First Time Home Buyers: A first-time home buyer is an individual who is purchasing a principal residence for the first time. As a first time home buyer, the experience will undoubtedly be a very exciting one. However, obtaining the financing for your first mortgage may also be a source of great stress and without proper guidance it can change from a smooth process to a daunting one. As a first time home buyer talking to a professional Mortgage Broker is key. A mortgage broker with years of experience under their belt who will help you - Know Your Budget, Get Pre-Approved for a Mortgage, and make you aware of all the additional costs.
Refinancing: If you are a homeowner with a mortgage loan, you have probably heard the term refinance tossed around during conversations. A refinance is a process that involves obtaining a new loan to pay off a current one. It refers to the replacement of a debt with new debt bearing different terms. Its taking a brand new first mortgage with another bank or the same bank but under different terms. The first loan is paid off, allowing the second loan to be created. Usually with a refinance loan, the goal is to have a better interest rate and better terms than the current loan. There are several reasons why people may wish to refinance their mortgage loan. A homeowner might want a lower interest rate or could be to consolidate debt or decrease the equity in the home to have some flexibility with cash. Homeowners might also consider a refinance if they are looking to lower their monthly payments. If you think a refinance of your mortgage loan is a good idea, you should start shopping around to find the best deal for you and your financial situation.
Debt Consolidation: This is where someone obtains a new loan to pay out a number of smaller loans, debts, or bills that they are currently making payments on. If you have credit card bills and other debts with growing balances and you want to consolidate your high interest payments into a single lower interest payment that will help you pay off the debts – Then Debt Consolidation is the answer. If you own your home, a home equity loan used to pay off your high interest debts may be a great solution for you to consider. Your monthly payments can be reduced by up to two-thirds. Debt Consolidation can be done by either refinancing your home or taking a second mortgage.
Second Mortgage : Basically a second mortgage is another mortgage, smaller in size that is given to the homeowner, through second mortgage companies, when the home or property in question already has a first mortgage. This money may be used for the purchase of a new house, pay off mounting credit card debts, to accommodate your aging parents, to purchase a property for your child to live in while they attend university or because you wish to acquire a vacation or country house for weekend getaways. All you need to qualify for this kind of a loan is to own your home (or other real estate). Second Mortgage are given by private lenders or Mortgage Investment Corporations and their primary concern is not your age, credit or income history in approving you for a loan. Instead they focus on the value you have in home equity or other real estate and, unlike the banks with their stringent lending criteria, they make it as easy as possible.