Criteria For Finding a Cheap Personal Loan

Posted by hard on May 20, 2012
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It is getting more difficult all the time to compare one personal loan program against another since it seems like everybody uses a different criteria, different financial terms for describing the same thing, and fine print that would cause a librarian to squint. But the fact remains that every now and then, people need a quick personal loan and need to understand how to compare apples to apples when looking for their best deal. One obviously wants to keep as much money in one’s own pocket instead of adding to the cost of that rented money.

First of all, there are several things that become so confusing as to hardly make sense to try to figure them out, or based on today’s very competitive financial market, they just don’t make sense to factor into your evaluations.

My first recommendation would be to steer clear of secured loans. The advantage of a secured loan is that you may get a slightly lower interest rate because if you default on the loan, the lender has something they can come and take away from you, such as your car or your home or whatever you put up for collateral. This is not worth it. If something happens and you default on the loan, you could find yourself without a roof over your head or without a car to drive. Of course you don’t plan to default on the loan but things can happen which are out of your control, like a job layoff, huge medical expenses, and other things that you have no control over and cannot forecast. Unless your credit is so bad that you cannot qualify anywhere for an unsecured loan, you are recommended to stay away from secured loans.

Secondly, you of course want to look at the interest rate being assessed on your personal loan, but don’t become consumed with it. The interest rate could be simple interest, could be compounded interest and could be something else altogether. Unfortunately, there is not a common yardstick that all lenders use that means the same thing so you can accurately compare one personal loan quote against another.

A more accurate representation of exactly how the loan company is manipulating the interest rate is the amount of money you will have paid them at the end of the loan term if you make all your payments on time and make the minimum payment each month. For example, with one personal loan quote on a $5000 loan, you may find that you will have paid back $6500 at the end of the loan, whereas on another personal loan quote you find that you will have paid back $7200 at the end of the loan term. Regardless of what they quote the interest rate as being, these end of loan figures are the ones that are important.

Make sure there are no prepayment penalties. If you get a windfall of cash, you may want to pay off this loan or make extra payments on it. Make sure there is not a penalty for doing this.

Lastly, don’t ignore an online personal loan quote. Lenders offering an online personal loan can frequently be much more aggressive with rates and terms. Evaluate these on the same basis as used to evaluate the others, but you are likely not going to find the best personal loan if you don’t at least evaluate what these can provide for you.

For more insights and additional information about a Cheap Personal Loans as well as getting a free no-obligation online personal loan quote, please visit our web site at http://www.personalloantips.com

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Hard Money

Posted by hard on May 20, 2012
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Introduction

Hard Money is a term that is used almost exclusively in the United States and Canada where these types of loans are most common. Hard Money is more expensive than traditional lending, but it is not the “cost” of the money that is important, it is the “availability” and the “timing” of the funds that makes or breaks the deal for the Real Estate Investor. This type of money is only for short term financing, good for those who need to get funds fast to do a deal.

Private

Private money rates generally range from 10 to 15%. Private Money refers to funds that are loaned by non-institutional or private investors, as opposed to heavily regulated banks. Private Money is used when a) quick funding is needed; b) bridge funding is needed; c) bank funds are not available to the borrower. Private Money loans are more expensive than bank loans. The loan being taken is not intended to be long-term. Private money, however, is typically funded within two weeks, and can be funded as quickly as 24 hours in certain cases. Private equity lenders typically start at an interest rate of 12 percent and they make loans only when the borrower has at least 30 percent equity in the property. Private investors are people who have the liquid cash, but don’t have the desire to actually do the work themselves.

Lender

Lender fees are also more expensive than those involved with conventional mortgages. Lenders actually require low LTV’s of 65 percent or less. Lenders are ramping up their operations to better provide online loan sourcing directly to borrowers. Lender points range from 3-7 pts…and much higher for speculative international development deals.

Borrower

Borrowers in these positions may have large equity positions from, an inheritance, years of accumulated mortgage payments or a former homes sale. Borrowers who are facing a foreclosure may also try to obtain a hard money loan as their last option to stop foreclosure. Borrowers have to meet certain credit standards. Borrowers are advised not to work with hard money lenders who require exorbitant upfront fees prior to funding in order to reduce this risk.

Broker

Broker an individual or firm who acts as an intermediary between a buyer and seller, usually charging a commission. Broker points generally range between 2-3 pts. Brokers can provide invaluable assistance in identifying specialized lenders that you couldn’t find on your own.

Conclusion

Hard equity is not a solution for everyone. Private Money is less expensive then bringing on a partner. This type of money is also known as a “bridge loan” because it is most often used to finance the gaps between the need for a deal to get done and the conventional, low interest-rate financing. Hard Money is an interesting financial animal. Hard money is designed to solve all of these quandaries and can fund a much broader range of properties and projects than bank financing.

Capital Stack LLC
http://www.capitalstackllc.com
718-676-9610

Capital Stack LLC
David Rubin CEO@CAPITALSTAKLLC.COM

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Getting Cash Advance Loans With Bad Credit

Posted by hard on May 20, 2012
hard-money-loans / No Comments

You don’t have to be a financial genius to know that right now the economy is facing a recession. In fact chances are that you yourself have started to feel the pinch. Maybe you have recently lost your job, or perhaps your hours have been shortened. The truth today is that no matter how hard we try, there are times when we run out of money and still have too many bills to pay. The good thing is that even with bad credit cash advance loans are still an option for people who have hit hard times.

What Is A Cash Advance Loan?

An advance loan is a cash loan that is given to you generally as an advance against upcoming payment of some form. Generally this is something akin to a paycheck, a tax refund, or a source of consistent income. By taking out a cash advance you agree to pay back the principal plus interest when you get the income you are expecting.

What Can I Use The Cash For?

While you can use the cash from a loan for anything you want, it is suggested that you use the money to help you catch up with past due bills, or to get ahead a bit on a mortgage payment if you feel you might be losing your job soon. While there is no law that requires you do so, it is generally a wise decision.

What Do I Need In Order To Get A Loan?

When you have bad credit, a cash advance loan may be one of the few chances you have to pay outstanding bills. However, before you go to get your loan, there are some things you will need.

The primary thing you will need is either some form of collateral, or proof of ability to pay the loan back. This generally means paystubs, documentations of tax refunds or structured payments. Also you will need something that proves where you live, and that you are who you say you are. While this may seem a lot to go through, when you realize that most of it is so that you are protected against identity theft you will be happy these requirements exist.

In the end, a cash loan is something you can get even if you have poor credit. In fact if you are behind in bill payments, know you will have a hard time making your mortgage payment, or just need cash for any reason, you might want to look into getting an advance loan.

You can use the money for anything you need or want, and most of the time you can make monthly payments on the payday loan so you don’t have to worry about being broke again, next month. However, it should be noted that whether you have good credit or bad credit, you should use a bad credit cash advance loan wisely and only when necessary.

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Residential Real Estate Investor Rehab Loans

Posted by hard on May 19, 2012
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Purchase Rehab Real Estate Investor Loan.

There are great opportunities for real estate investors in the market today. This is the best market for real estate investors in our lifetime. Unfortunately financing is not available as it has been in the past. There are options for financing purchase and rehab projects for real estate investors. Whether you are investing in commercial multifamily housing or residential investment properties there are lenders to finance purchase or refinance investor rehab projects. Since no secondary market for this type of funding exist, your deals will fall into one of two categories. Your deal will either be non conforming investor rehab funding or hard money rehab funding.

Non Conforming Real Estate Investor Rehab Loan.

Conforming real estate investor rehab loans do not exist. Conforming means there is a secondary market that will purchase these loans on wall street. The secondary market would have established criteria that all projects would have to conform to. Since this market does not exist the first category of loans are considered non conforming. Any non conforming investor rehab loan funded in this must meet similar guidelines to conforming mortgages. Whether commercial or residential these loans would meet the guidelines as all other loans except they require major rehab and are investment properties. This means the borrower, real estate investor, would need good credit, verifiable income, an ability to repay the loan, acceptable down payment and reserves, and higher licensed bonded contractors to do the rehab. The advantage to the non conforming real estate investor rehab loans versus the hard money loans is that the rate and fees are substantially lower. The dis advantage is that there are many more qualification criteria and it takes longer to get the financing. But if you qualify and have the time it may be to your advantage to get a non conforming rehab loan versus a hard money real estate investor loan.

Hard Money Loans.

Though the rates are much higher with points required from 4% to 10% hard money loans could actually be more profitable to real estate investors than non conforming investor rehab financing. First of all these loans generally fund in 2 to 3 weeks. Secondly, the qualifications are much less and therefore you can do more loans. You may only qualify for a hard money loan when you will not meet the criteria for a non conforming rehab loan. As such you have no option.

Qualifications to get Non Conforming and Hard Money Investor Loans.

Both programs require you to purchase property where the after rehab value is 65% or less. Both programs require you to have an acceptable exit strategy to pay off the lender. Non Conforming rehab financing programs will always require a down payment of at least 20% of the total purchase and rehab costs. Hard money rehab funding programs may or may not require the down payment. Both programs will make sure the contractor or investor has the experience and sometimes licensing to complete the project. So if you have the experience, property, exit strategy and assets you can make lots of money by purchasing and rehabbing investment property.

As a Mortgage Banker and Broker for 20 years I have established relationships with financial institutions and private investors who make rehab loans for residential and commercial projects. If you require financing for your real estate investment deals, whether commercial or residential contact me at Hard Money. You can also email me at louisj@alldominionmortgage.com.

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What You Need to Know Before Following a Refinance Home Equity Loan Procedure

Posted by hard on May 19, 2012
hard-money-loans / No Comments

If you are interested in refinancing your home equity loan, you likely have a very good reason. There are a few different ways a person can benefit from a refinance home equity loan solution. If you are having a hard time coming up with your monthly payments for your current loans, you should look into refinancing your whole financial situation. If you do refinance your loans at a lower interest rate, this will give you a lower monthly repayment requirement.

There are other benefits that can be had from a refinance too. You can change the length of time required for the loan to be repaid, as well as many other fine tuning adjustments to make it easier for you to pay the loan off. You can even increase the size of your home equity loan to purchase something that you have been wanting for a long time too.

Many people will find it impossible to refinance their current home equity loan. This could be due to the price of the home going below the value of the loan, or the credit score of the individual may have decreased due to hard times in the current economy. No matter what your situation is though, if the rates are going down, you can easily benefit from refinancing your loan. You can save a large amount of money every month if you are able to get better terms on the loan you have previously taken out.

It may also be a wise decision to ask for help from a third party company. These companies are experts in the loan industry. They will be able to tell you where you can find the best loans available in the market today. They will also be able to help guide you in the right direction to cater for your unique situation.

You should be cautious before choosing the company you are going to work with though. Some companies have been related to fraudulent behavior that you should be aware of. If you do choose a company to help you find the best loan available, then you should make sure they are a reputable business in the financial services industry.

If you choose a company that is reputable, they will certainly help you find the best rates available to you in the current market. You will also be able to avoid excessive fees that are commonly charged to people who are not familiar with the way the market works. It is possible to save a large amount of money through refinancing a loan at a better interest rate. For this reason it is very important that you find a company that will give you the best deals.

It is important that you choose a company that will not place ever increasing costs and fees on your loan. If you do go with a company who is not reputable, they may place you in a loan that is highly favorable to their position, but not so favorable to yours. These types of loans are often responsible for bankruptcies and other difficulties borrowers have with paying back their loans. If you do get a loan, be sure that you know all the terms that apply. Also make sure that the loan has a steady interest rate and ongoing payment structure.

Anyone who is facing high interest rates, or who is having trouble meeting their monthly obligations, should certainly look into the benefits of being able to refinance their home equity loan in order to attain financial security. First talk with a knowledgeable employee in the loan industry to further discuss the choices you can make to decrease the burden of your current financial obligations.

If getting a fast home equity loan is what you are looking to do then don’t forget to do a home equity loan comparison. To make sure you don’t get short changed, get up to speed by visiting our website.

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