Home equity line of credit...what should I know before I apply?
412923
A HELOC can be a good tool for reducing your interest rate burden --- IF, you have the self-discipline to avoid running up debt elsewhere. The downside is that if you are unable to make your payments, you've put your shelter at risk and it's not fun to sleep on a bench. Further, there is no absolute rule/law that real estate values have to appreciate (the have and can go down).  If your HELOC comes due after a decline in RE values, you may be forced to pay-off at its maturity - and if you don't have the funds to do so, sell in a down market in order to pay-off. My advice would be to not use a HELOC for debt consolidation; but, to systematically pay-off those other debts.
408639
This depends on a number of factors. First your pre-approval was determined on the state of your credit report at this time. You approval depends on your debt/income ratio and your credit history. It takes into account how many cards you currently have an obligation to repay. Often creditors like to see you having cards and how well you handle them, but too many obligations could scare them off. If you are simple consolidating into one loan, without adding to your overall debt to income ratio, then I see no reason this should harm you. If you are considering taking out more credit, then it would hurt you.\n\nHowever, if you could wait until escrowww closes, I think this would be a safer option. Usually it takes 30 days to close escro on a home purchase. I would get out there and find the house I wanted and close escro, then consolidate cards and other debt into one loan. I think it would also be easier to do so when you have purchased a home. It is always in your best interest credit wise to own rather than rent. When you own you are creating more assets in the form of equity. Lenders like to see your overall financial state and building equity is rather like money in the bank. \n\nI suggest you seek out a financial adviser, pay the fee for a professional opinion and not rely on what is written here.\n\nI wish you all the best life has to offer.
814482
My bank charges $300 to open a home equity line of credit. They will waive the fee if I keep the line of credit open for two years (don't have to tap the line of credit, i just have to keep the account open for two years.).
883004
A Home Equity Loan is a type of home mortgage.\n\nPoints (also called loan origination fees, loan charges, or loan discount fees) generally must be deducted over the life of the loan, unless they fit certain guidelines.  To be deductible, they must be paid solely for the use of the money. \n\nTo be fully deductible in the year paid, the deduction can not exceed the number of points typically charged in an area.  The loan must be secured by your main home and residence (not income property), and can not be rolled over into the loan.  They must be paid up-front, and clearly labeled on documents you receive from the lender.  Also, the funds must be used to buy or build a new home, or make improvements to your main home.  \n\nIf you took out a home equity loan and bought a car with some of the funds, or paid off credit cards, for example, the loan would qualify as home equity debt, or home equity mortgage loan.  It's possible the interest paid could be fully deductible, but the points would have to be deducted over the life of the loan.\n\nAlso, points are only deductible (on schedule A) if you itemize.  \n\nPrepaid interest is generally deducted over the life of the loan.
183719
A pre-payment penalty really does not matter.  Nothing matters except for the fact that if there is enough equity in your home, then you can continue to refi.  Whether it is a smart idea financially, that should be the question.  This is not recommended, unless the cash you are recieving back from the refi is going into accounts which have interest rates that are going to give you a good enough return and heavily outweigh the interest in which you are paying to the bank.  Or, if you are going to invest the money into another peice of real estate.  Other than that, I would highly recommend against this practice.
315536
I'm at Countrywide on a 5/1 arm at 5.125, but your loan is only as good as your loan officer.  Gotta listen to what your needs are and then everyone offers similar stuff - then it's how you qualify! good stuff!  I've been doing this for years.
532528
I'm not exactly sure what you mean here, but I don't think it's entirely accurate.\n\nA Home Equity Line of Credit(HELOC) is based upon the prime rate(an index) which in turn is based upon the over night Fed Funds rate.  The Fed Funds rate adjusts monthly according to the Federal Reserve's meetings (Greenspan in the past).\n\nHELOC's as 2nd mortgages are higher than some 2nd mortgage loans right now because the index that derives their rate(Fed Funds & Prime) is higher than several fixed 2nd mortgage indicies.\n\nTypically, the payment for HELOC's is interest only.  To see what your payment is here's a link to a mortgage calulatore on my real estate site: http://www.nnnstore.com/mortgagecalculator.php\n\nThe typical loan term is 30 years.  To find out what your interest only payment is put in a loan term of 2400 years.\n\nFor years though, HELOC's were even less than first mortgages with interest rates as low in the 4's.\n\n2nd mortgages tend to be at a higher interest rate than 1st mortgages, typically.  The reason is because in the event of foreclosure there is an order for paying off liens, known as position.  1st mortgages would be paid off fully first because they are in a higher position than a second mortgage.
662291
Depending on your needs (and credit rating!), you may find that a home equity loan is more appropriate than a total refinance.  You would save on closing costs and be able to choose how much to take out and when.  These loans are typically higher interest rates, but the savings may work out for you.\n\nAt 8%+ that loan sounds very high.  I would shop it at several lenders until you get the best rate for you.  If you can find a reputable mortgage broker/lender you may be able to submit to several companies at once. (Yes I know "Lend Tree" has the same service, but I've found their lenders are all very similar). \n\nDon't give up! With prime rates still in the 5% range, you can probably save 2-3% by being thorough.\n\nMy company does NOT make or sell loans, but I will be glad to help you find a lender if you run out of resources. If you're looking to resolve a load of debts I can help you with that decision as well.  Call 888-221-2711 and ask for the Director.
1160651
I don't know Morgan Gartmore Finance, they are probably a local lender with access to many different banks.  What I would do to be safe is get an Good Faith Estimate and a Truth in Lending.  By Federal law they should provide one for you with in 3 days of application.  These 2 documents tell if you are getting a good deal or not.  These 2 documents are how lenders tell how much you are being charged and how much your loan is being purchased for.  If a lender wont give you one I wouldn't use them. There are a lot of Lenders and Brokers out there that deal with bad or little credit.  If you have any more questions you can email me directly.
884850
A home equity line of credit can only be obtained based on the equity you have in your home.  You cannot convert a mortgage into a LOC.  Mortgage rates are typically lower and have a longer term, so short of refinancing your mortgage, you're probably best off sticking with what you have.  If you visit any bank they are required to carry a government brochure talking about HELOC's (home equity lines) which will give you an idea about what your options are.  Most people get HELOCs as an emergency backup for unexpected expenses.  The good thing about these is that if you use the line, the interest you pay can be tax deductible, which helps defray the cost of using the line.  However, like any loan or line based on the equity of your home, failure to repay it can result in a lien against your property so if you ever sell the house, they'll take what money you owe out of it.
982135
Keeping lines of communication open is good. Also, try to make any payment you possibly can. At this point, you may have to bite the bullet and get ANY job just to pay the bills. You can still search for a permanent job but it would be crazy to lose a house you almost have paid off if you can go down the street and get a job at fast food, a retail store, etc. Heck, deliver pizzas! If you can possibly do so, get a roommate. Do whatever it takes to bring in some money (legally) and keep the lender aware of all your efforts. Once you get 4 mths behind, they can start the foreclosure process. If your credit is okay, and since you have some equity in your home, you may be able to take out a home equity line of credit - but I'm not a big fan of treating your home as a bank, esp when the problem is that you have no money to pay the mortgage as it is....it's like robbing from Peter to pay Paul. Because you're going to have to then pay back on the HELOC as well. So this would be a last resort.
1069800
Put in refinance mortgage bad credit and see what you get.\n\n\nLC
286641
Since your from Canada maybe it's different here in US. But I can tell you here in the US, applying for a lender that offers refinancing and at the same time offers interest only payments are getting more and more popular. Maybe you need to try a different bank or lender to get that deal. The only way lenders will turn you down is if you exhausted already most of your equity of your house. Also, try looking into "Open Equity Line of Credit".
896602
You say you're behind on your bills and you don't mention rent so, am i safe in assuming you own your home outright?\n\nIf this is the case you can speak with your bank and remortgage. There will be some conditions, as it appears neither of you are currently generating an income. If you are working (Even part time), this will make getting the refinance, a great deal easier. \nUtilities companies are more flexible than most people realise. You can make payments on a regular basis, to repay outstanding amounts.\nLoan companies are less understanding as they make their money through interest, not the supply of goods or services. So if you owe money to a loan company you should look at using the equity in your home to group ALL debts into one loan (this can often save thousands of dollars). You may find that after you do your figures it may work out better for you whether you needed to do it or not.\n\nIf you don't own your home. There is not a lot that can be done other than approaching charaties or Gov't assist of some type.
133149
Since you have another on the deed, you probably will need them involved. You can probably get a home equity line of credit with your exixting mortgagor for 80% of the balance your property is worth, with the other person's approval. Try getting a credit card that will give you checks, if you don't want the other party to have knowledge. If your credit is good, it won't be an issue. Check your existing credit, close out unused lines of credit, you are entilted to one free credit report annually. try the link below.You may need more than one credit card to get the amount of cash you want. There may be fees involved too. Do you have access to a credit union or bank? Personal loans are also higher in interest rate. If you are retired you may want to look at your other assetts:  401 k, IRA, pension, etc.
593907
Mahit Madaan is giving you part of the truth.  More of the truth is that a Home Equity loan is a 2nd mortgage at a higher sometimes much higher interest rate.  This will depend on your credit and credit score of course.  You will end up with TWO mortgage payments, one at a lower rate and one at a higher rate.  The qualifications for a 2nd mortgage are a bit more steep because with a 2nd mortgage, you become a higher risk.  Many times two mortgage payments may stress your monthly finances in ways that you may not notice until after you close.  Conversely, if you refinance your first mortgage, you will only have ONE mortgage payment.  Obviously, the rate will be slightly higher than what you have at the moment, but you will avoid the sometimes MUCH higher interest rate on the 2nd mortgage, and instead of amortizing the 2nd mortgage for the usual 15 year period, the entire mortgage can be amortized over 30 years or 40 years, thus lowering the monthly payment.  I am telling you this because I have refinanced many, many customers who wanted and needed to consolidate 1st and 2nd mortgages to lower their monthly mortgage payments.  If you want to discuss this further, by all means, please contact me at wwi_2@yahoo.com
1150754
Reverse Mortgages are HEAVILY regulated by the Department of Housing and Urban Development (HUD). If memory serves the youngest borrower must already be 62, credit scores do not come into play since the loan is based solely on the equity in the home. Before you can get this loan you must sit down with a HUD councilor so that you will understand exactly what is going on.\n\nCheck out www.hud.gov and follow the links for seniors. There is a wealth of information there. Also check out the AARP's site. I understand they provide a ton of info there as well. Watch out for a big scam from companies which will sell you all you want to know about this product. This information is completely FREE from HUD. Doing these loans requires a special certification on the part of the loan officer and or lender as well so not everyone has the ability to put this loan together for you; myself included.\n\nI think this is a great product for folks in their golden years who have equity built up in thier properties and are looking to supliment their retirement income. One big myth is when you die your family looses the property; this is not true. Title never changes from you. Once the last person either dies, no longer occupies the property for 12 months, or the property is sold then the loan comes due. The family can either sell, refinaince or turn the property over if all of the equity is exhausted. You will still be responsible for the insurance and property taxes just like you are now.\n\nI hope this helps but definately check out the information on the HUD web site.\n\nKevin 866-562-6838 x 106\nkruorrock@firstfratelending.com