If a person got a home equity loan a year and racked up debt can they add to the existing loan or get another?
2007-09-10 10:50:40 · 6 answers · asked by corbin_rox 1 in Business & Finance ➔ Renting & Real Estate
Depends on the lender. I think they usually just do a new loan and add existing balance to that loan.
2007-09-10 16:16:31 · answer #1 · answered by DallasLoanGuy 2 · 0⤊ 0⤋
This depends on the conditions of the home loan. If one can make extra repayments without penalty then the lower interest rate is better. The only positive of equity loan one can borrow up to the equity of the property ie if in the future one needs more money its easier to access the cash without having to refinance. The decision is depends what one future plans are! The big downside of an equity loan is the temptation of being to be able to get more cash on a whim.
2016-05-21 08:07:15 · answer #2 · answered by ? 2 · 0⤊ 0⤋
If you are a first time borrower of a home equity loan it is imperative that you have a checklist of essential questions that you need to ask each and every lender. The answers to these questions will provide a valuable reference to base your comparisons on. What’s the interest rate? Knowing this is crucial. The interest rate will determinepercentage by which the adjustable rate will change. What is the Annual Percentage Rate or APR? The APR on the home equity loan will determine the yearly payment you will need to make towards this.The higher the payment in terms of points, the lower is the interest rate.
2007-09-10 14:58:07 · answer #3 · answered by Anonymous · 0⤊ 1⤋
With the market doing what it's doing, it may not be a good idea even if you can find a company to do it. If the value of your house goes down, then you may end up owing more than it's worth, which means that you would owe the balance even if it's repossessed.
You need some counseling to avoid all this debt. Your house is not an ATM machine.
2007-09-10 10:59:08 · answer #4 · answered by Patsy A 5 · 0⤊ 1⤋
a credit line can be added on to but a equity loan is specific to the amount so no
2007-09-10 10:57:58 · answer #5 · answered by sml 6 · 0⤊ 0⤋
If the lender permits additional draws on the HELOC ,
You and your lender know the answer to what your contract says , we can't see it .
And FYI , increasing HELOCs is stepping closer to homelessness .
Make sure what you are racking up debt on ,
Is really worth loosing your home over .
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2007-09-10 10:59:59 · answer #6 · answered by kate 7 · 0⤊ 0⤋