best home equity loans

I filed bankruptcy last year. How long until I can take out a loan?

2010-03-30T12:45:00.000-07:00

When the market was at its peak a few years ago I took out an equity loan on my house to invest in more properties. Then BOOM! Market crash. I couldn't rent out the properties or continue making payments and lost the properties, including my home. I know bankruptcy effects your credit for 7 years, Does that mean it will take that long before I can apply for another home loan?

You can apply for a loan at any point after filing bankruptcy but it is not likely you will be approved as soon as a year after emerging from bankruptcy. The correct answer to your situation depends on what happened with your former property. Did you lose it in a foreclosure or were you able to short sale the home? If you were able to short sale the property, current HUD guidelines provide that you can successfully obtain a loan in as soon as 2 years after emerging from bankruptcy. If the house was foreclosed, you will have to wait close to 4 years. There may be other lenders out there willing to take a chance but your rate and terms will not be very favorable. In addition to waiting another year or so, you should be actively building your credit to improve your credit score. If you have not already obtained a credit card, do so and use it and pay it off each month. You can also use a credit repair company to challenge any information on your credit report to improve your score. By doing this, you will be in the best position to obtain a loan on good terms.

Should I walk away from my mortgage that is underwater?

2010-03-30T09:30:00.000-07:00

In 2006 I bought a home for $350,000. I got the mortgage as a "primary residence". I also have a second home that I bought in 1999 also as a "primary residence". I live in both houses and I could prove that either one is a primary residence.
The house I bought in 2006 for $350,000 is now only worth about $150,000 according to recent appraisal values in my commmunity. I have a 5 year ARM which is set to adjust in 2011 and I still owe $340,000 to two different mortgages (80/20). My monthly mortgage payment is around $2200 plus a $300 a month HOA fee. Needless to say I really hate dumping $2500 a month into a property that I don't think will ever come back to value and even if it does it will take 10+ years.
I am 40 years old. I make a great living. My annual salary is $145,000. I have about $100K in the bank and around $50K in investments and 401k and I have $40k in equity in my other home. So I can afford this mortgage in my sleep.
My problem is I am losing $2500 a month to this property and I am sick of it. I am considering walking away. I have checked and both of my loans are non-recourse loans so I don't think either bank can touch any of my other assests. So here are my questions. If I walk away:
1. Can either bank on the mortgages that will be foreclosed come after and possibly get my other assets?
2. If the bank successfully reposseses and sells the house will the debit they forgive me qualify under the Debt Forgiveness Act of 2007? The act only covers debt up to 2012. What if the bank cannot sell the property until after 2012 but they foreclose in 2010. Which date is used?
3. Other than my credit are there any other negatives to me doing this?

I feel like just calling the bank(s) today and saying "I don't want this house anymore. You can have it. I will stop making payments today. Good luck."

I am not looking for moral commentary here. Just sound legal and financal advice. I am just trying to decide what to do. Oh and I've tried to rent it. I can't. I tried to rent it as low as $900 and I still could not get anyone. The state I am in is Nevada by the way.

Any serious and mature responses/advice are welcome and appreciated.

Additional Details
I forgot to metion that my other house, the one I bought in 1999 is in Virginia not Nevada.

Normally what are they requirements for a home equity loan?

2010-03-30T07:00:00.000-07:00

Can you borrow up to the full value of your home or is it like for example only 80 percent the value of your home
80% with most lenders how ever some home town small banks will do 85%-90% but that is rare find
I am a mortgage banker in TN

What option would be best to get money from my mortgage?

2010-03-29T20:47:00.000-07:00

My wife and I were going to try and refinance our mortgage as our interest rate is 6.25% and the rate had dropped more than a percent. This was the bank's idea, they actually called us and wanted to set up a meeting. When we got there we went over some ways we could save money, but they wouldn't allow the the refinancing because my wife's credit score was too low.
My friend suggested a home equity loan which is, from what I understand, is a loan based off how much non-interest money you've paid on the loan. As you can tell I'm not 100% on this.
We took out a loan for about $210,000 and the last value of the house was at about $225,000. The catch here is that I've only owned my house for about 3 years so I've only actually paid like $3,000 on the principle. I've never missed a payment, or asked for an extension; and I usually pay more than the amount they ask for.
My plan, if possible, would be to get about $5000-$7000 to pay off some bills, mostly medical. It seems when you go to the hospital these days you get a bill from the hospital, the doctor, the assistant, and pretty much anyone you talk to. The bills aren't that much in total, but each one wants you to pay a certain amount which is annoying. I'm hoping paying these and clearing any credit card debt will raise us enough to get approval for refinancing.
I do plan on talking with the bank, but I like to come here first just to get a better idea of things.
Thanks in advance.

Additional Details
Note: I am on a fixed rate, I will never go to variable. Also we plan on living here the rest of our lives. We both have very good, very steady work in healthcare.
The idea is once these misc. bills that I pay $100 or so a month to are gone, that money could be slapped back on the monthly mortgage over-payment. I usually paid several hundred over but as the number of the number of these little bills increased, it took away from that and I'm pretty much not paying any extra.

5 hours ago
401K is out, as this is my first job that offered it and I have next to nothing. We are a young couple, both mid-20s.

Remember these words - Banks are Sharks - they will devour the weak.
Only refi if you can get the percentage 2 points lower and if you will stay in the house another 5 years at least.
Remember closing costs - big money maker for banks.
And do not dare do anything with a variable rate - banks are still trying to scam the uneducated.

HELOC is a much better alternative if you need money.
Have you consdiered making a loan from your 401K?
You will have to prove hardship so take your medical bills with you to the HR meeting.
You get a nice loan and pay yourself back the interest.
/

they will not give you a heloc or any cash out as you are at 93% of the value and must be less than 80% to take any cash out. Instead of sending any additional to the principal note work on the bills and then pay any revolving debts to way less than 30% of the available.
That will get your scores up enough if the rates drop enough to refinance the note
I am a mortgage banker in TN

You can't get a HELOC. They only go to 80% of the appraised value, and you owe more then that already.

There are a lot of issues here. First, you really need to learn a lot more about money management. A good place to start would be to watch the Suze Orman show and to read some of her books (or other books on money management).

You need to understand the concept of "equity". The "equity" you have in your house is the value of the house (if you were to sell it) minus the amount you owe on the house (mortgages). So, if your house is worth $200,000 and you owe $175,000 on the mortgage, your equity is $25,000.

To refinance, get a 2nd mortgage, etc. in today's financial markets, you will need at least 20% equity in your house. Again, if your house is worth $200,000, you need equity of at least $40,000 to do any form of financing.

Never, never, never use your house to pay off credit card debts. If you default on the credit card debts they CANNOT take your house from you. But, if you default on your mortgage, they will take your home away from you!

Never, never,never use your retirement plans to pay off credit card debt. If you should have to file bankruptcy, your retirement plans are protected - you cannot lose that money. That money is safe.

Use the money you have been paying extra on your mortgage to pay down your credit cards and medical bills. When you have paid off all of your credit cards and medical bills, then your credit score will improve. At that point you can look into refinancing your mortgage.

Last point. A GOOD banker will NOT rip you off. He/she will advise you to do what is in your best interest. Do not hesitate to review all of these issues with your banker. Note: a mortgage broker is in one business and one business only - the business of making money from selling mortgages. A mortgage broker is VERY DIFFERENT from your banker. Do NOT trust a mortgage broker.

Is there any way to port a shared equity loan from one property to another?

2010-03-29T19:45:00.000-07:00

i have participated in a shared equity scheme in whist the government loaned us 45 percent of the home value but being young we rushed into buying and my partner does not get on witht the cage fighter next door and we would like to know if because the scheme was offered thro a housing society if they have an obligation to move us?? any help would be fab!!

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I want Payplan to help me with my debt but have a problem?

2010-03-29T17:44:00.000-07:00

I was made redundant a year ago and since then have gone into an increased debt situation. In my 30s I am finding it impossible to get an interview, never mind a job, despite having a degree and 20 years work experience. I spoke with creditors, particularly MBNA to get them to reduce interest, but they have so far refused to do so, adding £300 per month interest to the account. Loans are 34% and other cards I cannot shift it too, despite the fact I am managing them better.

Problem is - I am doing some cash in hand work to get income in, because I get no help anywhere else. I want to tell Payplan this, but it sounds dodgy does'nt it, and yet I am doing nothing illegal, just 'jobbing' jobs, you know? I am happy to enter a debt managment plan but not an IVa because no debt specialist seems to be able to tell me how much equity I will lose on my home.

All of this could have been avoided with a full time job and common sense from myself. But I just want to sort it now. Do I tell payplan I have some odd jobs, or just declare my main income which is jobseekers allowance (soon to stopped anyway after six months and I have had no help with council tax either!). Thank you

What's the best online site to lower my Mortgage interest?

2010-03-29T15:43:00.000-07:00

It's at 8.5 APR going up faster that warp speed,Chase bank won't help,they told me to get behind 3 months..
..huh? I have never done that,it sounds funny to me. I have always paid early, full amount for last 10 years I have over 80%equity in my home..huh? Why can't they help me,no one in this small town of 3 banks here are doing loans.I am retired and my fixed income and pension is being eaten up by this evil monster called Chase..yes they Chase your $$$$$$ till your dead or broke...proper name for these crooks huh? ...help!! please.

Call a few loan officers, find a mortgage broker or try Lending Tree - tell them you want to refinance the remainder of your balance. Since you haven't missed payments, etc., someone should jump at re-fi'ing.

Don't get scammed.
The feds set up a site called HOPENOW.com
To prevent foreclousures.
They can call your mortgage lender and negotiate with them to prevent foreclosure.

The HOPE NOW Alliance includes a number of counseling organizations, which consists of all HUD intermediaries that
have offices across the United States. The organizations play
a key role in the success of HOPE NOW, providing borrowers
in-depth debt management, credit counseling and overall foreclosure counseling
https://www.hopenow.com/
If anything - they will prevent you from being scammed by one of these restructuring companies.
The gvt is doing everything in their power to prevent foreclosures. Its time for you to take advantage of these programs.

Call the 800 number on the site - don't do this online.

If you have good credit and stable income, then you can find a mortgage company to refinance. Call a local title company (abstract company, closing company) and ask them who is writing mortgages in your area. They can give you some references.

Can you get an equity loan for 50% of the value of the home or for 100%?

2010-03-29T13:40:00.000-07:00

Ok. Lets say you own a home for $100K. But you still owe 50% to a mortgage loan. Can you get an equity loan for 50% of the value of the home or for 100%?? Or can you not get one at all since the home is not fully paid for?

Also, how do they determine the value of the home you own? Is it by the price you paid or by an appraisal or something else.. ? Who determines that?

The value of a home is based on the market value; in other words, what the property is likely to sell for in the market of the day. This is highly varied. So, an appraiser looks at what similar properties have sold fr in the last quarter or so. Naturally, this is not exact, but it gives a good estimate, based on appearance, location, work required and so on.

The price you pay is something around the appraisal amount. It might be higher or lower, but will be close to that amount.

However, there are also rates valuations, or city valuations or government valuations , which are usually intended to calculate how much this asset would earn you, if you rented it out. The rateable value is usually around 5% of the valuation, which may or may not be near the appraised or market valuation.

Now, you go for a loan (or mortgage). The amount of loan you can get depends on the lender, but it is usually based on the market value (a percentage of the market value). Banks are the primary mortgage lender. At the moment, almost world wide, the standard is about 80% of the market value; there's usually "hooks" (extra costs) for higher than this. A couple of years ago, most banks would lend up to 100%, with the standard being around 95%.Some places, because they expected prices to increase were lending over 100%

The equity is the difference between the mortgage amount and the market value. Note, I say market value - the price paid is seldom the market value, so, if you bought a house at $98,000 and the MV was $100,000, you immediately have $2,000 in equity.Normally, you would be expected to also make up the difference between the amount being loaned and the price you paid, so if you borrowed $80,000 and had some $18,000 to put into the price, you'd have a $20,000 equity. To make up this equity, you could have borrowed, say, $15,000 as a second mortgage (or equity loan), which is separate from your main mortgage - banks don't like doing this, but private and small lenders would do so, usually at a higher interest rate.

Now, getting to the original question...

After some time, you'll have paid a large portion of the mortgage and cleared the second mortgage. By that time, the market value may have risen significantly - say from $65,000 to $100,000. So, if you owe $50,000 on the property (the mortgage part), you have $50,000 in equity. You could borrow against this equity, but the interest rate is a major problem, since it is likely to be higher than your mortgage rate. What you do is take out another mortgage and clear the old mortgage. So, you might take out a complete mortgage for $80,000. You still have $20,000 in equity, and you're still only at the 80% of the market value.

One thing to note: although the lender has a lien against the property, YOU still are the owners of record, so you can re-finance your mortgage, without taking an equity loan - talk to your mortgagee (the people lending the money) about doing this before you start looking for an equity loan!

This, by the way, is how many millionaires work things to keep down their income tax - the $30,000 extra loan is NOT income, but you have it to spend!

Hope this helps....

What would a financial planner/advisor suggest is the best avenue to explore?

2010-03-10T13:36:00.000-08:00

Line of credit from our credit union, personal loan, or home equity loan to cover a few months of expenses while on a maternity leave with little current ability to save enough now to cover the bills for the time off work.

Additional Details
we have worked a budget and can save some but near what we need, about half, I was planning on only 8 weeks off, my husband just started a new job in Jan after 6 months without one so playing catch up is what we have been doing which makes it hard to save when already behind

Personal loans do not exist any more.
Only if you have large assetts with them and can give collateral.

Line of credit would be like a credit card - it would be considered revolving credit.
This ruins credit - just like credit card balances do.

Do the home equity. But keep in mind you are risking your home if you can not pay this loan back.

I'm a certified money management specialist and my first question to you is why you have no opportunity to save now to cover your future bills. Using debt to cover essential living expenses is a huge no-no.

Among the three terrible choices you list, however, I would choose the personal loan, which is likely offered by your credit union. Typically, these are not revolving loans, so you are borrowing a fixed amount that you repay over a fixed time period. Because of these terms, you will have to budget your expenses to make sure the amount you borrow is enough, and budgeting is a good discipline to develop. And, personal loans are unsecured, meaning your home or other collateral is not at risk if you cannot repay the loan for any reason.

In the meantime, track all your spending and review at least weekly to see where you can reduce spending in order to save money for when you're on maternity leave. And, find ways to increase your income before you give birth, so that you can save more. Maybe you or your husband/partner can work a few hours overtime and take a second job in order to save money. And, look around your house for things you can put up for sale on Craigslist for extra money. You'll need the extra room for the baby's stuff anyway.

Finally, if you truly have to resort to borrowing money to make ends meet while you're on maternity leave, you'll need to limit your maternity leave to 6-12 weeks, like many families do in your situation. I cannot emphasize enough that your plan to live on borrowed money is a bad plan. Your expenses are going to be much higher once you have a child, and I doubt you're going to be able to pay back the borrowed money. That is a recipe for disaster.

What is the process of getting a home equity loan? Risks? Best reasons to get one?

2010-03-10T11:33:00.000-08:00

From your other question you posted, you mention a relationship with a credit union, so the best place to start would be with your existing credit union. But first, go to www.annualcreditreport.com and check your credit history for free, to determine if there are any errors on your credit report with any of the three major credit bureaus: Equifax, Experian or TransUnion.

Next, you complete an application with your credit union or other lender. If you anticipate your income will be lower in the next few months, you must disclose this or the application could be considered fraudulent. You mention in your other question you plan to use the proceeds to cover essential living expenses while on maternity leave. If you do not have the capacity to repay the loan, you probably will be turned down.

However, let's assume for now that is not the case. After taking the application, the credit union will check your credit history and score and order an appraisal of your home's value. Sometimes, credit unions waive those fees, but it's possible they will charge you an application fee, credit report fee, and appraisal fee. These could add up to several hundred dollars, and must be paid even if you're denied the loan.

To qualify for the home equity loan or line of credit, your total loan to value ratio (including the new loan) typically cannot be higher than 90%, and some lenders will not exceed 80% loan-to-value. So, if your home is worth $100,000, the combined mortgage amounts (first mortgage plus home equity loan/line) cannot be more than $80,000 for 80% loan-to-value or $90,000 for a 90% loan-to-value ratio.

Also, your total loan payments, including credit card payments, mortgage payments, home equity loan/line payments and all other loan payments typically cannot exceed 40% of your gross monthly income. So, if your total monthly income is $2,000, for example, your total monthly loan payments cannot be more than $800 for all loan payments combined.

The risks are that you could lose your home if you cannot pay back the loan. And, if the lender has to foreclose on you to get their money back, they can seek a deficiency judgment for up to five years after the foreclosure sale and they then have up to 20 years to collect in most states.

In short, you could place the next 20 years of your life at financial risk. Knowing your situation, I would recommend against this plan.

Only reason I would get one is if you were planning on renovating the kitchen, bathroom or some other part of the house that would help with its value.

Don't get one just because you have equity and want to buy a car, go on vacation or pay off unsecured credit card debt.

In Texas can I get an equity loan on my primary residence, if I have an equity loan on my rental property?

2010-03-10T09:30:00.000-08:00

As I understand it in the state of Texas home owners are only allowed one home equity loan. I have two separate properties, one is my primary residence and one a rental property....some years ago I had my rental property refinanced and in the process received a small amount of the equity. I am now told that I cannot get an equity loan on my primary residence because of the situation with my rental property.

If you refinanced the entire loan for a higher loan amount, in order to use some of your equity for other purposes, than you did not get an equity loan on your property. An equity loan is a separate loan (like a second mortgage) that uses the equity for collateral. Therefor, you are free to reach your goal if you can meet the credit requirements. Good Luck

I also suggest you check that Texas law as it likely limits the number of loans per property, not per person.

Many homeowners apply for home equity loan for a variety of reasons. While some want to utilize the money to get rid of unmanageable debt, others want to add value to their existing home by restructuring and repairing. Whatever may be the reason, the home equity loan provides a homeowner the quickest and easiest means get extra cash to meet unavoidable expenses.In many cases, lenders are too willing to offer you home equity loan for the simple reason that the loan is secured by your property.

The market is flooded with so many loan products from lending institutions that offer you excellent terms and conditions and leave no stone unturned to publicize their schemes on televisions and print All this may leave you feeling baffled and confused about which home equity loan product to pick. Before choosing which lending institution to go with, make sure to do some research. Shop online to obtain home equity loan quotes from different financial companies.

That does not make sense what you are being told. Logic would assume that you can only have one equity loan PER PROPERTY, not per person. I would ask a few different lenders in your state about that

Can a fixed home equity loan drop my credit score?

2010-03-09T17:21:00.000-08:00

I requested $10,000 dollar home equity loan to roof my house.
My FICO score was 780 until approx March when I applied for a home equity loan at a fixed rate. Now my FICO score is 740. What happened? I am never late on any payments. I pay over the minimum amount do on my card every time.

There are a number of factors that go in to the scoring model and on time payments is a major one, but not the only one.

Having a new account can be a risk factor all by itself. Since it is a closed end loan, the balance is near the limit and it has probably only just started reporting.

I wouldn't freak out or anything. A 740 is still pretty darn good. My scores boucne around with little rhyme or reason.

Sometimes opening a new account can have a positive affect. I went to Home Depot to buy $300 worth of windows and walked out with 20K in new credit. Having the additional available credit had a very favorable affect on my scores. I don't have to use the credit if I don't need to.

Also, if you have a balance on a credit card that is more than 50% of the limit, you may want to pay it down or transfer some of the balance to another account so that none of your balances are over 50% of the limits.

Again, a 740 is a great score so you really don't need to be worried about anything and it will probably go back up in a month or two once the new loan is a little more seasoned.

What must be a debt to income ratio to qualify for home equity loan? ?

2010-03-09T16:21:00.000-08:00

What is a debt to income ratio to qualify for Home Equity Loan / Home Equity line of credit.

What if I go to mortgage brokers who have access to "B" type lenders at higher rates?

Thanks guys!

Home Equity Loan and Home Equity Line of Credit are separate financing terms. Please remember, you don't want Home Equity Line of Credit but want Home Equity Loan.
Debt to income ratio of 1 to 10 is the minimum requirements in most cases.

Can you use a home equity loan for something other than a home?

2010-03-09T15:21:00.000-08:00

I need a loan & some people had suggested I look into this because of the lower interest rates, instead of using high interest (not to mention EVIL) credit cards. But it's not for a home & I don't have enough collateral for the amount I'd like to borrow. I have a great credit score over 700, but also have student loans & other credit card debt, which I am very good at paying at, & make enough to make the payments comfortably. If I can't get a home equity loan, what kind of loan can I get, & at what amount & rate should I expect? I've looked around online, but all the bank terminology does nothing but confuse me, so anyone who could explain this a little more "user friendly" would be helpful!

Additional Details
It's not for home improvement. Actually, it's basically a business expense, but I'm not sure if a bank would consider this a business type of loan.

3 years ago
Oh, & one *minor* detail... I don't own a home :(

You can use the equity loan for anything. They will literally give you a check book and debit card in many cases. You are basically borrowing against the equity you have in your home. The interest you pay on this loan will be tax deductable and that is also what makes it more attractive than a credit card or personal loan. Be very carefull! Turning your home in to an ATM machine is what has gotten many people in trouble and is what has caused the "credit crisis" that we are seeing right now. The stock market has plunged because of this and the negative effects on the economy are still being played out. I would only do this if it is necessary or if the loan will add value to your home. You may find yourself in a position where your home is worth less than your first mortgage and equity loan which means you will not be able to sell your home if you have a financial hardship and you may be forced to forclose like all those people out there...

attached to my current residence to a new residence Can I transfer an existing home equity loan

2010-03-09T13:21:00.000-08:00

I took a home equity loan out a while ago and in this market, my equity has dropped considerably.

If I were to sell my home, I could pay off my 1st mortgage, but I'd still have a balance of about $30,000-$50,000 on the 2nd mortgage.

Do lenders transfer 2nd mortgages to a new home?

simple answer: no. especially in this financial climate. you would have to satisfy all liens on the first home when you sold it, which includes the 2nd mortgage. otherwise, the title is not clear and the deal will not go through.

Can you get a home equity loan for a home that needs rehab?

2010-03-09T11:21:00.000-08:00

The home is paid for and no liens are against it. The home would not pass inspection at this time. I need 20K to make it livable again. Someone told me that the bank would lend the
the money on the future equity of the property if I had a licensed contractor do the work. Can anyone clarify this type of loan. Thanks in advance.

If you have a long standing relationship with bank they may loan you money based upon future value.

You can probably about 70% of what home will appraise for in its current condition.

What is better, home equity loan or line of credit on home I own outright?

2010-03-08T19:14:00.000-08:00

I just finished building my house and I have no mortgage or anything as I had enough cash to buy the land and build outright. But, I have no money left to landscape and have some medical bills I would like to pay off. Can I get a home equity loan or line of credit on my house? Which is better?

A mortgage would be your best bet when it comes to a lower interest rate.
Most banks have prepenalty payments on most of the equity type of loans. However the line of credits generally will not.

What is the difference between a mortgage and a home equity loan?

2010-03-08T17:14:00.000-08:00

I own a home that is paid off but would like to take out a loan to fund some home improvements as well as help my parents pay off their home equity loan. Given this scenario can I take out a mortgage since mortgage rates are lower or am I limited to a home equity loan. I'm not interested in HELOC's.

Just the packaging of the financial product. Once upon a time Home Equity Loans were called 2nd mortgages. The real difference is risk factor for the bank. Typically Home Equity Loans are 2nd to be paid in the event of a foreclosure or other bad financial happening - leaving them exposed if there wans't any many for them at the end of the day. So they charge you a bit more interest to compensate for this additional risk. Since you would be leveraging your house for the 1st time again, and the holder of this new "note" would be the only creditor and thus 1st in line for payment in the event of default, lenders may negotiate a little and get you a better rate.

Its probably something you should take to a local bank or branch where you can work with a real person. I wouldn't advise trying to work this deal through an online lender.

Can you get a home equity loan while in a debt management program?

2010-03-08T15:14:00.000-08:00

I just entered a debt management program to get control over my credit card debt. I have done this seperate from my husband. Only my credit is affected. Just after I entered into the program, my husband started showing interest in a home equity loan to consolidate our debt (his credit card and vehicles) and do home improvements. In our marriage I am responsible for my own debts, but I am wondering if being in the DMP will affect the chances of us obtaining the Home eq. Loan. Serious educated replies will be very much appreciated.

he can open equity line of credit only in his name and this way your credit report will not affect his change to obtain the loan or you have to get this loan fast- before your debt consolidation program will show on your report. most lenders treat debt consolidation program like bankruptcy chapter 13, so it is mean- they don't like see this very much.

Is the interest on $200k home equity loan used to buy a new primary residence deductible on Sch A.?

2010-03-08T14:16:00.000-08:00

We are planning to rent our existing home and pull $200k equity from that home to buy a new primary residence. I am not clear about the $100k deductible limit on the home-equity loans. Can I deduct it on Sch A or against the rental income and is the deductible equity loan capped at $100k. We file married jointly and our AGI is $160k.

The loan is on the rental property, stupid move, as now you have full capital gains tax, but that is not your question. The interest is not applied to your primary home, but to your rental.

Can you change a home equity loan to a personal loan?

2010-03-08T12:14:00.000-08:00

My brother-in-law took out a home equity loan and he went to refinance his house and for whatever reason the house did not appraise for what it needed to partly because of the home equity loan that he already had. He was told to pay off his home equity loan and come back to refinance his house. Is there anyway that he can change his home equity loan to a personal loan? Or would that even help? please help. thanks.

Sure, but an unsecured la will have a rate of 2% higher attached to it. Based on what you're saying the brother-in-law has enough debt already.

What exactly is a home equity loan and can I still get one with bad credit?

2010-03-07T17:09:00.000-08:00

I do own my own home but am still paying off my mortgage. My son needs more money for college and we've tapped out on student loans and my credit cards are all maxed. I was wondering what I could do and thought that a home equity loan with bad credit might be an option. I don't know if it's a good idea though.

When you take out a home equity loan, you are basically borrowing money and putting up your house's equity as collateral. It's like any other loan but this kind states that the lender can take your home, in very plain terms, should you default on your loan.

When you're looking for home equity loans, bad credit shouldn't stop lenders from giving one to you. It doesn't sound like you're in too good financial standings so make sure that you will be able to pay back the loan because losing your home would not make your situation any better. I sincerely recommend you spend at least a day budgeting out the next few years of your life in preparation for this new loan. On the bright side, it will be a much better lending rate than other high interest rates in which only your credit is offered as collateral, but the stakes are higher for failing to pay.

I do think that your sons college education is a great reason to take out a loan though. If you have to make some sacrifices to make it happen and pay the loan back, I think that you probably should. Get your kid to help pay the loan back after he's graduated and making money; the odds are that the loan will still be around then.

How do you pull equity out of your home with taking a how equity loan out?

2010-03-07T16:09:00.000-08:00

First of all how do you build equity in a home? How do you report the equity to your lender? And lastly how to you pull the equity that you’ve built up out of the home with out taking a home equity loan out? Thank you in advance for any help that you can give me.

To build equity in your home you must either pay down the mortgage or have the market value go up. Your lender will decide if you have equity in your home. They decide how much your home is worth then they deduct how much you owe the difference is the amount of equity that you have.

Lastly, I hate to tell you, their are only three ways to get equity out of a home.
1) Get an equity line of credit.
2) Refinance, and pull some money out.
3) Sell the property.

How does home equity loan qualification works if you’re self employed?

2010-03-07T12:09:00.000-08:00

I am self employed and want to get qualified for home equity loan. What are the qualifications lenders look at. What do I need to show them and have?

Been trying to find out on the net, but can find any good resources. If you know any and dont mind sharing would be awesome.

You will most likely be required to show two years of IRS filings to prove income. Everything else is basically the same as applying for a first mortgage - house appraisal, savings/checking account statements, credit reports and scores, etc.

How does a home equity loan work?

2010-03-07T11:07:00.000-08:00

I need to know all the details and if it is a good choice. I have payed off my vehicle and credit cards and have none, but I have alot of student loan debt. Our dilema are the student loans. And paying them. I have heard about home equity loans and heard about being tax deductible. How do they work? Do they look bad on your credit? How much can you borrow ? Does it add to the years to pay off your house? We only have eleven years left to pay as it is right now. Just wondering what is a good option. I even thought that after I graduate and am working that my pay checks can go all to my student loans. I am just looking for some good ideas without having to stress out about debt and bills and such. We are trying to pay our bills off and so far have done good. But those student loans are looming in the background.

I'm not sure why you would want to get a home equity loan to pay off student loans. Typically interest rates on student loans are much lower than home equity loans. It is true that you can use interest paid on a home equity loan as a tax deduction, but you can also use interest paid on student loans as a deduction.

What is a home equity loan and what is the process to applying/being accepted for one?

2010-03-07T10:06:00.000-08:00

I paid roughly $90,000 for my home. It was a TLC home and I've fixed it up in the past 9 years dramatically. New roof, new walls, siding, porch, heating system, well etc. My home and property was valued at $275,000 last year. Does equity play a part in this. Am I eligable for an equity loan? I don't want to go into it without fully understanding what it is--I also don't want to go to my banker with stupid questions....Another thing. Im looking to build my own home--hence the loan inquisition.

Let's say you owe around $70K for your house & it now appraises for $275K, you can "cash out" some of your equity.

Equity is the difference between what you owe & what the home is worth or appraised at now.

There are many programs for "cashing out" equity. You could get up to 100% of your equity out. I do not suggest this &your interest rate on your equity loan will be a lot higher.

You could cash out say 80%, based on my #'s above that would total about $164,000.

& you could use this money towards a down payment & for construction costs with the home you're interested in building.

You want to make sure you're using your money with the best programs. Talk to a lender who will show you the pros & cons. Don't use all of your liquid cash to sink into building a home, leverage, leverage, leverage & talk to the lender about a "Construction to Perm" loan. (Construction to finished product)

Can i get a home equity loan on a home i just bought that i was gifted equity in it?

2010-03-06T17:04:00.000-08:00

we are buying a home from my mother. she is gifting us the equity in the home. can we get an equity loan at the same time as we get our home loan or do we have to wait and how long?

The short answer to your question is yes - you should be able to get a home equity loan as long as you do not mortgage more than the appraised value of your home. There are are factors that determine your ability to get a home equity loan (credit, income, financial history, etc.), so I recommend talking to a trusted mortgage professional. Get referrals from friends and family for a mortgage company they've worked with. Once you have a full analysis done, you can get a good idea of what you'll qualify for.

However, be careful about taking on more debt than you can handle. You may want to get the house, see how the bills work out and how many expenses you have and then look into getting a loan. If you know for sure that you'll have no problems handling the debt and you need the money, you should be able to get the loan.

Rules for home equity loans at the time of purchase have changed recently because of problems with foreclosures and subprime loan defaults. Your mortgage professional will go over all of this with you.

Good luck with your new home.

Can I pay off a home equity loan with my credit card to lower interest rates and how do I do it?

2010-03-06T15:02:00.000-08:00

I have an offer from a credit card co with a low interest rate, 2% lower than my home equity loan interest. I would love to get rid of the horrible 8.75% home loan interest on $12,000. What to do?

How long is that credit card rate good for? Bet it is less than a year. What are you going to do at the end of that time? Trouble ahead!!!!!!!!!!

Why don't you look for a better home equity loan rate? In fact, you may be able to get the current lender to lower the rate with no cost. Contact them, tell them you are going to refinance the loan but want to give them the opportunity to keep your business at a lower rate.

I've done this twice before so it can happen.

Home equity loan or refinance existing home loan?

2010-03-06T14:01:00.000-08:00

My husband and I are looking into a home equity loan or refinancing our existing home loan. We own a doublewide on 4 1/2 acres that has been converted to real property.
Which is better? A home equity loan, or refinance our existing loan? Where do we start? What should we know? And what we should be careful of?

If you have a great rate on the first then leave it. It also depends on the size of your HEloan. Ask your broker or bank to compare the two and see what's in your best interest. A HELOC is very easy depending on your credit. If the credit is good then you should expect a no closing cost loan at about 5%

Can my wife take a home equity loan for personal use on a jointly owned home without my consent?

2010-03-06T13:59:00.000-08:00

My wife earns more money than me. The home loan is in her name but the home title is in our joint names. Can she take a home equity loan without my consent?

If your home deed is in both your names, then no, she cannot take out a loan in only her name without your consent. She can only take it out in only her name WITH your consent legally. If your mortgage company has done this.. then they did something incredibly illegal. You need to call the mortgage company on this.. Best Wishes!

Is it better to get a home loan thru home equity line loan?

2010-03-06T12:57:00.000-08:00

I am thinking of refinancing and Chase Bank is ready to give a 10 yr 170k home equity loan. Is this a better than my existing home mortgage loan. Is there anyone who has suggestions for this.

Typically home equity loans have variable interest rates ... the very same type of rate programs that a causing the havoc in the current banking and real estate market. If your rate is fixed for the term, you will have predictable payment streams that you can budget for. If the rates are variable, and the underlying market rate goes up again, you may be asking for trouble. Try to get low fixed rates that you can pay off as quickly as possible. Having your largest asset at risk in case you experience job loss or other financial loss really sucks ... believe me, I speak from experience.

Fixed Home Equity Loans

2010-03-04T01:33:00.001-08:00

A house with a fixed home equity loans can help you manage your payments and make it easier to budget. The best time to take advantage of fixed rate home equity loan if the interest rate is slightly lower. You can change a home equity loan fixed rate home equity loans and take advantage of the fact that interest rates will be higher.

A fixed home equity loans and variable interest rate home loans on their own change from time to time. This means that if interest rates rise and the equity in your home loan repayment.

The advantage of home equity loans is that if the price drops, if your payment, but unlike fixed Home Equity loans rate, very difficult to budget for payments which fluctuate. But it fails; you can take advantage of changing market conditions.

If the current high levels, it is preferable to choose a variable interest rate loans and then when prices fall, try to enter the fixed rate Home Equity loans.

It is important to distinguish between fixed and variable loans to know. A fixed home loan benefit is that you set a monthly payment that has not changed. If you choose an adjustable rate loan, your payment may change depending on many factors, one is economic.
Permanent loan can be more budget power with less stress wondering whether or not your payment will be different next Monday typically, the best choice for low-interest loans, small down payment and long-term recovery.

A home equity loan with fixed interest rates are a good way to free up extra money that you can use for various purposes including debt consolidation, wealth creation through a good sound investment capital, education, habitat improvement, etc.

What is the interest rate on the home equity loan?

2010-02-18T12:24:00.000-08:00

Variable lending rate to pay, so to check with various lenders for the lowest level. Comparing the annual percentage rate (APR), the cost of borrowing per year shows. Be aware that the advertised April to home equity credit lines is based on self-interest. For a true comparison of credit costs, compare other costs, such as points and closing costs that will reduce the cost of your home equity loan. This is especially important if you compare a home equity line of credit with the traditional delivery (or both) a mortgage that covers the total cost of credit in April.

Also asked about the types of flowers for the home equity plan. Most home equity credit lines have variable interest rates. The price variables may offer monthly payments lower at first, but for the rest of the settlement payments period may change and probably higher. Fixed fee, if any, might be slightly higher than the variable rate, but prices continue to ensure stable monthly payments for life credit.

If you prefer a floating rate into consideration to examine and compare the condition. Check your cap regularly, limit the interest rate changes at once. Also check the lifetime cap, which is the limit of interest rate changes during that period. Ask the lender which index is used and how much and how often they can be changed. Home (as interest) which is used by lenders to determine how much higher or lower interest rates. Also check the margin, the amount included in the index that determines the interest is calculated. Also ask if you can convert your variable values fixed loan at a later date.

Sometimes, lenders offer a temporary discount rate - which is very low and lasts only for the stage introduction, such as six months. During this period, your monthly payments lower. After your introductory rate ends, however, raised (and payment) to the actual market (index) plus a margin. So you ask if the number is "negligible", and if so, what the sentence is at the end of discount period should be fixed and how much your payment may be present.

How much money can you borrow on a home equity credit line?

2010-02-18T12:21:00.000-08:00

Depending on your income credit, loans, etc. and the amount of your debt, you can home equity lenders assess credit up to 85% from home for less the amount that you still owe the first mortgage. Ask the lender about the length of home equity loans, there is a minimum withdrawal requirement when you open your account, and whether to open a minimum or maximum withdrawal requirements after your account. Ask how you can access your credit line - with checks, credit cards, or both.

Also know if your home equity plans set a specific time to draw - with a time limit - if you make recordings from your account. Ends after the draw, you can renew your credit card. If you're not, you will not be allowed to borrow additional money. In some plans, you can your entire balance. In other cases, you can repay it over time balance.

Is a home equity credit line for you?

2010-02-18T12:16:00.000-08:00

If you borrow money, home equity lines may be a useful source of credit. At least initially, they allow you to send large amounts of money with relatively low interest rates. And they can provide some tax benefits to the type of loan. (Ask your tax advisor for details.)

At the same time, requiring mortgage credit line that you use your home as collateral for loans. This can make at home in danger if you're late or not your monthly payment. They are ready to run with the grand final (balloon) payment may be even more money to pay these debts, they can rent or your house in danger, unless you qualify for refinancing. And if you sell your home, most plans you pay your credit card now. Also, because home equity loans give you relatively easy access to the money, maybe you can borrow money more freely.

Remember, there are other ways to borrow money from credit cards. For example, you want to explore the delivery of a second mortgage. Although these plans also place additional funds into the house, usually money second mortgage is a loan in a lump sum, but in many improvements of the checks on the account. Second mortgages usually pay a fixed interest rate and fixed.

You also can borrow from credit lines do not explore in your home as collateral. This is using your credit card or unsecured credit lines available that allow you to write a check if you need money, too. In addition, loans for certain goods such as cars or tuition.

Home Equity Credit Lines

2010-02-18T12:15:00.001-08:00

With a line of credit loans against the equity in your home is a popular source of consumer credit. And lenders home equity lines of different ways.

You will find most loans come with variable interest rates, some introductory sentences, and some come with a fixed price. Did you find the best of loan repayment, the other is a certain fixed costs and operational costs such as annual fees to cover. You can find loans with large balloon payments at the end of the loan, sometimes without the balloon, but with monthly payments higher.

No one loan is right for every home owner. The challenge will be applied to different lenders, compare options and select the home equity line of credit that best suits your needs.

Make sure that the home equity carefully before signing the contract. Do not ask about your financial situation. After you do this, click on the following questions and list at the end of this booklet.

find the best home equity loans for you

2010-02-05T11:48:00.000-08:00

This loan is beneficial for the main cost homeowner’s significant capital in their homes and equity, the money directly to them, not to shore. 100% of the actual value of the house will be offered by some banks. Lenders try to resolve the mortgage on your house quickly and are caused by the fact that the loans are guaranteed in case the property in the event of default or other fraud.

There is a weak point of these loans to borrowers than if the borrower wants to sell / her and the money comes from the sales process. For a quick loan funding and make sure the title is the only reliable research practices. There is a reasonable fee required paperwork and documentation.

Types of Home Equity Loan

People can find two kinds of home equity loan and second loan can easily be used via the Internet or by visiting the headquarters of the loan in your area.
Fast Home Equity Loan

For a quick home equity loan borrowers are required to sign a contract later in the gross income the amount of capital that can be used to buy large purchases and pay the expenses of the company.

People who use most of this type of loan for debt consolidation, buying a new car, home repairs continue, so the benefits continue to pay the same rate forever. Borrowers can use the time for a mortgage loan up to ten years and 30 years if the borrower uses the loan over the Internet that no information about payments and charges, and borrowers can easily calculate invoices and payments supplementary insurance taxes, etc.
Credit lines available that allow both the funding necessary to help based on "what" money "and could use that money for housing, health, small businesses, etc. A number of issues relating to interest rates improve.

Flexible Home Equity Loans
This second type of loan is best for the type of borrowers are separated pending a need for this money. Because the flexible monthly balance of payments is not the same, but as the owner of this house is not a serious problem, so this type of loan is the best option.
Both types of mortgage loans are very useful for the owners, because they provide extra cash for homeowners with the choice of the owner.