Bad Credit Mortgage Refinance

A bad credit mortgage refinance gives homeowners, with a poor financial background, the opportunity to rework their mortgage and get a lower interest rate. A homeowner may have experienced financial circumstances that damaged their credit. There are many lenders that specialize in refinancing packages for those with a low credit rating. Consumers can sit down with these lenders and explain the situation. Some homeowners can even try to speak with the current lender to see if they might be accommodating and refinance the loan in order to ease the customer's financial situation. In many cases, though, the consumer must refinance with a different lender, but should have no problem finding one that is willing to work with people who have credit problems.

Refinancing options are extended to consumers even when their credit has sustained a considerable blow. If the market value of one's home has not declined substantially since the time of purchase, this can boost chances considerably. The mortgage broker must consider it to be a well-secured investment. In the 2005 real estate market, most areas of the United States are seeing steady increases in the market value of property. However, for those who sincerely want or need to get a bad credit mortgage refinance loan, now would be the perfect time before interest rates continue to climb, as they are forecasted to do.

When considering options for refinancing, consumers should gather adequate documentation to show the amount that they will be able to pay each month. The lender will want to verify income and substantiate job security. The applicant's current employer might be willing to provide a letter stating that the homeowner is dependable, consistent and that their job performance is good. If the applicant can document the stability and longevity of their employment, a lender will more likely offer a bad credit mortgage refinance package. Though the interest rate will be a bit higher if the consumer presents a considerable credit risk, there is still hope for refinancing.

Homeowners should check with people they know to gather information on recommended lenders. A local lender might be the best place to start, but there are countless numbers of lenders on the Internet that work with people who have bad credit. After collecting all the necessary paperwork, contact the mortgage holder and set up a time to meet with them. It will be challenging to obtain a bad credit mortgage refinance, but definitely worth the effort. Think positive and be prepared to spend some time and effort. "Therefore I will look to the LORD; I will wait for the God of my salvation: my God will hear me." (Micah 7:7)

For more information: http://www.christianet.com/mortgages

Bad Credit Mortgage

A bad credit mortgage is an opportunity for a person with a poor financial history to own a home. Having bad credit can feel like a death sentence to one's finances, but some lenders offer a second chance at having good credit. This type of lending is an offer that many consumers cannot refuse and it is something that is out there to help them get their finances back on track. Bad credit mortgages will indeed bring about a brighter future. First, consumers need to look at a home loan that is right for them.

This type of home loan should not cost anything up front. Any company that has such a requirement should be avoided. Bad credit mortgages should be helping and therefore the homebuyer needs to find a company that has really good customer service aimed at the client. The lender needs to have flexibility in their guidelines and programs for borrowers. Do not settle for a bad credit mortgage that seems harder than usual or different to attain.

Any mortgage can help borrowers consolidate bills into one payment and make getting out of debt an easier thing to do. Bad credit mortgages can help consumers avoid any type of bankruptcy that may be possible. Such a home loan will also add a little bit of extra cash to one's pocket, making it easier to live on a day to day basis. A bad credit mortgage is easy to apply for, as most applicants can apply online and then a customer service agent will get back to them almost right away. Quotes can also be found online through a number of sites, including the direct websites for lenders.

Borrowing is available so that homebuyers can get their scores back on track. A bad credit mortgage may feel like something to be ashamed of, but it is actually something that is supposed to be help. Bad credit mortgages are not always fun to get, but it will help in the long run to avoid financial problems that one would have other wise faced. Homebuyers should talk to financing professionals and lender representatives for guidance and advice. With the right approach, this will provide a way out of a place that has been hard and will lead homebuyers into a place of financial freedom. "The small and great are there; and the servant is free from his master" (Job 3:19).

For more information: http://www.christianet.com/mortgages

Bad Credit Second Mortgage by the Numbers

Learn about the five numbers that determine the cost of a bad credit second mortgage: interest rate, years on the job, credit score, closing costs and term length.

Bad credit second mortgages make up a sizable part of the mortgage market. According to a recent survey by the Mortgage Bankers Association, the number of second mortgage originations increased by 13 percent in the second half of 2005 and closed-end second mortgages increased by 33 percent. The survey included 114 lenders that originated $189 billion in second mortgages, many of them to people with bad credit.

There are at least five numbers that determine the ultimate cost of a bad credit second mortgage: interest rate, years on the job, credit score, closing costs and term length.

Interest rate

The interest rate on a second mortgage is slightly higher than on a first mortgage because it is in a subordinate position. If the borrower defaults and the home goes into foreclosure, the second mortgage is settled after the first, so the lender is taking a greater risk.

The interest rate on a bad credit second mortgage will be higher still, so says Steven Frank, Senior VP at FlexPoint Funding, one of the nation’s largest subprime mortgage bankers. "A bad credit borrower is someone with a FICO score below 62. He or she will pay between 1.5% and 2% higher interest for a second mortgage, but there is no shortage of money or willing lenders in the bad credit mortgage market."

Work history

When considering a bad credit second mortgage, lenders look at the borrower’s ability to repay the mortgage. This is verified by checking his or her current employment and total income. Mortgage lenders prefer that the borrower has been employed at the same place for at least two years, or has been in the same line of work for several years.

Credit score

The lender will also look into how the borrower has met previous financial obligations. This is where a credit report and credit score come into play. A credit report lists a person’s credit activity for the last several years. It shows the highest balance, current balance and payment history on every account. Negative data such as late or missed payments gets erased after a few years but a bankruptcy can stay in the report for up to ten years.

Credit scores (also known as FICO scores) range from 900 down to 300. A score of 680 or higher signifies good credit. A score between 620 and 680 will cause most mortgage lenders to take a harder look at a borrower. If the number is below 620, as Mr. Franks points out, the person falls in the bad credit range and is charged more for a bad credit second mortgage.

Closing costs

The closing costs associated with a bad credit second mortgage will be cheaper than refinancing a first mortgage. In addition to minor processing fees, some lenders may charge an up-front fee in the form of a percentage of the total loan amount (known as "points"). A borrower may also be able to pay points to lower the interest rate on the loan.

Term length

The longer the bad credit second mortgage, the lower the monthly payments but the more interest paid overall. The shorter the second mortgage, the higher the monthly payments but the total costs will be lower. It is in the borrower’s best interest to choose the shortest possible term he or she can reasonably afford.

You can get more information a free quote on a second mortgage at Bad Credit Second Mortgage Now.

By Mike Hamel
Published: 6/8/2006

Home Mortgage For Bad Credit

A home mortgage for bad credit is offered by numerous lenders who are eager to help individuals reach their goal of home ownership. If wanting to own a house but are concerned that past financial decisions will hurt the chances of being approved for a loan, consider applying with a lender that specializes in offering a home loans for high risk borrowers.

Lenders who offer home mortgage for bad credit understand that many people have faced difficult situations in life. Periods of unemployment, depression, failing health, or some other personal tragedy can take their toll on individuals and families. In addition to the emotional drain, a financial drain is often inevitable as well. In these times, people often turn to credit cards and find their debts mounting. Overextended spending leads to late or missed payments and a poor debt-to-income ratio--triggers for low credit scores. Such loans offer hope to these people.

Although the very best real property deals are typically reserved for people with the very best ratings, a home mortgage for bad credit means that people with not-so-stellar financial histories can still obtain such an offer and live the dream of home ownership. Mortgage lenders who specialize in these type loans are willing to work with individuals despite their past financial transgressions. Of course, these lenders will want to see some evidence of a steady income. And they will also expect to see an indication that the applicants are working toward paying down debt or changing the habits that led to the low credit rating in the first place.

Less attractive terms should be expected because lenders need to take into account the risk level of each loan they process. Although there may be a legitimate reason for a poor rating, lenders tend to assume that past behavior is at least some indication of future behavior. Charging a higher interest rate helps offset the cost of a potential default on the loan.

Do not assume that an inability to qualify for a home loan. Begin to recapture financial credibility by requesting a copy of the personal credit report and FICO score from the credit reporting agencies and review it for accuracy. Then speak with a mortgage loan representative and discuss the situation.

Complete the application for a home mortgage for bad credit and, if possible, try to negotiate terms. Even though the terms may not be the best ones advertised, remember that after a few years of faithful payments, it is possible to eventually refinance at better rates. Be willing to learn from the past financial mistakes and pay attention to advice from experienced lenders in order to "recover (oneself) out of the snare of the devil, who are taken captive by him at his will" (2 Timothy 2:26).

For more information: http://www.christianet.com/mortgages

Mortgage Lender For Bad Credit

A mortgage lender for bad credit reports can help those who have scarred or blemished financial histories still qualify for a home mortgage. Such lenders can help those who are struggling with poor credit scores can get the opportunity to buy a home and clean up their credit at the same time. There are hundreds of mortgage companies that specialize in lending for those with financial blemishes; the Internet is a great way to locate multiple lenders.

There is help for anyone struggling with a past financial woes and wanting to buy a home. There are mortgage companies that will work with those who have experienced some of the untimely events or crisis that lead to unpaid bills, or devastating financial situations. A mortgage lender for bad credit understands that sometimes circumstances beyond ones control happen, and these circumstances can leave a family in a financial problem. Past financial problems seem to loom over ones head for years; however, a flexible lender can work with individuals to meet their financial needs despite past problems.

There are several loan options available for those who have a less than sterling credit report or history. A mortgage lender for bad credit can explain the various loans available offer information about interest rates and terms that will fit specific situations. These lenders can do more than simply assist individuals with the purchase of a home; they also provide opportunity to make payments on a loan in a timely manner, actually raising an individuals credit score. And, a mortgage can also be used to consolidate ones debt, making it possible to eliminate debt at a lower interest rate.

The Internet is an excellent place to begin research on mortgage loans and lenders. A mortgage lender for bad credit who is willing to work through credit problems can be found easily, because there are hundreds advertised online. Consumers should thoroughly research and investigate any lending company that they may consider, making sure that all loan options companies are honest and forthright businesses to deal with. Also, consumers are advised to read all documentation, completely understanding any contractual agreements.

The Bible is full of wisdom for practical everyday living. God has given us His Word to not only show us the true way to salvation, but to encourage us in living a godly life. The Bible advises us to seek counsel when making difficult decisions. Before getting further into debt with any lender, speak to those who are financial experts in the field and get the wisdom of experience behind your decision. "The way of a fool is right in his own eyes: but he that hearkeneth unto counsel is wise." (Proverbs 12:15)

For more information: http://www.christianet.com/mortgages

Mortgages With Bad Credit

A mortgage with bad credit is possible to obtain, but will cost more in interest and fees. Searching online is quick, easy, and safe and a way that can help the consumer obtain the needed information to meet their specific needs. There are many online loan lenders and brokers who specialize in finding consumers opportunities to obtain mortgages with bad credit. A consumer is at a higher risk borrower but that does not mean they cannot find a mortgage to meet their needs.

Usually those considered to have poor financial history are those with a score of 620 or lower; a number of payment delinquencies within the last 24 months; a foreclosure or a charge-off in the past 24 months; any bankruptcy in the last 60 months; qualifying debt-to-income ratios of 50% or higher; and limited ability to cover family living expenses each month are all aspects of having bad financial standing.

For consumers considering mortgages with bad credit it is best that they know for sure where they stand financially, both presently and in the past. Anyone can obtain a free copy of their report and score from a variety of sources through a relatively simple process of filling out an online application for a mortgage with bad credit. It is important to use money wisely and to live within the personal means that God has granted each person. Pray that He make it clear what decision should be made in order to succeed in personal financial goals. "Be of good courage, and he shall strengthen your heart, all ye that hope in the LORD." (Psalm 31:24)

Many of the online loan companies that specialize in this area often make their decisions on more than just scores and financial history. When looking at an application for a mortgage with bad credit, the lenders might also look at employment, income, expenses, and assets to get a complete picture of the financial situation of the borrower requesting this type of financing. Some loan companies might not even do a financial check if they specialize in granting mortgages with bad credit.

The services offering these services often will assign a specialist in bad credit to the applicant once the application process has begun. In addition, most applications are pre-approved within 24 hours and the borrower is given a pre-approved letter to have with them as they look for a home to purchase. Some online companies specializing in first time homeowner options offer customized pricing and 100% financing with not money down. So spending time online researching available mortgages with bad credit can help the borrower make one of the most important purchases of their life regardless of past mistakes.

For more information: http://www.christianet.com/mortgages

Poor Credit Home Mortgage Loans - The Role of the FICO Score

If you have bad credit history and are looking to get a home mortgage loan, then chances are you are going to need to know all about how the FICO credit scoring system works.

FICO – Fair ISAAC & Company – is the leading credit reporting agency that lenders turn to when it comes time to credit scoring your home loan mortgage application; so if you do have bad credit history, these guys will know.

The formula used by FICO cannot be disclosed because of a decision made by U.S. Congress. There are some things generally known about FICO which that could help you understand why and how you can get approved:

1. The higher your FICO score, the better chance you have of getting that home mortgage loan. Also, the higher your score, the more room you have to negotiate a lower interest rate.

2. If you have a FICO score lower than 500, there is very little chance you’ll be getting a mortgage home loan.

That said, if you have a score of:

500 – 600 you should be able to get a home mortgage loan, provided you are willing to make a down payment.

600 – 640 You should get a 100% home loan financing. Thats right, with no money down.

640 - 700 You should be able to be approved for a 125% home mortgage loan. 700+ You’re in the drivers seat! You should be able to get an excellent rate with excellent terms.

3. FICO depends on each credit report, so before you apply for a home mortgage loan, if you have bad credit history, get a copy of your credit report and make sure there is nothing on there that shouldn’t be there. If there is, get it changed before you apply for the home mortgage loan.

4. Wait until after you have purchased or refinanced your home before you buy anything additional on credit. More loans or higher balances can have a dramatic effect on your mortgage approval, regardless of whether or not you had over a 600 FICO score before you bought on credit.

5. Remember, the FICO score is only a part of your home mortgage loan application, so if at first you don’t succeed in getting your home loan mortgage, don’t give up. Some lenders may still be willing to lend to you!

People with bad credit often don't understand how the credit scoring system works. It is beneficial to find out more about it when looking to get a home loan with less than perfect credit to bad credit or when dealing with sub prime mortgage lenders.

To view our list of recommended bad credit mortgage lenders online, visit this page: Recommended Bad Credit Mortgage Lenders

Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans. The site has many informative articles and the latest finance news.

Article Source: http://EzineArticles.com/?expert=Carrie_Reeder

Second Mortgage With Bad Credit

A second mortgage with bad credit is not as difficult to obtain as many homeowners think. Many homeowners may have been hit with some present financial hardships that make their credit less than perfect or their income lower than the preceding years. Homes can be refinanced with many mortgage companies and lending sources. If the consumer has a home loan that they wish to refinance, it may be to their benefit to check into the many lending sources online and in the local area. Many sources have special departments already set up that specialize in sub-prime loans and can offer the best rates available.

There can be reasonable financial scenarios that can put homeowners who are looking for a second mortgage with bad credit in the lending category of a sub-prime loan. Sometimes a homeowner cannot show a lender documentation of income when applying for this program. It is considered a bad credit risk when borrowers do not have paperwork to show current, stable income. However, in many cases, buyers are self-employed and are not able to show a consistent monthly income. A self-employed homeowner may sometimes be categorized as a qualified applicant for refinancing.

This type of refinancing can be approved, even if income cannot be proved, if other requirements of the loan criteria are met. For self-employed borrowers, sometimes a business license will be sufficient to prove employment. If a buyer has significant equity in the home, a second mortgage with bad credit is not as risky for a lender. The lender will more likely approve a second mortgage, if past payments have been on time and up to date. This will tend to give some proof of intention and ability to repay any refinanced loan. Any consumer that is approved for a program of this nature will not receive the same low interest rates that a borrower with good credit would receive.

The risk factor involved for the lender is greater and mortgage companies are careful about extending a second mortgage with bad credit to any consumer. It has become increasingly necessary, however, for lending companies to make exceptions and provide ways that consumers with poor financial ratings can get a second mortgage. For many reasons, more and more consumers are becoming credit risks and in order to make money, lenders are being forced to do business with many people who have poor credit. If the consumer is in need of a second mortgage, it is easy to find a reputable lending source online that can accommodate home loan needs. "...in the multitude of counselors there is safety." (Proverbs 11:14b)

For more information: http://www.christianet.com/mortgages

Loans Online

Loans online open up a world of options to borrowers who would otherwise be limited to whatever lending options their local banks have for auto, home and personal borrowing needs. The bulk of the information process required for obtaining lending can be handled via the Internet. Applicants can do all the research necessary about loans online by visiting the web sites of varying lending institutions. Information about terms, credit issues, different kinds of packages, amount of payments, and much more can be found. Even those who are searching for a home on a real estate website will often find links to information about Internet lending. Borrowers can even determine how much the payments would be for a certain home by clicking on the appropriate link.

Most mortgage lenders, that offer lending via the web, have advanced features available to consumers via their web sites. People who are searching for loans on line will discover that the resources are endless. Some have web-based calculators in which consumers can enter the amount of the home for purchase, the amount of the down payment, the percentage of the interest rate, and the term in years, and it will provide how much the monthly payment will be. Borrowers can search for many different types of loans online. They may be searching for a home, automobile, personal, student, or a business loan. Whatever the case, there is boundless information on all types of options available.

There are a number of Internet web sites in which anyone can request information about lending over the Internet. Borrowers are required to input information such as the purpose of the funds, the amount and personal contact information before obtaining loans online. Often, this information is submitted to more than one lender who will contact the consumer to try and obtain their business. Even though these are called loans on line, at some point, consumers must speak to or meet with an actual person and this is most likely at the closing of the lending process.

Before the borrowing advantage that the Internet has brought to us, consumers would have had to drive to the nearest bank or lending institution just to obtain information. This often involved setting up a time to meet with the loan officer or mortgage professional. Now with the convenience of loans on line, anyone can email much of the requested information or simply input it directly through the lenders website. Even though it is now extremely simplified, borrowing is always a big step. Take the time to pray and make sure it's the best thing financially. "A man's heart deviseth his way: but the LORD directeth his steps" (Proverbs 16:9).

For more information: http://www.christianet.com/refinancemortgage

Mortgage Loans Online

Securing a mortgage loan online is relatively simple, but is still similar to other types of financing. However, the potential borrower must sort through the numerous offers with a skilled knowledge of the basics of this type of financing. Informational articles and sites with a glossary of terms and types can also be found all over the Internet. Searching for such a glossary is a good idea before pursuing the application. Once an application is made, multiple lenders will start supplying the potential borrower with offers that must be carefully investigated, so as to be fully understood.

Terms used when understanding mortgage financing are the same, for the most part, as those used in any financial institution. The average borrower, of a mortgage loan online, is usually not familiar enough with the terms to make their best choice in financing or deciding between variable and fixed interest rates or the length of the term. This decision alone can cost or save the borrower thousands of dollars, so understanding all the small print can be crucial.

A mortgage loan online company will provide such a glossary, as well as informational articles that cannot be obtained from a lender in person. Many lenders feel they can make those decisions for the borrower since they are trained in such matters while the average borrower is not. However, borrowers can take advantage of such information and educate themselves before committing to any one lender of mortgage loans on line. Ignorance is not an excuse to default on a debt that takes advantage of the borrower's lack of knowledge of the terms.

Lenders will request a basic personal profile, at first, and as the mortgage loan on line is processed, additional in-depth information about assets, liabilities, property value, and terms will be required. Borrowers of mortgage loans on line can be just as satisfied with their financing as those who seek the normal financial institution lenders' financing. It makes sense to choose lenders with a careful observation of their set-up fees and any other administrative costs that will be added. If a borrower gets involved with a mortgage loan on line that promises a quick fix with extraordinary terms, it would be beneficial to be informed just how much finance charges really are.

Before signing on the dotted line, be prepared with a full understanding of the terms and what they mean to the borrower's pocketbook. Whether doing mortgage loans on line or in person, there is not usually a quick resolution. The process takes time and should not be entered into lightly. Borrowers must be sure to deal with lenders who are willing to discuss any questions about the terms and implications of varying loans-. "Understanding is a wellspring of life unto him that hath it: but the instruction of fools is folly". (Proverbs 16:22)

For more information: http://www.christianet.com/refinancemortgage

Mortgage Refinance Online

Mortgage refinance online is a great way to search for the best refinancing options. Programs, offered by various loan business, create a way to search for different home loans without leaving the house. This can be very helpful for someone who works all day or who doesn't live near a metropolitan area that would have a lot of lenders to choose from. Furthermore, refinancing on the Internet works basically the same way as traditional methods. Therefore, the consumer still needs to understand exactly what the lender is offering and what the borrower is agreeing to.

Before finding a lender, consumers need to consider factors in addition to the current interest rates. For example, they have to take into account any closing costs and the points that they might have to give up in order to have a lower mortgage payment or interest rate. It is a good idea to talk with friends and family members that have already gone through a mortgage refinance online, for "with the well advised is wisdom" (Proverbs 13:10). Those who have been through the process will be able to share personal stories about how they would do things differently or what they really liked about the process of refinancing on the Internet.

When seeking out mortgage refinance online options, it is important to make sure that any information given of the Internet is done so over a secured connection. This can be easily determined by the way the website is set up. Either the website address will start with "https://" or you will see a small master lock in the bottom right hand corner of the screen. Working with a secure site means that their website is safe from hackers and they employ only the best of people to work with such sensitive information. This can be a great option as long as the consumer can be sure that their sensitive information is not being shared and being protected as much as possible.

Mortgage refinance online should be treated just like shopping around at a bank. People should ask questions and ask for literature to explain certain options the company might offer. Even though the person is doing refinancing on the Internet, they will still receive documentation for the new mortgage. When a person settles on a company to work with, they need to print out every correspondence that is shared with them. This will be important for answering questions and keeping information straight in the future.

Finally, whatever decision that needs to make in life, is best made when God's guidance is sought first. He will show the way to go in order to live out His plan most efficiently. People can pray for guidance in all financial decisions as well as pray for patience to wait for His answer about any questions. God is good and He will bless the life of the one who is patient and waits for His timing.

For more information: http://www.christianet.com/refinancemortgage

Online Home Loan Mortgages

Home loan mortgage qualifications have changed with the credit and debt society that we live in. A mortgage with a good interest rate can now be based almost solely on the borrower's payment histories and credit ratings. These loans are also granted based on the amount of debt that is currently carried. There are thousands of lending companies advertising online via the Internet, and now price comparison shopping and looking for excellent home loan mortgage deals has never been easier. When shopping for a reputable lender, be certain to know the best current interest rates and begin the negotiating with a lending company at that point of reference.

With the broad market the Internet offers today, home loan mortgages have become simpler to acquire because of a very competitive industry. Interest rates can change as the stability of the economy changes, making loans even more competitive. Home loan mortgages will increase as the interest rate drops, making the financial culture a seller's market. There are other reasons that mortgage rates fluctuate with the market also. On an individual basis, having a good credit score and having a positive credit history can make getting a loan easier and getting the best interests rates possible too.

There are many different types of home loan mortgages available through mortgage companies and lending facilities. There are adjustable rate mortgages (ARM) available and there are fixed rate mortgages available. The terms and conditions can vary with different lenders and types of loans. With fixed rate, a consumer pays a fixed interest rate for the duration of the home mortgage loan. With an ARM the homeowner's interest rate may rise and fall, depending on the national average posted.

As with all financial decisions, it is best for home buyers to research home loan mortgages and evaluate their own financial situation. They need to be in a stable job situation. The house payment must be in a range that is affordable with no financial strain for the buyer. A prayer for guidance is helpful in planning for this major decision. "The meek will he guide in judgment: and the meek will he teach his way" (Psalm 25:9).

The Internet can be a good place to begin looking for tips and other information about getting a home loan mortgage. Speak with lending companies and experts in the field before determining if a mortgage is a good idea, and if so, which type of mortgage would best serve the individual or family's needs. And finally, buyers need to price compare and seek the best interest rate possible for a home loan mortgage. Only after doing all of this can the buyer safely say they've made the right choice.

For more information: http://www.christianet.com/mortgages

Online Mortgage Applications

Online mortgage applications are easily accessible, simply completed, and certainly secure, so if one is considering applying for a mortgage, filling out an Internet form is the way to go. Rather than waiting for a bank to mail traditional forms, filling them out, mailing them back, and then waiting to hear from a loan representative, applicants can complete a form on the Internet and save time and energy. Before doing this, though, applicants need to dedicate their effort and their future home to God. "The wicked are overthrown, and are not: but the house of the righteous shall stand" (Proverbs 12:7).

Nearly all lenders have online mortgage applications accessible through their Web sites. The process is very easy and extremely fast compared to the pre-Internet days of setting up appointments with lenders and filling out piles of forms. The Internet form asks for pertinent data, such as name, requested loan amount, and the state that the home is located. Applicants answer the questions right there on the web form. This part of the process takes less than five minutes. Most companies that offer Internet forms then review the information and provide an approval decision within minutes. After getting approval, applicants need to complete some more detailed forms, and then a company representative will contact them to discuss the online mortgage application further.

However, just as with other electronic business transactions, consumers need to be sure that the lending company is legitimate. Applicants can contact the Better Business Bureau for information about unresolved complaints for specific companies. Also speak with friends, family members, and acquaintances to get referrals about companies that offer Internet forms. Buying a home is a very big commitment, and home buyers should feel comfortable with every professional throughout the process.

Home buyers will also want to make sure that the Internet site is secure since online mortgage applications require them to enter personal information, and concerns about identity theft and other kinds of fraud are legitimate. On the Web page that contains the form, look for a symbol indicating that it is a secure page. This symbol is probably either a little locked padlock or a gold key in the lower left-hand or lower right-hand corner of the computer screen (depending on which Internet browser you are using). This security symbol says that the transmission of the online mortgage application data is encrypted and secure.

Thanks to the Internet, many business transactions today can be completed in the comfort of your own home. Internet loan forms are no exception. You do not need to worry about scheduling an appointment, finding time to leave work or to get a babysitter, and you can go through the entire online mortgage application process in your slippers. Whether you are at the pre-approval stage of securing a mortgage or you have already had a bid accepted, look into the advantages of online mortgage applications.

For more information: http://www.christianet.com/mortgages

Online Mortgage Broker

An online mortgage broker can help a consumer receive a home loan and make the process quick and easy. Internet lending companies are becoming more and more popular, as the Internet becomes the place to go for home loans and other financial needs. Online mortgage brokers can offer consumers the same services offered by community mortgage and broker companies and offer these services with the speed and access that only the Internet brings. From the convenience of home, Internet lenders can give expert advice, guidance, and approval notices within a day. Consumers are encouraged to consider finding the best deals and interest rates with the help of a professional.

The Internet has brought change to the home loan market. Now, with the easy access of information, many people are turning to the Internet to find great deals on many products, and these products and services include mortgage loans. Now there are hundreds of online mortgage brokers that offer services to consumers shopping online through the World Wide Web. With an online mortgage broker, consumers can get a myriad of services and these services are offered with instantaneous access. Within moments an Internet broker can comparison-shop several Internet lenders and the loans that they offer.

Services offered through the Internet are often no different from the standard services available through traditional lenders. In fact, many traditional companies are also offering their services online, with electronic submissions and notifications. Loans from online mortgage brokers can be conventional loans or new home FHA loans. An online mortgage broker may also offer refinancing programs, equity programs, and consolidation services. There are brokering services that take applications over the Internet and have two or three different representatives contact the consumer about working with the company.

Now is a wonderful time to consider buying a home, and the Internet has made the process of getting home loans easier with online mortgage brokers. But, owning a home is not for everyone. Making house payments is a large responsibility, and some lifestyles do not suit staying in one place for a length of time. Be prayerful about the decision to buy a home, before making a commitment to an online mortgage broker. "Pray without ceasing; in everything give thanks; for this is God's will for you in Christ Jesus." (1 Thessalonians 5:17). Including God in the decision to buy a home will allow Christians to make the best possible choice for the consumer and their family.

For more information: http://www.christianet.com/mortgages

Online Mortgage Quote

Online mortgage quotes are easy to obtain through the Internet, because many more lenders are advertising their services and trying to attract borrowers online. If a borrower is looking for a new loan or wanting to refinance an existing mortgage, he can get an online mortgage quote from several different lenders, to compare their services, before settling on a lender. However, because of the nature of the Internet, the wise shopper will be sure to check out the lenders thoroughly, as some online mortgage quotes may not be valid in certain states.

In the past, getting quotes from various mortgage lenders was a laborious task. The person seeking a loan had to spend much time waiting on the telephone as well as transmitting the same financial information to each possible lender. However, the Internet has changed and improved this process greatly for the consumer. Now, anyone with a computer and Internet access can receive an online mortgage quote from a variety of lenders with a few keystrokes and the click of a mouse. Many times, these quotes will be returned within twenty-four hours.

The prospective client electronically submits an application, giving the lender enough information to provide an online mortgage quote. Once the applicant receives this information, he can narrow his decision regarding with which company to proceed. Lenders offer loans for various reasons, including purchasing a new home,

refinancing a current loan, or providing equity on an existing loan.

The interest rates will depend on the borrower's credit history, his debt-to credit ratio, and the current market rates. Homeowners can find online mortgage quotes for many different loan lengths, including fifteen year, twenty year, and thirty year loans. The rates come in two different forms: fixed rates (FRM) and adjustable rates (ARM). A FRM means that the interest rate will stay the same for the length of the loan. Therefore, the monthly payment will not change. An ARM means that the interest rate will fluctuate with the current market prime rate. If interest rates are going up, that means that the monthly payment will increase. If interest rates are decreasing, so will the monthly payment.

A home purchase is not only a large investment, but it is a resource with which we as believers need to be faithful. Our goal as children of God is to hear Him say to us, "Well done, good and faithful servant" (Matthew 25:21). That's why it's so essential that we use our stewardship wisely and explore the many lenders that offer online mortgage quotes. Getting the lowest interest rate and the best terms for a loan will help us manage the money God has entrust us with wisely.

For more information: http://www.christianet.com/mortgages

Refinance Loans Online

Refinance loans online are fast and easy to apply for with pre-approvals available online, in the comfort of one's home or office, while relying on lending professionals who are there to assist the borrower with qualified answers. Refinancing is just a click away and lenders advertise their abilities to make the lending experience as customized and simple as possible. While there are many lenders to choose from, free quotes are offered online to compare lenders in various ways. Consumers should look carefully at interest rates and fees when searching for refinancers. Refinancing options on an existing loan can offer variables such as 15 year fixed rate, roll down options, and cash out options.

Mortgage refinancing on the web offers a 15 year fixed rate if the consumer wishes to have a shorter loan life with lower interest rates. If lower monthly payments are not the priority in deciding the length of the loan then a 15 year fixed rate loan is the way to go. A roll down option allows one to refinance loans online without a lot of fees initially. The interest rate might be higher with this option but if the cost is minimal it might be the way to go. Cash out options involve financing more than the loan amount to use the cash for other things. Equity in the home would be the qualifying factor towards this loan.

To qualify, the lender will look at the applicant's proposed monthly loan amount verses the monthly gross income. If these results are promising then the lender will look at their monthly debt amount verses the monthly gross income. A debt-to-income ratio is determined. If their debt-to-income ratio is acceptable then more than likely the applicant will be qualified for refinance loans online. The equity in the home is another factor that comes into play in determining the type of loan that the borrower might qualify for. Equity is the value of interest in the property. By subtracting the unpaid mortgage balance from the property's fair marketable value one can determine how much equity they have in their home.

Refinancing options may include refinancing an existing auto loan. Some lenders offer lower interest rates to refinance an auto loan saving the borrower money in interest and time to payoff. Lending options are available to the consumer who is looking for debt consolidation as well. Rolling unsecured debt into the existing mortgage might be the answer to mounting debt problems. Hardships can happen where there might be job loss, medical expenses, or other problems that can make refinance loans online a definite option to consider. "This is a faithful saying, and these things I will that thou affirm constantly, that they which have believed in God might be careful to maintain good works. These things are good and profitable unto men". (Titus 3:8)

For more information: http://www.christianet.com/refinancemortgage

Reverse Home Mortgage

A reverse home mortgage is an increasingly popular financial plan for older people who own their homes and need money. Essentially, this plan allows a homeownwer to borrow against the equity in the house. However, unlike traditional financing plans, repayment is not due until the last survivor passes away or moves out of the residence. The way reverse home mortgages benefit the lenders is that when all the owners die, the house can then be sold by the estate and the loan can be repaid.

In order to qualify, no other liens should be placed against the property. Ideally, the homeowner will own the house outright. If a homeowner still owes a balance on a note, however, a reverse home mortgage could still be a possibility. Sometimes these new loans can be used to pay off the first note as well as any other outstanding debts against the house. This will then leave the new note as the only loan against the property. The fees for reverse home mortgages can also be rolled into the new loan so applicants do not need to come up with extra cash to enter into the contract.

Often the elderly find themselves in financial situations due to rising medical costs, excessive home repairs, and loss of income through retirement. More of a hardship can be created if they are then forced to sell their residence to repay debts. Reverse home mortgages offer a solution to these financial problems by allowing the elderly to borrow against the equity they have spent perhaps a lifetime building, without the burden of worrying about repayment. A reverse home mortgage does not allow a person to borrow more than the value of the home. This ensures that the lender will be sufficiently repaid when the house is sold.

How do lenders make money on these services? Interest is charged on reverse home mortgages, but it is rolled into the loan and accumulates over time. When the house is sold, interest is calculated and added to the total amount due from the estate. A reverse home mortgage creates a worry-free way for senior adults to enjoy their retirement without the hassle of asking their children for money or severely adjusting their lifestyles. "The hoary head is a crown of glory, if it be found in the way of righteousness," (Proverbs 16:31).

For more information: http://www.christianet.com/refinancemortgage

Reverse Mortgage Info

Reverse mortgage info is available for those who are seeking a way to utilize the equity in their home for a supplemental retirement fund in cash that can be used immediately. When seeking such information, people must understand that this type of unique loan allows only those homeowners that are age 62+ to convert part of the equity in their homes into tax-free income without being forced to sell the home, give up their title, or take on a new monthly house payment, like an equity loan. The reverse mortgage information available allows for the payment stream to be "reversed", which means that instead of making monthly payments to a lender, the lender makes payments to the homeowner.

It is free to receive reverse mortgage information so homeowners should learn as much as possible. "The wise in heart shall be called prudent: and the sweetness of the lips increaseth learning" (Proverbs 16:21). Just about any lender can offer details such as that fact that the funds received from this option can be used for anything, including food, daily living expenses, home repairs or modifications, health care expenses, debt management, and any other need or desire. There is no income or medical requirement to qualify.

Lenders with reverse mortgage info will also tell homeowners that they can qualify and still owe money on a first or second mortgage. In addition, they can choose the type of payment they would like to receive from a one-time lump sum; fixed monthly payments (for up to life); a line of credit; or a combination of these.

The most popular option, according to reverse mortgage information, is the line of credit, which allows homeowners to draw on the loan proceeds at anytime. The amount of money received depends on multiple factors. The age of the homeowner, the type of loan chosen, the appraised home value, current interest rates, and the location of the home determine the loan limit the homeowner receives. The older the home gets, the more valuable it is and the more money the owner will get. The funds distributed by the lender are tax free, according to reverse mortgage information available. The premise is that the money is the homeowner's already, not additional income.

The money does not affect SS or Medicare benefits. To receive more reverse mortgage info, it is advised to contact the local Area Agency on Aging, a lender, or a tax attorney. Before applying, homeowners are required to attend a reverse mortgage info counseling session. This session will educate homeowners about their options, and assist them should they decide to apply for a reverse mortgage. The goal is to assess an individual's situation and determine their needs to be sure that this option is the appropriate step.

For more information: http://www.christianet.com/mortgages

Reverse Mortgage Lender

Reverse mortgage lenders provide funding to people, usually senior citizens, based on the equity of the home. A reverse mortgage lender uses the equity on a person's home to pursue a loan that they never have to pay back as long as they follow some criteria. This equity is commonly seen in the form of cash. The loan holder must maintain their home to preserve its current value, keep the home as their primary residence, and still pay property taxes.

The biggest reverse mortgage lenders are large organizations, which include the FHA, Fannie Mae, and Financial Freedom Plan. However, a loan starts with individual brokers. A reliable reverse mortgage lender can be found online and can be counted on especially if they are registered with the national association. Finding a qualified, trustworthy, and professional broker will be one of the most difficult steps for the individual and should be done with careful consideration.

Taking the time to locate a professional for assistance can help individuals determine if this financial program is right for them. The reverse mortgage lender can explain how this funding works to the benefit of the individual. Much like a home equity line of credit, a reverse mortgage uses the equity in the home. Unlike equity lines, this also bases the amount received on the individuals age. The youngest member of the couple is the gauge to which this amount is measured.

The older the individuals and the higher the value of the home will allow for a much larger amount of money to be offered by the lending company. There are other points that the reverse mortgage lenders must take into account, including interest rates and the local lending limit, but this information often takes a back seat to the age and equity. It is very important to make sure the broker provides adequate information before the agreement is made because this type of transaction is not very common or well known for the majority of people.

The National Reverse Mortgage Lenders Association has a code of conduct for their members that include treating clients with respect, informing clients of all possible programs and costs, and to generally have integrity in all of their business dealings. Though not a religious or even Christian organization, the reverse mortgage lender association's code of conduct reflects some biblical principles. Proverbs 20:7 says, "The just man walketh in his integrity." Financial and lending companies are called to be people and companies of integrity as well.

For more information: http://www.christianet.com/mortgages

Reverse Mortgage

Reverse mortgages are loans that the borrowers are not required to repay until they move, sell the house, or die. Based on the equity built up in the house over time, a reverse mortgage can give the borrower money through one of several options: as a lump sum payment, a monthly income, or a combination of both. Although a home equity loan can also provide these options, the borrower runs a risk of losing the house to foreclosure.

These types of mortgages are usually taken on homes owned by people needing to borrow cash from the home's equity to pay for home repairs or property taxes. These homeowners are usually in the moderate to low income bracket. A reverse mortgage may be offered through local, state, or federal government organizations. These offers are generally made to elderly citizens, and their age is a definite factor in the amount of loan available. Another factor, of course, is the value of the home. The elderly generally are more inclined to stay in their homes as opposed to selling and moving; therefore this kind of mortgage is a good option for them.

The age of the borrower and the value of the property will determine the amounts that can be loaned in reverse mortgages. There are various types of mortgages available, and the lender determines the loan amounts based on their policies and regulations. The repayment structure is also determined by the lender. One type, called the Home Equity Conversion Mortgage, is strictly regulated by the Federal Housing Administration. This agency is a division of the federal Housing and Urban Development (HUD) organization. These regulations by the federal authority include the amount of loan costs and also guarantee the lender will meet their obligations to the borrower.

The note is due and payable usually at the time of the homeowner's and all eligible borrowers' deaths. However, other situations can cause the reverse mortgage loan to involuntarily come due, such as moving to another primary residence; allowing the property to deteriorate and failure to try to maintain its acceptable condition; failure to live in the home for more than a year; the borrower's personal mental incapacity to live at home instead of an institution; and failure to pay property taxes or other borrower obligation. Condemnation for being unfit to live in, as well as government claim by imminent domain laws, will also predicate a due and payable loan.

In actuality the need for an elderly person to be in such a needy state that requires a reverse mortgage is a sad testament to how their finances may have been mishandled earlier in life, although this is not always the case. The writer of 2 Corinthians 12:14b notes "for the children ought not to lay up for the parents, but the parents for the children." Financial need in one's old age is sad. However, taking advantage of the home's equity in reverse mortgages is not a sin, and those who have it to use should be grateful.

For more information: http://www.christianet.com/mortgages

Second Mortgage Loan Rate

Second mortgage loan rates vary according to the type of funding a person is looking for, and that is usually a decision the borrower makes based upon what the money is needed for and how much is needed. The second mortgage loan rate that has the lowest payment is the line of credit. This note allows the borrower to draw on cash up to the value of his home equity as it is needed. The interest rates on contracts of this type vary with the prime rate at the time of a withdrawal, but the payments are usually smaller than with a fixed note because the borrower has the option of paying interest-only for a period of time. This rate is useful if the borrower wants to use the money for more than one purpose or if a customer needs the money immediately because he anticipates some large expenses or an upcoming financial opportunity. Though the payments may vary on second mortgage loan rates, they can be extended over fifteen to thirty years.

Just like first mortgages, a second mortgage loan rate for a fixed loan remains the same throughout the payback period, as do the payments. If the entire amount is needed immediately, this kind of note is most helpful. Borrowers often get this type for consolidating debt, paying for college tuition, making home improvements, or buying a car. The fact that the payments remain the same throughout the term of the contract makes this more acceptable to most borrowers. The interest will most likely be lower than the interest the borrower has been paying on credit cards. Even regular unsecured loans from a bank will have a higher interest percentages, so borrowers save by using the equity on their homes.

It is important for the homeowner to remember that a second mortgage rate is a lien on the house until it is paid off, and if he should decide for some reason to sell the house before that note is paid off, it will be taken out of the proceeds of the home sale before he gets any money.

Furthermore, there are so many companies offering interest percentage that vary widely that it is important to check them out before signing any contract. Many online sites automatically give an applicant four companies to choose from for second mortgage loan rates, which helps one make a decision. When considering increasing one's indebtedness, it is good to remember "The wicked borroweth, and payeth not again: but the righteous sheweth mercy, and giveth" (Psalm 37:21). Although taking out a second mortgage loan rate is not prohibited in the Bible, God does require believers to handle their money wisely and not spend foolishly.

For more information: http://www.christianet.com/refinancemortgage

Second Mortgage Refinancing

With second mortgage refinancing, consumers can get benefits with a refinance for their previous second mortgage. With interest rates in the low digits, consumers and home owners are flocking to lending agencies to get assistance with their finance options. The Internet today has opened a new way of doing banking and borrowing and there are lenders using the Internet to advertise their services and to advertise providing help on mortgages. With the new way of handling loans and refinance packages, home owners can easily get ample information about rates and loans before they sign any commitment. And, these types of lenders are actually competing for a person's business, so they shop around and find the best deal for their financing package.

We hear about programs geared toward homeowners in this area, but a second mortgage refinancing package is hardly spoken of. But, this type of finance is available, and as consumers want to tap into the lower interest rates available now, they are considering ways to take advantage of these programs. Lowering an interest rate can save an individual or family thousands of dollars. With this type of financing, those who have an additional mortgage at a higher interest rate may want to determine if getting this loan refinanced will be worth the closing costs. Usually, and especially if the homeowner has a good credit rating, the different types of options is well worth the closing costs and the effort.

And, speaking of effort, never before has applying for a loan been easier. Homeowners who want to apply for a second mortgage refinancing package have only to turn on their computers and surf the Internet. The Internet has brought a unique financial opportunity to consumers, and that opportunity is shopping lenders. One's local banker is no longer the only game in town. There are brokerage firms online that will take their application, screen it, and then recommend up to four different agencies that would want to work with them. Also, lenders will compete for a chance to offer a person various options for a loan. No more lengthy appointments with bank loan officers, no more waiting for answers.

The Bible tells us to pray about all situations and circumstances in our lives. This is true of financial matters also. Seeking the Lord before making major decisions in life can bring a peace and comfort to the situation, leaving the doubting and second-guessing far behind. "Be careful for nothing; but in every thing by prayer and supplication with thanksgiving let your requests be made known unto God. And the peace of God, which passeth all understanding, shall keep your hearts and minds through Christ Jesus." (Philippians 4:6-7)

For more information: http://www.christianet.com/refinancemortgage

Second Mortgage

Second mortgages can be used to get cash out of any home equity that has accumulated with a home loan. This type of program can be used as a line of credit to take care of emergency financial situations or to take care of needed home repairs. A second mortgage has also become popular for those looking to consolidate their debt, getting a better interest rate on a home loan than an unsecured loan interest rate might bring. It is fairly simple to qualify, because the equity in the home supplies the collateral for the loan. There are hundreds of companies and firms that offer this service and consumers can browse the Internet to find the right lender for their financial needs.

There are many reasons that consumers pursue second mortgages for homes. Anyone in need of cash can use the equity in their home loan to get another loan, using the home as collateral. There are emergencies that happen in life. Sickness, death, and natural disasters can happen at anytime, and homeowners may find that they are in a great need of cash to take care of these untimely circumstances. Getting a second mortgage could bring in the cash needed to pay for the emergency, or pay for the living expenses until financial situations are better. Interest rates for home loans are much better than unsecured credit cards or loans, making it possible to save money on when choosing this program.

Consolidating debt is a great reason to choose to explore this option. Many Americans are dealing with the affects of heavy debt. Excessive obligations can make it difficult to function in today's society, as many business decisions are dependent upon credit scores. One solution for homeowners with excessive debt is the second mortgage option offered by brokers and lending companies. With second mortgages, a family, or individual can take out a debt consolidation loan and pay off their unsecured debt, making one payment monthly with a low interest rate.

The Internet can be used to gather information on this topic. Many financial companies that offer various loans are advertised online. There are lending companies that will allow a consumer to apply for and submit an application for a second mortgage online. There are also websites that can evaluate the individuals financial situation and recommend companies offering second mortgages. Deciding if this or another option is the best choice will be the most difficult task to face. "And ye shall seek me, and find me, when ye shall search for me with all your heart" (Jeremiah 29:13). Seeking God can be the key to making the best financial decisions for a family.

For more information: http://www.christianet.com/mortgages

Second Mortgages Can Cap Housing Costs

Mortgage rates are on the rise but you can keep your housing costs under control through mortgage refinancing or a new second mortgage.

In these times of rising interest rates, second mortgages or first mortgage refinancing might be just the thing to keep your housing costs from going through the roof. In a recent article in Parade magazine, How To Save on Your Mortgage, Lynn Brenner considered the question,

"Will Your Mortgage Rate Go Up?"

"If you have a fixed-rate mortgage, you have nothing to worry about. But millions of home owners are sitting on a financial time bomb: Their monthly payments are preset to skyrocket sometime in the next 18 months. These owners have hybrid adjustable rate mortgages (ARMs), which start with a fixed rate for three to 10 years but later are adjusted annually.

"Let’s say you bought a house in 2003 with a $200,000 three-year hybrid ARM. For the first three years, your rate was about 3.8% and your monthly payment was $930. But this year, your rate could be reset to 7.3%, says Greg McBride, senior analyst at Bankrate.com, a personal finance site. That means your monthly payment could jump to $1,334."

Brenner goes on to recommend that, "If you have an adjustable rate mortgage that’s due to adjust this year or in 2007, consider refinancing. Taking out a new loan with different terms and paying off the old one can save you money. Refinancing does not make sense for everyone, however. If you intend to move in a year or two, for example, you may not save enough to recoup the costs of refinancing—usually about 1.5% to 2% of the loan.

"If you plan to stay in your house 10 years or longer, a fixed-rate mortgage is worth the extra cost to avoid rate increases. A hybrid ARM is a little less expensive, but you are vulnerable to future rate hikes, so look for one whose fixed rate lasts as long as you expect to stay in the house."

Benefits of Fixed-Rate Second Mortgages

Fixed-rate second mortgages can be less expensive than refinancing first mortgages. They usually have lower annual percentage rates (APR) than other forms of borrowing and they can save on taxes because the interest on mortgages is deductible. Second mortgages are also easier to get than unsecured loans or lines of credit.

Like a first mortgage, a second mortgage payment consists of principal and interest. Unlike a first mortgage, nothing is put into escrow to cover expenses such as homeowner insurance, property taxes and Private Mortgage Insurance.

Applying for a second mortgage is often faster than refinancing a first mortgage and requires a lot les paperwork. It’s safe and secure to apply online from the convenience of your own home.

Mortgages as Products

Mortgages are products, just like automobiles or new living room furniture—just a whole lot more expensive. A home is often the largest financial transaction people ever undertake. Before signing the loan papers, get information from several lenders. Compare all the important information such as interest rates, discount points, closing costs, legal fees, title and insurance, etc.

If you have bad credit, you will be charged a higher interest rate, but according to The Equal Credit Opportunity Act, you cannot be denied a loan on the basis of race, color, religion, national origin, sex, marital status or age.

To get current rates on mortgage refinancing, visit Easy Mortgage Refinancing. For a competitive second mortgage quote, check out Easy Second Mortgages.

By Mike Hamel
Published: 5/26/2006

Second-home Owners Are Among the Most Selfish People in Britain

Every purchase of a second house deprives someone else of a first one. The only answer is to tax them prohibitively. By George Monbiot

What greater source of injustice could there be, that while some people have no home, others have two? Yet the vampire trade in second homes keeps growing - by 3% a year - uninhibited by government or by the conscience of the buyers. Every purchase of a second house deprives someone else of a first one. But to speak out against it is to identify yourself as a killjoy and a prig.

If you travel to Worth Matravers - the chocolate-box village in Dorset in which 60% of the houses are owned by ghosts - you will not find hordes of homeless people camping on the pavements in cardboard boxes. The market does not work like that. Young people from the village, unable to buy locally, have moved away, and contributed to the housing pressure somewhere else. The impacts of the ghost market might be invisible to the purchasers, but this does not mean they aren't real. Second-home owners are perhaps the most selfish people in the United Kingdom.

In England and Wales there are 250,000 second homes. In England there are 221,000 people classed as single homeless or living in hostels or temporary accommodation. (These desperate cases comprise about 24% of those in need of social housing.) I am not arguing that if every underused house were turned back into a home the problem of acute homelessness would be solved. I am arguing that homelessness has been exacerbated by the government's failure to ensure that houses are used for living in.

This issue received some rare press coverage last week when the Affordable Rural Housing Commission published its report. It suggested that second-home owners might be taxed more heavily in some places or that planning permission should be required to turn a home into a ghost house. Its ideas, though mild and tentative, were received with fury. "If the government adopts these proposals," the Telegraph roared, "it will be in order further to punish middle-class voters and to benefit from a grievance culture stoked by envy".

In the Guardian, Simon Jenkins suggested that the commission's proposals would deny "existing homeowners the value of their property and thus mobility for themselves and their children. It is a crazy wealth tax on the rural poor ... To imply that those bringing new money and, in many cases, new economic activity to rural Britain are a social evil is leftwing archaism."

If caring about homelessness makes you a leftwing dinosaur, I raise my claw. It is true that clamping down on second homes would suppress house prices in the countryside, by a little. That is part of the point. But it is not as if rural homeowners are suffering from low values. The day before his column was published, the Halifax produced figures showing that the average rural house costs £208,699 (or 6.7 times average annual earnings), while the average town house costs £176,115. Jenkins seems to be asking us to care more about the profits of those who are already rich in capital than about the people who have nothing but a box to sleep in. It is also true that at weekends and during the holiday season, second-home owners can bring new trade to local shops - especially the kind of picturesque boutiques which smoke their own fish and sell jam jars with paper hats on. But for the rest of the year, because the village is half-empty, business dies.

The environmental impact must also be stupendous. It is hard enough to accommodate the houses we do need in the countryside, let alone the fake homes now being built for weekenders. Open the pages of any property supplement and you will find advertisements for new "holiday lodges" in Cornwall, Dorset, Pembrokeshire and Norfolk. Regional airports are springing up (or trying to spring up) wherever City brokers start pricing out the locals. (People with second homes abroad cause even more damage: one survey suggests they take an average of six return flights a year.) This is to say nothing of the environmental costs of maintaining two homes, and doubtless leaving the security lights on and the appliances on standby while you continue your life elsewhere.

For all these reasons, I believe the commission's proposals don't go far enough. It treats second-home ownership as a local problem, confined to the most desirable parts of the countryside. It doesn't consider the wider contribution that owning them makes to homelessness, or to the destruction of the environment. Nor does it make the point - almost always missed by the media - that the majority of second homes (155,000 of the 250,000) are in towns and cities, where middle-aged businessmen turn what might have been starter flats into pieds-à-terre. I accept that it's a rural housing commission, but I can't help wondering whether this acknowledgement might have caused some trouble for Elinor Goodman - the commission's chair - who has a second home in Westminster.

I would like to see the ownership of second homes become prohibitively expensive, wherever they might be. It remains cheaper to own a second house than to own a first one. The government has reduced the rebate on council tax for ghost homes from 50% to 10%, but it still seems outrageous that there should be a discount of any size. Worse, as a letter to the Guardian pointed out yesterday, people are buying up weekend homes as fake holiday lets and setting these "loss-making business" against tax. Plainly this loophole needs to be closed. But why not a 500% council tax for all second homes, which local authorities are obliged to hypothecate: to use, in other words, for new social housing? It won't stop the richest people from buying extra houses, but at least the people at the bottom of the ladder get something back.

Often we're told that punitive taxes of this kind won't work, because couples could register their homes separately. But this would surely be possible only for people who are neither married nor in a civil partnership. It doesn't stop the government from levying capital-gains tax.

The real problem is that almost every MP with a constituency outside London has two homes or more, and there is scarcely a senior journalist who is not sucking the life out of a village somewhere, or a paper which does not depend on advertising by estate agents. Two weeks ago the Sunday Times revealed that the Labour MP Barbara Follett, who owns a £2m house in her constituency (in Stevenage), a flat in Soho and homes in Antigua and Cape Town, has claimed £76,357 in Commons expenses over the past four years for her London pad. Perhaps it isn't hard to see why MPs aren't clamouring for something to be done. On Friday, Peter Mandelson - the man who says what Blair thinks - told a conference that Labour's primary challenge was to find solutions "to the angst of the hard-working middle class ... It's not old Labour territory we have forgotten and which is detaching itself but the New Labour territory we have occupied since 1997 which is at risk."

In other words, the chances of getting the government to force the abandonment of second homes are approximately zero. But that should not stop us from pointing out that it is unacceptable to let the rich deprive the poor of their homes.

By Guardian Unlimited © Copyright Guardian Newspapers 2006
Published: 5/22/2006