The new kid on the mortgage scene is the flexible mortgage.

As the name implies, a flexible mortgage offers, well, greater flexibility than a traditional mortgage.

This is a great benefit for small business owners or the self-employed.

Flexible mortgages are gaining in popularity as they allow you, the borrower, to take control of your mortgage loan resulting in more suitable home financing for you and your family. Unlike traditional mortgage loans that charge mortgage interest annually, a fully flexible mortgage calculates interest daily. This can really add up to savings if you ever overpay or prepay your mortgage loan - in full or part. You get maximum advantage immediately with lower interest charges since you are not carrying or being penalized for interest paid yearly.

And, if you’re all of a sudden strapped for cash one month, many banks will allow you to withdraw over payments back out of your mortgage account at a later date. See? I told you it was called flexible for a reason! read the rest »

About Second Mortgages

A 2nd mortgage is a loan that is secured based on equity built up in your home. A 2nd mortgage is also referred to by lenders as a home equity loan. There is little or no difference between the two.

When you obtain a 2nd mortgage loan the lender will place a lien on your home and property. This lien is recorded as the second payee (after your primary or first mortgage lender’s lien) in case of repossession.

Second mortgages can either be fixed-rate or used as an adjustable-rate credit line.

You DO want to shop around with online lenders as well as your local banks and credit unions as interest rates and program terms vary from the variety of lenders - spending the time choosing the right lender could save you thousands in the long run.

And, don’t forget to talk to your accountant, often the interest paid on a home equity loan or second mortgage is tax deductible.
What will you use your loan for? A second home in the country? A weekend retreat? Or to consolidate and be rid of current credit card debt?

I just received an email from a reader who has no home equity, a bad credit rating, yet she desperately wants to own her own home.

She’s found one within her budget constraints, a bit of a fixer-upper, but she loves it because it would be hers (and the bank’s), and her monthly payments on housing would go towards the future and not just to a landlord.

She had gone to the bank - who basically squashed her hopes - and was thinking she’d have to give up on her dreams of renovations and remodeling of this small older home. Hopefully my email back gave her some hope.

You see, there are some reputable lenders around who understand these types of situations. They know that putting a roof over your head will be your top priority no matter what your past financial situation says about you. Often bad credit ratings are the result of family medical bills, addictive spouses, and other problems that are out of our control. Many people have bancruptcies that haven’t cleared - this also can be diffcult.

But there are a number of lenders who also have specialty loan plans in place ready to serve people with bad credit. Check the links at right, or do a search on google for any one these terms:

• Low Down Payment Home Loans
• First Time Home Buyer Loans
• Bad Credit Home Loans

You’re likely to come up with a few good prospects and many of them will take an application online or by phone and will waive the application fee - at least if you’re approved. Make sure you know all the detailed charges before you hand over your credit card number.

And good luck! I hope you get that home you wanted and knew you could afford if only someone would lend you the money…