MHQ - Mortgage HeadQuarters

Owning a home offers great benefits to a homeowner, such as the ability to use the equity that's built up over time. Home equity can truly provide value and security to your future. You may find yourself in a situation that leaves you needing to take advantage of  refinancing your mortgage  to lower your payments or to take advantage of a lower interest rate. However, while you may have equity available, there are some mistakes homeowners make that prevent them from being able to refinance. Check out 5 mistakes you should avoid to prevent not being able to tap into your home equity when you need it. 1. Not Doing Your Homework You may just be thinking about going with your current mortgage lender to refinance your home because of the convenience factor. However, if you’re planning to contact your current lender about refinancing without doing some comparison shopping first you could be selling yourself short. With rates still relatively low across the board, it may seem l...

For today's homeowners, home equity is a financial resource that can gain momentum over time and offers great financial benefit. Building equity can be a long-term strategy for growing wealth, but it's also a great resource when you need a little extra cash for financial endeavors or any home improvements you're wanting to complete. Let's take a look at what a home equity loan is and some of the benefits for qualified recipients. What is Home Equity? Home equity is the market value of a homeowner's unencumbered interest in their real property. In other words, it's the difference between the home's fair market value and what you still owe on the home (liens and loans). This gain can come from paying down the principal balance of your loan, or an increase in market value over time. What is a Home Equity Loan? A  home equity loan is a type of second mortgage . Your “first” mortgage is the one you used to purchase your home, but you can use additiona...

Taking out a second mortgage on your home used to carry some stigma with it – a sign that you were in financial trouble. But today, the ability to borrow money against your property is considered one of the biggest advantages of owning a home. A second mortgage is essentially a loan secured by your home or another piece of property with a first mortgage. The second mortgage allows the homeowner to tap into his or her equity to pay for college tuition, essential home improvements, pay off credit card balances or other pressing financial needs. Qualifying for a Second Mortgage Because there is more risk involved with a second mortgage, the lender's conditions are usually more stringent, the term is shorter and the interest rate is higher than for the first mortgage. In the event of default, the holder of the second mortgage is subordinate to the first. To qualify for a second mortgage, your credit must be in good standing and you must be able to document your income. An app...