Home Equity Loans – second mortgage

Pascual B asked:


I bought a home 4 years ago and am now having trouble paying my mortgage. I have a first and second TD, the first was refinanced once as a rate/term refi, and the second, an equity loan with wells fargo, was partially used to cash-out. I have to consider foreclosure as an option, if the lender is not willing to modify the terms, but I’m unsure if either the 1st or 2nd lienholder can pursue any of my other assets, including a property my wife owns free and clear that was gifted from her grandmother, a pretty decent size 401K (over 100,000), or possibly even garnishment of my wages. Credit and Tax issues aside, is there any way the lender will seek repayment through the court system, or will foreclosure pretty much protect me? BTW this house is considered my primary residence. I am also trying to find where on the note/deed of trust that I signed, it states whether or not the liens are considered recourse or non-recourse, but cannot seem to find the pertaining verbiage

RANDELL

Eddie Lamb asked:


When seeking to understand what an equity line of credit is, it is important to first understand what home equity is.

It is basically how much of your home you have actually owned. It is calculated by looking at the current market value of your house minus your outstanding mortgage balance.

If you have a house that has been appraised for $100,000 and you own 50,000 on your mortgage, you have $50,000 in equity. If you no longer owe anything on your mortgage and your mortgage is paid off, then you have 100% equity in your home.

So what is a equity loan?

This is a loan that is borrowed against what you already own in your home. Though just because you own 50% equity, it doesn’t mean that you’ll be given that much. Your debt, income and credit history will also be evaluated. These loans offer tax savings due, because the interest paid on the loan is tax-deductible. They’re often used to consolidate debt, to finance college educations, large vacations, home repairs or even a second home. The most common option is to make regular payments toward both the interest and the principal. Many of us are looking for the best company that offers great deal in terms of mortgage loan.

There are two basic types of equity loans.

Traditional, AKA a second mortgage, gives borrowers a lump sum of money that must be repaid over a designated period of time.

The second type is an equity line of credit. This provides borrowers with a credit card or checkbook to use to borrow funds. With this, if you have $20,000 in equity you can use the credit card or write checks up to that $20,000 amount. It’s kind of like a secured credit card. The benefits of this type of loan are that you don’t begin accruing interest until you make a purchase with your line of credit.

Most home equity lines of credit are only available for a certain time period, 10 years for example. There will also be limitations on how you use your credit. Some plans may require you to borrow a minimum amount each time you borrow and they may require you to keep a minimum amount outstanding. some lenders refer to a second mortgage as a loan used for purposes of adding value to your home.Some plans may also require that you take an initial advance when the line is set up.



SCOTTIE

AuntieKJ asked:


We are in need of a mojor bathroom remodel very soon or we risk not having a functioning shower soon. We currently have over 3x our loan due amount in equity, but our credit rating is not the best.

What I would like to do is take out the loan for the remodel (including materials for other areas of the home we can do ourselves) for a fixed 15-30 year repayment so our curretn payments will be low enough to not hurt us until we sell in 5 years when we will have paid the 1st mortgage in full and we will repay the 2nd loan in full from the sale profits.

Which would be the best way to go for our needs, timeline, and credit rating to make the most of it and get the best rates possible? Thank you

DAN

uncleeuve asked:


I need a home equity line of credit loan
Chase has taken away my line of credit.This is not because of my credit score or equity.They are getting out of the second mortgage business slowly but surely.My credit score is over 700 and my equity is fine.I would appreciate any feedback on any banks or lenders
11 hours ago – 4 days left to answer.

ARMAND

I M asked:


I want to purchase a home in San Diego, but I have limited income. My current first loan (70,000) is a VA loan, and I have a second ($3000). I only have $5000 on hand for a down payment. I could raise the limit of my 2nd mortgage loan in order to get enough for a down payment. Or should I refinance the loans into a conventional loan in order to use my VA loan? My current home is valued at 154,000. Should I take cash out so I can give a bigger down payment? Or should I just sell the home? If I did sell the home for 150,000, (I have been in the home for more than 5 years) how much would I keep after all the fees?

JAIME

jyoti asked:


If I want to pay my credit cards and I own a home should i take a home equity line of credit or Installment loan and why should i take that one?

ZANE

melissa m asked:


Brother initially borrowed $92, 000 and then paid us paid the $92,000 plus interest of $8,000 that accrued on the loan to repay our equity loan of $100,000 during 2006. We received a 1098 Form for interest paid credit/deduction. Do we get to claim the $8,000 interest or does he?

ELLIS

malibuphile asked:


bad credit (under 500) three mortgage lates. Life hit us hard but are trying to get back on our feet. Just need a chance. Anyone know a co that would provide a loan with these perameters?

JEFFRY

vixxen asked:


My grandma is near 80 and my granfather is mentally gone.She doesnt want to be in the house when people are viewing her home.So, I think the best way is for her to see the home she wants to buy, get a mortgage for it, move and THEN sell her home. It is just my dad an I helping her.Any advice?
Yes, grandma wants to sell her home and move to either a senior community or a new home all together.
Her house is paid for.

ALI

zooper asked:


My husband wants to go to an evening mba program, while he continues to work full time. The program lasts 18mo, and costs about $50K for the entire program. We are supposed to pay in 6 installments. We have more than enough equity in our home to take out a line of credit. I’m wondering which is a better choice, doing a federal student loan, or using a line of credit. I’m thinking that the line of credit is a good choice, because we don’t have to borrow all the money at once. Drawing from it every 3 months, for 18 months. We hope to pay the loan off within 5-7 years after graduation.

I don’t have any experience with federal student loans, so would like to know how the two options compare.

thanks.
I understand that the federal loans have a limit. There is no way that a single loan would cover the approx. 25K/year we would need for 2 years.

CONRAD