You are currently browsing comments. If you would like to return to the full story, you can read the full entry here: “How to figure home equity value?”.
-
Archives
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
-
Resources
-
Meta
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