Just bought a house for $214k 30yr 6.125%, it was appraised at $244k. I'd like to make several home improvments and consolidate some debt. How soon can I get a Equity Loan or Line of Credit , seeing how i just bought the home I wasn't sure if theres a waiting period i.e 6mo-1yr . Also which might be better for my situation the Loan or LOC?
2007-03-19 09:45:36 · 4 answers · asked by joconn10 1 in Business & Finance ➔ Renting & Real Estate
There is no waiting period-- however its typically advised that you maintain 10-20% equity. Using up every dollar of equity is not a smart move-- selling a house costs up to 10%! So if you owe exactly what your house is worth, there's no way for you to sell and walk away from it.
Also a loan up to the last dollar is higher risk and will carry higher interest rates.
Talk to some lenders and see what their policies are-- some of the basic banks still expect you to maintain a certain percentage AFTER the HELOC.
2007-03-19 09:50:28 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Credit Unions and Local Banks give better rates than most Mortgage Brokers.
Search Around you will find a good rate. Watch out for teaser rates unless you are going to pay off the debt quickly or educate yourself on teaser rates so you dont end up with payment shock.
To answer your question you can get a heloc the same day you close your house at Title.
HAPPY LIVING
2007-03-19 10:57:07 · answer #2 · answered by Openthathouse.com 4 · 0⤊ 0⤋
There is no waiting period.
I got a HELOC about two weeks after I bought my house last summer. As long as you have enough equity in the house for them to give you a line of credit, you shouldn't have a problem.
2007-03-19 09:55:32 · answer #3 · answered by Faye H 6 · 0⤊ 0⤋
you can get one when ever you want to. shot me an email i should be able to help you depending on what state you live in.
2007-03-19 09:55:25 · answer #4 · answered by cmruffin1 2 · 0⤊ 0⤋