Mortgage Broker or Assassin? A Banker Who Offers You This Loan May be Trying to Kill You!

What if a banker or mortgage broker told you he's loan you 25 percent above the value of your home? You might think it sounds great, but I sure hope you'd say no. This is a loan only the most money-hungry and unscrupulous loan officers will sell. Few, if any, banks will do them. There are wholesale lenders, though, who will actually loan 125% of the value of your home.

In other words, if your home is valued at $100,000 and you want to take as much cash as possible, these lenders will actually loan you $125,000. Obviously, this type of loan is for people who are desperate to get cash, usually to pay off high credit cards or other bills. Although it might look attractive, it's actully a Death Loan.

So, why do I call it "The Death Loan?" Easy. It kills people financially. An honest mortgage professional will never offer this type of loan, and if you ask about it, they should tell you what you're about to read here. When you borrow more than your home is worth, you set yourself up to fail. Remember, you may pay off some debts with that extra money, but your mortgage payment is going to skyrocket. The interest rates on these loans run between 11% and 14% on average.

Now, the average person who takes this loan will pay off 10 or 20 thousand dollars worth of debt and feel great, for a short time. What invariably happens next is this person has cleared credit cards and slowly, or quickly in some cases, begins to run them up again. You see, very few people have the discipline to keep those balances low (remember, we're talking about a person who took this loan, because he ran them up in the first place). Here is where the financial death trap occurs.

The person has all that original debt, a huge mortgage payment, and now has a house that is worth $25,000 less than his loan amount. He can't sell, he can't refinance his mortgage, and he can't make his monthly bills; he is probably headed for bankruptcy.

Avoid this loan, at all costs. If a mortgage person suggests it, I would say you didn't do enough homework in selecting this person. Ge yourself a new mortgage professional, fast.

Mark Barnes is the author of the new novel, The League, the first work of fiction, based on fantasy football. He is also an investment real estate and home loan finance expert. Learn more about his suspense thriller at http://www.sportsnovels.com Get his free mortgage finance course at http://www.winningthemortgagegame.com

---

Secured Homeowners Loans ? In Case You Thought a Home is Worth Few Dollars

Money is like music, if managed well, produces a good symphony. One wrong note ? one wrong decision ? it produces a jarring sound. A homeowner knows... Read More

Bad Credit Home Loans

There was a time that seems like decades ago when people with less than pristine credit were not able to get home loans. At that time people... Read More

Bad Credit Refinance Loans - Finding a Good Lender

Finding a good lender to help you with refinancing your home loan can be tricky if you have bad credit. There are plenty of predatory lenders out... Read More

Making Sense of Mortgage Speak

Applying for a home loan can be overwhelming. You will need to contend with mountains of papers, contracts, documents; and do lots of planning and coordination. Add... Read More

A Home Loan Can Help You Own Your Dream Home

Owning your dream home need not just be a dream. You can own it with a home loan offered by any number of financial institutions to help... Read More

Buying a Home With Bad Credit - Tips on Finding the Right Broker or Lender

You can buy a home with a bad credit record; you just need to find the right mortgage financing package. Before you sign up with the first... Read More

Reverse Mortgage ? Be Sure You Need It Before Applying For One

Reverse mortgages used to be considered the last resort of desperate retirees who needed to borrow against their home equity in order to pay for medical expenses.... Read More

New York Refinance - Refinancing in New York

If you are looking to refinance in New York, it helps to get the facts before you begin the refinancing process. If you have an existing high... Read More

Mortgages After Bankruptcy: Easier Than You Would Expect

Give yourself time to rebound. Whether you had to turn to bankruptcy because of a divorce, a medical emergency, a job loss, or a problem spending habit,... Read More

The Worst Way to Shop for a Home Mortgage

You've found a house that is perfect for you. It is so appealing that you're willing to endure the hassle of obtaining a mortgage.It is downright frustrating... Read More

Who Could Benefit From A Reverse Mortgage?

What is a "Reverse Mortgage?"Also known as a Home Equity Conversion Mortgage (HECM)a reverse mortgage,is a popular way older homeowners (62+) can convert part of the equity... Read More

Flexible Mortgages - Offering Relief from the Fixed Mortgage

A pension mortgage may seem lucrative at the first sight. However, they seldom are, if the customers who took pension mortgage are to be believed.Nevertheless, before delving... Read More

Option ARM Mortgage Loan - Is This Really for You?

What happened to the days of a 15 or 30 year fixed rate mortgage loan? Ultimately this is the safest and most popular mortgage loan product in... Read More

Refinance Your Mortgage to Rebuild Credit

Refinancing your mortgage is one way to rebuild your credit, particularly if you have recently declared bankruptcy. With a poor credit history, you can find refinancing through... Read More

What Your Mortgage Lender Is Not Telling You About Accelerated Mortgages

For years, mainstream banks and financial advisors have been recommending that you pay extra cash into your mortgage account in order to cut down the huge interest... Read More

Financing the Purchase of Foreclosed Homes

Homes that have been foreclosed can be one of the most economical ways to get into a nice home without having to pay exorbitant costs. It's also... Read More

How to Get Cheap Home Loans with a Bad Credit

It's been years since you made any major improvements to your home and it's about time. Your spouse and children are also urging you to give the... Read More

Biweekly Mortgage

The biweekly mortgage has been around for years but with the recent media attention to the real estate industry in general and the mortgage industry in particular,... Read More

How to Use a Home Equity Line of Credit Calculator

Most home owners know that the lower the interest rate, the lower the monthly payments. But then the process may get a bit fuzzy. While your monthly... Read More

How I Became a Hard Money Lender

Unlike other investors, my venture into real estate was a natural extension of my secondary business as the IP Ware software developer. However, opportunity and perseverance beget... Read More

Home Mortgage Refinancing ? What?s in Your Contract?

Are you one of the millions of Americans who will be refinancing their home mortgage loan this year? When you sign your contract and the other papers... Read More

Save Time With a Bridge Loan

Why You Need a Bridge LoanYou have to move fast in today's housing market if you want to get into the home of your dreams. In cities... Read More

Alternative Options For Rising Interest Rates

As interest rates have risen in the last six weeks from record lows, homeowners are once again face with finding viable options to reduce the amount of... Read More

Selling Your Business Note

Before I go further, let me ask a question- if you won the lottery tomorrow, would you take the payout in a lump sum or in monthly... Read More

Adjustable Rate Mortgages - Understand the Benefits Compared to a Fixed Rate Mortgage

Adjustable rate mortgages can be very tempting to home buyers, yet they carry a great deal of uncertainty. Fixed rate mortgages offer rate and payment security, but... Read More

Home Mortgage Refinancing - Things to Consider When Looking to Get Cash Out on a Refinance

When you refinance your home mortgage, lenders often tempt you with the option of cashing out part of your home's equity. Cash at a comparably low interest... Read More