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Most Americans dream of owning their homes free and clear someday, part of their retirement nest egg. Yet, for many, this dream gets farther and farther from reality as they break into their home equity piggy banks.

I am somewhat surprised at the number of our loan applicants, even many of our excellent credit quality customers, who have taken equity out of their homes over the last few years via cash-out refinances or home equity loans, says Gary Miller, a 25-year veteran of the credit industry and CEO and co-founder of FirstAgain LLC, a financial services company based in San Diego, Calif. Now, with larger mortgages and often less equity, particularly with the recent home price depreciation hitting many areas of the country, these people face a longer and more difficult path to debt-free home ownership.

Before you decide to borrow against your hard earned home equity, consider the following:

* Are you using your home equity for something that actually adds value (equity) to your home, such as a remodeling project or a swimming pool or for something important in your life such as a childs education or unexpected medical bills? This can be a prudent way to finance such expenditures. Home equity loan rates are attractive and the interest is usually tax deductible if you itemize. However, if you are using your home equity to finance vacations or pay your bills, think again, as you may be overextending yourself.

* Are you using a fixed rate home equity loan with the shortest term you can easily handle? Adjustable rates may make sense for the financially well off (and financially sophisticated) but for most people, a fixed rate and a fixed monthly payment avoid future payment shock and is the better alternative. Paying off your loan sooner obviously builds your home equity more quickly. Think of it as forced savings.

* Cash out refinances can make sense if you are improving your overall mortgage terms and using the cash for an appropriate purpose. Again, consider shortening your loan term if possible.

* Are you thinking about a home equity line of credit (HELOC)? This product is marketed like a credit card with adjustable teaser rates, ease of use and other incentives, encouraging you to use your home equity for just about anything with long repayment periods. Be careful. Having a HELOC in place may be prudent for certain purposes (for example, a future emergency) if you can be disciplined about not normally using it and pay it down quickly if you do.

* If you have excellent credit, you may qualify for an attractively priced unsecured loan that doesnt require pledging the equity in your home. This type of loan, such as FirstAgains AnythingLoan, offers highly competitive, fixed interest rates and an ease of use not available with mortgage products. Entirely online and paperless, you can apply in the morning and have $10,000 to $100,000 in your account by the afternoon. It takes just minutes versus the days required for a mortgage loan.

Given the more difficult lending environment caused by the recent sub prime meltdown, home equity products have become both more expensive and more difficult to obtain as lenders tighten their credit criteria and loan to value guidelines, says Miller. Our product represents a great alternative for those with excellent credit who dont have a home equity loan option.

FirstAgain LLC is a financial services company based in San Diego, California. The companys co-founders previously founded http://www.PeopleFirst.com which became the nations largest online auto lender prior to its sale to Capital One in 2001. Operating nationwide and with financial commitments from Merrill Lynch, FirstAgain provides innovative financial products to individuals with excellent credit. The companys AnythingLoan is the nations first completely paperless consumer loan and can be used for any purpose, including home improvements, vehicle purchases, educational and medical expenses, timeshares, and loan refinancing. The loan experience is fast and convenient, offering same day funding along with highly competitive rates and loan amounts from $10,000 to $100,000. For more information, please visit http://www.firstagain.com

If you have a recent bankruptcy on your credit and are looking to get financing for a home, there is hope. Buying a home with bad credit will just put more emphasis on the other two factors needed to get a mortgage loan, which are; income verification and a down payment.

After bankruptcy most lenders want you to wait at least 2 years from the time of the bankruptcy discharge before they will consider you for a mortgage loan. After the two year waiting period is over, you should be able to get financing easily. You should also be able to get 100% financing as well. You can usually achieve this as long as at least most of your payments have been reported to the credit bureau as having been paid on time since the discharge of your bankruptcy.

If you are looking to get a mortgage loan after bankruptcy sooner than the 2 years from the time of discharge, you will need to have almost flawless payment history since your bankruptcy discharge. Also, you may need to have a down payment. If you have even 3-5% to use as a down payment, that may be enough to help you get approved.

There are ways to get a down payment for your mortgage besides having the money saved in the bank. Here are some ideas of ways to do that:

1.Borrow or ask for a gift from relatives. After you have financed the house, you can usually go and take out a 2nd or 3rd mortgage up to the full value of your house, and then you could repay the relatives. Keep in mind that if you intend the money to be as a loan only from the relatives, you would need to disclose that to the lender before you close. Lenders usually have regulations about where the down payment is coming from and if you are not honest, it could be considered defrauding a lender.

2.There are down payment assistance programs like Neighborhood Gold or the Nehemiah program. These programs basically aid the seller in helping you with a down payment. Receiving a down payment from the seller of the property is illegal, but through these programs, it is legal. There are also other down payment assistance programs which are grants and do not need to be repaid or paid for by anyone. To find out about these, do a search on down payment assistance with your favorite search engine.

3.You could cash out a 401K or another investment and like in the first example, repay yourself with a 2nd or 3rd mortgage after the loan has closed.

Mortgage loans after bankruptcy are getting to be much easier to obtain these days. If you would like to see a list of our preferred bad credit mortgage lenders, visit this page: After Bankruptcy Mortgage Lenders.

Carrie Reeder is the owner of ABC Loan Guide. ABC Loan Guide is an informational loan website with informative articles and helpful lists of recommended lenders for bad credit mortgage loans.

With the turmoil in the mortgage industry all over the news, many homeowners are contemplating whether its still safe to refinance their mortgage. The mortgage industry isnt as dead as the media is trying to portray. Yes, lenders are cracking down on their criteria for borrowers; but with decent credit and a reasonable amount of equity in your home, refinancing can often create huge savings just in time for the holidays.

Borrowers must be aware that, if done incorrectly, refinancing could actually end up costing you a substantial amount of money. To help you avoid the mistakes that other borrowers often make, we've compiled a list of some common mistakes that you should avoid at all costs:

Failing to choose the best refinance program.
The loan that's best for you will depend upon your unique circumstances. For example, in some cases a 15-year term may be better than a 30-year term, depending on your situation. Be sure to use our "Am I Better Off Refinancing?" calculator to help you decide whether refinancing is worth your while.

Not performing a 'break-even' analysis.
Remember, refinancing creates a brand new mortgage loan. In order for refinancing to make sense financially, you need to know how long it will take until you begin making back the fees involved with refinancing. A break-even analysis will give you this information. It's achieved by following this simple calculation: divide the total cost of the new loan (fees, closing costs, etc.) by the monthly savings off of your current payment. This will give you the number of months that you'll need to stay in the property in order to break even on your refinancing costs.

For example, if your total refinance costs were $1,000 and your new monthly payment is $50 less than your old one, then you'll break even in 20 months after refinancing. If youre planning to move before you expect to break even, refinancing may not be your best option. Instead, you may want to consider taking out a home equity loan instead.

Paying too much for Mortgage Insurance.
Private mortgage insurance, or PMI, is protection for the lender in case you default on your mortgage. It can tack on hundreds of dollars extra on your payment each month. However, PMI isn't typically required if you have at least a 20% equity stake in your home. If you refinance less than 80% of your home's value (LTV - loan-to-value), you shouldn't be paying for PMI. If at all possible, cap your refinance amount below that amount to ensure that you find the best loan.

Fixed-rate versus ARM.
Refinancing is often viewed only in terms of a new fixed-rate loan. But in some cases an adjustable-rate mortgage can actually save you money even if interest rates continue to rise. Again, it depends on your particular situation and the rate that you qualify for so be sure to thoroughly discuss your options with one of our lenders to find out if an ARM is the right option for you.

Not shopping around for refinance lenders.
Many people refinance with their current lender simply for the sake of convenience. This can often be their biggest mistake, as shopping around for free refinance quotes can mean HUGE savings in the long run as your current lender may not have the best rates like they advertise.

You should carefully weight the savings you can earn by refinancing against the possible costs or penalties. Any homeowner can refinance their mortgage; the key is to weight your options to determine if refinancing is the best option for your situation.

Martin Hayes is a Customer Service Specialist with Loan Choice Direct.

For more help with refinancing your mortgage including many more articles like this one, please head over to http://www.loanchoicedirect.com to receive a free mortgage refinance quote.