signs of a bad loan & mistakes mortgage

There are some extremely abusive, one-sided contract terms consumers sign because they think that's what they have to do to get the money," says Jean Ann Fox, director of consumer protection for the Consumer Federation of America. But often you can find a better deal if you shop around. MORE

Refinancing home or mortgage

Refinancing a home loan is a rather simple process. Yet it is smart to know what your options are before undertaking it. Many things have to be considered, you should compare lenders, rates, costs, interest types, etc in order to make a well informed decision. More..

What is a home equity?

A home equity loan or line of credit allows you to borrow money, using your home's equity as collateral. Because the home is likely to be a consumer's largest asset, many homeowners use their credit lines only for major items such as education, home improvements, or medical bills and not for day-to-day expenses.

A home equity loan (or line of credit) is a second mortgage that lets you turn equity into cash, allowing you to spend it on home improvements, debt consolidation, college education or other expenses. With a home equity line, you will be approved for a specific amount of credit--your credit limit, the maximum amount you may borrow at any one time under the plan. Many lenders set the credit limit on a home equity line by taking a percentage (say, 75 percent) of the home's appraised value and subtracting from that the balance owed on the existing mortgage. For example, more...

Loan Type

A loan commitment is an agreement whereby a lender (bank) agrees to lend to a customer for a pre terms while retaining the right to return to its promise, as the creditworthiness of the borrower deteriorates. The agreement also stipulates the fees to be paid during the duration of the commitment. Loans are widely used in the economy. As its use has spread, a rich literature has developed to explain why they exist, how they are valued and how they affect the risks of banking and deposit insurance. This article more.....