Home Equity Loans – second mortgage

mscanada88 asked:

Jonathan Silveira Mortgage Broker with Dominion Lending Centres www.JonathanSilveira.ca can help new home buyers and seasoned home owners find the perfect mortgage to fit their needs. Call 1-800-662-7757 for Canadian Mortgage help.

Ralph

Gressly Stevens asked:




Are you in the right situation to use a home equity loan to add on to your home, fix it up, consolidate some debt, or for any other reason you might have? If so, then you might consider using a no doc home equity loan if your situation is the right one. Here is what you need to know about the no doc options.

First, if you are self employed, then you are the prime candidate for this type of home equity loan. This type of loan was actually created to make it easier for self employed individuals to get a mortgage because it is very rare that someone that runs a business has an easy time proving all of their income. With business expenses and cash payments not getting documented it can be difficult to come up with your real income.

Second, if you are a tipped employee or someone that works mainly for cash, then you already know how hard it will be to prove your income and that makes it very difficult to get a good mortgage. However, if you have very good credit or at least pretty good credit, then you can use the no doc options and you will have a much easier time getting approved for your home equity loan.

Last, if you work a steady job and you get paid a regular paycheck, then you would be making a terrible mistake to get a no doc home equity loan. This is not for you and any mortgage broker or account executive that tries to talk you into this type of loan will be setting you up for failure. This is just not a good situation and this could be the cause of a foreclosure so be very careful if you find yourself in this category.

Bruce

Nadia asked:


We currently have a 1st mortgage with Resmor. We would like to renovate (and insulate) our second floor not only to accomodate heating costs but to bring in a boarder to help offset our costs. We need about $15K. Our finances haven’t been the best in the past but we’ve worked hard to increase our credit score, paying on time and is much better now.

Is it best to approach our bank for a home improvement loan? If one turns us down, should we continue looking? Should we bring a recent credit report and show how we intend to pay it?

Our equity doesn’t give us enough to do this and we prefer not to use our credit cards because of higher interest.

Once we’ve raised the value of our home, would this be a good time to put this loan onto a second mortgage? A mortgage broker has offered to do a 2nd mortgage with us. I get so confused with ALL these people who want our money. Help!

WYATT

Carrie Reeder asked:


Applying for a home equity loan has never been easier. Today, many mortgage lenders have online sites which allow you to complete an application and receive a response within 24 hours. Those hoping to acquire a home equity loan should consider submitting an online application. The process is convenient and simple.

Purpose of Home Equity Loans

Home equity loans are ideal for large purchases or expenses. Typically, people attempt to get approved for a personal loan when they need extra cash. However, getting a personal loan is extremely difficult. For the most part, financial institutions such as banks and credit unions prefer applicants with an exemplary credit history. If your credit score falls short of their criteria, your application may be denied.

With a home equity loan, your home?s equity acts as the collateral. Because the loan is protected or secured, mortgage lenders and financial institutions willingly approve home equity loans to both good and bad credit applicants.

How to Apply for Home Equity Loan?

Homeowners may apply for a home equity loan by contacting the lender of their first mortgage. If you have a good payment history, these lenders are eager to approve your second mortgage. The goal is to keep you as a customer. In some instances, your current lender may approve you for a good interest rate.

In addition to contacting your current lender, homeowners should also obtain quotes from other lenders. A quote contains detail information such as estimated terms and rates. Quotes are based on your credit rating, income, loan amount, etc.

You have the option of contacting each individual lender for a quote. Completing an online quote request is the easiest and fastest method. There is no fee for obtaining a quote. However, once you choose a lender, you will have to submit an official application. Application fees range from $25 to $50.

Benefits of Using Online Mortgage Brokers

Using an online mortgage broker is the best way to obtain multiple quotes from various lenders that offer home equity loans. Shopping around for the best home equity rate is wise ? especially if you have bad credit. Brokers have the means to locate lenders that offer comparable rates to individuals with a low credit rating. Upon completing a quote request, brokers will email you several loan offers within minutes. This way, you find the best rate and terms.



ALVIN

Nadia asked:


We currently have a 1st mortgage with Resmor. We would like to renovate (and insulate) our second floor not only to accomodate heating costs but to bring in a boarder to help offset our costs. We need about $15K. Our finances haven’t been the best in the past but we’ve worked hard to increase our credit score, paying on time and is much better now.

Is it best to approach our bank for a home improvement loan? If one turns us down, should we continue looking? Should we bring a recent credit report and show how we intend to pay it?

Our equity doesn’t give us enough to do this and we prefer not to use our credit cards because of higher interest.

Once we’ve raised the value of our home, would this be a good time to put this loan onto a second mortgage? A mortgage broker has offered to do a 2nd mortgage with us. I get so confused with ALL these people who want our money. Help!

Please don’t send me to a website!

JAN

M. Mansour asked:


Hi,

I took a 80/15/5 loan to purchase my primary residence. Just received my first statement on the second mortgage and it shows a finance charge that is ADDED to the balance.

I arranged this mortgage through a mortgage broker, she never mentioned anything about these finance charges.

Are these finance charges typical with 2nd mortgages? what is a reasonable value for such charges?

How do I get out of this finance charge?

Do I have anything on the mortgage broker for failure to disclose these charges? I saw the loan documentation only at closing!

Thanks,
Mohamed

SETH

Mike aka omzig asked:


I purchased a bank owned property and financed the purchase price (78k) in Nov 2007. The market value of the house in the area is significantly higher (110k). I have fix items requiring fixing, refinished the floors, finished the kitchen, painted, etc. So I believe my house to be at the market level. The outside is very nice and there are no problems at all.

I have been told the current appraisal will be the purchase price until I have owned the property for 1 year. Until then I will be not eligibal for any refi or equity lines/loans.

Is this a law or standard practice? One mortgage broker thinks they may be able to work with me but CountryWide (who holds the mortgage now) says I have to wait the year and one other mortgage place told me the same.

Thanks

BRANDON