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
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
Is the interest on $200k home equity loan used to buy a new primary residence deductible on Sch A.?
Q. We are planning to rent our existing home and pull $200k equity from that home to buy a new primary residence. I am not clear about the $100k deductible limit on the home-equity loans. Can I deduct it on Sch A or against the rental income and is the deductible equity loan capped at $100k. We file married jointly and our AGI is $160k.
Asked by Rajan A - Sun May 3 04:49:26 2009 - - 2 Answers - 0 Comments
A. The loan is on the rental property, stupid move, as now you have full capital gains tax, but that is not your question. The interest is not applied to your primary home, but to your rental.
Answered by Landlord - Sun May 3 10:38:13 2009
Q. We are planning to rent our existing home and pull $200k equity from that home to buy a new primary residence. I am not clear about the $100k deductible limit on the home-equity loans. Can I deduct it on Sch A or against the rental income and is the deductible equity loan capped at $100k. We file married jointly and our AGI is $160k.
Asked by Rajan A - Sun May 3 04:49:26 2009 - - 2 Answers - 0 Comments
A. The loan is on the rental property, stupid move, as now you have full capital gains tax, but that is not your question. The interest is not applied to your primary home, but to your rental.
Answered by Landlord - Sun May 3 10:38:13 2009
Can you change a home equity loan to a personal loan?
Q. My brother-in-law took out a home equity loan and he went to refinance his house and for whatever reason the house did not appraise for what it needed to partly because of the home equity loan that he already had. He was told to pay off his home equity loan and come back to refinance his house. Is there anyway that he can change his home equity loan to a personal loan? Or would that even help? please help. thanks.
Asked by Jessica B - Mon Sep 1 17:55:10 2008 - - 14 Answers - 0 Comments
A. Sure, but an unsecured la will have a rate of 2% higher attached to it. Based on what you're saying the brother-in-law has enough debt already.
Answered by David M - Mon Sep 1 18:49:49 2008
Q. My brother-in-law took out a home equity loan and he went to refinance his house and for whatever reason the house did not appraise for what it needed to partly because of the home equity loan that he already had. He was told to pay off his home equity loan and come back to refinance his house. Is there anyway that he can change his home equity loan to a personal loan? Or would that even help? please help. thanks.
Asked by Jessica B - Mon Sep 1 17:55:10 2008 - - 14 Answers - 0 Comments
A. Sure, but an unsecured la will have a rate of 2% higher attached to it. Based on what you're saying the brother-in-law has enough debt already.
Answered by David M - Mon Sep 1 18:49:49 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
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
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
difference between a home equity loan and a consolidation loan?
Q. What is the difference between a home equity loan and a consolidation loan? Which one looks better on your credit report?
Asked by zeishabush - Fri Aug 29 05:55:23 2008 - - 2 Answers - 0 Comments
A. A home equity loan is secured by your property and a consolidation loan may not necessarily be a secured loan. It may be just a large personal loan with the purpose of consolidating debts into one payment. A home equity loan may be used to consolidate debts but may also be used for home improvements, college costs, or any other expenses that come about. Visit to know more about the home equity loan. Also you will get low loan rates for NMTW membership.
Answered by iraymond20 - Fri Aug 29 05:56:49 2008
Q. What is the difference between a home equity loan and a consolidation loan? Which one looks better on your credit report?
Asked by zeishabush - Fri Aug 29 05:55:23 2008 - - 2 Answers - 0 Comments
A. A home equity loan is secured by your property and a consolidation loan may not necessarily be a secured loan. It may be just a large personal loan with the purpose of consolidating debts into one payment. A home equity loan may be used to consolidate debts but may also be used for home improvements, college costs, or any other expenses that come about. Visit to know more about the home equity loan. Also you will get low loan rates for NMTW membership.
Answered by iraymond20 - Fri Aug 29 05:56:49 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
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
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
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
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
Can you use the money from your home equity loan to buy another house?
Q. Say I remodel my house, end up with 30k in equity, and take out a home equity loan for that amount. Can I turn around and use that 30k as a down payment on another property? Edit: The new property would be used to renovate/flip and sell.
Asked by VR4Jen - Thu Jun 18 17:03:32 2009 - - 3 Answers - 0 Comments
A. Heck yes! There are no restrictions on how you can use your HELOC. Here's the deal, when purchasing another property, the new lender MAY want to "source" the funds for the down payment. Via your credit report, they'll see that you drew the funds from the HELOC. This MAY be a problem to the new lender. It depends on the LTV (loan to value ratio) of the new purchase (under 60-70% they won't care), or excellent credit. Also, if you can show your account has plenty cash anyways, it will be moot. The lender USUALLY likes the down payment to be from your hard-earned bank account, and NOT from an "equity line gamble." You may want to let the money sit in a bank account for 3 months to "season", then go at it.
Answered by Seasoned S - Thu Jun 18 17:48:12 2009
Q. Say I remodel my house, end up with 30k in equity, and take out a home equity loan for that amount. Can I turn around and use that 30k as a down payment on another property? Edit: The new property would be used to renovate/flip and sell.
Asked by VR4Jen - Thu Jun 18 17:03:32 2009 - - 3 Answers - 0 Comments
A. Heck yes! There are no restrictions on how you can use your HELOC. Here's the deal, when purchasing another property, the new lender MAY want to "source" the funds for the down payment. Via your credit report, they'll see that you drew the funds from the HELOC. This MAY be a problem to the new lender. It depends on the LTV (loan to value ratio) of the new purchase (under 60-70% they won't care), or excellent credit. Also, if you can show your account has plenty cash anyways, it will be moot. The lender USUALLY likes the down payment to be from your hard-earned bank account, and NOT from an "equity line gamble." You may want to let the money sit in a bank account for 3 months to "season", then go at it.
Answered by Seasoned S - Thu Jun 18 17:48:12 2009
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
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
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
Where can I find the best loan rates for equity?
Q. My parents want to take out a loan and are asking me to do a little research. They need about 10-15,000 to do some work on their home. They have well over 150,000 dollars in equity, and decent credit, probably not the best though. What would be there best bet? Refinancing or second morgage, equity loan? Thanks!
Asked by Me - Thu Jun 14 11:55:35 2007 - - 3 Answers - 0 Comments
A. right now should be an equity loan. You don't lose anything even if the market goes a little sour. If your parents has a good relationship with their bank, they should go and talk to them first. Most will treat their good customer with an extremely good rate compared to others. Besides, it would be from a bank you trust than some other people.
Answered by LLC E - Thu Jun 14 12:01:20 2007
Q. My parents want to take out a loan and are asking me to do a little research. They need about 10-15,000 to do some work on their home. They have well over 150,000 dollars in equity, and decent credit, probably not the best though. What would be there best bet? Refinancing or second morgage, equity loan? Thanks!
Asked by Me - Thu Jun 14 11:55:35 2007 - - 3 Answers - 0 Comments
A. right now should be an equity loan. You don't lose anything even if the market goes a little sour. If your parents has a good relationship with their bank, they should go and talk to them first. Most will treat their good customer with an extremely good rate compared to others. Besides, it would be from a bank you trust than some other people.
Answered by LLC E - Thu Jun 14 12:01:20 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
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
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
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
What is the best type of loan to get? --a home equity line of credit or a home equity loan? I want to pay o?
Q. Is it better to get a home equity loan, or a home equity line of credit? I want to pay off my credit card debt.
Asked by Tiffany - Tue Apr 28 20:44:53 2009 - - 4 Answers - 0 Comments
Q. Is it better to get a home equity loan, or a home equity line of credit? I want to pay off my credit card debt.
Asked by Tiffany - Tue Apr 28 20:44:53 2009 - - 4 Answers - 0 Comments
Do you need good credit to take out a home equity loan? Will bad credit affect chances of being considered?
Q. My credit is poor but I have probably $80k in equity in my home. Will a bank refuse to approve a home equity loan because of bad credit?
Asked by brandy2002 - Sun Jul 8 08:45:02 2007 - - 13 Answers - 0 Comments
A. If you have bad credit, you are less likely to be approved for a loan, or if you are approved, you may have to pay a higher interest rate. Part of the decision will be based on what % the $80k in equity is of the value of your home. If your home is worth $800k and you have $80k (10%) in equity and bad credit, you are unlikely to be approved for a home equity loan. On the other hand, if your home is worth $160k and you have $80k (50%) in equity and bad credit, there is a good chance that you will be approved for a loan. This is because the bank looks at how much they could realize from your house if they had to foreclose, and if you only have 10% equity, almost all of that could be eaten up by foreclosure costs, so the bank would lose… [cont.]
Answered by aj485 - Sun Jul 8 08:53:24 2007
Q. My credit is poor but I have probably $80k in equity in my home. Will a bank refuse to approve a home equity loan because of bad credit?
Asked by brandy2002 - Sun Jul 8 08:45:02 2007 - - 13 Answers - 0 Comments
A. If you have bad credit, you are less likely to be approved for a loan, or if you are approved, you may have to pay a higher interest rate. Part of the decision will be based on what % the $80k in equity is of the value of your home. If your home is worth $800k and you have $80k (10%) in equity and bad credit, you are unlikely to be approved for a home equity loan. On the other hand, if your home is worth $160k and you have $80k (50%) in equity and bad credit, there is a good chance that you will be approved for a loan. This is because the bank looks at how much they could realize from your house if they had to foreclose, and if you only have 10% equity, almost all of that could be eaten up by foreclosure costs, so the bank would lose… [cont.]
Answered by aj485 - Sun Jul 8 08:53:24 2007
How long after buying a home will i be able to take out a home equity loan?
Q. I am wanting to buy my first home and the home i found needs work. I want to take a home equity loan out to make the repairs but i dont know what kind of time frame i will be looking at to get one. Any advice would be much appreciated.
Asked by Kelly - Tue Nov 13 09:39:29 2007 - - 7 Answers - 0 Comments
A. depends on how fast home prices are going up - they are supposed to stay down or flat for at least the next year or two, so I wouldn't count on any decent equity for at least 5-10 yrs
Answered by Dr. Deth - Tue Nov 13 10:30:37 2007
Q. I am wanting to buy my first home and the home i found needs work. I want to take a home equity loan out to make the repairs but i dont know what kind of time frame i will be looking at to get one. Any advice would be much appreciated.
Asked by Kelly - Tue Nov 13 09:39:29 2007 - - 7 Answers - 0 Comments
A. depends on how fast home prices are going up - they are supposed to stay down or flat for at least the next year or two, so I wouldn't count on any decent equity for at least 5-10 yrs
Answered by Dr. Deth - Tue Nov 13 10:30:37 2007
Should you get a home-equity loan with the bank that holds your mortgage?
Q. We are thinking about getting a home equity loan. We need a new roof and our AC unit is making our electric bill sky-high. We've never had a home equity loan before, and I'm just wondering if we should go with the company that holds our mortgage, a different company, or does it matter? Any tips would be helpful as we've never done this before.
Asked by ichabodisitchy - Tue Aug 26 08:08:45 2008 - - 6 Answers - 0 Comments
A. Shop around but many lenders are getting out of the home equity line of credit business what is your equity to loan ratio on the first? Is it even possible to get one?
Answered by goz1111 - Tue Aug 26 09:03:12 2008
Q. We are thinking about getting a home equity loan. We need a new roof and our AC unit is making our electric bill sky-high. We've never had a home equity loan before, and I'm just wondering if we should go with the company that holds our mortgage, a different company, or does it matter? Any tips would be helpful as we've never done this before.
Asked by ichabodisitchy - Tue Aug 26 08:08:45 2008 - - 6 Answers - 0 Comments
A. Shop around but many lenders are getting out of the home equity line of credit business what is your equity to loan ratio on the first? Is it even possible to get one?
Answered by goz1111 - Tue Aug 26 09:03:12 2008
What is the difference between a 1st mortgage, 2nd mortgage, and home equity loan?
Q. I am searching for financing to make home improvement repairs, I submitted a request for a home equity loan through lending tree. The lenders throwing out terms such as 1st mortgage, 2nd mortgage, and home equity loan.
Asked by adamea5@sbcglobal.net - Thu Oct 23 19:23:51 2008 - - 3 Answers - 0 Comments
A. The # denotes seniority/position in chain of title. A first mortgage is a loan secured by the property that is in 1st position and gets paid what is due them first if the property is sold (municipal liens like property taxes are TRULY first, though). A second mortgage is a loan that has a "junior" position behind a first mortgage. Home equity loan is just a colloquial term generally applied to second mortgages. A HELOC, or Home Equity Line of Credit (as mentioned by another responder) is a TYPE of home equity loan that acts more like a credit card in that you can draw on the equity as needed and pay it back and draw on it again and again during the "loan" term. Technically you can have 3rd, 4th, 5th, etc. mortgages and any of those… [cont.]
Answered by AllCourt - Thu Oct 23 20:51:28 2008
Q. I am searching for financing to make home improvement repairs, I submitted a request for a home equity loan through lending tree. The lenders throwing out terms such as 1st mortgage, 2nd mortgage, and home equity loan.
Asked by adamea5@sbcglobal.net - Thu Oct 23 19:23:51 2008 - - 3 Answers - 0 Comments
A. The # denotes seniority/position in chain of title. A first mortgage is a loan secured by the property that is in 1st position and gets paid what is due them first if the property is sold (municipal liens like property taxes are TRULY first, though). A second mortgage is a loan that has a "junior" position behind a first mortgage. Home equity loan is just a colloquial term generally applied to second mortgages. A HELOC, or Home Equity Line of Credit (as mentioned by another responder) is a TYPE of home equity loan that acts more like a credit card in that you can draw on the equity as needed and pay it back and draw on it again and again during the "loan" term. Technically you can have 3rd, 4th, 5th, etc. mortgages and any of those… [cont.]
Answered by AllCourt - Thu Oct 23 20:51:28 2008
From Yahoo Answer Search: 'equity loan'
Sun Jul 12 03:49:12 2009 [ refresh local cache ]
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Delinquencies for home- equity loans touched record highs, rising 0.49 percentage point to 3.52% in the first quarter. Delinquencies on auto loans extended ...
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Equity in your home can do wonders for you Yes it is true If you are a homeowner with a good credit history you can make use of the equity in your home to get the money you
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Bad credit does not prevent home owners from applying for or getting approved for a home . equity loan. . Credit can be repaired through a home . equity loan. , and they can be altered to fit the needs of the individual. ...
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