bartlangkawi asked:

refinancinghomemortgageloans-bart.blogspot.com Texas Mortgage Info: How your mortgage person structures your loan is more important than the getting a low rate. To get the lowest 30 year or 15 year fixed rate consider avoiding PMI (mortgage insurance) even though these loans have higher rates; they have lower payments. blalalabalalal

Diane

Ken Charnly asked:


 You have always done things by the book. Life is good and then all of a sudden things go wrong. Bills are piling up, your cars needs to be fixed, the kids need braces, and one-by-one the appliances are breaking down. You need to do something to make everything right again, but don’t know if a home equity loan is the right choice for you.

A home equity loan is a loan secured by the equity in your home. The equity being the difference between what you owe on your home and what the value of your home is at that particular time in the market. The home equity loan carries a lower interest at a fixed rate. Therefore giving you the ability to payoff those over the limit credit cards, remodel your home, or whatever else you may need the loan for.

Some home equity loans are taxable; meaning the interest you pay on it could be taxable. There are two different types of home equity loans. In a home equity loan, the amount you borrow you will get in a lump sum. In a home equity line you will get a line of credit to use as you need it.

The best thing to do when thinking about getting a home equity loan is to do what is best for you at that given time.  Determine whether you require a lump sum or line of credit. If you need help then talk to an advisor to get all the information you need up front before making that decision.



ERIC

Ken Charnly asked:


You are in need of money and have decided to get a home equity loan, but want to know what options are available to you. Which home equity loan is right for you? What is the different between them?

A home equity loan is the amount in between what your house is worth and how much you owe on your home. It is secured by the amount of equity in the home and can be taxable. It can lower your interest as well as giving you a fixed rate.

You have two options when making the decision. First, you can receive a home equity loan. With this one you get a lump sum of money, at a fixed rate, and one monthly payment. When you pay it off that is it, your debt is gone.

Another option is a home equity line. With a home equity line you receive a line of credit that is available for you to use for a certain time frame. You can use it and pay it off, then use it again. Just like a credit card. The interest rates are variable and you only make payments on the amount you use, not the amount you have available to you.

If you know what you need the money for and how much, then a home equity loan would be your better choice. However, if you don’t know how much your project is going to cost and/or know it will be paid off in a certain length of time, then the home equity line would be better for you. It all depends on what your needs are at the time.



DORIAN

metspsu1980 asked:


My brother and I are in our mid to late 20’s and own a 2 unit home valued at approximately $75,000 free and clear. We have a 30 year mortgage (out on another home valued at approximately $40,000) at a fixed rate of 7.4395%. We have been paying on this loan for almost 3 years. (PMI of $20 a month). Each of these are rental units.

I know mortgage rates are at an all-time low slightly under 5%. Would it be better for us to refinance our current mortgage or take out a home equity loan and use it to pay it off.

Please factor into the equation that I plan on purchasing another property in the next year or so which will be my primary residence.

ELOY

dwanal asked:


I’ve been approved for a 1st mortgage at a fixed rate of 7.38 and a 2n mortgage interest only at 10.425. This loan is for an investment property. I’ve been told that the 2nd loan is Home equity line of credit. How much will my payments go up on the 2nd mortgage and should I look for another loan. Thank You.

CLINT

happydawg asked:


I borrowed $11,000 at a fixed rate last year to put a roof on my house. It was leaking and I needed it fixed fast. They told me it would be good for 20 yrs. I can borrow more if I need it, but he also said I am not allowed to pay it off early. I dont plan to borrow anymore. I am getting my debts under control and have an excellent fico score of 780. Will they release the mortgage on my house if I pay the $11,000 in 4 yrs or do they get to keep it for the full 20 yrs? I should have asked about this before hand, but had a lot going on and just was needed a roof asap.

CRAIG

CruisesUnlimited asked:


I have an home equity loan and a mortgage.

The home equity loan is variable.
The home mortgage is a fixed loan at 5.025%., 15 years, which I have already paid 5 years in.

I would like to combine the 2 (the loan & the mortgage) into 1 mortgage without losing my rate (of 5.025).

Combined, i owe $170,000 and my house is worth at least $220,000.

I want to turn my home equity variable loan into a LOW fixed rate.

How and where do I go about doing this?
Which companies offer the lowest rate?
How do I find these companies?

Serious replies only please.
Thanks! Lorraine

MICKEY

Prudence Wong asked:


Mortgage, second mortgage and equity release schemes are all used as synonym for home equity loans and are basically the loans availed against your home. In home equity loans, you are borrowing an amount from a lender based on the worth of your property.

What are the difference between Mortgage loans and Second Mortgage loans?

If you own your home fully, the equity loan being availed on it is termed as mortgage loans. If your property is partly owned by you but has equity, then you can avail second mortgage loans. If you have already availed a mortgage loans and not fully paid off, you can avail second mortgage if the home has equity.

How do I define my home equity?

Equity is the worth of your home after reducing the amount to be repaid on home mortgage loans. Equivalently in simple terms if you sell your home, the equity will be the amount left in your wallet after paying off the mortgage amount. You can get this equity from a lender without selling it off and this loan is called home equity loan.

Typically home equity loans stands for second mortgage loans. These types of loans are convenient for the home owner to make use of the equity of his home without venturing out for refinancing. Also the second mortgage loans can be taken to clear off the first mortgage loans as well.

The impression that selling off the property is the only option to get a considerably large amount is not factually correct. If you want to raise some extra amount for any purpose, second mortgage loans are very good options. In fact you can use home equity loans for any purpose as desired by you.

Many lenders and financial institutions are out there which offer more loan than actual equity, some may offer an amount equal to the difference of mortgage loan outstanding from 125% of the present market value of the home. Mostly the home equity loans interest will be one time fixed rate and need to be paid at a time.

There are many factors controls your decision on home equity loans. Interest rates, loan amount and repayment period are the main factors. If you have good credit rating, you will get low interest rates. If you choose for long term repayment, you will be paying more interest on your equity loan.

Home equity loans are suitable for anybody for any purpose as these loans come with less interest rate. Also these loans are good options for the people with bad credits, as the lenders are willing to issue loans on the security of your worthy home. Any loan is a liability, so be careful about going for any kind of loans. You do proper home work and take only minimal amount required as home equity loan.



JESSIE

justin narin asked:


The reasons to consider a second mortgage are as varied as the programs available to you once you make the decision to tap into your home equity. Some popular reasons include college tuition, bill consolidation, health expenses, and home repairs. When it comes to borrowing money, these types of loans are favored for a number of

reasons, not the least of which is the tax deductibility of all the interest paid on an equity loan. Before you start shopping around, however, you should decide whether you want a closed-end second mortgage or a home equity line of credit (HELOC).

A closed-end second, also known as a home equity loan, refers to a second mortgage that is structured in a very similar way to your first. To borrow using a home equity loan, or closed-end second, you make a one-time choice on the amount you would like to borrow, close on the loan, and receive a check for the amount you’ve chosen. You will have regular payments structured over a period of years, and upon completion of those payments, your home equity loan will be paid in full. If you decide later that you would like to draw additional funds, you will need to arrange for an additional loan with additional closing costs. However, the closed-end second carries a fixed rate that will never go up and offers a straightforward plan for paying the money back.

A HELOC, on the other hand, is a line of credit from which you can withdraw money again and again. In many ways, a HELOC is just like a credit card, but the interest you pay is tax-deductible. You will close on a HELOC only one time, but if you decide after a few months that you need to withdraw additional money, you will be able to do so up to the value of the loan. That is to say, if you close on a HELOC for $60,000 and over a period of time pay back $13,000 toward the principal, that $13,000 is available to be drawn again at any time. You will continue to make payments toward what you owe just as you would on a closed-end second; however, the full amount of the loan is always available to be drawn on, as long as the amount you owe and the amount you borrow do not exceed the total amount of the original HELOC.

Whether a closed-end second mortgage or a HELOC is right for you is something you, your loan officer, and / or your financial planner must decide. If you are relatively sure that you will need to borrow against your equity only one time in the next several years, a closed-end second offers the fixed rate and regular amortized payment schedule that ensures you know both how much your payment will be and how long it will take you to pay off the loan. This kind of assurance can be particularly useful if you don’t trust yourself to spend wisely, or if you tend to buy impulsively and don’t want the option of drawing out additional funds.

A HELOC can be most useful if you are taking on a project, such as home repair, that has the potential of unforeseen expenses. A HELOC offers you the flexibility to borrow again and again. You may even be able to secure a HELOC that carries a low interest-only payment allowing you to borrow more and still have a manageable payment amount each month. Whichever you choose, drawing against the equity in your home is sure to save you money on the interest you’re paying for your purchase power, and as always, the interest you pay on any type of home mortgage is tax-deductible, offering an additional incentive.

Consult your loan officer or financial planner to decide whether a closed-end second mortgage or a HELOC would best suit your needs. Once you’ve made this first decision, you’ll be well on your way to finding the right equity loan for you.

For more articles on Home Equity Line of Credit, visit: http://www.bills.com/home-equity-line/



ARMANDO