QUESTIONS ABOUT Home Equity Loans

What is a home equity loan?

A home equity loan is a form of credit for which your home is pledged as collateral. Generally, home equity loans offer a fixed interest rate and a fixed monthly payment. A standard home equity loan (also called a second mortgage) is paid off over an extended period of time.

You can estimate your home equity by adding the balance of all the debts secured by your home, then subtracting the total from your home's value.

What are the primary advantages of a home equity loan?

The two major advantages of borrowing with a home equity loan are lower interest rates and potential tax savings:
The interest rate you will pay on the average home equity loan is generally lower than the interest rate you will pay on the average credit card or any other type of non-secured debt.

For home equity loans, you can generally deduct the interest you pay. The interest you pay on credit cards and other types of personal loans is generally not tax-deductible. Consult your tax advisor about the deductibility of interest.

How can I use my home equity loan?

You can use a home equity loan for almost anything. Common uses include debt consolidation (paying off high-interest credit card debt), home improvements, purchasing or refinancing a home, purchasing land, paying for education expenses, college tuition and buying luxury items.

Can I pay off balances from other accounts?

Yes. You may use the proceeds of your new home equity loan or line of credit to pay off balances from other accounts, or we can process those payoffs on your behalf.

What is a debt consolidation loan?

A debt consolidation loan is a type of home equity loan that allows you to combine several debts into one loan. By making one lower monthly payment, you can more effectively manage your debt. The key to successfully reducing your debt is to discipline yourself from new spending. If you're consolidating credit card bills, don't use the credit cards after you get a debt consolidation loan, even if you've cleared your balances. You could be tempted to overspend, which would eliminate the benefits of consolidating your debt.

Do I have to live in the residence I'm using as collateral?

Yes, Chase Credit Policy requires the collateral property to be a primary residence.

How much can I borrow?

Depending on loan type, property type and other criteria, you may be able to borrow up to $500,000. The relationship between your loan amount and your home's value is called the "loan-to-value" ratio, or LTV. As LTVs increase, the cost of the loan in question usually increases as well.

How do I know if I qualify?

You must complete an application for us to determine if you qualify. It takes only 10 minutes to apply online and you’ll get a response in about 90 seconds. APPLY TODAY

Once you have applied, we will evaluate several criteria, which may include:
-Credit history
-Employment and income
-Amount of the loan or line requested
-A review of the assessed value of the property and the amount of any existing mortgage debt on that property

Can I be self-employed and qualify for a home equity loan?

Yes. Self-employed applicants can qualify provided they meet the
approval criteria. Depending on your request, income documentation may be required.

Is there another way to borrow against my home's equity?

Yes. Cash-out refinancing is not a home equity loan but it does let you borrow against your home's equity. In cash-out refinancing, you refinance the existing debts secured by your home (i.e. your mortgage) with a new loan, but in addition, you also borrow new funds over and above the total of those existing debts. The difference between your new loan and the total of the old debts is a loan against your home's equity.

Can I refinance my existing loan account and pocket some additional cash?

Yes. A home equity loan or line of credit is a good way to refinance your existing mortgage loan, take some additional cash and make one easy monthly payment. Chase does not set aside "escrows" for property taxes or property insurance. If your current mortgage loan has an escrow feature and you refinance it with a home equity loan or line of credit, you will become responsible for the property taxes and insurance premiums.

How can I compare different loans and lines?

The APR or annual percentage rate, is an important factor to consider when shopping for a home equity loan because in most cases, it takes into account both interest and fees. The APR, which is expressed as a yearly rate, factors in the loan interest rate and all fees paid to obtain the loan. Generally, the lower the APR, the lower the cost of your loan. When comparing APRs between loans, make sure the terms and conditions of the loans are the same.

When comparing a home equity loan to a home equity line of credit, you should be aware that the APR for the home equity line of credit only takes into account the interest rate on the line of credit, and does not include any additional fees.

How much will my payment be and when is it due?

When you schedule your closing, you will have the opportunity to select the date that your monthly payments will be due. Factors including loan amount, interest rate and term are used to determine the payment amount.

As a convenience, monthly payments may be automatically deducted from your Chase checking account. Ask your Loan Officer for automatic payments and you may benefit from an interest rate reduction.

https://www.chase.com

HOME REFERANCE MADE SO EASY

HOME REFERANCE MADE SO EASY

You may have heard a number of ads for refinancing on television, on radio and even on the Internet. Yet, you still might have questions about how the process actually works and whether it would be a good bet in your case. Consider this then, your primer on mortgage refinance made easy.

When Refinancing Is The Best Option To begin with, it might be helpful to discuss definition of terms. The act of home refinancing involves applying for a secured loan to pay off a loan that has already been secured with a piece of property or other assets. If your initial loan had a high interest rate, it only makes sense that you would be interested in a loan with a lower rate of interest.

The most common type of mortgage refinance comes in the form of a second home loan. In order to determine if such a loan is appropriate in your particular case, you first need to ascertain whether you'll be saving more on interest than you'll be paying out in refinancing fees. As an added bonus, you may find that you can obtain additional cash while decreasing the amount you need to spend on your mortgage payments. Home refinance loans can be an attractive option because it allows you to use the equity in your house to your best advantage.

Solving the Interest Rate Puzzle
It's important for you to understand how rates on home purchases are determined. The rate you pay is customarily based upon the prevailing interest rate, along with other considerations such as the amount of your down payment and your personal credit rating. Interest rates can fluctuate, based upon the decisions of the Federal Reserve Board. When you refinance, you trade a higher interest rate for a lower rate and decrease your monthly payment in the process.

Cutting the Length of Your Loan
It's also possible to reduce the length of your loan through refinancing. With a mortgage refinancing plan, you can change your term from a 30-year period to a ten or 15-year period. In the process, you can save a substantial amount of interest. If you keep your same monthly payment amount but obtain a lower interest rate, you will be paying more on the principal of the loan each month, allowing you to enhance the equity in your home.

Debt Consolidation
You can also use your home to obtain debt consolidation in the form of a home equity loan. This enables you to combine your high-interest loans to create a single loan with lower interest and a manageable down payment. Your property acts as security for the loan. Until you pay off the home equity loan, the lender will have a lien on your home. With such a loan, you can be protected from creditors and avoid the problem of having to declare bankruptcy.

A Noteworthy Tax Advantage

One important thing to keep in mind about home equity loans is that the interest on such a debt consolidation loan may be tax deductible. Check with your tax accountant to see if your interest can be fully deducted. You may be pleasantly surprised at the answer.

Source: http://www.rebuild.org

Four Areas of Life to Downsize and Realize Money Savings

Cards with low interest rates

Look for lower interest rates from credit card providers. Before making your selection, compare introductory APRs, introductory periods, regular APRs, annual fees (if any), if balance transfers are available, and the credit rating levels required (usually Good or Excellent).

Frequent flyer cards

Compare travel services offered by frequent flyer cards with regards to blackout dates or other restrictions, as well as points that may be redeemable for dining, entertainment, hotel, rental car, cruises, air travel, retail shopping and cash.

Gas rewards cards

Save at the pump with gas rewards. Look for discounts or cash back on gas and vehicle maintenance, drugstore and grocery shopping, dining, and cable services.

Cards for bad credit

Look for card providers that offer online support services, such as email and text reminders of upcoming payments due.

Prepaid cards

People who have bad credit or want to put a tight rein on their spending may consider the prepaid card. This card is similar to the debit card because you use actual available monies deposited in your account; but unlike credit or debit cards, the prepaid card has no overdraft protection. On the upside, prepaid cards usually have no fees—no late fees, no over-limit fees, no transaction fees, no NSF fees (for insufficient funds) because you can only be approved for available funds.

A prepaid card can be safer than cash, but make sure that the card is protected by fraud liability insurance. Also, see if it includes rewards programs, email and text alerts, bill pay and other online services. Usually no credit check or employment verification is required.

Applying for senior banking programs

Ask your banking representative about bank accounts and online services designed especially for people over 50 years of age. Also, ask about savings accounts with no or low minimum balance or monthly maintenance fees. In some cases, if you maintain accounts for both checking and savings, you might earn a higher interest rate on your balances as well.

Applying for online services

Once you set up your online account, you’ll enjoy the benefit of seeing your online bank statement at any time of day or night. Online services may include transferring balances from one account to the other, paying bills, financial “tools” and information resources. Depending on the institution, you may need to make a phone call and complete an application form to initiate your online services.

Getting online assistance

Have a question about your account? Check to see if your financial institution offers a 24/7, around-the-clock “live chat” on its website where you can hold an online discussion, in real time, with a service representative, or an internal email system where you can send a comment or inquiry with a response within 24 hours. In addition, your bank’s website probably offers downloadable application forms and other documents.

Accessing “financial tools”

Some offer special services like “online financial calculators” that you can use to analyze your personal finances to calculate savings goals for your retirement, determine auto loan payments, analyze investment returns, calculate credit card payoffs, assess debt consolidation, analyze mortgage payoff, determine your tax bill, and compare options for leasing vs. buying, etc.

Browsing for other financial resources

Some sites offer a whole “library” of resources, including links to other sites. Look for information to help your grandchildren with saving, budgeting, earning, borrowing and using checks. Look for information on home buying, selling, renting and improving your house. You might also find tips on identity theft, smart shopping, and government resources. This will help you reach the goals that you set for yourself as you try to enhance your financial life.

Debt Consolidation Loans

Being in debt is probably one of the worse things that we face in life. We can’t escape it, no matter how much we try. Debt is everywhere, and it seems as if we have more of it than ever due to rising gasoline prices and rising unemployment. The U.S. dollar has weakened, inflation is rising, there is a crisis in the mortgage sector, and it looks as if a recession is inevitable. With these conditions in our nation, is there any wonder that the average American family carries thousands of dollars in debt and is suffering from debt problems?

The prices of everything needed for, life as we are used to living it are at a higher rate than ever before, so many people have turned to using their credit cards when their pay checks just don’t stretch far enough to cover their needs and wants. Before they know it, they are in credit card debt over their heads as one card after another becomes maxed out. This starts a vicious circle of never ending debt as they try to make at least the minimum payment on each card while still trying to live on an income that just won’t pay for everything.

Once you get stuck in this cycle, even your most important bills like your mortgage and car payment are affected. You start getting late notices from your creditors. Your credit score begins to drop. You realize you are in trouble, and that this can’t continue with you losing all the material possessions you’ve managed to accumulate. You know that you need some sort of debt help – and fast!

The very best thing you can do when you find yourself owing many creditors and lacking the funds to pay them is to consolidate debts with a debt consolidation loan. With this type of loan, all of your debts are considered in order to come up with the amount needed to pay them off. Your loan is for this amount. Instead of making separate payments to 9 or 10 creditors each month, you will make one single loan payment. Consolidation loans can get harassing creditors off your back quickly and help to give you peace of mind again.

The monthly amount of a consolidation loan will be an amount you can handle easily. Loan professionals take your salary into consideration when coming up with a payment plan.

The interest rates on consolidation loans can be high, but in the long run, you are paying out less money when there are no credit card late fees to worry about. Plus, your credit score will began to improve once you have proven to the credit companies that your loan payments are made on time and your outstanding debts have been paid off. Consolidation loans are the solution you need to get yourself out of debt now!

Source: http://www.tfgi.com

Cheaper Car Insurance

You are here because you want to get a good deal on your car insurance , and shopping around is the best thing you can do.

However, there are other things you should be aware of that could reduce your car insurance premium, and that's why we've constructed a list of Top Tips for you. Read through the whole list, you may learn something that could dramatically reduce the cost of your car insurance.

Park smart - parking your car in a secure location such as a locked garage or a secure designated off road parking spot will potentially reduce your car insurance premiums.

Buy in bulk - many of the larger companies that offer car insurance also offer other forms of insurance like home and life insurance. You may receive a discount for buying multiple forms of insurance with the same company.

Be alarmed - Thatcham-approved alarms are recognised by all insurers and most will discount your premium if you have these fitted.

Pay up - insurers charge a high rate of interest, around 15% APR on average, to allow you to pay your premium in monthly installments. It is much cheaper to pay your premium in one lump sum.

Buy online - financial products on the Internet are generally cheaper than traditional methods such as by post or over the telephone. Car insurance is usually about 10% cheaper online.

Shop around - if you want a deal you've got to be prepared to look for it. Some companies only provide policies for a specific market niche e.g. Esure only accept application from drivers with more than 4 years no claims bonus for example, so if you fall into their category you can potentially make big savings.

Consider the insurance rating - some cars are deemed to be of a much higher risk than others. When you are buying a car, check out its insurance group rating as car insurance premiums vary greatly between insurance groups. The cost of a group 1 car will be a tiny fraction of the cost of insuring a group 15 car.

Improve your driving skills - many insurance companies will provide a discount for having passed an advanced driving qualification. Consult individual car insurance companies for their policy in this area, and visit http://www.iam.org.uk for more information.

Savings in numbers - if you have more than one car, you may be able to get a multi-car discount which allows a significant discount on all your policies if you insure multiple vehicles with them.

Go Third Party - if your car has a low replacement value, it's probably not worth going for fully comprehensive car insurance. If the car gets written off you would be able to afford to replace it, whereas if you don't write off the car you will make a considerable saving.

Negotiate your excess - you will be able to reduce the cost of your car insurance considerably by choosing the largest excess the insurance company offers.

Mind the add-ons - visual and mechanical changes to your vehicle may increase the insurance group.

If you make any changes to you must check you are fully insured before taking to the road. You are also likely to pay higher car insurance premiums if your car has been modified.

Think of the bonus - a full no-claims bonus can knock up to two-thirds off an car insurance premium.

If you suffer a minor accident try and avoid claiming on your insurance or next year the premiums may well increase, however you can avoid this by asking your insurer if you can pay a small additional premium to protect this bonus.

Young driver equals high premium - young drivers always have the highest car insurance premiums but these can be significantly reduced by buying a low value car that also has a low insurance group rating.

Declare low mileage - if you only drive a limited amount of miles a year, arrange a low mileage insurance policy. However be aware that aware if you drive over the agreed limit you may find yourself uninsured!

The cost of importing - your car may be cheaper bought from abroad but the insurance probably won't be! The parts can be more expensive and difficult to find, so take this into account unless you're buying a car fully catered for in the UK (Citroen, Renault, BMW etc).

The older you are, the lower the premiums - if you are that bit older it's worth shopping around the insurance companies that specialise in the mature driver market, you may find substantial savings are available.

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