Home Equity Loans – second mortgage

Evelyn Whitaker asked:


. Secondly, the lender may allow you to deduct the interest because the debt is secured by your home. However, securing a home equity loan, you should compare the costs of the equity from your home against the benefits. Ideally, you should opt for such credit terms that meet your requirements without inviting financial risk.

Types of Home Equity Loans

Second mortgage- In a second mortgage, you get a fixed amount of money that you can repay in equal monthly installments over an extended period of time. You can consider a second mortgage if you have a definite needs for a specific purpose, usually renovations, making additions, etc.

Reverse mortgage – By applying for a reverse mortgage, you can convert a part of the equity in your property into cash, and most importantly, you do not have to sell your home or incur additional charges.

The three basic types of reverse mortgage:

Single-purpose reverse mortgages: Generally have very low costs and can be used for one purpose specified by the government or nonprofit lender.

Home Equity Conversion Mortgages (HECMs): These are usually costlier and up-fronts are generally higher when compared to other types of mortgages. The advantage of home equity conversion mortgages is that these are widely available, have no income or medical requirements, and can be used for any purpose.

Proprietary reverse mortgages: These typically private loans are usually backed by the housing development companies.

Myself webmaster of www.castlemortgagegroup.com dealing in all type of mortgage loans in Florida, Georgia & Alabama with home equity loans, Florida Home Equity Loans, refinance loans, constructions loans



MARLON

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

cj.lowery asked:


I currently work in the mortgage financing industry. I would like to be able to refinance my customers auto loans along with their home loans. Many of them do not have the equity to pay their auto loans off and many have rates on them ranging from 18-26%. This would allow me to provide another beneficial service and supplement my income.

Any suggestions on how to get started? Companies that employ auto finance brokers remotely?

ALAN