No Down Payment Mortgage With No PMI?

Many lenders are offering a solution to this lack of down payment problem for those who want to eliminate the PMI variable from their mortgage loan payment equation: a combination of a mortgage loan and a home equity loan or personal loan to complete the 20% down payment. Is this really a solution? What are the benefits? What are the drawbacks?

Private Mortgage Insurance

Private mortgage insurance protects the lender against default by covering the mortgage payments in case the borrower cannot repay the loan for one of the reasons stated in the insurance policy.

Private mortgage insurance is not required for any mortgage loan but when it comes to all home loans where the amount is higher than the 80% of the purchase price of the loan, PMI payments are compulsory (with the exemption of VA loans and other preferred home loans).

Thus, in order to avoid paying private mortgage insurance charges, the borrower needs to obtain sufficient funds for a 20% down payment. As this is seldom possible, people usually cope with the higher payments and eventually they decide to refinance with better terms.
Yet, it is possible to get financing with advantageous terms and no PMI from the very beginning by using a combination of loans instead of a single mortgage loan with PMI payments.

Remember though, that if it is within your hands to obtain the necessary down payment in cash it is well worthy to do so even if you have to wait a few months because you will not only save yourself the PMI payments or the interests on the additional loan but you will also be able to obtain more advantageous terms on your mortgage loan.

Combination Loans Based On Equity

These home equity loans can provide you with the funding needed to obtain the 20% down payment to avoid Private mortgage insurance payments. Though the interest rates on these loans tends to be a bit higher than what is charged for the mortgage loan, in the long run, this implies lower payments than a single mortgage loan that would charge PMI fees. And sometimes, the costs are lower right away if you only need a smaller amount of money because you already have some savings for the down payment.

Whether it is advisable or not to obtain these loans instead of a single mortgage loan with PMI is a matter of discussion. But most importantly, it will depend on your particular situation and on market conditions. The smart way to go is to compare your options and have the lenders provide you with different loan quotes to see which one best suits your needs and desires. Sometimes the difference may not be too significant, but under certain circumstances you can save thousands of dollars in the long run.

Kate Ross is a professional consultant at Speedybadcreditloans.com. Read more useful articles on her website and contact her if you need financial help.

Fixed Rate Second Mortgage or Variable Home Equity Line of Credit? Home Equity Report 2006

More and more Americans are cashing in on their homes equity by taking out a second mortgage. Home equity financing has evolved to meet the growing consumer demands for borrowing, spending, and building. One of the most powerful cash vehicles driving our economy is the new and improved home equity loan. Consumer debt is at an all time high, and home equity values are also peaking at all-time levels. Lets examine the primary reasons for the increasing popularity of home equity loan products.

Home equity lines of credit are revolving accounts that are considered to be second mortgages secured by real estate. These 2nd mortgage credit lines have become very accessible online. Equity lines of credit can be beneficial tools for homeowners if used properly. Helocs offer flexibility because you can borrow and re-borrow without having to start the loan process over again like you would with a traditional home equity loan. Another great home equity line benefit remains that you only pay interest on the money you access.

A few years ago, second mortgage rates hit all time lows.
Over the last year and a half, the Federal Reserve has increased the WSJ prime rates almost 3% points. Unfortunately this has had the biggest impact with variable lines of credit rates. During this record period for rates, home credit lines were over 1% lower than the traditional fixed rate home equity loan. There are many reasons people continue to take out home equity lines of credit. Some of the most common purposes for an equity line are bill consolidation, home improvements and buying a second home. What people love most about the equity credit line is the affordability feature that comes standard with low minimum payments.

On the flip-side, many homeowners like the responsible amortization that comes with fixed rate home equity loans. With these fixed rate second mortgages, each monthly payment allocates a portion to pay down both interest and principal of the loan. In 2006, fixed rate home equity loan rates are actually lower than equity lines of credit. The fixed rate mortgage is becoming increasingly attractive to consumers. Fixed rate loans offer "peace of mind" because people can go to sleep at night, knowing that their payment will not go up.

Both types of home equity financing offer lower interest rates than credit cards. Increased cash flow and lower monthly payments are great benefits of home equity. Many lenders have expanded their second mortgage guidelines for people with bad credit. Stop playing the balance transfer game with your credit cards and lock into a low rate second mortgage. In most cases, consolidating credit cards with a home equity loan will save you thousands of dollars a year.

Barry Donavan is a business writer who focuses on home finance and consumer credit. In addition to writing, Barry is a finacial consultant and loan officer at BD Nationwide Mortgage. You can read more of his home equity articles and get more information about fixed rate second mortgages and variable home equity lines of credit.

Copyright BD Nationwide Mortgage Company 2006

Car Donation in Tennessee

Although Tennessee is known for its popular musicians, it is also the home of many charities serving a variety of socio-cultural causes. Indeed, this southern state I very good at providing southern comfort. Good old TN has a whole lot of love!

When it comes to charity work, Tennessee residents have a lot of options which let them participate the way they want to. Donating old cars to charity is one popular choice. Tennessee's beloved citizens have many charities available in which to choose from.

Among the institutions that can use your car donation in Tennessee is the Glaucoma Research Foundation. Glaucoma is an ailment that causes lots of liquid buildup in the eyes, which can lead to blindness. The Glaucoma Research conducts research that helps find cures for this disease, and the old vehicles that will be donated to it can be used to fund this outstanding process.

The Diabetic Youth Foundation is another TN organization you can donate your car to. Diabetes is a popular disease that attacks the body's ability to metabolize sugar, which leads to health effects that may even turn fatal The Diabetes Youth Foundation aims to provide support for young ones that have the disease to pave the way for a better future. Visit the Diabetes Youth Foundation at www.dyf.org .

There are more charities you could try looking at of course, and each and every one of them will appreciate the help you give them. In return for your generosity, your car donation to these institutions would reward you with tax write-offs next April 15th.

Because there are so many websites in the cyberspace nowadays, it's quite hard to choose which to learn more about car donation facts but we find that a variety of sources work best such as the web, speaking to friends and looking in magazines or at a library. If you need newest information on car donation then you've come to the right site. You'll find the most recent data on this and you can relax and dig into the material.

Just visit our website for more information on Car Donation Tennessee and related information.

For more information on Car Donation Tennessee or visit http://www.cardonationcharityprograms.com/Articles/Some_Car_Donation_TN_Options_For_Your_Consideration.php, a popular website that offers information on Car Donation Programs and Car Donation Charities. Please leave the links intact if you wish to reprint this article. Thanks

The Definition of an Antique Car

Car lovers all over the world have an interest in cars of all ages. Antiques seem to be especially popular though when it comes to restoration projects and personal collectibles. It can be difficult to determine what exactly makes a car an antique. This is something that many people continue to disagree on. However, there are a few specific points that you can take into consideration when trying to determine whether or not your car might be an antique. Listen to the pros for the best tips and advice rather than assuming or listening to someone with little antique car knowledge.

The Classic Car Club of America has their own official definition of what make a car an antique. They define an antique car as one that has been built between the years 1925 and 1948. The car can be from America, Europe or otherwise imported as long as it matches those production years. Of course there are other sources that tend to vary from this definition. It's wise to seek more than one opinion.

There are other factors that play a role in whether or not a car is classic or antique. Things like engine displacement and automatic lubrication systems indicate that a car is an antique. There are other features too that can be considered so if you are not sure about something on the older car that you own, ask a professional for assistance.

The Classic Car Club of America keeps a list of the many cars that they consider to be classics. You can log on and check this website any time to see if your car is on the list. Also, if you are looking at a certain type of collector car, you can see if it is on the list before you buy it.

For the most part, in the United States a classic car is one that is twenty-five years or older. This is the definition that is given by the Antique Automobile Club of America. Of course this definition does not apply everywhere. Many insurance companies have their own definition of what makes a car an antique for legal purposes. If you plan to purchase and insure one of these cars, consult your insurance company for an accurate quote first.

The definition of what makes a car antique can vary among insurance companies. Always consult one that claims to deal in classic cars. A regular insurance company that deals only in commuter cars will have little knowledge of how to deal with the proper definition and insurance of an antique car.

If you would like to add a classic car to your personal collection then you should make your choice based on what you love. It's simply not wise to invest in an antique car with the sole intent to make money from it in the future. It's not a guaranteed investment and should not be something that you use only as a means to make money. Enjoy the classic car that you choose regardless of its predetermined status.

Enjoy your car travel and find the best deal on the auto insurance coverage you need. Visit us today for money-saving tips, auto insurance quotes online and helpful car insurance advice at http://www.AutoInsuranceRatesDirect.com

Home Equity Loans Answers To Important Questions

Home equity is a valuable asset which both lenders and borrowers can benefit from. Lenders are offering home equity credit lines in a variety of ways. Its best to take some time to get an idea of what type of home equity loan is right for you.

As you probably know, most loans come with variable interest rates. Generally, home equity loan rates differ with each lender. Also, you may find that most home equity loans have large one-time upfront fees, others have closing costs, and some have continuing costs, such as annual fees.

There are also home equity loans with large balloon payments at the end of the loan and others with no balloons but with higher monthly payments.

Different homeowners have different loan needs. There are several aspects you need to keep in mind before choosing your home equity loan. You really need to ask the right questions before getting a home equity loan or home equity credit line.

Is A Home Equity Credit Line Right For You?

One of the best sources of credit is your home equity line. Initially, home equity credit lines may provide you with large amounts of cash at relatively low interest rates. This further means that if you default on your loan, your lender may foreclose on your home. With home equity loans, therefore, your home is at risk if you are late or cannot make your monthly payments.

How Do I Get The Best Home Equity Loan Rates?

Home equity loan rates are the most important factor to consider when applying for a loan. Here are important things to remember when considering home equity loan rates.

Here are 2 types of interest rates to consider with home equity loan rates.

1. Fixed Rate: Fixed interest rate means you will be charged with the same interest rate for the whole term of your loan. On long term loans the required payments are usually lower, and on shorter ones; higher.

2. Adjusted Interest Rate: This is not a fixed interest rate. An arrangement with a fixed interest rate may go well with home equity loans.

Which type of home equity loan is best for my financial situation?

An arrangement with a fixed interest rate may go well with home equity loans. There is the convenience of setting aside the same amount regularly for payments. However, choose a short term loan to save more money.

How do I get the best home equity loan rates?

Thanks to modern technology, canvassing for the best home equity loan rates is a little bit easier than before.

3 Effective Ways To Find The Best Home Equity Loans

1. Visit websites of known lenders to compare home equity loan rates.

2. Visit websites offering quote comparisons.

3. Visit banks, and other lending institutions to get the best home equity loan rates. Brokers also have a good grip on the best lenders and home equity loan rates in the market.

3 Aspects To Consider With Home Equity Loan Rates

1. Generally, loans asking for low interest rates are good offers. Since you will have your home as equity, interest rates must be lower than other types of loans

3. Consider the term of payment. Equity loans that stretch for very long periods result to higher interest rates compared with short term loans that have higher interest rates.

4. Consider other loan features. Flexible loans are more desirable than strictly drawn ones.

Finding the best home equity loan and rates can be tedious work. Make sure you have all the facts on hand before deciding on which loan and loan rate to apply for.

Dean Shainin is a consultant specializing in home loans, strategies for loan financing, home equity loans, and consolidation loan information. To see a list of recommended loan companies, tools, resources, free quotes and articles, visit this site: http://www.homemortgageloantips.com

Get free valuable online tips for saving money from his: Home Equity Loans website.

Home Equity Mortgage-Refinance

A home equity mortgage refinance may be a great way to go right now, before rates go up. Over the last few years everyone has heard about friends and family refinancing their home mortgage. Well, you may also know that the interest rates going back up. If you are going to refinance your mortgage, now is the time. By refinancing you can also put yourself in a better financial situation in 3 different ways.

1. A home equity mortgage refinance can lower your mortgage payment.

2. A home equity mortgage refinance can be used for consolidating debt, this will also be tax deductible.

3. A home equity mortgage refinance can also be used to remodel your home, or add an addition.

There is actually no down side to a home equity mortgage refinance as long as you are able to secure a lower interest rate. One other option is to use your refinance to shorten the total term of your payments, possibly cutting 5 years off of your term.

An online home mortgage is most home buyer's best option. Generally when you apply for an online home mortgage you will get the best possible interest rate. The internet has created a very small world for online home mortgage lenders. Shoppers are able to compare rates from numerous lenders in a few hours. The home mortgage market has experienced dramatic changes because of the internet.

Getting a mortgage with good interests is a easier today, than it has ever been. The power, is in the hands of the consumer for the first time in history.

You only need to know a few inside tips. There are 3 things that every home buyer should do to get a great mortgage offer...Continue