camilleyun asked:
In August 2005 I purchased a 900 sq ft ranch style home w/finished full basement, attached 1 car garage, nice size lot with fenced in back yard for $44,000. My taxes value the house at $74,500 so I was able to get it no money down and mortgage payments of $261 per month. If I wanted to apply for a home equity loan, how will the amount be determined? Is it based on tax value or will someone actually come and view the property and make an appraisal? I have made considerable updates to the property since I purchased it (roofing, flooring, fixtures, furnace & a/c, water heater, countertops)
Any help is appreciated – I really had wanted to sell this year.
Since it would cause me to lose money to try and sell at this time I was considering using any equity to purchase a 2nd house for myself and let my sons stay in the ranch and split the costs of rent and utilities.
ARON
In August 2005 I purchased a 900 sq ft ranch style home w/finished full basement, attached 1 car garage, nice size lot with fenced in back yard for $44,000. My taxes value the house at $74,500 so I was able to get it no money down and mortgage payments of $261 per month. If I wanted to apply for a home equity loan, how will the amount be determined? Is it based on tax value or will someone actually come and view the property and make an appraisal? I have made considerable updates to the property since I purchased it (roofing, flooring, fixtures, furnace & a/c, water heater, countertops)
Any help is appreciated – I really had wanted to sell this year.
Since it would cause me to lose money to try and sell at this time I was considering using any equity to purchase a 2nd house for myself and let my sons stay in the ranch and split the costs of rent and utilities.
ARON
DERRICK
They will probably want an appraisal. Tax values don’t always reflect true market value anyway, and with the market slump and fluctuations, the mortgage company will want something current to base the value on.
Most home equity homes won’t pay more than 80% of value, so the amount you would be eligible for would be the current market value of the house – the amount on the current 1st mortgage up to 80% of the total value.
This would be something like $74,500 x 80% – $44000, give or take how much prices may have dropped since 2005, and how much they give you on the updates to the property.
JACKSON
The bank will have the place appraised and will be willing to lend you probably about 80% of the appraised value (and you will pay for the appraisal and some other fees).
SANDY
When you apply for your equity loan you may be asked to sign a paper stating that you intend to occupy this property for at least 1 year. That is not true if you are planning on selling. On the bottom of the paper it will say “It is a crime to lie to a federally insured lender”. So if you are going to sell, skip the loan.
If you do want the loan, the bank will loan you 80% of the bank appraisers value. That may surprise you by being $125,000 with your improvements. Would you take a check for $55,000 if the bank offered.
JAMAR
Tax values and real values are not the same. Tax values often go up on a schedule and have nothing to do with reality. They do it this way to prevent people from loosing their homes because they other housing prices sky rocket and they can not pay that much in taxes.
The bank will appraise the house, and it sounds like you need to request them to enter (they usually do not) as many of your improvements will not be apparent in a drive by.
STACY
I have met the similiar problem before — still a little bit annoy,here is a good resource that help me out.http://home-mortgage.online-tips4u.info/free-home-loan.htm