Home Depot Credit Card Facts

Jul 14 2020 Published by under Uncategorized

The Home Depot Credit Card is unlike any credit card you’ve ever known. Not only can you get 6 months of free interest if you spend over $299.00 but you also get opportunities a few times a year to defer payment and interest for a whole year. This is great, especially when you want to buy a major purchase. There are also many discounts and promotions that you can only get if you have the Home Depot credit card.

You can also choose the credit card that has the rewards program. This is where you get rewarded for buying things at Home Depot using your Home Depot creditcard. You can get free money to spend at HomeDepot. It is a really great program. Review the details of this great program and you will want to sign up.

One of the best features about the Home Depot Credit Card is that there is no annual fee. It is rare to find a credit card these days with no annual fee. This can save you a lot of money. Most credit cards charge an annual fee of over $100.

When you check your local Sunday paper you should look for the HomeDepot ad and see when they are offered their deferred payments promotions. When you spend over a certain amount you pay no payment or interest for one year. This is a great time to sign up for a Home Depot creditcard. If you need to purchase items for your home but, like most of us, are having some financial difficulties, then this is a great way to save some money.

You can also get reduced APR. If you spend $2000 or more the interest on your Home Depot creditcard will be reduced by almost 6%. It is a really great option. There is also zero liability on all unauthorized purchases. You can track all purchases on the internet with their internet account.

Remember that if you are planning to make a big purchase at HomeDepot then apply for a HomeDepot credit card for all of its great benefit. Get the rewards with their rewards program and also get the low APR so your payments are even lower. Get a year of no payments if you spend the minimum amount with no interest. Just go online and read the specifics on their creditcard. Apply for the HomeDepot creditcard today and you won’t be disappointed!

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Rent To Own Homes – A Viable Option for Credit Challenged Home Buyers and Frustrated Sellers in 2008

Jul 14 2020 Published by under Uncategorized

The typical rent to own buyer desperately wants to become a home owner but their credit scores aren’t sufficient enough to qualify for a reasonable mortgage at the present time.

The rent to own buyer will typically need 6 – 24 months to rebuild credit, accrue monthly rental credits, and to save money for their down payment.

The advantage to the buyer is they can live in the home now while they get their financial affairs in order, lock the price and build down payment credits.

The advantage to the seller is they typically have a much stronger tenant living in their home vs. the typical rental scenario. The seller also collects a larger, non-refundable option fee down payment from the tenant. The tenant now has a vested interest in maintaining and buying the property from the seller at the end of the option period.

Credit repair is an extremely important component of the rent to own home buying process. The buyer must be proactively working on building better credit throughout the option period. It is recommended that the rent to own buyer works with a respected lender and/or credit repair firm to assist with the credit rebuild. The seller should also be working with their future buyer to ensure they remain on track to purchase their home.

Due to the current ailing real estate market, it is critical that the rent to own buyer and the seller work together as a team. Some of the major issues everyone needs to pay close attention to are:

  1. Is the property valued correctly? If not, the buyer runs the risk of having difficulties when they try to get their financing. If the house doesn’t appraise for the agreed upon sales price, the seller needs to step up and renegotiate or risk losing the deal all together.
  2. Is the buyer making on time rental payments each and every month? A good lender will be able to use this “on time” documented payment history to the benefit of the rent to own buyer at closing time.
  3. Is the seller willing to credit the buyer (rent credits) for “on time” rental payments? This is extremely important in assisting the rent to own buyer with building additional down payment funds.
  4. Is the seller meeting all their mortgage repayment obligations while the tenant is preparing to buy the home? Unfortunately, there are some cases where the seller has defaulted on their mortgage obligations and the home has fallen into foreclosure before the rent to own buyer has had a chance to buy the home. This is rare but it could happen…be careful…ask to see the buyers current mortgage statements every so often.
  5. Is the sellers title free and clear? This is a very important to look into because the seller could have difficulties closing if they have a big lien or judgment attached to their home.

There are a few things to watch out for when entering into a rent to own agreement but for the most part it can be a very viable option for both parties. The seller is able to sell his/her home creatively in a slower real estate market and the buyer locks into a price and has time to build their credit.

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Second Mortgage & Bad Credit Loans

Jul 13 2020 Published by under Uncategorized

Do you have a low or bad credit score and are in need of a loan and have faced rejection from the banks and other lenders? If you want to consolidate debt, complete home reno’s, payoff credit cards or whatever the case may be, second mortgages are an excellent option that can help you out now and in the future. By consolidating your debt with a second mortgage and eliminating all of your credit card debts and other consumer debts you will be making some serious improvement to your credit rating.

The bank puts a lot of emphasis on your credit score when determining whether or not to give you a loan, as you may have already found out, if your credit score is below 650 you will likely have trouble getting a loan from the bank. As mentioned above, using a second mortgage to consolidate your debts will “clean up” your credit report and make significant improvement to it. You need to look at it as a stepping stone process, where you consolidate your debts with the second mortgage, then continue to rebuild your credit, and then refinance the first and second mortgages into one new low rate first mortgage with an institutional lender like a bank.

Finding a second mortgage bad credit loan can be difficult because finding a lender to take on this more risky position can be difficult. Speak with an experienced mortgage broker in your area and you will receive professional advice and service, and can feel confident that you have a solid financial plan.

Mortgage brokers have access to many second mortgage lenders to find you the best second mortgage rate possible. Your broker will thoroughly inform you on the lending terms and the financial plan to refinance you out of the second mortgage into one new low rate mortgage that you may not currently qualify for with your current credit score.

Second Mortgage lenders do not put as much emphasis on your credit score as an institutional lender like a bank does. However, a second mortgage lender still wants to see that you can service the loan and may require that the some or all of the second mortgage proceeds are used to payoff other high rate debt.

Get A Second Mortgage To Refinance With Bad Credit

So how does a second mortgage work? The second mortgage lender is mainly concerned with the amount of equity in your home because this is what the loan size is going to be based upon. The lender will only lend up to a certain loan to value ratio which is often around 80%, with some lenders going as high as 85%. What does this mean to you? If you own a $300,000 home, and you currently have a first mortgage of $200,000, this mean the second mortgage lender will be willing to provide you with up to $40,000 as a second mortgage secured against the home ($40,000 + $200,000 = $240,000 which is 80% of the home’s value ($300,000). To start the process you will need to fill out an application and have an idea of the approximate value of your home. If the mortgage broker feels you can qualify for a second mortgage the next step is to review your credit report and order an appraisal on the home. The second mortgage lender will require an appraisal to be completed on your property by one of their approved home appraisers and you will be responsible for the cost of the appraisal which averages around $300. Once the appraisal is completed and there are no significant issues with the home, then the second mortgage lender will issue what is called a mortgage commitment which will have all of the terms of the loan and it is your mortgage broker’s responsibility to ensure you fully understand the terms. If you agree with the terms of the loan, then the next step is to have everything sent off to a lawyer to finalize the transaction. This is the same process as you went through when securing your first mortgage. The lawyer will finalize the transaction for you and once everything is completed he or she will then release the funds to you.

How can a mortgage broker help you? Brokers have relationships with Bad Credit Second Mortgage Lenders who will work with homeowners to provide as much LTV as possible, and have helped many clients get second mortgages in order to access equity and take care of financial emergencies.

Can You Refinance A Second Mortgage?

Yes! refinancing out of your second mortgage once your credit is better is critical and must be planned for, second mortgages are often short terms of 1-2 years. You should not plan on renewing your second mortgage, if the funds are used properly from the second mortgage you will be able to combine the two mortgage loans into one new first mortgage with an A or B lender by the time the term is up. You must be aware of the costs of doing this, if you are breaking one of your current mortgage terms to do this refinance, make sure you calculate the penalty of doing this into whether it is worth it. You will also be looking at more legal costs and possibly a new appraisal but more often than not, refinancing the two mortgages into one is your best option as second mortgages often come with a high rate.

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Do Credit Repair Programs Really Work?

Jul 13 2020 Published by under Uncategorized

To many in the real estate industry, credit is the most important thing that you can have. For most people you can’t buy a house without credit. You pay higher interest rates with poor credit. You also pay more for other things like insurance and financing appliances with bad credit. So what do you do if you had some mistakes in your past and you need to fix your credit?

Many people are turning to professional credit repair programs. If you search on the internet for credit repair, a million different companies show up and they promise to do everything for you in order to repair your credit. Many people that are eager to buy a house often spend money on these programs in hopes that their credit will get high enough for them to take advantage of the current interest rates as well as to qualify to buy a home.

In my business I have looked into many of these programs and while some of these programs offer legitimate help for repairing your credit, none of them do anything that you can’t do for yourself. In fact, the information on how to repair your credit is freely available if you look on the internet. In my experience most people feel it is too much work or they are concerned that they might mess up and that is what prompts them to pay a professional.

So if you are going to pay a credit repair service, here are a few things that you should look at when making your decision.

First, don’t use a company that sells credit lines. Some companies say that they can add you to a credit line of someone else and that will almost immediately boost your score. While this is true, about 2 years ago the credit bureaus adjusted their credit scoring and now when you are added to someone else’s credit cards it only has limited affects on your credit so tread with caution.

Second, a credit repair service is not a licensed service so look at the details. Credit repair companies many times are NOT licensed, so look at their information and ASK them what they are going to do. If they can’t clearly explain what they are doing for you then beware.

Finally, before hiring a credit repair agency, look at your own credit report. Look to see how old your credit items are. If they are over 7 years old then you may be able to remove them with just a phone call. Read up about it online and do a little research yourself before you spend that money.

Until next week…

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How to Improve Your Credit Scores Faster?

Jul 13 2020 Published by under Uncategorized

When you apply for a home or personal loan, the first thing your bank will check is your credit score. A credit score or a credit history is basically a result derived from the analysis of a person’s credit files. In addition to banks, insurance companies, phone companies, and government institutions also use credit scoring to evaluate a person’s financial stand.

Why is Credit Rating Important?

When you fill in your application for a loan, the bank does not have any solid means to evaluate you in terms of your ability to repay the loan on time. So they use credit rating as a tool to determine how strong you are financially. For this, they do a complete analysis of your income, on-going mortgages, assets and take into account many other factors to assess you. This will provide the banks and other money lenders a clear picture of your monetary status. When you try to borrow money with bad credit, it is very likely that your application might be rejected.

Reasons for Bad Credit History

A person may end up with a bad credit score due to a number of reasons. When you miss your payments towards mortgages frequently, this can lead to bad rating. Laziness in paying the bills, poor financial situation and overspending are some of the major causes of bad credit. Different countries have distinct methods of assessing a person’s creditworthiness. A bank can deny the application of an individual requesting to borrow money with bad score. This is done as per bank’s policies in an attempt to protect themselves from people whose credit scores do not satisfy the set standards. To improve your credit score, you can talk to a consolidation firm for easy repayment options.

Home Loans with Bad Credit

Having a bad credit does not entirely disqualify you to obtain a home loan. You can still borrow money with bad score with the help of consolidation firms. If you wish to close a deal on a house you like, you do not have to worry if the bank rejects your application for loan. A consolidation firm will analyse your financial records and grant you loan on certain terms and conditions. Usually the person applying for the loan would have to pay a slightly higher interest rate than an individual who has a good credit rating. But as you make your payments regularly, there is a higher chance of your credit scores getting better. If you own an asset you can still borrow money with poor credit, since your asset will be used as collateral, not your credit score. This is called a secure loan. If you do not own an asset, then you still may qualify for an unsecured loan which is subjected to specific conditions.

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Get a Bad Credit Home Mortgage Loan Today

Jul 13 2020 Published by under Uncategorized

Being approved for a bad credit home mortgage loan is not impossible. In fact there are a few lending institutions that specialize in this kind of loan for people that are not qualified for loans with major financial lending institutions. This kind of loan is especially tailored for people with less-than-perfect credit, but will have still have some qualifying terms that the borrower will need to qualify for.

There are two types of bad credit home mortgage loans. The first is for people that are looking to buy a home. The second is for people that wish to refinance and existing mortgage. To qualify for either type of loan the borrower is going to have to show proof of being able to repay the loan. This involves showing that the borrower has a stable job and has been employed for a certain minimum amount of time. The lender will also want to see proof of the level of income being made to ascertain whether the borrower can actually afford the loan or not.

If you think you qualify for such a loan then getting approved is not that hard if you just show the lender the proper information. Lenders that offer loans to people with bad credit try to first ascertain why the person has such a low credit rating. Often people run into major expenses such as unexpected medical bills, costs caused by natural disasters and family crises. This can make it impossible for people to pay their credit cards or loan payments and so results in them getting a bad credit rating. This kind of situation is really not that uncommon, and these lenders know that these people are only in a temporary bad situation but have the income to normally make their loan payments and are willing to lend money to these people although at a higher interest rate.

When a person loses their job for a short time because they are looking for a new job, or the company they work for is in some kind of financial trouble, can sometimes benefit from a bad credit home mortgage loan. Often a lender will allow the person to refinance their mortgage so that they can lower their monthly payments by extending the loan period. The borrower gains because refinancing can be used to pay all past due payments and even put some badly needed cash in the pocket of the borrower. The lender gains by providing a loan at a much more profitable interest rate.

The greatest long-term benefit for the borrower with bad credit is that by making regular payments on their new loan for a reasonable period of time, it will strengthen their credit score. This better credit rating will then allow the borrower to refinance the bad credit home mortgage loan at a better interest rate in the future.

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Protect Your Credit While Traveling This Summer

Jul 13 2020 Published by under Uncategorized

The summer travel season is officially here. During the summer we all like to relax and unwind while traveling with our families and friends. While you are unwinding don’t be too careless about protecting your identity.

Travelers in unfamiliar locations are often targeted by pickpockets, aggressors and identity thieves. Even though you let your hair down its’ important not to let your guard down. To help protect yourself and your family consider these recommendations while you’re on vacation.

Set A Budget

Before you go away create a realistic budget. Ask yourself some questions about your upcoming expenditures. Will you be driving or flying? Will you be staying with friends or will you have to pay a hotel? How much will you be allocating towards your entertainment expenses? Remember, once your holiday is over reality will set in and your day-to-day bills will be staring you in the face.

Travel Light

Only carry credit cards you will need and definitely leave the rest at home. More importantly, leave your checkbook at home since credit cards are universally accepted. Rummage through your wallet and be sure to remove any card with sensitive information on it. It’s always a good idea to pack a debit card for withdrawing at reliable ATMS.

Avoid Skipping Payments

Make sure all your bills are getting paid while you are away. There is nothing worse than returning from an amazing holiday and discovering a shut off notice from your utility company because you forgot to pay your bill. By simply planning ahead and setting up automatic payments through your credit union.

Refrain form social media

Resist the urge to post all your plans and photos on Facebook and Instagram. You may be giving local thieves permission to break into your house or business. Post your pictures after you get home.

Protect Your Mail While Away

Make sure you place your mail on hold with the U.S. Postal Service while you are gone. Go to holdmail.usps.com to begin the hold. Why is it important to have your mail held? You don’t want identity thieves stealing mail from your mailbox and getting access to your sensitive information like credit card statements, checks, etc.

Protect Your Cash

Only carry as much cash as you are comfortable losing to a potential thief. Don’t carry all your cash in one place. Put some in your pocket, some in a money belt and maybe even your sock.

Suspend Your Subscriptions

Nothing screams we’re on vacation like a pile of uncollected newspapers in the driveway. If you can’t suspend your subscriptions then ask a neighbor to collect them while you are away. Again, you don’t want the thieves to realize you’re not home.

Set-up Cyber Security Alerts

It’s a great idea to set up alerts on all your credit cards and bank statements. You will receive a text or email every time your credit card is used, protecting you from fraudulent use.

Practice Internet Safety

While traveling inside the U.S. or abroad, always think twice about frequenting Internet Cafes to access your financial accounts online. While most businesses are legitimate and have a protected ISP, others may harbor hackers that would tap into your accounts and make you a victim of identity theft.

Lastly, Wear Sunscreen

In the long-term, sunscreen is less expensive than the medical treatment you may need because of over-exposure to the sun. And in the short-term, it can help avoid the pain of a sunburn so you can enjoy your hard-earned holiday!

Here’s to the happiest of travels!

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Understanding the Difference Between Home Equity Loans and Home Equity Line of Credit

Jul 13 2020 Published by under Uncategorized

Property owners often wonder how they can use the value of their house to access low-interest financing. A loan or a home equity line of credit are two options available to you. To figure out which will better suit your needs, see some of the differences below.

Home Equity Loan (HEL)

A loan tapping into the value of your house is a good way to borrow money. This option allows you to get a fixed amount and receive it in one lump sum. The amount you receive is based on your home’s value, payment terms, verifiable income, and credit history. You can get it with a fixed rate, fixed term, and even a fixed monthly installment. In addition, interest payments are 100 percent tax deductible.

Home Equity Line of Credit (HELOC)

With a home equity line of credit, you do not get your money all at once. Instead, you open a revolving credit, which allows you to receive money as you need. Your house is used as collateral to open the credit account. Companies approve this type of account based on the appraised value of the property and subtracting the current balance of the existing mortgage. Some consider income, debt ratio, and credit history.

Unlike a HEL, on a HELOC you withdraw the funds as needed over a period of time, usually five to ten years. Plans vary and you may have special checks or a card to use in order to access your funds. Depending on your account, you may have to borrow no less than a set amount each time you access it. You may also have to maintain a minimum balance outstanding. Some plans require a specific initial withdraw as well.

After the “draw period” ends, some HELOC providers will allow you to renew the terms of the account. Not all lenders allow you to renew the plan. In addition, once the “draw period” has ended, you enter the “repayment period.” Your lender may require you to pay back the entire amount at this time. Others allow you to make installments.

How Do They Differ

While both a HEL and an HELOC allow you to tap into the value of your property to gain access to financing, there are two major differences. That is the interest rates and the repayment terms.

With a HEL, you get a fixed interest rate. This means you know what your interest rate is from month to month. This also makes your payments fixed, making it easy to budget each month.

However, a home equity line of credit usually has an adjustable rate. This means that the monthly interest payment can shift based on the index. Lenders traditionally add a margin of a few percentage points to the prime rate. You should ask the lender what index is used, what is the margin charged, how frequently does the rate adjust, and what the cap and floor on the rate is.

Since the interest is adjustable, monthly installments fluctuate. In addition, during the draw period you could be responsible for repaying the monthly interest only, not paying on the principle until after the repayment period begins.

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Home Refinancing for People with Bad Credit – How to Avoid High Fees

Jul 13 2020 Published by under Uncategorized

Avoiding high fees when home refinancing with bad credit is as

important as finding low rates. With fees adding up to thousands of dollars,

make sure that you are getting the best deal by comparing lenders. Also

look at other types of credit to securing cash out financing.

Ask About Closing Costs And Fees

To save yourself money, research lenders before settling on a refi

loan. Request loan quotes that include information on closing costs and

fees. The APR will include the interest rate, closing costs, and any

annual fees. But be sure to also ask about early payment or any other fees.

Be aware of fees or closing costs that are included as part of the

principle. These are often labeled as “zero down” loans, but in reality you

are paying for those fees throughout the loan.

With loan quotes, know that even the fees are negotiable. You can ask

for them to be removed or eliminated. Some fees, such as the early

payment fee, are only removed if you pay an additional amount at closing.

Select Low Fee Terms

While you are researching financing companies, also take a look at how

they structure their loans. Often the lowest rates, such as interest

only or balloon payment loans, have the highest fees.

Select terms that are more favorable for low fees, such as fixed or

adjustable rates. Adjustable rates are usually the lowest costing loans

with some risk of increasing future rates.

Other Ways To Cash Out Your Equity

If you are simply refinancing to cash out part of your equity, consider

applying for different types of credit to save on fees. Second

mortgages and lines of credit have much lower closing costs than refinancing

your total mortgage. They can also be held for a shorter period, which

also saves you money.

While low fees may be your goal, be open to better financing options.

By comparing the APR, you may find that average fees can yield better

rates that will save you money. The longer you keep your loan, the more

important low rates will be.

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Should I Get a Reverse Mortgage or a HELOC Credit Line?

Jul 13 2020 Published by under Uncategorized

The number of financial products available to older homeowners is growing. Access to home loans, credit lines, and reverse mortgages appears to be improving. But which is the best option for you?

Rising Expenses & Uncertainty

Many older homeowners are on fixed incomes. The challenge many face is that expenses such as healthcare costs are not fixed. Healthcare costs certainly are not fixed.

At the same time more boomers and seniors are finding their kids aren’t financially supporting themselves. Fortune and The Pew Research Center reveal that even though unemployment for young adults has dropped to around 8% in mid-2015, even fewer are now living independently than in 2010 (just 67%). Yet, financial expert Dave Ramsey warns that “the biggest expense facing baby boomers today is not their children’s’ college bills, but parent’s elder care.”

Many retirees are finding they are far less flush than expected too. The stock market hasn’t been kind, and is still estimated to be around 60% overvalued. At the same time the Social Security Administration continues to warn that there isn’t going to be enough money to pay out what is due.

Thankfully trillions are being regained in home equity. Yet, many Americans are finding they are house rich, and cash poor again. Liquidity and cash is key to surviving and enjoying the next few years.

So what are the best ways to tap into underutilized home equity?

Conventional Mortgages, Second Mortgages & Credit Lines

The Mortgage Bankers Association and Mortgage Credit Availability Index shows that access to home mortgage credit has been rising since February 2012. Inman News credits this largely to the expansion of mortgage programs.

Conventional mortgages, second mortgages, and home equity lines of credit (HELOCs) are all options. Yet, the traditional versions of these loan programs come with a number of challenges and disadvantages for older homeowners.

Most notably this includes:

1. Difficulty in qualifying for home mortgage loans

2. The need to consistently generate income to pay mortgage payments

3. High interest rates on 2nd mortgages

4. Potential for lenders to cap or close credit lines during housing downturns

5. Leaving large debts, and monthly financial obligations for heirs

How Do HECM Reverse Mortgages Work?

A HECM is the FHA reverse mortgage program. This is a federally guaranteed and sponsored Home Equity Conversion Mortgage. It allows homeowners aged 62 and older to convert illiquid home equity to liquid, usable cash and credit.

The real beauty of this financial tool is that is pays the homeowner, versus the reverse.

The payouts on reverse mortgages are flexible and can be customized to your personal needs.

Your funds can be taken as a lump sum, monthly payments over a specific amount of time, monthly payments over your lifetime, drawn from a credit line or a combination of these options

The most flexible option is the credit line.

Highlights of a Reverse Mortgage Credit Line include:

1. A built in growth feature which consistently adds access to more funds over time.

a. A reverse mortgage credit line grows at a compounding rate (interest rate +1.25%)

b. Any payments made to your principle balance will also cause your line of credit to rise by the same amount. The increase of your credit line will grow at the compounding rate, giving you more money for use in the future.

2. A reverse mortgage credit line is ‘open credit’, you can borrow from it, or put money back into it without penalty.

3. Once established, your credit line works independently from your home value and your loan balance.

4. Cannot be taken be taken away during market downturns (as long as you meet your contractual obligations such as paying your property taxes and homeowner’s insurance.)

5. Can be set up in early retirement years and be reserved for future increased liquidity, while maintaining just a minimum of a $100 balance.

6. Can be used to avoid taking out money from investment accounts during market downturns or used in lieu of taking Social Security income until your benefits are maximized.

Your reverse mortgage credit line cash can be used for any purpose from paying off credit card bills, to making home repairs, to helping kids and parents, gifts for the grandkids, investing, and covering medical bills. Or just keep it as a reserve fund. It’s your money – you choose.

Find Out More…

Having more liquidity is a pressing issue for millions of Americans today. Traditional mortgages and HELOCs can sometimes be more of a nuisance and threat than benefit for aging homeowners. In contrast; a reverse mortgage credit line can help property owners stay ahead of their financial needs without increasing their burden. It’s your money. Make sure you are making the most of it!

Check out the Reverse Mortgage Calculator to see what you are entitled to today.

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