Home Equity Line Of Credit Home Equity Loan Home E

I want to buy a car and need a 36-month loan. I have the choice of $10K loan from e-loan at 8.25% or drawing from a home equity line of credit at 10.2%. I want to know which is the better option in terms of overall cost to me over the 36-month period.
I want to buy a car and need a 36-month loan. I have the choice of $10K loan from e-loan at 8.25% or drawing from a home equity line of credit at 10.2%. There are no closing costs on either. I want to know which is the better option in terms of overall cost to me over the 36-month period. Bear in mind that I can deduct the interest on the HELOC but not on the auto loan.

If you take the 10.2% you will pay $11,650 over 36 months
If you take the 8.25% you will pay $11,322 over 36 months

The cheaper one sounds like the right one based on the information you have provided. However, if the home equity line of credit or the e-loan has additional fees you need to add that to these totals. That will tell you which one is cheaper. Some other things to consider. Is there a way to pay it off early? Is there a prepayment penalty? Is one or the other more of a hassle to deal with?

Good luck. Hope this helps.

2006-09-05 10:00:15 by ncelkin

There are two types of loans that a person can find on their property, including mortgage loans and second mortgages. Find out how long the terms ...

Just bought a house for $214k 30yr 6.125%, it was appraised at $244k. I'd like to make several home improvments and consolidate some debt. How soon can I get a Equity Loan or Line of Credit , seeing how i just bought the home I wasn't sure if theres a waiting period i.e 6mo-1yr . Also which might be better for my situation the Loan or LOC?

There is no waiting period-- however its typically advised that you maintain 10-20% equity. Using up every dollar of equity is not a smart move-- selling a house costs up to 10%! So if you owe exactly what your house is worth, there's no way for you to sell and walk away from it.

Also a loan up to the last dollar is higher risk and will carry higher interest rates.

Talk to some lenders and see what their policies are-- some of the basic banks still expect you to maintain a certain percentage AFTER the HELOC.

2007-03-19 13:45:36 by joconn10

have been approved for a home loan. I found a house that they are asking $249,000 for and I just made an offer of $200,000 hoping I can get a steal because of the way the market is down and continuing to go down. The house is currently worth $398,000 according to the appraisal. I'm pretty sure the bank is going to let it go to me for my offer, so that would mean the minute the doc's are signed, I just got a house with $198,000 in equity in it. I plan to pay off both my cars and some credit cards using a home equity loan or line of credit, so that I only have the house payment to pay. How soon after I buy the house, can I be approved for one of these and what does it take to get qualified,. i.e credit score, equity, etc.
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You can refinance. But you have already set the value of the home at 200k. When it gets reappraised, and they have to do that, the sell at 200k will seriously effects its value. You may be able to borrow some against it, but not what you are dreaming of.

You will also need to qualify. If you are thinking you will get 198 you have to qualify for 398 to get the home equity loan. You aren't going to manage that on 76k a year.

2008-01-13 19:12:52 by assassin

I had a mortgage broker "friend" of mine set up a home equity line of credit for me. I decided to take and draw and went through the closing process. I rescinded the loan (draw) within the 3 day period. The broker who set up the credit line is asking me to pay costs incurred by them (i.e. appraisal and other business costs). Am I responsible for these fees to the third party?

Thanks

You are not required by law to pay these fees.
If you recinded within the 3 day time frame all cost associated with the loan should not be breared by you. If they continually harass you there a governmental number you can call to report the mortgage group. You might also be looking for other options as far as the cash out contact me Joshua_Eboh@yahoo.com

2007-02-26 17:19:26 by John J

I have $80000 in equity on my home. I have a single, 15 year mortgage at 4.75%

I am considering a $15000 equity loan or line of credit to consolidate some credit card and medical debt that I don't have the liquid assets to pay off short term. I'd like to clear the medical debt to stave off getting sent to collections and tanking my credit rating. My theory is to take the H.E.L or H.E.L.O.C. To basically save and/or improve my personal credit rating.

Given the current financial environment, I'm afraid that delay on my part could lead to a total inability to get any kind of loan at all as lenders tighten up on loan risk.

I am fiscally responsible, I just had a bad run with medical issues.

Sorry for the long Q. I just needed to provide as much detail as possible.

No.

It is not financially advisable to consolidate debt using your equity in your home. Yes, you can write off the interest, however if you pay the loan to maturity, you may end up paying DOUBLE on that debt.

Home equity has plunged over the last 2 years. You would need an appraisal to see what is still there. I don't know what the value of the home is or the size of the mortgage, but I would try and work out a plan with creditors.

You can get a home equity line of credit but don't use it. Get a no fee loan where you are only changed it you use the money - no annual fees.

This home equity line of credit should ONLY be for emergencies such as if your home is damaged in a earthquake, fire, flood, etc. You cannot get a home equity loan if the home is damaged.

I hope you have a fixed rate on the house.

2008-09-22 09:42:48 by Nathan M