Lower Interest Loans

Home Equity Loans
(Qualifying) (Costs) (Types)

Click Here To Go To Free 1-Minute Quote Form

A home equity loan is a loan that is extended to you based on the difference between the appraised or market value of your home (that's the equity) and what you still owe against it, the mortgage balance. For example, if your home is worth $150,000 and the principal balance remaining on your mortgage is $50,000, the in your equity home is $100,000. If you own your home outright then the equity in your home is the full amount of what your home is worth.

Many consumers use home equity loans for a variety of reasons including:

· Home improvements

· To consolidate high-interest loans and save money

· To finance your children's education

· To pay for medical emergencies.

Types of Home Equity Loans:

You can choose from a traditional loan where you borrow a lump sum or a line of credit where you borrow only what you require as you need it. A home equity line of credit means that you can withdraw from a pre-qualified amount whenever you want. A traditional home equity loan means that you borrow the predetermined amount in a lump sum and it is to be entirely paid back within a designated time period according to a payment schedule.

A home equity loan is tax deductible and usually carries lower interest rates so it's a great way to use the financial assets you have accumulated in your home. It does carry some risks though. For example, if you don't repay the loan you could risk losing your residence.

Click Here To Go To Free 1-Minute Quote Form

(Back To Top)

Qualifying for a Home Equity Loan

Here are some factors a lender will evaluate when approving you for a loan:

· Do you have a good credit record?

· Do you have the ability to repay the loan?

· How much of your current earnings now go toward paying off debt?

· What is the amount of your loan compared to the value of your home?

· How are you going to use the loan?

· Can you provide proof of income?

How much money can I get from a home equity loan?

If your credit record is good, your debt load is reasonable and you are employed with a steady income, you could receive up to 100% of the difference between the appraised value of your home and what you still owe on it. This however, is at the lender's discretion.

Click Here To Go To Free 1-Minute Quote Form
(Back To Top)

Be sure to ask your lender about any additional costs.

Costs:

· Attorney fees for doing a title search to verify ownership of the home, mortgage preparation and filing, and insurance costs

· Property appraisal fees.

· Application processing fees

· Transaction fees every time you withdraw money if you have a home equity line of credit

· Cancellation fee if you pay your loan off early.