Why should I get a second mortgage? It's a good way to pay off high interest debt.
Second mortgages are basically any type of home loan that you take out while still making payment on the primary mortgage. This is not an arrangement to be entered lightly because you will end up paying a lot of fees and can rack up a huge debt that negates some of the progress you have made in paying off your original mortgage.Keep loan below Fannie Mae guidelinesOne of the most common reasons to get a second mortgage is to keep your home loan amount below the Fannie Mae guidelines. Fannie Mae purchase home loans from lenders all over the country, but only if the loans are in accordance with some very strict rules.If a lender wants to make sure that your loan does not go over the Fannie Mae limits, they can give you a primary loan for one amount and add a second mortgage for the remaining balance. It's creative, and there are many alternatives to this arrangement, but it works.Home equity loansAnother way to get a second mortgage is when you sign up for a home equity loan. The loan is basically secured by the amount of equity you have earned in your home.
However, if you do the math, you are reducing your equity.It's an exchange. You are exchanging all that hard earned equity for access to cash. If a homeowner is not careful about getting a second mortgage he or she can end up with a very large debt, no equity and a big house payment.In addition, a second mortgage can lead to an extension on the life of your loan. If you don't have the cash to come up with a huge monthly payment, the terms on your second loan can extend a 30-year mortgage (your first mortgage) into a 45-year mortgage (with the additional fifteen years to pay off the second loan).So what are some good reasons for a second loan?Debt seems to be the primary reason homeowners go into this type of arrangement. Credit card, student loan, automobile and personal debt can all be wiped out and then financed at a much lower interest rate.Basically a second mortgage is a quick way to convert some of your equity to cash so you can pay off some of your other high interest debt.
If used wisely, it can be a powerful debt management tool..
What Is A Reverse Mortgage?
What Is A Reverse Mortgage? A Reverse Mortgage FAQThese are common questions people have regarding reverse mortgages. See your mortgage broker or real estate attorney for more specific information.What is a Reverse Mortgage?A reverse mortgage uses part of a home owner's equity to provide immediate cash to the home owner. Payments to the homeowner can be made in a multiple of ways. The reverse mortgage is only paid off upon the death of the borrower or sale of the property by the borrower.How is a reverse mortgage different from a home equity loan?Home equity loans are paid back over a period of scheduled payments for a set number of years. A reverse mortgage is repaid when the borrower no longer uses the home as their primary residence.
Borrowers who have a high debt to income ratio or bad credit may also find reverse mortgages appealing because the equity in the home and the value of the home are more relevant factors than credit score. The home can also never be foreclosed as...
What Is A Reverse Mortgage?
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Is It Time To Buy A House?
At some point as you're writing out your rent check, you get to the point where you look at the amount and think to yourself - at this rate, I could BUY a house. If you're fed up with paying rent every month that's high enough to finance a mortgage, it may be time to take a serious look at what it would take for you to get a mortgage loan and buy a home of your own. How do you know if it's time to stop renting and time to start investing your monthly payment in a house of your own?1. Are you planning to stay put in the area?The first question to ask yourself is how long you are planning to stay in your new home. If the answer is 'less than two years', then it may be to your advantage to continue renting for a while longer - and use the time to build up your credit more strongly.If, on the other hand, you're planning to stay in one residence for more than a few years, buying makes more sense.
Owning a home puts down roots, and makes you a more stable member of the community....
Is It Time To Buy A House?
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Portfolio Science RiskAPI? Powers Rydex Investments' Real Returns Calculator
(ContentDesk) April 10, 2006 -- Rydex Investments, a leading financial service provider and originator of both mutual funds and ETF's, has released the mutual fund industry's first ever interactive portfolio calculator for financial advisors. Powered by the PortfolioScience RiskAPI system, the Rydex Real Returns Calculator allows financial advisors to simulate portfolio allocation changes, generating return and volatility measurements across several custom or pre-configured historical time periods. "Our distributed, programmable interface made it possible for Rydex to focus on design and the specifics of their calculator, without having to develop and maintain all of the complex components needed to generate risk and return analysis for over 20 thousand mutual funds and ETF's," said Ittai Korin, founder and President of PortfolioScience.The Real Returns Calculator at www.rydexfundsfp.com connects to the RiskAPI system on-the-fly,...
Portfolio Science RiskAPI? Powers Rydex Investments' Real Returns Calculator
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Supply Chain Digest Releases Warehouse Management System (WMS) Total Cost of Ownership Calculator
Dayton, OH (ContentDesk) March 1, 2006 -- Supply Chain Digest, the leading on-line newsletter and web site for busy supply chain and logistics professionals to get news and insight and to find solutions, announced today it has released a new Total Cost of Ownership (TCO) calculator for Warehouse Management Systems (WMS). The calculator is an Excel-based spreadsheet template that enables users to enter one-time and on-going costs for Warehouse Management Systems across a number of categories.The calculator is free for Supply Chain Digest subscribers, and subscriptions to SCDigest are also free with registration. To download the calculator, visit http://www.scdigest.com/assets/NewsViews/06-02-16.cfm, or find it under our Reports and Insight section at www.scdigest.com."In evaluating potential vendors, accurately estimating total cost of ownership is...
Supply Chain Digest Releases Warehouse Management System (WMS) Total Cost of Ownership Calculator
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25 Christmas Stocking Filler Ideas For Your Teenage Girl
You may think that Christmas stocking fillers for teenage girls will be expensive but they don't have to be.Save the DVD'S and CD'S to go under the Christmas tree and use this list as a starting point for buying smaller treats and necessities for her stocking. Remember that a lot of the items you would have to buy anyway (or get talked into buying!) so by adding them as small gifts at Christmas time you are keeping ahead of the game. 1. Candles and candle holders2. Photo frames3.
Underwear...
Why should I get a second mortgage? It's a good way to pay off high interest debt. 25 Christmas Stocking Filler Ideas For Your Teenage Girl socks Mortgage calculator
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Spring Has Sprung
This article may only be reproduced in its entirety, including the resource box and subscription information electronically or in print. A courtesy copy of your publication would be nice, too!Spring has sprung...like it or not...By The monster snowfall that covered many parts of New England is almost gone for good, except for some pitiful remnants of once-mighty snowmountains. With the melting snow comes, of course, the frequent rains. Add a thawing ground surface and from that recipe comes.....
Why should I get a second mortgage? It's a good way to pay off high interest debt.
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