Home Equity - Loans

Home equity loans are loans that are issued out to people in need of finance, against the security of their residential houses. In this kind of loan, the houses of the borrowers are kept as collateral against the sum borrowed by them. Usually, equity home loans are borrowed by individuals who are in desperate need of money, but have no means to repay them. Individuals in need of money have to keep their home as security against the sum that is lent by them.

Home equity loans, in recent times, have emerged out as the main source of finance to people who are in desperate need of cash. More and more individuals are increasingly resorting to home equity loans for their financial needs, the main reason being the collateral and security factor. Usually, to take up a loan of such a huge amount, people have to sell off their assets and dispose of their belongings to raise the finance, for their needs. But, the one standing character of home equity loans is the fact that the borrower needs not to submit extra collateral except the house against which he is getting the loan, like he needs to do for getting any other loan credited in his account. Also equity home loans are really beneficial and affordable since the interest that accrues, actually accrues on the amount that the borrower has drawn till that time, or while repayment of the loan, the borrower needs to pay the interest only on the amount that is yet to be repaid. All these enticing factors are drawing more and more number of individuals, looking for a loan that involves easy repayment terms.

The best part of home equity loans is that of revolving credit, once the amount of loan that the lender will lend to the borrower has been fixed by the lender, calculating on the value of the home against which loan is sanctioned, the borrower needs not to borrow the entire amount at the same time but can actually draw according to his needs, and pay the interest only on the amount that he has drawn till that time and not the entire amount of loan that has been sanctioned. The lenders to attract more and more borrowers also give the borrowers many schemes, which make the repayment of the loan all the more easy. The fact that the borrower needs not give any other collateral, or pay any extra interest makes the entire thing even more easy for the borrower.

Interested in a different kind of loan? Riegelwood Credit Union offers a variety of loans and banking services to fit your unique needs.


Applying For Bank Credit Cards

Some of the best credit cards in the world are those you can get from your local bank. Of course, “local” banks are often simply branches of worldwide organizations that offer the buying power and efficiency we want. Getting your credit card from your local bank offers some unique advantages, especially if you’ve been a long-time customer.

For example, it’s easier to offer low interest credit cards to those who have money in savings and checking accounts and whose faces are familiar than it is to take a chance solely on the basis of a credit report. Banking and credit cards are all about relationships. You want the best interest rate, fee schedule, and options you can get, and the bank wants reassurance that they will be able to collect what you owe them. Consider what they already know about you.

They know your average balance in your savings account. They also know how much you regularly deposit into your checking account and where it comes from. They may even know whether you pay your mortgage on time every month. They will still run a credit report on you when you ask for a credit card, but they may be more likely to give you the card even if your credit is not perfect because they know you.

On the other hand, they may know you so well that they offer you credit cards every time you walk in the lobby door. If you’re looking for a credit card, it’s probably a good idea to hear what they have to say. You may get better rates and more options locally, but, as always, you should compare rates and fees before you select any credit card.

Major Bank Credit Cards

You will probably recognize the names of some of the major bank credit cards you can get. Names like Chase, Citi, and Wachovia Bank are familiar to millions who carry their cards. Most of them carry a wide variety of cards and include cards designed for everyone from those who have no credit or bad credit to those whose credit histories are impeccable. Conveniently, all of these bank credit cards are available on the Internet.

If you’re looking for a credit card that won’t cost you an arm and a leg, the Internet is one of the best places to look. Card applications are sorted by type, such as MasterCard and Visa. Cards are also sorted by credit score with most banks clearly defining those cards that are designed for persons with bad credit or no credit and those for persons with excellent credit.

Why Major Banks Offer Cards to Credit Risks

There are millions of people whose credit has been ruined by events beyond their control. For example, a medical crisis can take a family from sound credit to very bad credit. The loss of a job can mean the loss of credit stability. Even natural disasters can have an impact on a person’s credit, and it can take years to rebuild credit once it is lost.

Banks offer credit to these people because they have analyzed the risks and have determined that the level of risk is acceptable. The credit cards they offer come with higher interest rates and a long list of fees including monthly fees, annual fees, origination fees, and late fees. While the cost of the credit may be high, it may also be the only way some people who have suffered financial loss may be able to reestablish good credit. The higher fees are often required up front or on a monthly basis that helps the banks recoup their losses should the customer not repay what they he or she has charged.

Bank Credit Cards-the Choice

There are a lot of reasons to get a credit card from your local bank, especially if you have excellent or good credit. On the other hand, getting a bank credit card from a major bank, even if it costs you more money, can also be a good move, especially if you are in a situation where you need to repair your credit. In the long run, if you fall into the category of poor or no credit, an online bank credit card may be your best option.

There’s more than one way to secure your finances. If you want to know how a credit protects you and your money, check out Riegelwood Credit Union.

Building And Construction Loans

Building or construction loans provide funding for fulfilling dreams. In America ownership of a personal home is the first priority, as everyone wants to have their own piece of land. Having a piece of paper in hand; with the design of a dream home; thinking of interior decorators; standing on land free from any living creature ever what can be comparable to this feeling?

Construction Loan Financing:

After locating the site and finalizing design the next task is to locate a loan lending organization. Mostly land buyers look for a loan that not only includes lot price but also construction expenditures. As far as development in residential areas is concerned, a number of banks are easily financing loans as there is grantee of water, sewerage system, utility system and also fulfilling local government ordinance.

Customers usually look for a salesperson known as real estate agents for buying a construction lot or a new home therefore they don’t need to worry about buying a lot and constructing homes separately as this is the task of real estate agents. Qualifying for a loan is the foremost task of a homebuyer to fulfill his dream.

Loans can help you build yourself a better future today. A great credit union can help you with that. Click here to get started.

Homebuyer: As A Self Constructor

Those who qualified for loan are financed by loan lending companies for buying a lot at a rate of ninety five percent of respective lot. Beside paying for purchased lot loan lending companies also offer loans for permits, construction material and labor salaries. Instead of hiring a constructor, usually the homebuyer itself becomes project manager and looks after for his home’s construction.

The savings thus made helps in keeping cost at a moderate rate; moreover it provides satisfaction to the homeowner who is building his dream home. However those who can’t look after their home construction can hire a professional constructor for this task keeping his budget in mind.

Formulating Mortgage Value:

Lowest interest rate is offered by companies who are financing building loans providing the customer with a comfortable repayment plan. After the completion of the project the exact market value of the home is calculated, however, cost of lot plus construction expenditures including laborers wages are not included. Figure thus provides real equity, which is to be used by loan lending companies for figuring out mortgagee value.

Let a customer buy a property for fifty thousand dollars of twenty thousand five hundred square ft, and plan to construct 3 bedrooms; the estimated cost would be one hundred thousand dollars.

But the customer decided to do a large amount of work himself  for the sake of saving money thus loan lender companies agreed to give loan for ninety five percent of total cost estimated to be one hundred, forty two thousand and five hundred dollars  plus owners seventy thousand five hundred dollars.

What If the Project Goes Over Budget?

There are some possibilities that project might go beyond decided budget and total cost came out to be one hundred and sixty five thousand dollars, thus  current value of market regarding home comes out to be three hundred and fifty thousand dollars  and equity comes out to be one hundred and eighty five thousand dollars  by subtracting construction expenditures.

Now customers can contact a bank owning a property worth three hundred and fifty thousand dollars with one hundred and eighty five thousand equity, and under these circumstances he can make a contract of paying lesser monthly payments within thirty to forty years. The best thing about this loan is that one can fulfill his dream of having home while investing very little from his pocket, and as soon as the construction is over interest rate is decided instead of waiting for years for having equity.

Forethoughts before Buying Property:

Interest rates planned by loan lenders are usually according to the customer’s qualifications and location of plan. Best conditions are offered by the loan lenders to the customer regarding financing projects.  Before buying a property; self home constructor should visit different sites all over the country, should inspect services provided by respective residential developers; and last but not the least should try to meet with professionals to inspect facilities and local government ordinance.

Before buying a lot; soil tests have to be done to know whether a lot is suitable for building or not. Before buying a lot a customer should satisfy himself about the sewerage system and network of road. Real estate agents can give estimation about the rate of nearby property and future developmental plans. All this work meant to be done before lending a loan for accomplishing a dream of personal home.