How does a home equity loan work?
Q. I need to know all the details and if it is a good choice. I have payed off my vehicle and credit cards and have none, but I have alot of student loan debt. Our dilema are the student loans. And paying them. I have heard about home equity loans and heard about being tax deductible. How do they work? Do they look bad on your credit? How much can you borrow ? Does it add to the years to pay off your house? We only have eleven years left to pay as it is right now. Just wondering what is a good option. I even thought that after I graduate and am working that my pay checks can go all to my student loans. I am just looking for some good ideas without having to stress out about debt and bills and such. We are trying to pay our bills off and so… [cont.]
Asked by newmoon - Mon Mar 19 16:11:58 2007 - - 5 Answers - 0 Comments

A. I'm not sure why you would want to get a home equity loan to pay off student loans. Typically interest rates on student loans are much lower than home equity loans. It is true that you can use interest paid on a home equity loan as a tax deduction, but you can also use interest paid on student loans as a deduction.
Answered by PCL-R - Mon Mar 19 16:25:37 2007

How does home equity loan qualification works if you re self employed?
Q. I am self employed and want to get qualified for home equity loan. What are the qualifications lenders look at. What do I need to show them and have? Been trying to find out on the net, but can find any good resources. If you know any and dont mind sharing would be awesome. Thanks!!!
Asked by smiling_chicka - Mon Oct 27 12:31:11 2008 - - 3 Answers - 0 Comments

A. You will most likely be required to show two years of IRS filings to prove income. Everything else is basically the same as applying for a first mortgage - house appraisal, savings/checking account statements, credit reports and scores, etc.
Answered by Steve D - Mon Oct 27 12:41:44 2008

What is better, home equity loan or line of credit on home I own outright?
Q. 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?
Asked by aidal1135 - Sun Jan 6 16:09:41 2008 - - 3 Answers - 0 Comments

A. 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.
Answered by Big Deal Maker - Sun Jan 6 16:28:44 2008

Can an equity loan be transferred from one property to another?
Q. I would like to sell the property the equity loan was written for. Since the market is so bad, it's no longer worth what I owe on it. I already have another property, can I transfer the loan to it?
Asked by only_mekse - Wed Apr 30 11:55:10 2008 - - 3 Answers - 0 Comments

Can a fixed home equity loan drop my credit score?
Q. I requested $10,000 dollar home equity loan to roof my house. My FICO score was 780 until approx March when I applied for a home equity loan at a fixed rate. Now my FICO score is 740. What happened? I am never late on any payments. I pay over the minimum amount do on my card every time.
Asked by happydawg - Tue Jul 1 12:10:36 2008 - - 3 Answers - 0 Comments

A. There are a number of factors that go in to the scoring model and on time payments is a major one, but not the only one. Having a new account can be a risk factor all by itself. Since it is a closed end loan, the balance is near the limit and it has probably only just started reporting. I wouldn't freak out or anything. A 740 is still pretty darn good. My scores boucne around with little rhyme or reason. Sometimes opening a new account can have a positive affect. I went to Home Depot to buy $300 worth of windows and walked out with 20K in new credit. Having the additional available credit had a very favorable affect on my scores. I don't have to use the credit if I don't need to. Also, if you have a balance on a credit card that is… [cont.]
Answered by Dale H - Tue Jul 1 12:35:16 2008

Can you get a home equity loan for a home that needs rehab?
Q. The home is paid for and no liens are against it. The home would not pass inspection at this time. I need 20K to make it livable again. Someone told me that the bank would lend the the money on the future equity of the property if I had a licensed contractor do the work. Can anyone clarify this type of loan. Thanks in advance.
Asked by Lue R - Tue May 26 10:32:51 2009 - - 14 Answers - 0 Comments

A. If you have a long standing relationship with bank they may loan you money based upon future value. You can probably about 70% of what home will appraise for in its current condition.
Answered by David Z - Tue May 26 10:41:09 2009

Should I take a home equity loan to pay off the 17,000 in medical bills I have?
Q. I got these medical bills from a recent surgery and its causing a huge financial strain on me. I make enough to live comfortably, but not enough to live comfortably and pay this incredible amount of money every month. I am just wondering, since interest rates are so low right now, is it the right time to take out a home equity loan?
Asked by Trixie - Fri Apr 25 23:41:52 2008 - - 4 Answers - 0 Comments

A. Why would you transfer an unsecured debt into something that could result in the loss of your home if you default? A payment is a payment. Make the payment to the hospital, not to your mortgage lendor.
Answered by Rick B - Fri Apr 25 23:45:31 2008

What is the best way to pay off an equity loan?
Q. I have taken an equity loan for 300 months with an interest rate of 8.24% and making a monthly payment of $197.07. Along with making the monthly payment I am also wanting to pay this off as early as possible by paying $400-500 monthly on the principal. How can I calculate how long this will take to pay off by paying this amount on the principal and is it better to pay on the principal weekly, bi-weekly or monthly. Thank you in advance for your responses!
Asked by freeworld37 - Tue Nov 4 13:10:53 2008 - - 2 Answers - 0 Comments

A. The calculator above is great. On the other hand you will be able to knock that loan out in no time paying $400-$500, you are going to save so much money in interest. Since you can afford the payments and are able to pay it off. I think you did a great job by being able to use the equity in your home. Being able to make extra payments is even better. Interest rates are low and if you can get a good interest rate loan to get you through these times. Good for you!
Answered by www.tawanastegall.com - Tue Nov 4 13:35:46 2008

What would be better, a home equity loan or refinance at lower rate to add on to my home?
Q. I'm wanting to add on to my home but I've never used a home equity loan. I have used the refinance method where you borrow a little extra to add on. What would be the best now, with the way the economy is and the interest rates unstable?
Asked by BamaboynTN - Sat Mar 1 09:55:07 2008 - - 9 Answers - 0 Comments

A. Forget the economy and interest rates in general. The question is, what's best for you? Compare the two scenarios, overall costs of a refi verses the home improvement loan. If you are lowering your first mortgage rate at the same time you take cash out, usually that's the winner. I'd have to have details to make a call but it's your details I need, not the economy or who won the super bowl. If you need more info, send me an email.
Answered by Tony D - Sat Mar 1 10:08:30 2008

Is it possible to refinance a home equity loan to be able to get a lower rate?
Q. Just wondering if anyone had any information about being able to refinance a home equity loan to receive a lower rate and if so, how to go about doing that.
Asked by CHRISTINA N - Wed May 9 16:25:56 2007 - - 4 Answers - 0 Comments

A. Hi there, When it comes to refinancing a home equity loan you reall have to shop around to make sure you get the best deal. You your deciding on your option you make to make sure you get the following *Competive Rate *Lower you repayments * Great Customer Service You must not forget the last point, remember your the customer and the customer is always right !!! Give these guys a go, I think you will be pleasantly supprised
Answered by Answer G - Thu May 10 01:35:40 2007

My parents are taking out a home equity loan to lend me money to start a business, does anyone get taxed?
Q. I'm looking to open a shop and my parents offered to lend me some money to help out. They are taking out a home equity loan to lend me about $35,000 to $55,000. I agreed to pay them back. Because they are taking out a loan do they have to pay any taxes? Do I have to pay taxes on this money? I don't have any assets so I wouldn't be able to get a loan for the amounts of money I posted.
Asked by Felt B. - Sat Nov 24 19:37:34 2007 - - 4 Answers - 0 Comments

A. not unless you are going to pay them any interest on the loan!!! sure hope you make it -- hate to see your folks lose there home!!!
Answered by mister ed - Wed Nov 28 09:30:31 2007

What is the difference between a HELOC and a Home Equity Loan?
Q. I know a HELOC is a "Home equity line of credit" but what is the difference between that and a "Home Equity Loan"?
Asked by King Money 1985 - Tue Jul 4 15:08:06 2006 - - 2 Answers - 0 Comments

A. HELOC stands for Home Equity Line Of Credit, It is a revolving line of credit much like a credit card, the account is revolving for ten years,then converts to a fixed rate loan, A home equity loan on the other hand is a fixed loan for a set amount and is usualy amortized over ten years. hope this helps.
Answered by cafe_blue_note - Tue Jul 4 15:50:35 2006

where is the best place to get a home equity loan besides a bank?
Q. I have already tried at my bank and was denied. Does anyone know a good tried and true place to get a home equity loan?
Asked by Jan B - Thu Jan 17 15:47:52 2008 - - 2 Answers - 0 Comments

A. If you can be a member of a credit union, that would be a good place. You can go to finance companies as well, but the rates will be very high. Remember, if you are seeking a home equity loan to consolidate other debt, like credit cards, you are betting your house you'll pay. It's not always to use home equity for consumer expenses ("buying a blouse on the house"). Good luck to you.
Answered by athiker89 - Thu Jan 17 16:03:38 2008

Will a home equity loan qualify us for the 1st time buyer tax credit?
Q. We were put on the deed of a home while we were "renting to own" (1 yr) then all of a sudden the landlord wanted the rest of the cash. So we got out a home equity loan with the house to pay him what we owed him. Would this qualify us for the First-Time Buyer Tax Credit?
Asked by Melissa - Wed Jul 15 12:53:40 2009 - - 6 Answers - 0 Comments

A. Nope. You are already on the deed, so you aren't legally a first time home buyer. It needs to be a mortgage that would let you "buy or purchase" the property. Home equity loan would not qualify.
Answered by PepsiLime - Wed Jul 15 13:11:51 2009

Can someone please tell me the positives & negatives of aquiring an auto equity loan?
Q. Can I refinance a current auto loan into an auto equity loan? My primary motivation for wanting an auto equity loan is so I can deduct the interests from the auto loan against my income. Serious answers only, please.
Asked by bigpoppamike21 - Fri Mar 28 03:48:50 2008 - - 1 Answers - 0 Comments

A. No... You have to hold the title free and clear to get an auto equity loan. Sorry... :(... An auto equity loan is simply a loan made using a car you own free and clear as collateral. A car with a lien on the title really isn't yours and you can't use it for collateral. You can refinance your auto loan if you find a better rate somewhere else and they're willing to do it... or if you find a finance company willing to lower your payments... If you're a homeowner, there is a way to finance a car using the home as collateral. This type of loan can have tax advantages and a better interest rate. I believe you have to own the home free and clear for that though... If that's what you're talking about and you do own a home, I'm sure someone… [cont.]
Answered by shidhet - Fri Mar 28 04:46:22 2008

How 2 solve for potential amount of credit available for home equity loan?
Q. Here is the problem: Ramon owns a home that was appraised for $132,600. The balance remaining on his existing mortgage is $43,260. Ramon's credit union is willing to loan an amount up to 70% of the appraised value of a home. Based on this information, what is the maximum potential amount of credit that's available to Ramon for a home equity loan?
Asked by Richardsbabygirl - Thu Oct 25 17:42:25 2007 - - 3 Answers - 0 Comments

A. There is a homework section of the site you might try next time.
Answered by Rebecca - Thu Oct 25 17:54:38 2007

How easy is it to get a home equity loan? I would like to use that to pay off cc debt.?
Q. Im not quite sure if I should be going to a mortgage broker to apply for one, or just go to each bank individually? Also, are there any out there that do not have a repayment penalty? I am also assuming that once the property sells the loan needs to be automatically repaid. I would also like to know how this will affect my credit score. Is it better to have an X amount on credit cards, or have that same amount on an equity loan. Thanks I already know the whole "you shouldint have gotten yourself into debt" speech. My husband and I paid for our own wedding, therefore the debt.
Asked by Anna Z - Tue Aug 14 11:08:01 2007 - - 4 Answers - 3 Comments

A. Don't rely on home loans to pay credit card debt. The primary difference between credit card debt and home equity loans is that the latter are "secured" loans. You've pledged your house as collateral against the amount you borrow. If you fall behind on your payments for any reason, you could potentially lose your home. In my experience, when people borrow against their homes to eliminate credit card debt, they typically just slide right back into it -- at the same level or worse -- within two to three years. That's because even after wiping the slate clean, they don't change their spending habits. They max out their credit cards all over again and find themselves in an even deeper hole. Is it possible to use your home equity to pay… [cont.]
Answered by snwbm - Tue Aug 14 11:16:50 2007

When getting a home equity loan does the bank or credit union do an appraisal on your property?
Q. When getting a home equity loan does the bank or credit union do an appraisal on your property?
Asked by z400wood - Fri Nov 7 20:57:08 2008 - - 6 Answers - 0 Comments

A. Yes, of course, they need to determine how much equity there is.
Answered by Landlord - Fri Nov 7 21:04:16 2008

Is it true you can get a home equity loan after 30 days?
Q. How long do you have to live in a home that appraised higher than what you paid to get a home equity loan? Our credit is now damaged, is it still possible?
Asked by leathers2003 - Mon Oct 9 21:29:15 2006 - - 4 Answers - 0 Comments

A. You don't have to wait, but if it's less than 12 months, the lender is going to use the purchase price and not the appraised value. If you put money down for your purchase, you can take out a HELOC up to 100%. The rate will be higher, but you can pay it off with your HELOC in 12 months that's based off appraised value. Just make sure you ask what the termination fee and/or prepay penalty is. help@choicefinance.net
Answered by mortgage help - Tue Oct 10 08:10:52 2006

How much will a Home Equity Loan cost?
Q. I am considering using a Home Equity Loan as down payment for the purchase of a second property. I have two questions. Is it true that the interest will be tax deductable if I take out no more than 100k? Secondly, how much typically will a Home Equity Loan cost me in fees?
Asked by Ken - Thu Oct 4 10:09:16 2007 - - 3 Answers - 0 Comments

A. Interest on home loans is generally tax deductible. This includes equity lines. The fees range from nothing to about $1-1500 tops. This is going to depend on the rate. Obviously the ones that have no closing costs typically have a higher rate. Typically for a smaller loan amount you want to go with a no closing cost option and for the bigger ones you'd pay the fees and get a lower rate.
Answered by matzael - Thu Oct 4 10:19:55 2007