tag:blogger.com,1999:blog-95947412011-04-21T18:23:34.927-07:00Melissa Sesokohttp://www.blogger.com/profile/10587898841290988334noreply@blogger.comBlogger11100tag:blogger.com,1999:blog-9594741.post-1103575174073928832004-12-20T13:31:00.000-08:002004-12-21T10:55:33.736-08:00There are so many types of loans to choose from. How does one decide which type of loan to apply for? So jsut to get started, the following list of terms and definitions will introduce you to some of the loans that are available for homeowners: <br /> <br /><strong>Consolidation Loan <br /></strong>Debt consolidation combines all of your unsecured monthly bills into one lower monthly payment and a lowered interest rate. <br /> <br /><strong>Home Equity Conversion Mortgage (HECM)</strong> <br />Usually referred to as a reverse annuity mortgage, what makes this type of mortgage unique is that instead of making payments to a lender, the lender makes payments to you. It enables older home owners to convert the equity they have in their homes into cash, usually in the form of monthly payments. Unlike traditional home equity loans, a borrower does not qualify on the basis of income but on the value of his or her home. In addition, the loan does not have to be repaid until the borrower no longer occupies the property. <br /> <br /><strong>Home Equity Line of Credit</strong> <br />A mortgage loan, usually in second position, that allows the borrower to obtain cash drawn against the equity of his home, up to a predetermined amount. <br /> <br /><strong>Home Equity Loans <br /></strong>Home equity is the current market value of a home minus the remaining mortgage balance. It is essentially the amount of the home that you own outright. For example, if your home is worth $250,000 and the principal balance remaining on your mortgage is$175,000, then your home equity portion of your home is $75,000. By using the equity in your home, you may qualify for a sizable amount of credit at an interest rate that is relatively low. <br /> <br /><strong>Home Improvement loans <br /></strong>A home-improvement loan is a loan that is made for the purpose of home improvement and that is classified by the institution as a home-improvement loan. <br /> <br /><strong>Second mortgage</strong> <br />A mortgage that has a lien position subordinate to the first mortgage. <br /> <br />We hope this list of terms will provide you with some understanding of what types of loans are available. <br /> <br />Come back and watch as we add more terms and definitions. Before you know it, you will be a loan expert! <br /> <br /> http://www.mortgage-refinancing-information.com/ <br /> <br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/9594741-110357517407392883?l=mortgage-info.blogspot.com' alt='' /></div>Melissa Sesokohttp://www.blogger.com/profile/10587898841290988334noreply@blogger.com9