Some facts:
May home was recently appraised for 150,000 more than what I am currently paying a mortgage on. Now does that mean I can get a home equitly loan for like ten percent of that money? I am not really interested in refinancing.
2006-10-24 09:07:15 · 11 answers · asked by Winter_Decay 3 in Business & Finance ➔ Renting & Real Estate
A HELOC (Line of credit) is simply a loan that shows up as a lien on your property..(similar to a mortgage) Unfortunately it is not a mortgage... A HELOC is a giant CREDIT CARD secured by your house... On your credit report a mortgage shows as a real estate debt.. A HELOC shows as a REVOLVING DEBT (same as a credit card)....Also a home equity is a 2nd lien position to your first mortgage...(which makes it much more of a risk)
A refinance is borrowing a new loan to pay off your existing home loan, personal debts, car loans, credit cards, do improvements, etc... Many things!! The thing is in a new refinance, you are simply re establishing a new first mortgage (which will be a REAL ESTATE DEBT)
A 1st mortgage has much less risk to a lender, and also is MUCH MUCH BETTER for your credit!!!
Now a days almost every LARGE bank in america tries to SELL (keyword sell)... HELOC'S to their cliend\ts because they can make alot more money form them...
You will see commercials saying low or no cost HELOC'S... Lets face it, its 2006, and nothing in life is free anymore... You pay for what you get.... If you are going to do a loan from a lending organization for NO COST.. there's a catch...
here it is... in the last 3 years the prime rate on a home equity line of credit (heloc) has went from 4%..to a staggering 8.25%!!!!! Th unfortunate thing is it is still rising!!!!
People that got a HELOC 3 years ago saw their payments more then triple in the recent year!!!
THIS IS WHY I SUGGEST TO STAY FAR FAR AWAY FROM HELOC'S!!!!!
You have equity in your home now because you chose that house as an investment... It obviously was a good investment because you have gained value in your home..
Now you can take advantage of that equity..
The best way to do it is to refinance the mortgage as a whole...
If you need assistance, feel free to give me a call or email me..
Jason Fry
Licensed Mortgage banker
Providential Bancorp
jasonf@providential.com
312-550-5583
2006-10-25 11:16:16 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Taking out a home equity loan IS considered refinancing. If your home appraised for $150K more than what you owe, then you have $150K in equity. You are, based on credit, allowed to finance up to 100% of the value of your home.
2006-10-24 09:59:48 · answer #2 · answered by Justin 3 · 0⤊ 1⤋
formerly you flow any extra you may learn with reference to diverse forms of mortgages obtainable. there are a lot of people now loosing their homes becaue they did no longer shop properly while paying for his or her abode. Finance companies generaly do no longer lend money for homes. Banks do handle the transaction however the inner maximum loan isn't from the bnk. you apart from mght could be conscious that these days there have been a number of the inner maximum loan preserving companies that have long previous bankrupt. paying for a house isn't the comparable as a television or refrigerator. in case you do no longer comprehend then locate somebody that does comprehend and be clever.
2016-10-16 08:44:17 · answer #3 · answered by corridoni 4 · 0⤊ 0⤋
Take your home's appraised value minus your first mortgage, and this is your home's equity against which you can borrow. Your best rate will be up to 90% of your home's value. So multiply .90 x value. Take this number and subtract your first mortgage. The amount left is what you can borrow at the best rates. You can go to 100%, but your rate will be higher.
2006-10-24 11:38:28 · answer #4 · answered by Anonymous · 0⤊ 1⤋
typically you can take a second mortgage on your home, where the first and second mortgage combined may not exceed 80% of the appraised value of your home. Of course you will then have 2 house payments. The second mortgage is usually a fairly short term loan.
2006-10-24 09:11:52 · answer #5 · answered by hikerboy3 3 · 0⤊ 2⤋
You can get an equity line/loan up to 100% of the value.
Appraised Value 300,000
Mortgage Balance 150,000
Available Equity 150,000
You can get the equity in a loan or line of credit. Line of credit is a variable interest only loan for 10yrs (inexpensive to apply for), loan is fixed (i believe for various amount of years)
2006-10-24 09:47:09 · answer #6 · answered by tianaramal 4 · 0⤊ 1⤋
Give me a call, let me know how big or small of a home equity line you want. I can give you a line up to 100% of your appraised value if your fico is strong. I have no closing costs and great rates for home equity lines.
2006-10-24 10:27:50 · answer #7 · answered by ondreforsure 3 · 0⤊ 1⤋
You can probably get financed up to 80% of the appraised value.
2006-10-24 09:14:32 · answer #8 · answered by Anonymous · 1⤊ 0⤋
Yes you can get a home equity loan. Not sure of the maximum but most certainly more than 10% of your equity. Probably up to 75% or so.
2006-10-24 09:09:09 · answer #9 · answered by aint_no_stoppin_us 4 · 0⤊ 2⤋
why was it appraised? You should be able to get 100% of that 150K, depending on the rest of your situation
2006-10-24 10:36:15 · answer #10 · answered by cjkloanguy@yahoo.com 2 · 0⤊ 1⤋