Home Equity Loans – second mortgage

Tim Gorman asked:




Online home equity loans have opened the flood gates both for the lender and the borrower by eliminating all the intermediaries between them. As a result, the online lender is able to offer much cheaper rates than other traditionally operating lenders who have huge office setups and need to meet fixed overheads. Home equity loans are clean loans which provide you with cash to meet your needs. What you use the cash for is none of the lender’s concern.

Smart Home Equity is the online authority for home equity loans. Smart shopping can yield a very good home equity loan refinancing deal due to the competitive nature of the market and the current, low interest trends. Compare several companies for the best deal.

Refinancing, in this case, might result in raising your monthly payments as well as your interest charges instead of lowering those charges. Refinancing your mortgage with cash out option may result in further discounts. The best information about refinancing a mortgage online should be obtained prior to taking this course of action.

Refinancing you current mortgage has never been easier. If you thought refinancing meant getting buried under mountains of paperwork, think again!

Refinance options with online home equity loans are used to pay a previous loan amount or to cover other unexpected expenses that have come up. A refinanced loan is secured by the same property from the original loan.

Mortgage companies and online lenders are now offering home loans for those who have a bankruptcy on their credit report. Some lenders will even approve your loan as soon as one day after your bankruptcy has been discharged. Mortgage life insurance is private insurance which is purchased to pay off the mortgage on your home in the event of your death. This mortgage insurance is normally due up front at closing.

As property prices have risen quite dramatically over recent years, many homeowners have found themselves sitting on quite a nest egg, giving them the leverage to borrow money against the property if the need arises. Deciding factors abound and can include everything from the value of the houses surrounding yours, to recent propositions in your state.

It’s tempting to check out the burgeoning world of online appraisal sites and calculators to see what your neighbors’ homes are selling for and what, perchance, that new bathroom has done to your home’s value. If you have lived in your home over 12 months, a recent tax assessment, simple drive-by appraisal, or automated value model (avm) can be used to judge the amount of online home equity loans. An avm is a computer generated assessment of your home’s value which is based on recent home sales of comparable houses in your neighborhood.

Melvin

lilmisssassy_48125 asked:


I already own a home but am looking into buying another just for the property. It’s very cheap but needs lot of repairs and would just tear it down. I am also in quite a bit of credit card debt. Is there anyway to get a second mortgage and wrap up my debt in the equity of that property?
When the time is right I plan on selling my current home and building on this property. I just would like to snatch it up cuz it’s about 60% cheaper than any other property in my area.

DONNY

ketc9 asked:

From KETC’s Facing the Mortgage Crisis special on July 15, 2008: Is this a bad time to be taking out an equity line of credit? Yes, it is not a good idea to borrow against your house. There are various circumstances where you might want to get a small loan to do home repairs, but with the current economic situation, be cautious before doing so.

Catherine

ehowfinance asked:

The home equity loan process generally begins with an appraisal of the house, followed by the underwriting process, the application and an assessment of assets. Receive a new mortgage coupon and any checks at the closing table of a home equity loan meeting withinformation from a registered financial consultant in this free video on home equity loans. Expert: Patrick Munro Contact: www.northstarnavigator.com Bio: Patrick Munro is a registered financial consultant (RFC) with outstanding sales volume of progressive financial products and solutions to the senior and boomer marketplace. Filmmaker: Reel Media LLC

Samuel

Dedicate459144 asked:

For loans secured by mortgages, such as residential housing loans, and lending practices or requirements Provides information about mortgages, mortgage rates, home refinancing, home equity loans and many other mortgage related topics. Try our free mortgage We maintain an extensive database…

Martha

eHow asked:

Home equity rates may vary from bank-to-bank, so doing research to find the lowest rate can mean saving thousands of dollars. Understand how to compare and determine the best home equity rates withtips and advice from an experienced financial adviser in this free video. Expert: Patrick Munro Contact: www.northstarnavigator.com Bio: Patrick Munro is a registered financial consultant (RFC) with outstanding sales volume of progressive financial products and solutions to the senior and boomer marketplace. Filmmaker: Reel Media LLC

Paul

carpediem104 asked:


When I bought my condo, it came with a home equity line of credit exclusively for home repairs and upgrades. Come next March, the remaining balance is rolled into my mortgage and the line of credit goes away. My plan is to live here for another 3-5 years and I’m wondering which upgrade is the better investment. I know neither will recoup it’s full cost and the reason I ask is that I have only enough available to do one or the other:

1. The living room and dining room have carpet and the kitchen has linoleum flooring. Our thoughts are to replace all of this with hardwood. It doesn’t have to be top of the line and we’re open to the nail down kind or the snap together kind.

2. The bathroom is separated into two parts: the first has the toilet and tub/shower with linoleum flooring and the other part has the counter, sink, and mirror with carpet. We’d like to move the carpet back to the hall and replace all the flooring with ceramic or porcelain tile. In addition, replace the cheap shower kit with actual tile on the shower walls. We’d also like to replace the current sink/counter with a nicer material and install a second sink.

CURT

Bruce Owens asked:


Self-employed consumers looking to access the equity that has built up in their homes – whether for investment purposes, to access capital for their small business enterprise, or merely to consolidate debts at a lower interest rate- quickly run into the sometime perplexing requirements to qualify for a stated income home equity loan. Unlike borrowers who are otherwise employed and can provide lenders with pay slips that readily set out their income stream, small business owners, entrepeneurs and commission-based salespersons face a slightly more daunting process in qualifying for a second mortgage or secured line of credit that will free up their home equity.

Stated income home equity loans are structured to assist self-employed consumers and business owners overcome the difficulty of meeting the regular mortgage approval criteria that banks, financial institutions and mortgage lenders look to. Perhaps thekey for the self-employed individual seeking to qualify for a home equity loan or secured line of credit process is the self-employed business persons debt service ratio.

Whereas consumers with a fixed employment income have relatively few business write-offs, the self-employed have a myriad of legitimate tax write-offs that affect their income stream. Lenders accordingly want to look at the revenue stream that the self-employed have to service their existing debt load. Mortgage lenders each have a set debt service ratio – a threshold that the ratio of monthly income to expenses (including mortgage and loan payments) – which cannot be exceeded in order to qualify for a stated income loan. Proving one’s income stream and qualifiying a stated income mortgage under a lender’s DSR is a more complicated process than qualifying for a regular mortgage but need not be prohibitive.

Additionally, even consumers with a fixed salary or other income stream may have additional business income that could qualify them for either additional home equity funds or better lending rates than those they would qualify for based solely on their income from employment. In today’s economy it is more and more common for borrowers to have multiple income streams. Working with a mortgage broker can help a borrower leverage all his or her income streams in seeking home equity financing or a secured line of credit.

The simplest method for accessing a stated income home equity loan is to work with a qualified mortgage broker who will be able to access varied lenders and pools of capital that may not otherwise be available to the individual consumer. A mortgage broker can help a self-employed small business owner, entrepreneur or commissioned salesperson access:

- 2nd mortgage financing worth up to 100% of home equity with documented income

- 2nd mortgage financing or a secured line of credit worth up to 85% of home equity without proof of income necessarily being required; and

- Equity Based / Private second mortgage financing up to 90% of available home equity.

When an individual who is self-employed applies for credit under traditional, full documentation guidelines, because their reported income and DSR is great enough to qualify under normal lending guidelines, they are often asked for documentation that shows their income has consistently been at this level for a number of years. Working with a knowledgeable mortgage broker in securing a stated income home equity is particularly helpful for self-employed individuals whose documented income steam has a history of variability, and is often more productive than attempting to clear the separate lending thresholds of institutional lenders on an individual basis. An experienced broker, who is after all self-employed in most instances, can help a person who is self-employed clear lending barriers and financial thresholds that might otherwise seem insurmountable in trying to secure a home equity loan based on stated income.



DAVE

Epreneur asked:


I was reading in www.hopenowmortgages.com details about the new program that will help us to avoid Foreclosures and I found very interesting things ( I will list just a couple but you can visit them to read more)
* The bank will have to forgive you the late payments, penalties and second mortgages you may have
* The bank have to give you a new loan for the ACTUAL appraised value
* If you refinance with the Hope for Homeowner Program you have to share the equity with the FHA when you sell your home.
* You cannot get a Home Equity Line of Credit or any other aditional loan using your house
* You need to have 10% equity to apply for the loan
It sounds very interesting… go tho Hope Now Mortgages dot com

ANDERSON

Alan Lim asked:


You may have heard the term home equity loan but are not really sure whether this type of loan will work for you. The first step is to understand the concept of home equity. Equity is the difference between the current appraised value of your home and the amount that is owed on the home. So, for example; if your home has recently appraised for $200,000 and you only owe $100,000 on it then you have $100,000 in equity in your home.

Many homeowners like the idea of taking out a home equity loan when they need to fund a home improvement or make some other type of purchase because they can often obtain the money they need at an interest rate that is lower than charging it to a credit card. In addition, there are also possible tax advantages as well.

When you take out a home equity loan you are taking out a second mortgage that gives you the ability to convert the equity in your home into cash. You can then spend that cash on any number of expenses including college education, medical expenses, debt consolidation, home improvements and much more.

You will generally need to decide whether you wish to take out a home equity loan or a home equity line of credit. These two terms are different. A home equity loan provides you with a one time lump sum of money that you will then pay off over a specified period of time at an interest rate that is fixed. It is much like your first mortgage.

A home equity line of credit, commonly referred to as HELOC, is more similar to a credit card. Instead of receiving the sum of money at one time, you will then have the ability to borrow up to a specified amount of money for the duration of the loan. That time period is set by the lender. As you pay off the principal amount of the loan, you can once again use the credit. In this regard, a HELOC is much like a credit card.

There are advantages to both a home equity loan as well as a HELOC. Many homeowners prefer the flexibility of a line of credit over a fixed rate equity loan. If they do not need all of the money up front, they are able to maintain control over how much money they draw down from the loan. The disadvantage to a line of credit is that it frequently features an interest rate that is variable. This means that the payment amounts will vary based on the prevailing interest rate.

In most cases, the draw period for a line of credit is between five and ten years while the repayment period ranges between ten and fifteen years. You will usually be able to access the funds of a line of credit with a credit card, check or electronic transfer that can be ordered by phone. Typically, an initial advance is required when the loan is set up.



MOHAMMAD