Cheap Loans - Tips For Borrowing Money At Low Cost
When availing a loan, it is important that the borrowed amount does not become a burden on your limited earnings. If any such loan results in high monthly outgoings, then you are likely to make payment faults. Your focus, therefore, should be on finding loans at cheap rate of interest and at low costs.
You should note that a low rate of interest on any loan comes only when the borrower does not carry risks. This means that your credit history should have no blemishes like late payments and payment defaults. It is advisable to check your credit report, which you can get from any of the three major bureaus. Make sure that the report has mentioned all of your payments that you made in the past. Ensure that your FICO credit rating is above 600. In case of the credit score falling to lower levels, ensure that you approach the lenders with an improved score.
To ensure the interest at low rate, borrow an amount against your home or any property. Such a secured loan has little risks for the lenders, and they are ready to reduce the rate. However, the lender will sell the property, if you make do not make timely repayments. It is advisable to borrow an amount, which is lower than value of the property that you pledged as collateral.
An unsecured loan carries higher interest rate. Nevertheless, such a loan may come at comparatively lower rate, if the borrower boasts of excellent or good credit history.
Another aspect of cheap loans is its fewer additional charges. This is because, usually, these loans come through online process, which is less costly for the borrowers. Make sure that you have compare different lenders, in order to find out which lender is charging interest at lower rate.
George Kane has no formal degree in finance, but years of work that he has put in the finance industry makes him perfectly eligible to be called an expert in financial matters. To find Cheap Loans, Cheap APR Loans, Low APR Loans visit http://www.cheapaprloans.co.uk
Article Source: http://EzineArticles.com/?expert=George_Kanet
Tuesday, July 29, 2008
Monday, July 28, 2008
How Hard Money Private Money Works
Are you familiar with the term Hard Money?
Hard money is money loaned to you by private investors. These private investors can be from anywhere but normally the lenders would want to work within their own state, so if you're from California than you want to find an investor in California.
So what type of loans the hard money lenders will loan money on? The first type of hard money loans lenders are offering is construction loan. In construction, the hard money lender will loan the borrower the money in stages. Example: You own a piece of land in Los Angeles, california, on that land you want to build a house, you have the plans approved by the city of los angeles and you're all ready to go. Now you need a hard money loan because it will be easier to qualify and get the money you need for the construction.
You will call a hard money lender and give your information, the approved plans, your financials, your budget for the construction (you can get it from your contractor), then lets say the lender agrees to loan you the money you need, but the way the hard money lender will loan you the money is by stages, and the stages are:
When your Contractor finishes the foundation, the contructor will get paid after inspection that is done by the lender $10,000 for the foundation work, Than when your electrician finishes the electricity in the house, than the electrician will get paid after inspection is done by the hard money lender another $7000. You understand the concept? All contructors will get paid by the hard money lender by the completion of the construction.
Why will the hard money lender do that?
Because he wants to have control of the money, private investors know the risks they're taking but they're still willing to take these risks only if they have 100 percent control of the money.
Why a hard money lender will choose to Loan money to investors and not homeowners?
This is a very good question that a lot of people should know the answer for. The hard money lenders would not want to have to take a homeowner out from his home because he did not make the payments, but with investors it's different, it's 100 percent business and that's what the lenders want, business.
What type of properties hard money lenders will loan money on?
A hard money lender will loan money to many type of properties: single family residents, condos, townhouses, apartment buildings, hotels, motels, office buildings, shopping centers and many others. What hard money lenders don't like, it's land. It will be very hard to find a hard money lender that will loan you money on a land, and the reason is because there is no income to lands, maybe you can get a hard money loan on a golf course or maybe a land that you about to develop something on, but raw land- forget about it.
Today hard money lenders loan more money to commercial real estate investors rather then to residential investors and the reason is less risk. Today the residential market is not going up, values of homes are actually going down by more than 30 percent, and every day more foreclosures are coming out on the market, so the hard money lenders are smart enough not to participate in taking risks with homeowners.
Commercial real estate still very competitive, investors are still buying properties, remodel properties and build new properties. The commercial real estate market is still alive just like it was in the residential market 3 years ago, and hard money lenders are still in the game, and now they're busy more than ever because the banks don't loan money that easy to borrowers. So commercial properties rather than residential properties, and construction Loans. Good luck
Yanni Raz is a mentor for many in the Real Estate Mortgage industry, Yanni Raz is been tutoring many homeowners in California and help some also to save their homes.http://www.hardmoneyloans.org
Article Source: http://EzineArticles.com/?expert=Yanni_A_Raz
Hard money is money loaned to you by private investors. These private investors can be from anywhere but normally the lenders would want to work within their own state, so if you're from California than you want to find an investor in California.
So what type of loans the hard money lenders will loan money on? The first type of hard money loans lenders are offering is construction loan. In construction, the hard money lender will loan the borrower the money in stages. Example: You own a piece of land in Los Angeles, california, on that land you want to build a house, you have the plans approved by the city of los angeles and you're all ready to go. Now you need a hard money loan because it will be easier to qualify and get the money you need for the construction.
You will call a hard money lender and give your information, the approved plans, your financials, your budget for the construction (you can get it from your contractor), then lets say the lender agrees to loan you the money you need, but the way the hard money lender will loan you the money is by stages, and the stages are:
When your Contractor finishes the foundation, the contructor will get paid after inspection that is done by the lender $10,000 for the foundation work, Than when your electrician finishes the electricity in the house, than the electrician will get paid after inspection is done by the hard money lender another $7000. You understand the concept? All contructors will get paid by the hard money lender by the completion of the construction.
Why will the hard money lender do that?
Because he wants to have control of the money, private investors know the risks they're taking but they're still willing to take these risks only if they have 100 percent control of the money.
Why a hard money lender will choose to Loan money to investors and not homeowners?
This is a very good question that a lot of people should know the answer for. The hard money lenders would not want to have to take a homeowner out from his home because he did not make the payments, but with investors it's different, it's 100 percent business and that's what the lenders want, business.
What type of properties hard money lenders will loan money on?
A hard money lender will loan money to many type of properties: single family residents, condos, townhouses, apartment buildings, hotels, motels, office buildings, shopping centers and many others. What hard money lenders don't like, it's land. It will be very hard to find a hard money lender that will loan you money on a land, and the reason is because there is no income to lands, maybe you can get a hard money loan on a golf course or maybe a land that you about to develop something on, but raw land- forget about it.
Today hard money lenders loan more money to commercial real estate investors rather then to residential investors and the reason is less risk. Today the residential market is not going up, values of homes are actually going down by more than 30 percent, and every day more foreclosures are coming out on the market, so the hard money lenders are smart enough not to participate in taking risks with homeowners.
Commercial real estate still very competitive, investors are still buying properties, remodel properties and build new properties. The commercial real estate market is still alive just like it was in the residential market 3 years ago, and hard money lenders are still in the game, and now they're busy more than ever because the banks don't loan money that easy to borrowers. So commercial properties rather than residential properties, and construction Loans. Good luck
Yanni Raz is a mentor for many in the Real Estate Mortgage industry, Yanni Raz is been tutoring many homeowners in California and help some also to save their homes.http://www.hardmoneyloans.org
Article Source: http://EzineArticles.com/?expert=Yanni_A_Raz
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