Your Choices if You Need Money Now
If you know exactly what you need and you want it immediately, then just click the links above, or right here, for your refinance home loan search. Otherwise, below is truthful info about your options to find some cash or get your debts consolidated: (1a) Home Equity Loans,
(1b) Lines of Credit, or (2) Home Refinancing; (3) Unsecured Personal Loans or (4) Credit Cards (especially balance transfers to low-interest cards); and (5) Credit Repair and (6) a Payday Loan, as a last resort only.
Options 1(a+b) and 2: FOR HOMEOWNERS
If you are a homeowner, you are lucky to possess an asset that provides you with the option to (1a) get a loan on your home equity or (1b) get a line of credit, or to (2) refinance your house at a lower interest rate (40-year lows!) to take some cash out. Options 1a and 1b are generally better options if the rate of interest on your current, first mortgage is less than first mortgage rates available now because rates today are at their lowest in decades, your current interest rate is probably higher. They are also options to consider if you need only a little money or do not have much equity in your property. Some lenders let you borrow as much as 125% of the value of the property. But with any of these types of loans, you will also want to know . . .
Flexible Ways to Use Money from a Line of Credit, Refinancing with Cash-Out, or Home Equity Loan
* Debt Consolidation – Pay off those credit cards, or car and student loans or any other debt
* Pay Off any second or third mortgages, and any home equity lines or home equity loans you already have.
* Home Improvement — Improve the property.
* Pay Off Your Home Equity Line — Pay off any current home equity line.
* Buy a Car
* Cash — Anything else you can think of.
Home Equity Line of Credit — Advantages: you can borrow just what you need and you only pay interest on what you borrow; you can have extremely flexible access to your funds; and your interest payments could be tax-deductible. Disadvantages interest rates can can go up, and so can payments; it could be harder to refinance your first mortgage later.
Home Equity Fixed Loan Advantages: all payments are fixed at the same amount; interest again may could be tax-deductible. Disadvantages: the interest rates are usually higher than those for first mortgages; it could be more difficult to refinance your first mortgage in the future.
Option 2: Refinance & Cash-Out First Mortgage
To get a new first mortgage is often a good option if current market rates on first mortgage are less than what you pay now. Most lenders will ask that you have enough equity in the property to get a cash-out first mortgage. Also, the most you can borrow is typically 65% to 85% of the property value. Note that interest rates on refinance cash-outs can be higher than those on refinance mortgages with no such cash out.
Reasons to refinance
* Reduce your interest rate and payments, change the duration of your mortgage, change your lender
* Get cash out
* Consolidate your debts all in one place (i.e., with your lender), which could include paying second or third mortgages or home equity lines
* Do some home improvement
refinance home loan – THE FINE PRINT DECODED: WHAT TO LOOK FOR BEFORE YOU APPLY
refinance home loan and OPTIONS 3 and 4: YOU HAVE GOOD CREDIT AND OWN YOUR OWN HOME
Getting an Unsecured Personal Loan (Option 3) Or Taking on Credit Card Debt (Option 4)
Personal loans other than payday loans (Option 6 below) were more common once upon a time in the days when customers knew their bankers personally but even now banks and many credit unions provide loans to those who need cash now and have fine credit, established residency and employment, and a low ration of debt to income. Such loans based on persoanl relationships are rarely made online (without a home as collateral). If you have good credit, you can usually borrow anywhere a few hundred dollars to around $35,000. Unsecured loans will often offer terms similar to credit cards’ terms that is, a high interest rate. Indeed, if you have the ability to use a credit card like a loan and could discipline yourself to make minimum payments, and you knew how to ascertain the payment amount needed to pay it off in a set period, you might consider credit card financing to the same effect.
In fact, some lenders may try to steer you toward a credit card instead as well as or instead of an unsecured loan. But credit cards possess risks too: interest rates are not stable and could go up. Weve all seen their 20+% interest rates!
Personal loans, on the other hand, are usually just unsecured loans that either come in a revolving line of credit or a lump sum. A line of credit may cost you more than a loan with a set amount because the former can fluctuate with interest rates. Lump sum loans are also known as closed-end loans, and they typically use a fixed interest rate, while a line of credit will carry an adjustable rate. The term of a loan with such a closed-end also varies with your credit rating — if you have good credit, the bank will give you more time — and also the amount you borrow. Loans cost less with shorter terms.
* Because borrowers in this category do not have collateral like a home, personal loans that are unsecured will be more expensive and have higher interest rates than for a home equity loan.
* Credit cards can even cost less than unsecured loans!
* In additoin to interest, you might pay an annual service or maintenance fee that is either flat or a percent of the total lump sum.
*If you feel that you wish to apply anyway, shop around a little for the best interest rates, and credit unions are always the best place to start, if you are a member of one.