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

---

What is a Home Equity Loan?

A home equity loan is a loan that is guaranteed... Read More

Do Your Homework - Find the Mortgage That Fits Your Lifestyle and Your Budget

You've been looking at houses for months, and finally you've... Read More

Flexible Mortgages - Offering Relief from the Fixed Mortgage

A pension mortgage may seem lucrative at the first sight.... Read More

Jumbo Home Mortgage Loans - What They Are and Where To Get Jumbo Loan Financing

A jumbo mortgage is different than a conforming loan. A... Read More

Home Improvements Turn Average Homes into Dreams Come True

If you're thinking about taking out a home improvement loan,... Read More

Understanding Mortgage Points

When a mortgage broker asks a borrower to pay points,... Read More

Bad Credit Mortgage Lenders - Things You Should Know About Subprime Lenders

Interest rates and fees vary between subprime lenders just like... Read More

What On Earth are Home Equity Loans?

Home equity loans are one of the most common types... Read More

What is a Mortgage?

A mortgage is a loan, usually from a bank, finance... Read More

Refinancing and Car Finance - Is it worth it?

Refinancing and Car Finance - Is it Worth It?No doubt... Read More

Home Equity ? Let the Market Eliminate Your Private Mortgage Insurance

In decades past, most people who were interested in obtaining... Read More

Five Things Never To Tell Your Mortgage Lender When Facing Foreclosure

1. Never discuss your household finances over the phone with... Read More

Homebuyers Loan Guide

If you are a homebuyer, there are a few points... Read More

Getting The Best Rates On Mortgages And Loans

With an impending up-grade to the family due in a... Read More

13 Extra Costs to be Aware of Before Buying a Home

Whether you're looking to buy your first home, or trading... Read More

Imagine Cutting Over $8,000 Off Your Mortgage This Year

I once helped a customer cut over $700 off his... Read More

Jumbo Mortgage Loans - Getting Approved for a Jumbo Mortgage Loan Online

Getting approved for a jumbo mortgage loan online is similar... Read More

Bad Credit Mortgage Loans ? How To Get Approved

Persistence is the key working toward getting approved for a... Read More

Guide to Mortgages

A mortgage is a loan that is guaranteed by a... Read More

How To Get a Mortgage If Youre Self-Employed

If you are self-employed, work on a contract basis, or... Read More

Home Mortgage Loans For People With Bad Credit

Getting a home loan with bad credit has actually never... Read More

Home Loans and Mortgages ? Time to Consolidate Loans?

Home equity loans and lines of credit are useful tools... Read More

Online Mortgage Loan Companies Are Convenient

There are many reasons to use the internet to take... Read More

Reverse Mortgage Offers Fresh Approach To Income From Real Estate

If you owe 40 percent or less of your original... Read More

Apply For Home Mortgage Loan Online With Bad Credit - Things To Consider

So, you've found the perfect home. You've already decided where... Read More

Bad Credit Home Loan - Apply Online and Keep Your Credit Score as High as Possible

If you have a poor or bad credit history with... Read More

What the Bank Won?t Tell You About Mortgage Refinancing

So you have a mortgage, and you need to refinance... Read More

The Top 5 Things You Must Know Before Applying for a Mortgage

You've been thinking about buying your own home for quite... Read More

Essence of Self Certified Mortgages

Your search for a mortgage isn't leading results.Check for any... Read More

Are You Ready for a 40-year Mortgage?

Real estate prices have been increasing steadily over the last... Read More

Home or Investment Property Equity: Be Sure the Bank Gives You All that You Deserve

Home equity is your own personal money machine. If you... Read More

Thinking About Refinancing Your Loan?

Refinancing your home or property is a big decision that... Read More

Jacksonville Florida Real Estate Mortgage Home Loans - Get the Best Rate Everytime

There are hundreds of mortgage companies in the Jacksonville real... Read More