Dealership
Texas Mortgages
Solid Reasons For Refinancing a Home Mortgage
100 Percent Mortgage Financing - Qualifying for a FHA Loan
Mortgage Rates Prediction
Refinance Your Loan
The No Cost Refinance - Part I
Home Improvement Loans Are a Bad Idea
How to Avoid PMI With Less Than a 20% Down Payment
Important Tip For Starting the Loan Modification Process
Common Questions That People Ask When Paying Their Mortgage Off Early
How to Take Advantage of Obama's Home Refinance and Modification Stimulus Plan
Home Loan Modification Vs FHA Refinancing Programs
Save Money by Refinancing Your Car
FHA Streamline Refinance Essentials - Things Every Borrower Needs to Know
Are You Upside Down on Your Car?
Veterans' Mortgage Refinancing
As Interest Rates Plummet, Refinancing Becomes Popular
Tips on Home Refinancing and Its Benefits
No Credit Home Loans
Should I Refinance My House?
Home and Mortgage Refinancing
Reduce WAMU Payments - Tips to Cut Down on WAMU Monthly Payments
Getting a Mortgage Loan After Foreclosure
How Can I Get a Lower Interest Rate on My Mortgage?
VA Streamline Refinance With No Credit Check
The Reasons Why Getting a Mortgage Might Be a Bad Idea
No Cost Refinancing
What is a Mortgage Broker?
Buying a Home After a Foreclosure
The Refinance Trap of Debt Consolidation
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