Home Equity Loan Questions

December 14, 2008 by · 4 Comments
Filed under: Blog 

What do we really know on home equity loans? Before you ever decide to get a apartment equity loan, make sure that you do fully understand the all the important aspects.

Dont hesitate to ask the staff some apartment equity loan questions in order to fully understand all the aspects, like the mode of payments, the Annual Percentage Rates, the fees and charges and the terms and agreement.

It is recommended that all personal should ask the staff series of home equity loan questions before deciding which company to get the loan. It advisable to contact several lenders first; do not settle for those who contact you through mail or those who knock on your home. It is best to seek advice from banks, saving and loans, mortgage companies, credit unions and brokers. Seek advice and recommendations from your good friends and family who have loaned before. Compare all the information of the companies that you have gathered.

When you interview the staff of a company, explain first what your plans are and why you want a home equity loan. If there are some things that you do not understand, like the home equity loan terms and conditions, do not hesitate to ask, let the lender of the company explain to you thoroughly the home equity loan questions that you have asked.

Always take note of the fees, including the application fees, loan processing fees, underwriting fees, funding fees, appraisal fees especially the document preparation and certification fees.

One of the frequencies asks house equity loan questions that you should ask are your credit score. Credit score or credit scoring is a system that lender use in order to clarify whether the creditor would give you credit. It has most of the information regarding your previous credit experience whether or not you have paid on time, outstanding debts, and age of your account gathered from your credit applications and reports. This way, the creditor can compare the information of the performance of your account to similar profiles. It is advisable that you to negotiate from more than one lender and before signing anything read the loan closing papers term and agreement thoroughly and carefully.

Asking for the repayment period is also one of the most important equity loan questions you should ask. Because the value of your home can either increase or decrease during that period. If the value of your home increases then you can use the extra money to increase the value of your house. With this extra money, you can also finance other requirements like education and medical bills.

Likely the most important of all house equity loan questions is the amount that you can borrow. Remember, no loan system is the same. There are lots and lots of lenders that provide different home equity financing. All you got to do is collect and select.

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Comments

4 Responses to “Home Equity Loan Questions”
  1. travelbud383 says:

    home equity loan questions?
    I own a home in Oregon appraised at $378,000. It's paid in full. We want to relocate to Raleigh, NC. On a recent trip we made a offer on a home and it was accepted, the sale is pending. To purchase this home I am planing to use the equity in my paid-off home, pay cash for the new home of $230,000, then sale my home in Oregon and therefore the loan would be cleared.

    Any better options for doing this? My payments will be about $1900 on the equity loan and I would sure like to avoid having to pay more then one payment. Can i request my payments to be delayed for 90 days? What is the maximum? I wish to sell my old home before having to make those huge payments.

    Any tips or advice is appreciated on how to save as much as possible. Thanks!

  2. angelina123 says:

    You can do an interest only loan on the $230,000 and your payments would be considerable less than 1900.00. I've seen ads for interest only loans for 200K for like 400 or a bit more a month. However, you have to be sure there is no prepayment penalty when you pay the loan off when your house sells. If you cannot get an interest only loan for a short time, look into a low intro rate adjustable loan, again with no prepayment penalty. These are the only ways I know. I would check with your bank or a loan officer to see if there any other options. Also, you usually do not have to make a payment until the month following the closing of the loan. But the key is not having a prepayment penalty and of course low or no closing costs. Good luck.
    References :
    Bought and sold 5 homes.

  3. Louiegirl_Chicago says:

    please write to me at the provided email address so you can clue me in on why you believe you could have two mortgage payments. i don't get it.

    if you have paid off your oregon house, then you do not pay a mortgage on it, correct?

    if you will use the equity in your oregon house, which is worth more than the NC house, to pay cash for the NC house, why will there be a payment? do you mean that there will be ONE payment on your oregon equity loan UNTIL you sell it, then pay off the equity loan?

    i just don't see where you come up with a double payment…

    no, you cannot request payments to lag for 90 days. and why? if you wanted for the equity payments to lag, then you should have purchased the NC house after you had a contract on the OR house.

    what do you intend to do with the balance that you get out of the proceed of sale of the OR house after you pay off the NC house? i hope you know how much uncle sam doesn't tax you for, anymore, in capital gains. i work for professional investors, trading like-kind property. maybe you can do the same with the balance left after you pay off the NC house so that your old age will be safer. write me if you want any advice on that part. as well as on my question.

    i do not mean to sound rude, i just don't get what you mean.

    you save as much as you can by putting your OR house up for sale now, at a reasonable cost that will attract a qualified buyer, with a good Realtor (r), hopefully, if you liked her, the one that sold you the house to begin with. just know it is a buyer's market, so if you don't price to sell, you make the worst mistake any seller makes, no matter what market it is: you scare off your qualified buyers and your listing gets old and stale within 4 weeks. after that, nobody is interested in it, even if you reduce the price. price it to sell at first.
    References :
    Realtor (r), broker owner, consultant, creative counselor for familial portfolios including real estate, residential and investment specialist, tax-deferred 1031 starker trader, etc., 23 years.

  4. rukara n says:

    There are several options available.Home equity, debt consolidation, refinance. But you need to calculate and see which option saves u money and has got many other advantages. You could use calculators located at http://mortgage.yeyeyup.com/calculators.html
    References :
    http://mortgage.yeyeyup.com/calculators.html

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