What is LAP?

Introduction

In this article I will be writing about the Loan Against Property(LAP), which is one of the way to get loan for cheaper price. In some situations, you can get the loans against your property like House,etc. to meet the financial needs. this article provides some basic ideas about the LAP and you can be benefited from this kind of loans. If you like this article pleasesubscribe to our future articles here.

Loan Against Property(LAP)

• One can a loan against his own self occupied property or any commercial building to use for his business or any other personal expenses. But, the loan amount should not be used for any illegal activity.
• The value of the loan amount is decided by the market value of the property. In most of the cases the loan amount will be around 45% to 60% of the property market value. Also the restrictions may extend to the income level of the person and individual banking institutions.
• The main advantage of geting the LAP is less interest rates compare to the normal personal loans. If you are applying for the personal loans, the interest rates will be very high. This is generally on a daily or a monthly reducing balance method.
• Most of the rules related to this loans is the same as the home loans. Banks normally don’t levy more charges on the LAP.

Summary

I hope this article will be useful for who want to get the loan with their property. It has lot of advantages compare to other loans. If you have any doubts please post it in the comments section. If you like this article please subscribe to our future articles here.

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Millions Of Luxury Homeowners Gambling With Their Jumbo Loan

Ten's of millions of luxury homeowners have adjusted from an ARM with a fixed rate period into a fully adjustable jumbo loan. Following the large drop in LIBOR rates since 2007, floating with the 6-month or 1 year LIBOR index has been an excellent risk homeowners took the last few years. Even if they were not aware of the relationship of their mortgage payment and the workings of the global short-term money market.

In the last few weeks it has become crystal clear that Europe is having a massive government debt crisis which started in Greece and is spreading throughout the European Union. This crisis is causing major moves in all the various LIBOR indexes and the action in Europe will translate into higher mortgage payments in the US whenever someone reaches their semi-annual adjustment period.


The underlying rate trend in these indexes in the last few weeks is a steady march higher as governments, banks and corporations are going to market to borrow hundred of billions of Euros. This is pushing LIBOR rates up for the 6- month and 1 year about .25% within the last two weeks. All the LIBOR indexes are at the highest levels in over a year despite massive liquidity being pumped into the system by the EU Central Bank and the FED.

Now we aren’t in the danger zone yet for US based jumbo mortgage loans that are floating considering that the average margin to the 1Y LIBOR is 2.50% arriving at a current floating rate of 3.25%. But a plausible scenario of a consistent flow of gov/corp borrowers, an improving global economy over the next year could push LIBOR rates consistently higher. Any real growth in the economy will be meet with higher interest rates and this will be reflected on the hundreds of billions of dollars worth of jumbo loan mortgages that are sitting with rates of about 3.25-4% now.

We think homeowners that are floating against the LIBOR indexes without a plan to sell soon or get another ARM this year or a fixed jumbo mortgage are gambling with their mortgage payment. Not having a solid plan is a very dangerous proposition given the huge debt crisis that continues to unfold around the world. I am a firm believer in having full coverage auto insurance given the cost of coverage vs the financial risk of an accident. Millions of American’s are just waiting for a financial accident when they get their new rate increase notice. Most ARMs adjust every six months with a 30-60 day notice of the new interest rate and payment. The jumbo loan trend has only been down for the last few years as the world almost fell into a financial black hole during the 07-08 meltdown.

I think with the economic recovery gaining speed that it is only prudent to lock in another ARM or a fixed jumbo mortgage while we are at the lowest rates in history. Avoiding an interest rate increase that for millions would come as a nasty surprise. If you need to refinance your jumbo mortgage within the next few years it’s prudent to explore your jumbo loan options now. As always, have a prosperous day.

45 Blogs that Explain How Different Types of Loans Work

Asking someone for money is never an easy thing. The fact of the matter is that it can be humbling, at best. In many circumstances, it can be downright embarrassing to ask a friend for a personal loan. It’s not really something you want to do if you can help it, and you usually have to be in pretty dire straits to even consider it.

Still, there are times when it happens. You have a financial problem and, while you could go to a payday loan business and get some fast cash, you know that you can’t afford to pay back the loan that quick and you’ll wind up paying tons and tons in interest if you do. So, you decide to ask a friend.

Here are some things you should do when getting ready to ask a friend for a personal loan:

• Be professional. Treat the situation with the seriousness that it deserves. This lets your friend know a couple of things. It lets her know you truly are in need of the money, and it lets her know you really do intend to pay it back.
• Be ready for rejection. Your friend might turn you down. He might not have the cash, or he might not be willing to lend it to you. You can’t let that affect your friendship. Money is a very personal matter, and if someone doesn’t want to part with theirs you need to be respectful and understanding.
• Offer a formal loan contract. You can pick up a loan contract at your local office supply store. There are also free ones on the Internet. A contract helps to give your friend the peace of mind that you’re going to pay back the loan, and that she has recourse if you don’t.
• Don’t ask for more than you need. You should also make sure to ask for as much as you do need, otherwise you may find yourself back in a couple of weeks asking for more.
• Offer terms you can afford. Don’t offer to pay back the loan in two weeks if you can’t do it. Tell your friend what you can afford, and let her make up her mind about whether or not that’s acceptable.

  There are so many different types of loans out there it is hard to keep up with them let alone all the technical “fine print”. If you do not have the correct information you can get charged a higher interest rate then you are eligible for. Over the course of years even a 1% difference in your interest rate can equal thousands of dollars out of your pocket. With the recent worldwide economic downturn we each need to maximize our dollars even more. We have compiled 45 different blogs which explains how different types of loans work and how to make sure you get the best rate possible. Getting a loan of any type is not something to be rushed into make sure you do your research and if you have been straining to keep up with your current loans we have also included some resources about refinancing for you.

  1. Mortgage Blog Learn how different types of mortgage loans work. What do you qualify for and how is that determined..
  2. V.A. Loan information Learn what advantages you getting a mortgage through the V.A.
  3. Facts about Debt Consolidation loans. Is a Debt Consolidation loan right for you? Learn the facts that can save you money and help eliminate debt.
  4. Student loan information. Learn about the benefits and your legal rights when you get a student loan
  5. Reverse Mortgage Blog. What exactly is a Reverse Mortgage? Can you or your parents benefit from one?
  6. Payday loans explained. Is a Payday loan your best option when you a tight on cash? Find out all the facts.
  7. Mortgage and finance tips Learn about different types of loans, personal finance and even some investing information
  8. Consumerism Commentary There are many types of loans and different places to get them. This blog helps you learn and zero in on your best deal.
  9. Personal loans. Is a personal loan for you? When and how should you apply for one.
  10. H.U.D. Housing loans. What is a HUD loan? Do you qualify to purchase a HUD home? Learn the steps you need to take to find out?
  11. Home Equity loans Do you need extra cash to fix up the house a home equity loan might be the best option. Learn more before you decide.
  12. Used car loans You, have your eye on a new used car now you need a loan. Find out the facts about a loan on a used car first.
  13. New Car Loans A vehicle is the second largest purchase of your life. Learn the facts and your rights as a borrower.
  14. What you need for a Business Loan As, an established business owner what types of loans do you qualify for? What are the key things to look for in your loan?
  15. Learn how a S.B.A. loan works. Small Business Administration loans can help you start your own business.
  16. Loan Tips and information. This blog covers many different types of loans including SBA, Student and Auto loans.
  17. Student loan justice with all loans you need to know all the facts See what happened to unsuspecting college student who did not understand how there student loan worked.
  18. Mortgage Interest rate information. The interest rate on your loan is one of the key factors effecting your monthly payment.
  19. How does Student loan consolidation work Many people can save a huge amount of money each year by consolidating multiple student loans learn more about how the process works.
  20. Bad credit motorcycle loans. Are motorcycle loans different from other loans?
  21. Boat loans How will a boat loan work versus a traditional car loan?
  22. What is a bridge loan how does it work? What if you need a loan mid construction a bridge loan can help?
  23. Learn about the legal rights of borrowers Borrowers also have rights learn to protect your self from illegal lenders.
  24. How to choose an online lender. The Internet gives you thousands of different borrowing options educate yourself before getting a loan.
  25. What does a lender mean when they refer to the “rate sheet” What is a rate sheet and why is it so important to you as a borrower?
  26. How do lenders determine your interest rate? Learn why one person will get a 5% loan and another an 8% loan, use this information to get a lower rate in the future.
  27. What is a Mortgage modification loan? Do you want to increase or shorten the length of your mortgage? Learn more about a mortgage modification loan.
  28. What is a Rural Housing Service Loan and how does it work? If you are a farmer the Department of Agriculture may be able to help you buy land and a home
  29. S.B.A. basic loan information Have you ever thought about an SBA loan? Learn the basics here.
  30. I have broken my credit what can I do to get a loan even though my credit stinks?
  31. What is a fixed rate Mortgage how does it work? Is a fixed rate mortgage your best option?
  32. How to increase your odds of getting a low interest rate. Increase your credit rating to get a lower loan rate.
  33. How to calculate an interest only mortgage Sometimes we need a bit of a financial break learn more about interest only loans.
  34. Where can I learn about a construction loan? Are you looking to build? Perhaps a construction loan is just what you need.
  35. How does a second mortgage work? You are thinking about taking out a second mortgage what are the Pros and Cons.
  36. How do 401k loans work You have build up your 401k, now you want to take a loan is it a good idea?
  37. How does a loan to purchase farm land work Learn about loans to purchase farm and homesteading land.
  38. How does a loan from a Pawn Broker work. You are low on cash and bills are due. How does a Pawnbroker really work?
  39. How to qualify for a debt consolidation loan. Debt is mounting up perhaps you should learn how a debt consolidation loan works.
  40. Why paying off your credit cards can be your biggest savings. Credit card rates can increase rapidly have you considered the benefit of paying them off?
  41. How to maximize your student loan value. There are many different student loan programs learn about them before you borrow for college.
  42. FHA loans explained in plain language How does an FHA loan work?
  43. Can you actually have an 850 credit score? Your credit score helps determine the interest rate you are charged learn how to increase yours.
  44. What is an escrow account and how does it work?
  45. Where can I find information from the government about loans? Learn more about the truth in lending act. (NO contact info .gov)

HOW TO ASK A FRIEND FOR A PERSONAL LOAN

Asking someone for money is never an easy thing. The fact of the matter is that it can be humbling, at best. In many circumstances, it can be downright embarrassing to ask a friend for a personal loan. It’s not really something you want to do if you can help it, and you usually have to be in pretty dire straits to even consider it.

Still, there are times when it happens. You have a financial problem and, while you could go to a payday loan business and get some fast cash, you know that you can’t afford to pay back the loan that quick and you’ll wind up paying tons and tons in interest if you do. So, you decide to ask a friend.

Here are some things you should do when getting ready to ask a friend for a personal loan:

• Be professional. Treat the situation with the seriousness that it deserves. This lets your friend know a couple of things. It lets her know you truly are in need of the money, and it lets her know you really do intend to pay it back.
• Be ready for rejection. Your friend might turn you down. He might not have the cash, or he might not be willing to lend it to you. You can’t let that affect your friendship. Money is a very personal matter, and if someone doesn’t want to part with theirs you need to be respectful and understanding.
• Offer a formal loan contract. You can pick up a loan contract at your local office supply store. There are also free ones on the Internet. A contract helps to give your friend the peace of mind that you’re going to pay back the loan, and that she has recourse if you don’t.
• Don’t ask for more than you need. You should also make sure to ask for as much as you do need, otherwise you may find yourself back in a couple of weeks asking for more.
• Offer terms you can afford. Don’t offer to pay back the loan in two weeks if you can’t do it. Tell your friend what you can afford, and let her make up her mind about whether or not that’s acceptable.