Easy Home Equity Loan

1. Which type of debt is the least attractive for a consumer? (1 point)
unsecured debt
secured debt
mortgage debt
lease debt
2. Secured debt means a lender gives you money in exchange for what?
(1 point)
collateral
credit report
principal
interest
3. When an asset, such as a car, decreases in value over time what is it called? (1 point)
financing
equity
leasing
depreciation
4. When you lease a car, you build equity while making monthly payments. (1 point)
True
False
5. If the bank decides you’ve defaulted on a car loan, what will they do? (1 point)
foreclose on the car
refinance the car
repossess the car
depreciate the car
6. Why do lenders often charge more interest for a car loan than a home loan? (1 point)
because you could crash the car
the car could be stolen during the loan
cars can be moved to annother location
all of the above
7. Secured debt allows you to refinance the loan to get money (equity) out in the event of an emergency. (1 point)
True
False
8. Credit cards are considered unsecured debt. (1 point)
True
False
9. If your credit score goes down significantly and you miss a car or home loan payment what could the bank do? (1 point)
foreclose on your home
require the car loan to be paid-in-full
increase interest rates
all of the above
none of the above
10. When you buy an off-lease used car, you can buy the same warranties you would get if you purchased the car new. (1 point)
True
False

Interesting Blogs

Hi I have a mortgate of around 2 years old and is a 30 year fixed rate at 6.5%. With interest rates being slashed right now and house prices dwindling it would make a lot of sense to be able to refinance the mortgage at a much reduced rate, lower the monthly premium but still pay (ie overpay) the same amount each month to the mortgage company thereby paying of the principle faster and possibly ending up in a few years time with some equity back in the home. If I leave it as is the market is going down as fast as I’m paying off the principle and am therefore no close to actually owning my home. The other alternative to over paying is refinancing at a 15 year fixed rate loan as that seems to be giving me around the same monthly payment as I’m paying out now.
But the question is, with no equity in the house will my current (or even another) mortgage lender even look twice at refinancing (I understand that lenders are reluctant to give out loan to value ratios of higher than 70-80%)
thanks

Interesting Blogs

Does Wells Fargo in Canada offer home equity loans based soley on the equity in your home? If not, who does at reasonable interest rates?

Interesting Blogs

We pay 3 a month which includes escrow…….We are now 3 years into the 5/1 arm…Our principle balance now is ,000
Our home is valued around 4,000 and we have about 9,000 in equity………HOW MUCH WILL WE EXPECT TO PAY AFTER THE FIVE YEARS IS UP? BASED ON THE AVERAGE INTEREST RATES?????

Interesting Blogs

Over the last few years, my husband has been laid off numerous times. Each time, I had to take out credit card cash advances to keep us afloat. In addition, we had refinanced several times and took out a home equity loan so we now owe more than our home is worth. When we are both working, we can pay our bills but with him laid off again, we are drowning. I can no longer take out any more cash advances. I have been paying my credit cards on time because I don’t want the interest rates to jump up but then I can’t pay my mortgage on time. I’ve been paying it right before the 30 day mark so it won’t show up on our credit reports as a late payment. I don’t think I’ll be able to do that this month. What should I do? My mom thinks we should file bankruptcy but I really don’t want to do that.

Should I continue to pay my credit cards on time and pay the mortgage late? Possibly let the house go and rent something cheaper?

Should I pay my mortgage on time and pay the credit cards late? Possibly file for bankruptcy? We have about ,000 in credit card debt.

I am so stressed out by the mess that we’re in. We have 2 children in college that will be depending on us at least for the next year. I am mentally, physically and emotionally exhausted.

Interesting Blogs

I was laid off in Oct of 08 and have yet to find a job. Although I’m making my payments on my credit cards I’m making really no headway on getting them paid off. I’m only 7,000.00 in unsecured credit card debt which is nothing to some and a lot to others.

My question is will banks loan money to people with no job and no home for equity loans. All I have that is paid off is a 2002 mustang. I want to do what is best for my credit but at the same time either get a lower interest rate or consolidate or ultimately file bankrupt. My interest rates are very high on the credit cards because of default on a couple late payments.

Desperate times call for desperate measures. Any suggestions?
My real concern is that I am unemployed and no one will give me a loan or does this matter?

Interesting Blogs

I was wondering if adding a pool to my home is a good idea.
I live 20 minutes outside of Phoenix, AZ where its already hitting 100 degrees. I have owned my house since August of last year. My house has lost its value by about 30-50% but I don’t plan on selling the house so I will get my money back eventually. Being how I don’t have equity in my house, I will have to get unsecured line of credit, which could be a problem because of interest rates on the loans. Anyway, does adding a pool add to the value of the home? Is it a smart financial investment (long term)? If I spend 25k adding a pool, I will have 175k total financed but my house used to sell for over 215k when the market was around.
My wife and I would really like to have a pool. As for heating a pool, I don’t think we would need to heat it because we live in Phoenix, Az.
Oh yeah, other homes in my area do not have pools. Of course there are some with pools, but most do not. This partially because the neighborhood is new and people don’t have equity these days for financing.

Interesting Blogs

My husband and I had two car loans one was for 8% and the monthly payment was 3, and the second car was for 7.75% and the monthly payment was 3.

We took out a home equity loan of ,700 to pay both cars off. I think the total for both cars was ,616. We got a arm rate of 5.25% for 10 year draw back period and 15 year pay off. The reason we got the arm is because the interest rate is very low and we are planning on having them paid off within five years before it adjusts too much. We figure by the time we pay them off, we probably won’t even see the interest rates that we did with having the two cars financed separately.

The minimum payment each month is 1 interest only, but we we’re planning on paying an extra 0-0 each month anyways. On months where my husband work is cut back we will pay less. This just give us the option of paying less when money is tight and paying more every chance we get. We we’re having a hard time paying the 0 a month before this, but always paid on time.

Anyways my question is. Does this sound like a smart move, or did we just screw up?

Interesting Blogs