For example, the amount of equity in your home is $40,000. Do you have to take the entire $40,000 or can you just borrow $25,000?
2007-07-17 13:57:29 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
you can borrow any amount you want. two types of loans here:
fixed 2nd (aka home equity loan) - have to take a lump sum and repay on the given term... fixed payments and interest rates.
equity line (aka home equity line of credit, HELOC) - adjustable rate, tied to prime rate. you can draw and repay like a credit card. your payments are based on your outstanding balance and your current rate (adjustable)
The amount you qualify for will vary depending on credit, income... etc. but if you want a line for 15K you can get it. if you want one for 40K... you can get it. all depends on your situation. it IS possible to finance up to 100% of the value.
2007-07-17 14:03:06 · answer #1 · answered by Anonymous · 1⤊ 0⤋
If it's a home equity LOAN, then yes you can borrow less than the equity available.
If its a home equity line of credit, then you have full access to the available equity in the house.
2007-07-17 14:02:36 · answer #2 · answered by mister_galager 5 · 0⤊ 1⤋
You can definitely borrow less. Most lenders won't lend the entire amount of your equity even if you want them to.
2007-07-17 15:01:44 · answer #3 · answered by Judy 7 · 0⤊ 1⤋
You can borrow less too. Upto the equity you have.
Talk to me and I can let you know more specific answers.
2007-07-17 14:04:05 · answer #4 · answered by Roger This 1 · 0⤊ 1⤋
you are allowed 80% of the total if your home is worth 100,000 and you have paid off 40,000 you have 20,000 in which you can borrow...just remember, each time you borrow you must pay some lending institution a fee..usually $5,000. so you would be better to borrow the money elsewhere...do you have a 401k? you can borrow the money and pay yourself the interest....sometimes its better to look for some better alternatives.
as for borrowing less...you can borrow less, but you still pay the fees for starting a new mortgage.
The new scam is to borrow more than your home is worth, by gettting the appraiser to up the appraisal...just slip him a few hundred bucks or so., then meet me in some sunny tropical hideaway to enjoy the spoils. LOL...just kidding
good luck.
2007-07-17 14:08:20 · answer #5 · answered by Oldmansea 6 · 0⤊ 4⤋