Welcome to Home Mortgage
Affordable Home Mortgage Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
You may also listen to this article by using the following controls.
A bridge loan can save you from an awkward position
from: Paul Heath A buyer of a new home may find himself or herself in an awkward position when he or she is unable to come up with the promised down payment on account of the existing home not being sold before closing on the new home purchase. This puts the deal to buy the new home in jeopardy. To emerge from this position, the buyer could avail of a bridge loan by which he or she can borrow against the equity in the existing home. The larger the equity in the home, larger can be the amount that you can borrow. The loan can be settled when the existing home is sold.
Considering the purpose for which a mortgage bridge loan is taken, the time period for which it is granted generally is short extending from six months to one year. The interest rate as well as the fees for obtaining home mortgage bridge loans is relatively high. This is so due to the short term nature of the loan. You dont have to pay interest until you have sold your existing home. On selling the home, the principal as well as the accrued interest can be repaid using the proceeds from the sale. It should, however, be noted that your gain on the sale is reduced to the extent of the fees paid to obtain the home bridge loan and the interest paid on the loan.
Home bridge loan strategies:
1)Borrow only against your current home. The loan can be obtained against the equity in your existing home.
2)Since the interest paid on a home bridge loan is tax deductible, ensure that you claim the deductible in your tax return.
3)It may so happen that you may not be able to sell your home before the loan becomes due. Therefore, ensure that there is a clause in the loan contract which allows you to extent the loan term, if required.
4)Also ensure that there is no penalty clause in the loan contract in case you are in a position to repay the loan before it falls due.
This article may be freely distributed providing no alterations are made to the text and the links remains intact.
About the Author
For online loans & finance please visit us at www.1st-onlineloans.com
Affordable Home Mortgage News
Foreclosure Deal to Spur Home Seizures, Help Heal the Market - BusinessWeek
 Los Angeles Times | Foreclosure Deal to Spur Home Seizures, Help Heal the Market BusinessWeek Programs under the administration's Making Home Affordable program had $29.9 billion in aid pledged as of Jan. 30. Separately, Fannie Mae, the mortgage company under US conservatorship, invited investors to apply for a new program to buy foreclosed ... Foreclosure deal may trigger home seizures, heal housing market US seals mortgage settlement with top banks Banks in $25B deal to settle foreclosure abuses |
Mortgage Q&A: Lenders impeding refi goals - Washington Times
 Washington Times | Mortgage Q&A: Lenders impeding refi goals Washington Times I don't think this is part of the changes in the Home Affordable Refinance Program (HARP) because HARP applies only to those loans held by Fannie Mae and Freddie Mac. Here's the general scoop on the president's proposal. The objective is to accomplish ... Chris Vigil: New plan aims to help struggling homeowners As Mortgage Refinancings Surge, Banks Struggle Mortgage refinancing is on the rise |
South Shore Habitat for Humanity Offers 'Beneficial' Solution to Affordable ... - Patch.com
South Shore Habitat for Humanity Offers 'Beneficial' Solution to Affordable ... Patch.com South Shore Habitat builds an affordable home for the community by bringing the community together. By Jeremie Smith Volunteers help raise the structure to the house in Medway. Jackie Bassett South Shore Habitat for Humanity has been helping ... Habitat for Humanity looks for a highrise opportunity |
Senator Boxer Faults BofA for Mortgage-Refinancing Delays of Up to 90 Days - Bloomberg
 Business Insider | Senator Boxer Faults BofA for Mortgage-Refinancing Delays of Up to 90 Days Bloomberg “Delays could prevent borrowers from taking advantage of today's historically low interest rates and improvements recently made to the Home Affordable Refinance Program,” the California Democrat wrote in a letter today to Chief Executive Officer Brian ... There's A Provision In This Mortgage Deal That's Just For Bank Of America And ... Bank of America Refi Delays Must Stop: Boxer |
Mortgage Rates: Low Mortgage Rates Unchanged As Unemployment Claims Decrease - FreeRateUpdate.com
 OregonLive.com | Mortgage Rates: Low Mortgage Rates Unchanged As Unemployment Claims Decrease FreeRateUpdate.com According to the National Association of Realtors Housing Affordability Index, home affordability continues to have historically favorable conditions across the country due to affordable home prices and low mortgage rates. Interest Rates 30 Year Fixed Mortgage; Interest Rates 15 Year Fixed Mortgage ... |
'Mortgage Deal from Hell' Hurts Sound Borrowers: Bove - CNBC.com
'Mortgage Deal from Hell' Hurts Sound Borrowers: Bove CNBC.com Inability to make benefits widespread enough to help the broader housing market have hindered the Home Affordable Mortgage Program, or HAMP, from being effective. Originally designed to assist up to four million homeowners, actual refinancings have ... |
Vail Daily column: More on the Making Home Affordable Act - Vail Daily News
 eCreditDaily.com | Vail Daily column: More on the Making Home Affordable Act Vail Daily News In the first part of this series we identified the Making Home Affordable Act, the Obama Administration's initiative to help struggling homeowners get mortgage relief through mortgage modifications, interest rate reductions, refinancing, ... Expanded HAMP Mortgage Mods Expected to Start in June Mortgage mods in 2011 down 40% from prior year Worst HAMP Month on Record |