Answers
helocs are based off of LTV which come from appraisals... if your are pushing 100% loan to value (LTV) but its been some time since your initial heloc closing, you can used what is called an AVM , computer generated appraisal.
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I'm going through BOA (Bank of America) for a home equity line of credit. I thought my house was worth about $125k based on comps and market analysis. They did a "desktop" appraisal and it came back at $72k. I just purchased the house for $35k and was hoping to get a HELOC to do some work and upgrades to the house. THey said they "upgraded" the appraisal and were doing a drive-by (I did not mention I thought it was low). Is there anything I can do in hopes of recieving a higher appraisal? Any tips??
Your comps and market analysis - are they based on your having the repairs/upgrades complete? If yes, then the number they have is probably based on "as is" value - meaning right now, before you've had opportunity to make the upgrades.
Request to know what comps they used. If theirs are closer/newer/more similar than the ones you used, you are a little out of luck, probably. However, if yours are newer/more similar/closer, you may be able to successfully change their value by sharing this info.
(just to be clear: when I say newer comps I mean sold more recently as in sold in last 3 months vs in the last 12 months)
Good luck!
The bank is offering a line of credit sale. I pay no fees, the bank is covering all closing costs, state taxes, appraisal fees and the first year annual fee. I can take out a line of credit on the equity of my house. The rate is prime minus 1/2.
What is in it for them? Could there be a hidden downside for me? What do you think?
This sounds normal to me. They make their money on the interest and incidentally, you must have good credit becuase prime minus half is good. I don't think their costs incurred are all that much and half the time the appraiser doesn't even look inside the house. It's basically a good source of low cost credit for people with equity in their homes. (low risk for them.) I assume it's a reputable bank.
Our credit scores are only in the mid 600's. Our business has been open in Idaho for 1 year now. Previously we owned a business for 13 years in another state, same line of work. We have owned our home for 19 months. We paid 71,000 and now fair market value places it at 150,000 to 190,000. We would like a line of credit for 140,000 to consolidate debt and finish remodeling our house. An appraisal would need to be drive by only because we have exposed walls inside. We are trying to bring up our credit scores by "opting out" of credit offers and doing some dispute clean up. "Countrywide" seemed to be coming through for us until all of this market stuff started happening. If anyone can give us direction, it would be great. Thanks, Barbara
We currently owe 68,000 on our mortgage.
i would look into FHA...they have a rehab program that will alllow you to fix up your house.
Opting out of credit DOESNT RAISE YOUR SCORE.
many loan officers believe in that and it's UNTRUE.
it even says that on the optout website.
FHA allows up to 95% cashout value.
270k loan on appraised house of 475k. Wanted a home improvement line of credit for a few things. Time requirement after closing for HELOC? LTV limit? Appraisal still work for HELOC application? Had appraisal done before purchase. Looking at Bank of America (already have an account with them). They quoted 5.74% on 100k loan. Good rate? Thanks in Advance.
Of course there are many factors that determine the amount you can borrow and interest rate, including debt to income ratio. LTV may be fine if they determine it would still be 80% or less. A fixed rate is normally somewhat higher than variable rate, but would also eliminate surprise interest rate jumps that brought this country to it knees.
My lender gave me a free HELOC to borrow back paid principal when I refi'd in 2005. Its rate is variable at prime minus 0.5%, which started out in 5% range, climbed to 7.5% by 2007, and has now slipped back to 3.75% (on its way to 2.75%).
In my neighborhood, bankrate.com is showing Bank of America at 4.74% (prime + 1.49%, minus 0.25% if you auto pay). Not sure what they charge to lock a fixed rate. There is a savings & loan that shows 2.24% (prime - 1.01%) with no closing, pre-payment, or annual fees.
On the House: Refinancing can change equity line | Philadelphia ...
My policy is to identify the people I write about in this column, or who send me questions I address here.
No exceptions, except my own clumsiness in this particular case. To keep my e-mail account from crashing, I inadvertently deleted the name of the sender of these questions, and could not retrieve it by the usual means.
But I considered the questions interesting enough to pose them to some mortgage brokers who have been helping me slice through the misinformation being fed to borrowers.
The writer owns a home, on which he has a $200,000, 30-year conventional mortgage with an interest rate of 6.125 percent. He said the house was valued at several times his mortgage balance.
...News
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