Lenders

Some borrowers with not-so-hot payment histories need a second chance and a willing lender to finance a home, college education, or provide retirement income. Should lenders turn high debt-to-income borrowers away? Most do. But lenders who extend accredited home loans may analyze borrowers who may have over-extended themselves in the past to assess an ability to repay. In some cases, debt ratios of as much as 50 percent are acceptable. Homeowners applying for a second mortgage are offered loans with up to 90 percent cash out, freeing funds to resolve outstanding debts or provide income retirement or funding for college. Home refinancing offers owners a chance to pay off a high-interest mortgage and get a second loan with lower interest and payment for a shorter term, usually fifteen years. Borrowers can elect to utilize accredited home loans as a ready source of cash withdrawn as needed for medical expenses, home repairs and improvements, or college tuition. Retirees can put monies to good use, saving up for the golden years without fear of relying solely on Social Security. A certain percentage of monies may be deposited into a tax-deferred retirement plan, such as an Individual Retirement Account (IRA). Currently, up to $5,000 per year may be deposited without incurring income taxes or penalties, as long as depositors do not withdraw monies before reaching the age of 59 and a half.