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frequently asked questions about va home loans
Refinancing Revolving Home Equity Credit Lines with a Fixed Interest Second Mortgage
A revolving credit line can mean paying off large debts and finally having the money you need to tackle those home improvement projects that have been pending. However, there are many options when it comes to a revolving credit line, a fixed interested second mortgage often being the best choice since a fixed mortgage rate is not as risky as some of the other options.
Second mortgages are often secure loans whereas many existing credit lines that you might have obtained in the past arent. These second mortgages also offer crucial tax advantages and in many cases provide you with a fixed amount of money that is also repayable over a fixed period of time. In fact, depending on how you structure your repayment, the schedule usually calls for you to pay the loan off in equal payments so you never have to guess what will be expected down the road.
Several articles at Ask Jeeves discuss in more detail the highlights of the fixed rate second mortgage, which is just like a regular mortgage loan, it is a secured loan guaranteed by the same asset as the first mortgage and holds an interest rate that can be fixed or variable.
Whether you are paying on credit card debt or opting for home improvement projects many people advise the fixed interest second mortgage as opposed to the home equity loan. The most important thing is lower payments, but this is often determined by interest rates - simple interest is the easiest way to go.
To refinance your revolving credit line with a second mortgage versus for example, a home equity line of credit means you are given the chance to select a fixed interest rate instead of risking the possibility of paying higher interest rates in the future. With a second mortgage you can borrow the amount of money needed or a bit more and not worry about the market conditions as the interest rates fluctuate from time to time.
Rita is an experienced free-lance writer who has produced many interesting articles related to mortgage financing. To learn more about fixed rate second mortgages and refinance options, please visit the Nationwide Second Mortgage & Equity Loans. If you need current Second Mortgage Rates please visit the loan quote center online.
More Useful Resource and Updates on frequently asked questions about va home loans
- Fixed-rate trap snares 43,000 home owners (Sydney Morning Herald)
MORE than 40,000 unlucky people have been caught out in a fixed mortgage rate trap, having taken out their loan at the highest fixed interest rates in a decade, denied any saving from the recent cuts and confronting costly break fees if they decide to refinance.
- Five Home-buying Myths (Carteret County News-Times)
(ARA) - As first-time homebuyers grow curious about the home-buying process, they often turn to friends and family for advice about purchasing a home. While these sources can provide useful tips and information, they also may perpetuate some common home-buying myths.
- Bernanke urges action to halt foreclosures (Reuters via Yahoo! News)
Federal Reserve Chairman Ben Bernanke on Thursday urged more aggressive steps to halt home foreclosures and said government-funded programs could help strapped homeowners.
- SBA: Small banks mitigate business-loan downturn in Minnesota (Finance and Commerce)
The last 12 months produced shudders and slowdowns in one credit market after the other, and the U.S. Small Business Administration?s loan programs haven?t been immune.
- Consumer Loan Rates (The Springfield News-Leader)
Springfield financial institutions quoted the following rates Friday for home equity, auto and boat loans. The home equity rate is based on a $10,000 loan or line of credit with applicable points included. Rates are variable unless otherwise noted. Additional fees are not included. The auto loan rate is based on a 48-month contract for a new car. The boat rate is based on a loan for a new boat.
- Proposal could drop mortgage rates to 4.5 percent (San Jose Mercury News)
If Treasury Department approves plan, said one mortgage broker, 'We would have everybody and their brother who had equity in their homes coming to refinance. That would be an amazing influx of loan applications. It would keep things going for a long, long time.' Rates drop to 11-month low Bernanke: More foreclosure help needed Real estate news | Economic crisis news
- Kiwibank Responds To OCR Cut (Scoop.co.nz)
Kiwibank has reacted immediately to the cut in the Official Cash Rate by reducing all home loan rates. The bank is now offering a one-year fixed rate of 6.49% p.a. and a variable rate of 7.45%.
- Fed chief urges further steps to halt foreclosures (International Herald Tribune)
Ben Bernanke on Thursday urged more aggressive action to halt home foreclosures, and said write-downs of principal may need to be part those efforts.
- Bernanke says need to do more to halt foreclosures (Reuters via Yahoo! News)
Federal Reserve Chairman Ben Bernanke on Thursday urged more aggressive action to halt home foreclosures, and said write-downs of principal may need to be part those efforts.
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