Answers
I've slipped and let me credit score get a little low. Today I applied for a home equity line of credit through CITI where I have my first mortgage and was declined. I would like to obtain this loan to payoff credit card debt and get my finances under control. Where or what financial institution is my best chance to be approved for a home equity loan or line of credit?
Ask Citi why they declined it.... and then work on the areas you need to improve to qualify for this type of loan.
Be careful not to run from one bank to another... everytime they check your credit... your score drops even further.
If Citi, who holds your mortgage, does not approve you... then chances are no other bank will do it either.
Ask yourself: Do you have enough equity built up in your house?
What is your house worth right now. Compare listing prices of similar homes in your area. How much of the mortgage is paid off already?
If you bought within the last 5 years... chances are you still owe too much to qualify for a home equity line of credit.
Cut up the credit cards and start paying them down... the times when you got a HELOC to pay off the cards are over.
A home equity loan and a home equity line of credit both provide money from the value of your home. But each one has its pros and cons.
Information and resources on how to obtain low interest rates or lower your current interest rates on Home, Auto, Credit Card, and Student Loans can be found on the following website:
http://lowertheinterest.blogspot.com
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And what's the best rate you can get, 1% or more below prime? Please share.
A HELOC (home equity line of credit) may or may not be what you actually are looking for. You may actually want to simply refinance your home. When you do so, you can get money out of your home or consolidate debt-- or both. A HELOC requires pretty high scores-- and will also mean that you are carrying a second loan. Look into refinancing....
Just bought a home 6 months ago. First time buyer also. Is it too soon to look into remodeling the home or should I wait for a year or more? Any responses will be greatly appreciated.
Too New to Know
Real answer is if you financed with less than 20% down you most likely have no equity, even if you had 20% you might not dependent upon your location have no equity as home prices have dropped dramatically, and are expected to drop even more during the next year, most likely almost 25%. So no would not be looking for a home equity loan at this moment. Would start reading the financial pages on CNN, FOX, Yahoo, etc.
Can I sell a home with just a 1st mortgage, collect the equity and continue to pay on my Heloc as if it is a line of credit? or will I have to include it in my home sale (and possibly a short sale)?
The HELOC is secured by your home (read your loan documents). It likely has a due on transfer clause which means that if you transfer your ownership of the property, the loan becomes immediately due and payable. Typically that means you need to pay off the HELOC with proceeds from the sale (or you need to bring enough cash to settle it at closing).
Anyone with any sense would not buy the property with an outstanding lien for the HELOC, because if that is not paid, that lender could still foreclose (that lien would be senior to any sale or transfer you make now).
Home Improvement Advice: Home Equity Credit Lines Versus Fixed ...
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Are you belief about mining the equity for a home improvement finance, but are wondering if you have missed the cruiser not burden a refinance and cashing out? There are still many home equity finances free that may become your wishes lacking breach the verge with payments. “Home-equity finances have been emergent at a large clip for existence,” comments Wells Fargo spokeswoman Mary Berg. “It’s definitely slowed, but people are still borrowing. They’re sentence other harvest that are more lithe in this rate environment.” Its devoted that there are many options for trade these being and home equity finances are free as a credit line with movable attention, as a fixed rate finance, and you can even find a second finance with attention only payments for a set phase.
...News
Credit crunch: Home equity lending evaporatesChicago Sun-Times - Dec 29, 2009
He planned to pay for the project with his $200000 home equity line of credit, which he took out in January 2007 when his house was valued at $750000. and more »Wall Street Journal - Dec 29, 2009
The moves were part of a larger strategy to achieve dominance in nearly every category of American finance, from mortgages and home-equity loans to Bank of America's 'Solid Risk Management'all 16 news articles »Philadelphia Inquirer - Dec 28, 2009
What Harry says: It would have been easier to get a home-equity line of credit (HELOC), and it's not too late to try. You would have fewer fees and you and more »Examiner.com - Dec 29, 2009
For those of you with a Home Equity Line of Credit (HELOC) this is an opportune moment to create a strategy about how to handle it.Minyanville.com - Dec 30, 2009
Because of this, most lenders are no longer offering home equity lines of credit and are reducing current lines with credit-worthy homeowners. and more »USA Today - Dec 29, 2009
Texas' now-strong banks hold lessons for rest of USNow, total mortgage debt — including home-equity loans — cannot exceed 80% of a home's value when the loans are made, and Texas homeowners cannot take out and more »ABC News - Dec 26, 2009
At the peak of the housing boom in 2006, banks made $430 billion in home equity loans and lines of credit, according to the trade publication Inside and more »