Home Equity Loans – second mortgage

Veritas et Aequitas () asked:


Okay I asked this question before, however I wasn’t clear on some things.

My mother passed away recently and there is a home that I have been making payments on using her money from a joint account. That money has run out. I will be named executor in a few days, however a mortgage payment is due at the same time.

I do not want to put any money into the home not having any security. She has massive medical bills (even with insurance) and some other unsecured debt.

I want to keep the home and it has supposed equity however it wouldn’t sell for more than what is owed on the home so there is no actual equity, more so because last in 2005 she took out a second mortgage for home improvements.

I want to keep the home and I will pay off the home in full, however not at the expense of being held liable for her debts. It would break my heart to not have time to grieve and go through her belongings.

I will be talking to counsel soon however I am losing my mind in the moment, it’s too much.

RUDOLPH

Minkesh Sood asked:


As a purchaser, individuals should know the meaning of home equity loan and second mortgage. For numerous persons, these are things that they will come across for a time within their lives. Most people do not think about them until they discover that they require money for something such as a modify task or to utilize debt consolidation. But, undersigning the description of home equity loan and second mortgage is very vital nevertheless

 

Home Equity Loan

When customer look for a home equity loan, they are look for a loan that is secured by their house. For the majority of individuals, there is a credit facility available on a house for many of the first years that they own the house. This sort of loan is determined based on the amount of cash the homeowner still owe on their home and the present market value of the home if it is going to sold now. The variation from these two numbers is what the equity in the house is.

The term second mortgage is an additional word for home equity loan. These words are used interchangeably. The suggestion here is that the homeowner is taking out an additional loan on the house in adding up to their present mortgage. A second mortgage is getting by any lender, not essentially the lender that provided the first loan.

When a customer prioritize this sort of loan, it is very significant for them to understand that the loan should be obtained only if you are certain that it can be monthly paid off. A payment for the second mortgage will be owed each month just as it would be for the first mortgage. Also, this type of loan holds the house as guarantee. That means that if the homeowner defaults on the loan, borrower will likely lose the house in the due course.

Describing what a home equity loan is should be something that every customer wants. It can be helpful to take out this kind of loan for several motives. Internet can be used as a technique of debt consolidation or one of funding an amendment of the house. There are several uses for this type of loan and because it comes with minimum rate of interest, it can be one of the finest sorts of financial support to take out.



MERVIN

thebuffettour asked:


When we went to refinance in order to take out more money (job loss) we told the mortgage company (biggest one in MI) that we had two mortgages. One was our main and the second was a Home Equity Line of Credit (that this same mortgage company brokered).
The concern was since home values had dropped if there would be any equity left in the home. The banker then came back and said that whenever the Line of Credit was sold from the original company to the second company it became a standard LOC, so we were able to refinance and get money.
The thing is we get interest paid forms for taxes so did the mortgage company make a mistake? How do we find out if the LOC is a Home Equity and if this company actually has a right to money if the house is sold?

JAMIE

Anselmo M asked:


If someone forecloses there homes or short sales there home, will they or can they be responsible for the negative equity or the negative loss the banks took on the home? What if there was a second mortgage, will they be responsible for the extra dollars or does the bank lose out completely and have no recourse to collect money as the asset was reposessed?

MATHEW

Greg asked:


WASHINGTON (AP) — In a troubling report, the Federal Reserve said Americans’ equity in their homes has fallen below 50% for the first time since 1945.

Home equity is the percentage of a home’s market value minus mortgage-related debt.

The Fed’s flow of funds report shows home equity slipped to a revised 49.6% in the second quarter 2007 and fell further, to 47.9%, in the fourth quarter. It marks the first time homeowners’ debt on their houses exceeds their equity since the Fed started tracking the data in 1945.

Does Bush still want to take credit for the “housing boom”?

Bush seeks to increase minority homeownership
By Thomas A. Fogarty, USA TODAY
In a bid to boost minority homeownership, President Bush will ask Congress for authority to eliminate the down-payment requirement for Federal Housing Administration loans.

http://www.usatoday.com/money/perfi/housing/2004-01-20-fha_x.htm

Bush took credit for the “housing boom”. Now that boom is bust, do we let him have it both ways?
Hey, I didn’t say the housing boom or bust was his doing. I am just pointing out that he took credit for it while campaigning in 2004, and he made it worse by extending the problem to FHA.

JONATHON

Ladybug asked:


I checked out the loan and the interest is not too bad giving that this is a second mortgage that gives money for repairs and pay offs. The only thing I see is that it eats up all the equity and we will need to live in our home for at least 15 years before trying to sell…so that alone is the biggest decision. I am just wondering if there is anything else I should be looking for???
Thank you for the advice. The rate is 9.5% Fixed for 15 or 20 years. There is no pre payment penalty.

QUINCY

Dwan J asked:


I just purchased purchased my first home for $181,900. I put 10% as a down payment$18,400 plus $500 ernest money. I had only 10K on hand a had to borrow the other 8K from another lender. My question with the 10% down payment does that give me some kind of equity if so when can I refi to get some cash to pay off the high interest 8K loan. Or could I get another loan at a lower rate and pay off the higher rate loan. I need some advice on the best way to go about this. Because we can handle the mortgage and the loan but want to get out of it as soon as possible. All serious suggestions are appreciated

GONZALO

Harley Dave asked:


I would like to know what to do about refinancing my home or if equity loans are best suited for my needs. I bought my house 3 years ago with a no down first time home owner mortage. I got a 5/1 ARM at 6.125% which will be over in 2008. I want to get a fixed rate now locked in but also would like to boworrow money to pay off debt and do some remodeling and consolidate into one payment. The property is appraised at $ 150,000 and the principal is $ 113,000 will I be able to accomplish my goal? I figure I would need $ 20,000 to pay off the debt and get some things fixed , Any advice would be appreciated.

ROYCE

johnny asked:


I need to have work done to the foundation of my house. Should i use my savings to pay to have this done, or should i use my home equity line of credit to do it? If i use the line of credit i will have to pay up to 10% interest on the loan, whereas if i use my savings i wont have to pay any interest and i can just make the payments back to myself. Plus it gives me the freedom to “skip” a payment to myself should i need the money for something else, whereas i can’t skip a payment back to the bank.
If i were to use my savings, it would wipe it out.

REUBEN

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