Santadream's Blog

125% Loan to Value and Mortgage Refinance
By Jack Tanner

Did you know that 125% loan to value and mortgage refinance are extremely risky for borrowers?

Well, they are! That's why you better think twice before jumping into an exotic 125% loan to value (LTV) second mortgage that allows you to refinance by borrowing more than your home is worth.

It sounds too good to be true, and it is. That's why the Federal Trade Commission warns, “Borrowers Beware!”

Too many unscrupulous lenders use 125% loan to value and mortgage refinance to prey on vulnerable homeowners. Even though LTVs opens a door for lots of people to borrow, especially young couples with limited income and often shaky credit, this type of loan comes with a high price.

Interest rates are much higher and closing costs often add up to more than 10% of the loan balance. There have actually been stories of interest rates as high as 30% and hidden fees of 20 points or more.

LTVs are costly because, since there's no collateral and no way for the lender to foreclose, LTVs are also risky for lenders. So, they make you pay through the nose for the privilege of borrowing.

This high income potential attracts unscrupulous lenders and debt consolidation 'advisors,' high pressure home improvement salespeople and so-called foreclosure “rescue” companies willing to take a gamble on the risk of default in return for the huge profits they can make at the borrower's expense.

They persuade vulnerable homeowners, often people with lower income, high credit card debt or poor credit, into believing that 125% loan to value and mortgage refinance are in their best interest. And they make an offer that sounds too good to refuse, with very attractive, extremely low monthly interest-only payments. But the offer comes with a huge burden.

Somewhere down the line, usually a lot sooner than you anticipate, you're going to have to come up with a bundle of money to pay a big balloon payment. By the way, did you know that if you have to move for any reason, you can't sell your home without first paying off your balloon loan? And where are you going to raise the money, since you owe more than your home is worth?

Think about it! When the balloon comes due, if you can't raise enough quick cash in time or refinance at a cost you can afford, your balloon bursts and you're in a lot of trouble with no way out. And balloons are bursting all the time. They're one of the main reasons mortgage defaults and foreclosures are approaching record breaking highs all across the country.

Too many people got themselves suckered into exotic 125% loan to value and mortgage refinance loans with risky balloon payments. And now they're paying the price.

LTVs are not for the desperate already drowning in debt, no matter how seductive they may seem. So before jumping into one, always do your homework and carefully consider all your alternative options.

And, by all means, work only with reputable lenders you know you can trust. And never let yourself be conned into some deal that’s only going to get you deeper into debt. It's not worth it!

Jack Tanner writes about his experiences with home equity loans and rates at http://www.HomeEquityLoansZone.com. Stop by and learn all the tips and tricks he's used over the years to take advantage of home equity loans.

Article Source: http://EzineArticles.com/?expert=Jack_Tanner
http://EzineArticles.com/?125%-Loan-to-Value-and-Mortgage-Refinance&id=403910

Barrington Tops and the Hunter Valley
By Jenny Brewer

The entire Hunter region, including the beautiful Barrington Tops, can only be described as breathtaking. Defined by sheer drops, mountainous views and brilliant rainforest walks, the list of natural attractions and scenic spots is endless.

Accessible just 90 minutes north from Sydney, or just an hour from Newcastle, the World Heritage Listed Barrington Tops is famous for its fast flowing rivers and waterfalls that run through steep gorges and are surrounded by magnificent rainforests. There are plenty of bushwalks available with most roads sealed and easily accessible by most vehicles.

The climate is generally cooler than the coast throughout the year, but every season brings a lovely change to the region. Winter brings heavenly sights, with snow capped mountains and crystal clear mountain streams, and summer is more comfortable for bushwalking in high altitudes. It is still advisable to come prepared with lots of warm clothing in case of sudden temperature changes.

There are ample camping grounds at Barrington Tops, Camp Cobark being the most central, or a bit further out at Gloucester is the Devils Hole Camping ground (located 1400m over sea level) which also offers great fishing spots and amazing views. Nights bring much wildlife, and it is the perfect time to see the Milky Way at its best.

After you have roughed it for a while, why not enjoy the comforts of the Eaglereach Wilderness resort located atVacy. With stunning views of the Barrington Tops, this four star accommodation is a great option.

There are a string of 'must sees'. Considering the region covers more than 80 000 hectares, the scenery is wild and diverse. The Barrington Tops Forest Road is famous for its many different types of rainforest, including the ancient Antarctic Beech Forest, and is worth the drive. It will take you to fantastic lookouts such as the Devils Hole, Moonan Lookout, and the Polblue plateau which is a great place to have a picnic stop and enjoy the views. The Chichester State Forest has amazing wildlife and a rainforest trail including the largest oak tree recorded in NSW. Cobark Forest Park is also a great place to relax and offers a fantastic walking track for the family.

There are also a string of 'must do's'. There are cycling and bushwalking circuits to suit all ages. Walks range from a less than an hour to two weeks, depending on your time and fitness levels. Canoes and kayaks are available for hire along the Barrington River, trout fishing is popular, and the historic towns of Gloucester and Dungog in the Hunter valley are great for a stroll. The Barrington is also popular for horse riding, with extensive trails and horses to suit all ages. White water rafting is another favourite for the adventurous on the Barrington River in the Upper Hunter Region.

The Hunter Valley moves at a slower pace, which is why people are attracted to its towns, national parks and natural beauty. Stretching from the Barrington Tops in the north to the Wollemi National Park in the south, it is known for its great vineyards. The three national parks in this region are just as unique with amazing wildlife and scenery, and also offer great Aboriginal sites for a great cultural experience.

The centre of the lower Hunter Valley wineries is Pokolbin, located west of Cessnock. There are over 50 wineries in this region, producing many well known wine labels, such as Linemans, Tyrells Vineyards and Wyndham Estate. It is best to take your time chatting to the locals and enjoying the local food, wine and general atmosphere of the valley.

Driving through the Valley, you will come across colourful towns such as Branxton and Greta, famous for their markets and festivals. Kurri Kurri also has a fascinating mining museum which the kids will love. The historic town of Wollombi will take you back in time. Surrounded by bushland, it is a great place to stop for a while and enjoy the quiet pace.

With so many natural attractions, and diversities in landscape and appeal, the flavour and quietness of the Hunter Valley is a great contrast to the heights of the Barrington Tops. With the choices of adventure sports, bushwalking and sightseeing or doing absolutely nothing but perhaps a picnic and snooze, the entire region is the ideal destination for your 'wilderness' driving holiday.

Jenny Brewer is a travel agent whose passion is writing. After spending her leisure time writing time writing childrens stories, she now enjoys writing about travel destinations. For more of her articles visit Australia Car Rentals

Article Source: http://EzineArticles.com/?expert=Jenny_Brewer
http://EzineArticles.com/?Barrington-Tops-and-the-Hunter-Valley&id=430603