Navigation       Home                            Contact                           Link

AMAZONTAGHERE6

 

ARTICLE PREVIEW

How To Choose Right Keywords To Market Your Website
Anyone who knows anything about how search engines work will tell you that you need to choose the perfect keywords in order to improve your search engine ranking. Yet, if you are relatively new to...read more

How to Win on Google AdWords
Google is, without a doubt, the 500-pound gorilla of search engines. The official AdWords site says they reach over 80% of internet users - and that may be an understatement. As such, AdWords...read more

How To Start A Child Care Business
When you're beginning to set up your own child care business, you should consider the following six things in order to be both successful and safe. Type of business When you're first...read more

HOME >> How to Avoid Bad Equity Loans

 

YOURIMAGEHERE3

How to Avoid Bad Equity Loans
By Talbert Williams

 

 

The Federal Trade Commission has issued alerts to homeowners–and specifically homeowners who are elderly and poor–in recent months. The market is swarming with mortgage lenders providing equity loans and some of these lenders are taking advantage of the misfortune.

Some lenders are giving loans to homeowners who do not generate enough income each month to repay the debt. The lenders’ goal is to take possession of the home once the mortgager fails to repay the debt, thus gaining equity for himself.

Some lenders are encouraging homeowners by offering them a equity loan. And some borrowers have been taken for a ride because they failed to read the terms and conditions on such loan carefully. The Balloon Repayment stipulated that the homeowner will repay only the interest toward the mortgage and once the interest is paid then the homeowner will repay the principal on the mortgage. Thus, the homeowner pays for the interest all to find out he never paid a dime on the mortgage itself, and once the repayments kick in for the principal, the homeowner is at risk of losing his home if he doesn’t have the cash to repay the debt.

Few lenders will offer what is known as “flipping” loans. If a homeowner is paying $150 each month on his mortgage with low interest rates, and is offered and accepts the “flipping,” then he is at risk of loss, since he accepted a loan that has higher interest rates, steeper fees and costs, and interest on all the charges applied to the loan. If you are comfortable with your current mortgage arrangement, it is wise to stay put when a lender calls offering you (what appears) to be a good deal, but is probably either a scam or high-interest loan in disguise.

About The Author

Talbert Williams offers debt consolidation referrals and advice. For more information, articles, news, tools and valuable resources on debt solutions, visit this site: http://www.1debtfreedom.com.

partnership@1debtfreedom.com

Return to HOME to read more articles
 

RSSTAGHERE4

 

COPYRIGHT © 2009-2015 HOW TO - ALL RIGHT RESERVED

 

CLICKBANKBUDDYTAGHERE5