Tuesday, November 10th, 2009 at
10:27 pm
A study conducted from October 10-12, 2006 by Harris Interactive ® by Countrywide Home Loans indicates that Americans don’t fully comprehend or utilize their home equity as a financial tool. “There’s a prevalent misperception about mortgages that may prevent many Americans from realizing their home’s full financial potential,” says Dan Hanson, managing director of Countrywide Home Loans. If you understand that your home equity can be leveraged for personal and financial goals, you are one step ahead of most Americans.
There are a lot of reasons to consider utilizing your equity and refinancing your home equity loans into a new first mortgage. Just because you already have an equity loan doesn’t mean that you can’t still use your home equity as a financial tool. If you are in debt with credit cards or have other revolving debt, debt consolidation may be an excellent way to make use of your equity. Your interest rates and payments are likely to be lower, especially if you cash out. If you can be responsible with your credit cards after consolidating, you will ultimately save money in interest.
If you have already taken out home equity loans or have a 100 % first mortgage you can still refinance. You can pay off your 2nd with a new 1st mortgage refinance or consider converting 80-20 home loans that you took out to avoid PMI. 100% percent mortgage financing is not an impossibility. If there is equity in your home, you can still cash out and a select group of mortgage lenders will allow you to refinance up to 110% and there is still no PMI. However, if you refinance for 90% or more, keep in mind that there will be a higher interest rate because the LTV exceeds 90%. You should also consider a home equity refinance if you have an adjustable rate loan with rising payments.
Consider all your second mortgage options carefully. The trick to realizing your home’s full financial potential is to stay educated and make wise decision. Equity that is used for further investment or for saving money in interest may be a smart choice. Just be sure get all the information for each home equity loan quote, so you can and to work with a lender that you trust.
By: Rebecca Oconnor
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Tuesday, November 10th, 2009 at
12:09 pm
Every business benefits from marketing and the mortgage industry has long known this fact. Mortgage companies actively participate in marketing campaigns through the use of seminars, press releases, advertisements in the media, cold calling, various lead generation tactics and by word of mouth (WOM).
The internet is widely used in mortgage marketing, most notably through the use of a mortgage website. Mortgage companies can take many different approaches to marketing, ranging from advertising early mortgage approvals, short-term loan processing, low interest rates, or bad credit mortgages.
Mortgage marketing is probably most commonly done via telemarketing. Telemarketers are employed which call people from a random list. If the person contacted is interested in a mortgage, the lead is send on to the mortgage company itself. Using what is called a hot transfer method, a call can be transferred directly to a representative of the mortgage company.
Mortgage marketing services can take many forms. Many mortgage firms hold seminars for a select group of people who are most usually real estate agents and prospective home buyers. The mortgage companies will put on a series of presentations wherein they provide an incentive for people who purchase their mortgages on the spot or within a limited number of days. This method is quite effective but of course it can only be used periodically.
Professional mortgage brokers play an important role in the world of mortgage marketing. Since banks cannot address or accept problem loans themselves in a direct manner, they allow the brokers to do the job for them. Banks maintain friendly relationships with mortgage brokers as they are their best source for marketing mortgages. The brokers take on the task of initiating and processing the loan before they turn it over to the bank. Most brokers are capable and trained to deal with all types of loans, including government mortgages. It is estimated that fifty percent of all mortgages are initiated through mortgage brokers.
Home buyers are turning to the internet more and more these days and using mortgage websites. There are many benefits to borrowers who choose use a mortgage website. The borrower gets a very quick response using the website compared to what they would get by contacting a bank directly. These websites give the customer multiple interest rate quotes from which they can review and compare rates, fees and the pros and cons of each offer.
By: Caitlina Fuller
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