Home Equity Loan Line Credit

I'm thinking about applying for a home equity loan or line of credit for my home but am discouraged by my below average credit score. To refinance, any and all applicants must also be on the title document, so would the same rules apply on a home equity loan or line of credit?

Anyone cosigning for something such as that would have to be on the deed to qualify. Otherwise is is not a home equity loan but a personal loan.

2007-10-08 19:02:26 by pingkitoe

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.

Would a Home Equity Line of Credit or loan used to buy a home be considered a Home Aquisition Debt instead of a Home Equity Debt?

For HELO interest on principal beyond $100k to be deductible, the proceeds must be plowed back into the property pledged as security. If it's used for any other purpose, the interest on the amount of the loan over $100k is non-deductible. To be considered as acquisition debt, the property acquired must be the security for the loan.

2008-05-31 01:18:06 by Evan

Price: $0.99

I need money for home improvements, and I also want to get my mortgage payment lower.

I bought this home in march 07, and I have made minor improvements, but the house needs improvements.

If there are any real estate pros out there with some good practical advice please expound on this topic.

Also, I have paid off some credit card debt since I bought the house, so I think my credit rating is better.

You really need to give a little more information in order to get the best answer: how much is your house worth today, how much is your remaining mortgage, what interest rate are you paying.

If you have some equity, go for a Home Equity Line of Credit (HELOC). Shop the interest rate and the terms around from your mortgage company, your bank, and other banks. Most offer $0 in closing costs as long as you keep the HELOC open for 3 years. Basically whatever the line of credit is, you can tap into by writing a check at any time, pay some off, and then write another check at any time up to your credit line. Generally the interest you pay on the money is also tax deductible. Also, you only pay interest when and if you use the line of credit. It doesn't cost you anything unless you tap into it, so you can also use it for temporary emergencies, and just keep it open even if you don't need it at the moment. It shouldn't cost you anything to leave the line of credit open but unused.

An interest rate with good credit is around the Prime rate (currently 7.75), plus or minus 0.25 point.

If you have a high interest rate and/or an adjustable rate mortgage on your regular mortgage and your house is worth the same or more than when you bought it (it might not be in a lot of markets right now), then instead of a HELOC you should just look to refinance to a lower interest rate. Make sure it's a fixed rate. Then you can use the money you save to pay off any higher interest debts such as credit cards and then do some of the repairs to your home.

Being that you want to get your mortgage payment lower, you should refinance first, and then get the HELOC after you refinance to do the repairs.

Good luck.

2007-10-21 04:31:05 by Lord of Chaos

Price: $5.95

I just finished building my house and I have no mortgage or anything as I had enough cash to buy the land and build outright. But, I have no money left to landscape and have some medical bills I would like to pay off. Can I get a home equity loan or line of credit on my house? Which is better?

A mortgage would be your best bet when it comes to a lower interest rate.
Most banks have prepenalty payments on most of the equity type of loans. However the line of credits generally will not.

2008-01-06 13:09:41 by aidal1135

My husband passed away last year and I have medical bills and credit card bills that I can't pay, would like to know if I were to file bankruptcy can I include my home equity line of credit?
I am not looking for a loan, I was just wanting to know about my home equity loan and bankruptcy.My husband passed away and I am not working due to medical reasons and a have limited income. My father has been helping me but I can't expect his help forever.

Speak to a lawyer. However, a HELOC is a secured loan -secured by a lien on your home. I doubt that it can be discharged through BK.

2009-05-29 10:13:32 by kat