Benefits Of A Home Equity Line Of Credit

A home is not protected. With a bankruptcy, expect to loose all your known assests aside from a 401k or a individual retirment investment account.

2007-11-21 18:43:59 by rhonda w

Simple example of borrowing from equity to fuel consumption

Why would anyone choose an SBA loan when they tie up your collateral and you could use that same collateral for a home equity line of credit?

With home equity line of credit, you get to deduct interest from your income tax. Also you get spread the HELOC payment over longer period of time.

2007-03-28 09:54:38 by Steenskees

I have great credit, I own the home and have an excess of $30,000 in equity, However I'm unemployed. I'm receiving unemployment benefits. Can I get an equity line, or Refinance my home with a co-signer? and will they have to be on the deed?

You can't. A lender would want to see verifiable income to know that you can repay the loan (UI doesn'tr count).

2009-01-21 08:26:38 by Derek L

People i am planing to apply for Home Equity Line of Credit, on my property, bought over 2 years ago, never refinance. Does it make any economic sense to refinance first before taking HELOC, or it does not really matter. How about applying for fresh loan. I have very good Credit and high FICO score.........if this will be of any benefit!

You should definitely look at your options. Both transactions could possibly be very economically strategic for you. You should talk to a several loan officers to make sure you get the best deal out there. Depending on other surrounding circumstances, that will tell you which should be done, a 1st or 2nd mortgage. I do know 2nd mortgages are not what they use to be and much harder to get done now because of the foreclosure rates and drop in equity of the home values. You can shoot my friend an email and see what he can offer you. Mike@afbankloans.com
Good Luck!!

2008-04-08 21:27:54 by Danemma C

Hi,
I'm adding a $100K addition to my home. My current home is assessed at $200K, and i owe $40 on the mortgage.
I'm borrowing $150K for this deal.

The bank offered me a line of credit of 5.5% - 10 year guarantee., and $150 closing costs.

Should I take that offer?
--
I also looked at BankRate.com. They offer a 30yr fixed at 5.8%, with about $1000 closing costs.

I'm leaning towards the Line of Credit.

Does a Line of Credit have the same tax writeoff benefits as a mortgage?

Is taking out a Line of Credit for this situation introducing any problems I'm not aware of (like legal problems)?

with the line of credit that will go with you.. if you sell whereas the mortgage stays with the house if you sell and has to be paid off with a penalty.
you can use the extra from the line of credit to pay off the mortgage then your home is free title..and your just paying off the line of credit..

the bank loan: over 50% of the payments are interest..
the line of credit: each payment reduces the principle and the interest......
so example
when you finish the addition and paid off the mortgage with the excess after the addition youpay off the mortgage.
.you apply what you previously paid on the mortgage (mortgage monthly payment) to the line of credit....which directly is reduced each month with every payment..

you own your house outright and are free to sell when you want without closing costs..
the best time to pay off the mortgage without penalties is when the mortgage renews.....
your home is now "free title"
congratulations..
p.s. i just put an addition on my home for my daughter and grandson..and it is almost paid off (1 year) and i am considering a 2nd garage with a garage suite over top..

good luck

2008-04-06 08:24:14 by Mozart