Home equity loans...?

Question

How do home equity loans work? I need to know EVERYTHING about them....

Can you suggest any legitimate websites?

Answer 1

There are 2 types of equity loan. Fixed rates and variable rates. You are always borrowing on the equity in your home. If you sell the deed of trust must be satisfied at close. So you may not get as much on the sale if you have not paid it ALL back. A fixed note is just that fixed for the life of the note so the principal and interest remain constant. The Variable rate is tied to an index. (prime rate, cost of funds London Interbank Offered Rate{ LIBOR} or some other index) These rates change on a monthly basis and go very high over the term of the note. For example notes tied to prime are based on your balance this month and The PRIME RATE as it was published the first business day of the month in the "Wall Street Journal". There are cap restrictions on just how high it can go up so you must know the maximum amount it could reach over time. In some states it could be as high as the Prime gets. In other states like in Tennessee where I live and work it is maxes out at 18%. If it is just a small amount and you repay quickly then the variable may be your best bet. If a Large amount the I would recommend a fixed note. Hope this helps you.
I am a mortgage banker in TN & KY

Answer 2

Home Equity Loans: When you take a loan against the value of your home and subtract any mortgages, it is called home equity loan. They are two types:

1) A Home Equity Loan where you get a certain sum of money for a certain time and at sometimes at a pre-determined rate.

2) A “Home Equity Line of Credit” allows you to take a loan within a pre-approved credit limit at varying interest rates. If the amount borrowed is less than the credit limit, you can take more funds.

These loans come with lucrative interest rates, low monthly installments and tax-deductible interest if you itemize the loan. There are zero or low charges for closing these loans. The rates vary and there is a big risk of losing your home if you cannot pay the loan.

Answer 3

A home equity loan is the difference between the value of the home and the balance of outstanding mortgage loans on the home. Loans on the home should be less than its current value. Current value-loans on the house= the maximum equity loan you can take.You can apply for a home equity loan in order to pay for education, home improvements, debt consolidation, or other expenses. A home equity has several tax benefits that your mortgage advisor can tell you about. Loan expert's advice will help you better. You can get free advisory on home equity at http://mortgage.yeyeyup.com

Answer 4

Home equity loans ae like any other loans, the are given to you by a lender and the lender takes your house as collateral.

You may do pretty much what you want with the money, most people use the money to pay off large sums of credit card and other consumer debt. Others use it to purchase cars and other big ticketed items. Some use the funds to remodel the house itself, like up grading a bath or kitchen or even adding a room and another bath.

Now the way you go about securing one of these loans, is for you contact a local mortgage broker, you may get referrals from your friends and relatives or 'you may find one in your local telephone book.

You will need the following when you talk with this mortgage broker

#1 One month of pay stubs from all borrowers

#2 Six months bank statements from all the banks you do business business with to include any statements from your 401-k plan where you work.

#3 Two years of federal income tax returns along with the W-2's that match the year.

Prepare for a long chat because it takes awhile to complete this application. So grab one of your favorite beverages.

After youre application is taken this person will then pull a credit report on you. This credit report will have your credit score on it.

Based on your credit scores you will be now qualified for certain loan programs as well as interest rates. You mortgage broker will go over your options with you. Now remember this is your loan, so ask as many questions as you can about the best loan, interest rate and how long you will have to pay off the loan.

Once this has been discussed your mortgage broker will have your loan underwritten for approval. You loan amout will be determined by the value of your house.

After a value has been determined by a licensed appraiser from you state, your mortgage broker will now go over the amount of money you are entitled to borrower.

In some cases you will not be able to get loan for the full value of the house, normally the underwriter will appprove about 80% of the value of the house. In other words if your home was appraised at $250,000, the maximum loan amount that could be approved at 80%$ would be $200,000.

Now if you still owe a mortgage on the house this mortgage will be paid through this transaction. So you have to subtract the balance of the existing mortgage.

So let's say you owe $98,000, subtracting that from the $200,000 will leave you a with approximately $102,000 into your pocket minus any closing cost, points and fees charged by the mortgage broker and lender., so a good estimate would be about $6000.00 for those fees,leaving you about $96,000 into your pocket. (These are estimates and not real figures, yours will vary)

Also your points and fees could be tax deductable, check with your tax preparer.

Once all is cleared your mortgage broker get's final approval with not other conditions he will order your loan docs for you to sign.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 5

You may be able to get a HELOC (Home Equity Line of Credit). It is like having your own bank, great for business owners. You could check with a mortgage broker for that. I know of some if you need referrals. Also, you may be interested in this new program. It works well with a 30 year mortgage. I am currently using a HELOC with a new software program that helps build equity fast, and will payoff my home in less than half the time without refinancing, and without extra payments. It is saving me thousands in interest, and pays off home in less than half the years. E-mail me if interested.

Answer 6

I would suggest you start by contacting your 1st mortgage company. Why take out a 2nd mortgage (home equity loan) from some other company. Sure, they might not have the "best" interest rate (you will shop around after you talk with them), but they will be able to tell you everything you need to know about getting that 2nd mortgage.

I wouldn't mess with internet companies, until you have talked with several banks in your town first (including your 1st mort. bank -- if it is in town).

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Answer 7

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LOAN AMOUNT NEEDED.....................sen... these info it is important. Mind you loans is given to every part of the world only if i see you to be honest and will pay back after duration. If you are interested you have to send the amount you need as loan so that i can give you the terms and condition on the loan for your information loan are given to every part of the world on honest people so if you are honest apply for the loan now at [e-mail]

Answer 8

try http://www.choicefinance.net/home-equity-loan.htm