My husband and I are looking into a home equity loan or refinancing our existing home loan. We own a doublewide on 4 1/2 acres that has been converted to real property.

Which is better? A home equity loan, or refinance our existing loan? Where do we start? What should we know? And what we should be careful of?

If you have a great rate on the first then leave it. It also depends on the size of your HEloan. Ask your broker or bank to compare the two and see what's in your best interest. A HELOC is very easy depending on your credit. If the credit is good then you should expect a no closing cost loan at about 5%

You can email with any other questions

brandonbroker@yahoo.com

My wife earns more money than me. The home loan is in her name but the home title is in our joint names. Can she take a home equity loan without my consent?

If your home deed is in both your names, then no, she cannot take out a loan in only her name without your consent. She can only take it out in only her name WITH your consent legally. If your mortgage company has done this.. then they did something incredibly illegal. You need to call the mortgage company on this.. Best Wishes!

If she is primary and you are secondary...then it is very possible! But if she tried to sell the house she would have to have your John Hancock....

I am thinking of refinancing and Chase Bank is ready to give a 10 yr 170k home equity loan. Is this a better than my existing home mortgage loan. Is there anyone who has suggestions for this.

Typically home equity loans have variable interest rates ... the very same type of rate programs that a causing the havoc in the current banking and real estate market. If your rate is fixed for the term, you will have predictable payment streams that you can budget for. If the rates are variable, and the underlying market rate goes up again, you may be asking for trouble. Try to get low fixed rates that you can pay off as quickly as possible. Having your largest asset at risk in case you experience job loss or other financial loss really sucks ... believe me, I speak from experience.

Good answers so far.

First, avoid a variable interest rate. For almost the same APR you can get a fixed rate and not worry if rates go up.

Second, think hard about an equity line. Many people have gotten into trouble with these because they lack discipline and treat it as a source of 'free money'. They end up in even more debt. I'd suggest you determine how much you need and only borrow that amount, or if you do get a credit line, pretend that's all that's available. You'll still have the rest for an emergency.

Third, the interest rate on a home-secured loan is usually lower than any credit card. Using that equity line to pay down your credit cards is very tempting due to the lower rate. If you do this, keep your payment amount the same. It doesn't make sense to amortize a 3-year revolving line of credit over 10 or 15 years in a home equity loan even if the interest rate is lower. If you keep your overall payment amount the same as now (all credit cards + 2nd mortgage/home equity credit line), you'll retire the debt faster which is a good idea.

Whether you get a 2nd mortgage or a home equity line, keep your paid-off credit cards in a box instead of canceling them. You still have them if you have an emergency (such as losing or changing jobs or high medical bills) but don't take them out to buy a new tv or something similar. Also, even if you have great credit if all your existing accounts are maxed out or nearly maxed, your overall credit rating suffers. It's better to keep a couple of zero-balance credit cards for this reason, too.

Finally, read the fine print carefully. What happens if you're late with a single payment? You APR may double. Read the other terms and think about a worst-case scenario and how that would effect the loan.

My wife and I took out all the equity of our paid for home. At first the interest was only 3.25%. Over a couple of years it inched its way up to 8%. We finally 'got lucky' and locked in a fixed at 6%. I say lucky because if you search for historical interest rate history you could be in for shock.

I now use my home equity line of credit to buy a few houses cheaper because it's a cash deal. Then we refinance if possible to get as low a fixed rate as possible.

Debt in general is the Devil's Way to make sure 'The Poor you have with you always'. But if you can plan it so you make MORE money off of other people's money (ie, the bank's money) -- i say if you make more money than you are paying out in interest, then you are a capitalist!

Beware of interest rates climbing out or your reach.

Good luck.

Home equity loans make a great option for refinancing, but there are some important factors that should be taken into consideration, before taking any decision. Generally speaking, there are 2 types of lenders offering home equity loans. One that offer you loan with low cost refinance & other which give 'no cost' refinance home equity loans to the borrower. When ready to take the crucial decision, have thorough research about your lender and the offer you are getting. Take extra care to check, you are not being ask to pay higher rate of interest or additional fee. A rare edge that home equity loans get against other loans is that you don't need to pay cash by closing costs on your loans.

For more on refinancing mortgage: http://www.4refinancemortgage.com/torefinancemortgage/refinancinghomeequity.html

http://www.4refinancemortgage.com/index.html

I have a home equity loan for $100,000 locked at 7.25%. I decided to unlock it for $200 and relock it a a lower rate, only to discover the new rate was 7.35%. If I leave it unlocked the current rate is 5.49% (prime minus 0.51%). I had short term money in the 1980's at 18-21% and cannot afford that now. Could this happen again? Is it safe to unlock this money and leave it unlocked? Or should I stay with the current locked rate?

Getting a fixed-rate home equity loan is always a safer bet than an adjustable rate. With a very weak dollar and soaring prices, I would prefer fixed rate.

I remember the days of the Carter administration when inflation was rampant and interest rates were 18-20%. Let's hope that doesn't return.

Have you shopped around with other lenders to totally refinance the loan?

If you are a first time borrower of a home equity loan it is imperative that you have a checklist of essential questions that you need to ask each and every lender. The answers to these questions will provide a valuable reference to base your comparisons on. What’s the interest rate? Knowing this is crucial. The interest rate will determinepercentage by which the adjustable rate will change. What is the Annual Percentage Rate or APR? The APR on the home equity loan will determine the yearly payment you will need to make towards this.The higher the payment in terms of points, the lower is the interest rate.

I would think you are safe for a while. Just keep up with it. With a 100k the difference between 7.3 and 5.49 would be noticeable. I would keep it adjustable and pay down the balance as much as possible. They are lower rates to help people get loans so they spend more. I think it will be awhile before this is accomplished.

My husband and I want to take about $15,000 to pay off debt and renovate our home, which we just purchased last July. Our current interest rate is 7.25% and we owe about 65k on our home that appraised at 100k. The problem is that our credit is not great and not well established. Which would be the best option for us, home equity loan or refinance?

An equity loan has to be repaid in one year or it either will be refinanced automatically by the bank or it will go into default if not paid in a year.

Better of refinancing if your credit is not horrible.

Chase has no money right now so it would be a horrible choice. Right now National City and Bank of America are the banks that have money to offer credit. I work in the Finance industry.

Home equity without a doubt. Way too many points (money) to pay to refinance. Also an expensive appraisal. I have had 2 banks offer to give a home equity loan for nothing but the interest they would get! No points and they pay for the appraisal. All the banks are doing it. Try the bank where you have your accounts first. Chase bank is hungry for that type of loan interest. Good luck.

Home Equity loan = seperate loan, additional payments

I would refinance.

student loan.

Is it possible to get another equity loan at a lower rate to pay off the 7 1/2% one.

It would be best to consolidate to one mortgage and get a 30 year fixed. Why would you want to pay that high of an interest rate when you can lower it, pay one loan, and have it fixed for 30 years.

To answer your question you can another Home Equity Line of credit just as long as you have good credit history and equity.

Depending on your equity situation and the current rate of your mortgage it may be much less expensive to refinance the entire thing to a lower rate. Rates are great now, you may want to consider it.

I want to pay off my car loans but I don't know if the interest rate decline helped or hurt me in my attempt. I can handle the payments but I wanted to save more and put more into investments. With the equity loan I can do that, but I don't want to do it if it is a bad time. Please tell me your thoughts.

The fed's interest rate cut only decreases the rate at which bank's pay for money they need. The hope and expectation is that if banks are paying lower interest, they will in turn lower the interest rates they charge to their customers. If and when your bank lowers its interest rate, then it is a relatively good time for borrowers. The cost to borrow money will go down and people will spend more money. This is what the fed hopes will happen when they cut the rate.

So, if you can get a lower rate on a loan than you could previously, then it would be a good time to get the loan (assuming you need it.)

Check your bank. I know some banks in my area right now are offering reduced rates on home equity loans just to get customers. Youre best bet is to meet with someone at the bank, you dont want to be lead into making a wrong decision and drowning in debt. Good luck!

If you don't make the payments on your car loans, you lose the car.

If you get a home equity loan, then don't make the payments, you lose the house.

Is it really worth the risk?

--------------------------------------...

Now for the math:

$10,000 car loan @ 10% = $251.53 * 48 months = $12,073

$10,000 refi @ 5% = $78.75 * 15 years = $14,175

$10,000 refi @ 5.5% = $56.52 * 30 years = $20,347

Which one's the better deal?

I have a 720-730 FICO score. The value of my property is about $360,000.-$380,000 My mortgage balance is $320,000. Would I be eligible for a home equity loan? I believe most banks require a 70% LTV ratio. What options do I have to get a home equity loan? What interest rates can I expect - approx ballpark would be appreciated. Thanks.

There are a lot of benefits when you have a home equity. First of all, it increases the value of your home. Moreover, you can make use of it so you will be able to improve your credit rating should you decide to apply for a home equity loan.nBut do you exactly know how to make good use of your loan? Just to help you out, here are 4 tips for you. Be careful when you're applying for a home equity loan If you're familiar with standard bank loans, then you will know how this works. When you're going to apply for a conventional loan in a bank, you will have to provide collateral, which can then function as your secure deposit. It lowers down the risks of banks in entering on a loan with you.

http://badcreditloans.awardspace.com/How_to_Obtain_a_Bad_Credit_Home_Loan.html

Thus, they can provide you with a mortgage with lower payment terms and interest rates. However, if you ever miss payments on your loan, or you can no longer cope with them, there's huge possibility that your collateral will be taken away from you. It's the same case with your home equity loan. If you aren't too careful with it, you will likely lose your own home Take note of the length of your loan. You can have the power to take control over the length of your home equity loan. However, you should be wise with this. Logic can tell you that if you're going to extend your loan for so many years, you will be enjoying lower interest rates.

Ask your bank or credit union. Even though credit is tight these days, they might go for it.

I am looking into getting a home equity loan to consolidate some debt. I just read that banks will use the lesser of the purchase price or the appraised value in determining how much to lend you. Is this right, or do they really use the difference between the appraised value and what you owe on your mortgage? Does anyone know what interest rates are looking like right now for someone with mediocre credit scores?

You need to have excellent credit to get a Home Equity Loan right now. They base it on the appraised value of your home, and what you owe on your mortgage. The interest rates on a home Equity Loan is around 7%. I seriously doubt you will be able to find one with mediocre credit score. Also, do not fall for those that promise you the moon. Look for companies that have been around and are established.

It's a combination. Depending on how long you've owned your home, the appraised value may be less than the purchase price. Then they will determine how much the difference in your debt on the home compared with the value of the home is, to decide how much you can borrow. So if you bought a home 3 years ago for $200,000 with 20% down and it appraises now for $180,000, the amount available to borrow would be around $20,000 (value of $180,000 with a mortgage of around $160,000). However, if you didn't put much of a down payment down and your home value has dropped, you may not have much equity available.

The answer lies some where in between. If you have owned your home for a year or less they will take the sale price or the appraised value depending on which is the lowest.

If you have owned the property for a longer period of time then the lender will lend you a percentage based on the value of the house.

An example would be. If your house was valued/appraised at $250,000 the lender would lend a maximum of 80% of the appraised value which in this case is $200,000.

Now since you have a balance on your mortgage say $125,000, which will be paid off during this transaction. Your cash to you that would be available to you would be $75,000 minus any points, fees and any closing cost.

Of course you may always get less than the 80%. It is not written in stone that you must get the maximum allowed.

You will have to find a mortgage broker to apply for the mortgage or equity loan sometimes called a refinance.

There are other ways to do this also, you may get a Home Equity Line of Credit (HELOC) which you will have to use the same percentages for the value of the house and the amount you will receive. You will be paying two different mortgage companies using this method.

Another way is to get a second mortgage you will be using the percentages and the for the value of the house and the cash you receive. Again you will be paying two mortgage companies using this method.

The interest rates are based on your credit score as well as how you have paid your debts on your credit report and if you decide to refinance your entire mortgage with a new first or keep your first mortgage and get a HELOC or a second mortgage.

Contact a mortgage broker so he can explain your options and select which is best for you and your financial situation.

I hope this has been of some use to you good luck.

'FIGHT ON"

Lets assume that you were denied for cashflow concerns or poor credit and that you had roughly 50K in equity in the home and you needed a loan for around 5-10K. In addition what type of rates would these alternatives charge? The reason I ask is bc I understand that sub prime lenders denied loan applicants at a higher rate (deny a larger % of applicants) than prime lenders.

You're exactly right. Subprime lenders require higher scores when trying to get an equity loan no matter how much equity you have. They will normally need to payoff the first loan to get financing if you don't have better than average credit. For a loan that small I would suggest a small personal loan at a credit union. You'll get a better rate than a second mortgage and pay it off faster.

Did you go through a mortgage broker or straight to a company. If you go through a broker they usually work with a 100 lenders or so and can usually find you a program that will work. I'm a loan officer if you want me to look into it send me an email.

Hi. My home equity loan is an interest only adjustable and I am currently paying something like 7.02 (I have a rate of 1.25 below prime). I also have credit card debt on two cards, but they are fixed at 4.02 and 4.99. I know its usually better to not have the credit card debt, but since the rates are fixed and lower than my heloc, should I work on paying the heloc off first (I owe twice as much on my heloc as I do on my credit cards). Thanks.

Let's take a look at the rates after taxes as interest on the HELOC is tax deductible:

This assumes you are in the 25% bracket.

HELOC = 7.02%

Tax Benefit = 1.76%

After Tax Effective Rate = 5.26%

Credit Cards = 4.02% and 4.99%

Tax Benefit = %0

After Tax Effective Rate = 4.02% and 4.99%

These are the rates you should be comparing. Even with tax benefit factored in, you are still paying more for the HELOC but the rates are very close. Bottom line, pay off what you are most comforable paying off. Personally, I would pay off the credit card with the lowest balance first ......but that is just me.......

Pay off your credit cards first.

Personally I think it would be wiser to pay extra on the HELOC and get it paid off soonest because it can go up in its rate. Also it will still be there if an emergency comes up. Pay what you can on the credit cards but try to pay more than the minimum and discipline yourself to not use them except when you absolutely must. Once the HELOC is zero you can bunch up on the cards and wipe them out faster. Takes a few years, but it can be done if no disaster strikes!

I would pay off the helocsince it is tied to your home credit card debt is usually unsecured and in case you lose job and can not pay do not want your home in jeopardy

Wayne Z is dead on here. You get to deduct the interest on the HELOC so it is debt that is actually earning you some money back in the end. I also feel that it is a lower risk loan. If you get sick or lose your job, you can always sell your house and pay off all of your home debt. You cannot do the same with credit cards since they are all unsecured.

An interest only loan won't always be interest only. There's usually a time limit before you have to start paying on the principal. That's the kind of loan we usually take out when we KNOW we will pay it off before it goes to making payments on the principal, which would be considerably higher payments. I'd tackle that one first. But you need to be making payments on all of them, as you know.

I was coerced into taking a home equity loan along with a mortgage refinance four years ago. The max on the loan was 15,000, of which we spent around 9,000. Since the time we did this, the monthly payments have continued to climb because of the high interest rate, and late fees. The loan has been maxed out for several months. In February we turned the account over to a credit counseling agency we are using. Today I received a summons that will account for nearly 20,000. I have never had a late mortgage payment; can I end up losing my house because of the home equity loan?

Unfortunately yes, the house was put up for collateral. A couple of choices first call them an see if you can work something out, even if it is just paying the interest for a few months. Most lenders will work with you because it is in their best interest. Another option is to call the people with your first mortgage and see if they will re mortgage for the whole amount. Also call the credit counseling agency that you are working with, they may be also able to help. Last resort is to sell the house to pay off both mortgages.

You bet your little A... you can. You put the house up as collateral and if you don't pay you forfeit the collateral.

Don't blame anyone but yourselves for this one. Get a part time job to go with the one you have and pay your bills. Stop spending miney you do not need to spend.

Just go past the arches and eat at home.

Some just have to learn the hard way.

you definately can. you put your house up as collateral. try working more closely with the credit couseling agency to work out something to pay the debt. otherwise, i would let less important bills go to keep my house.

-pay your mortgage and equity loan

-pay your water bill; they can put a lien on your house if you don't

-then send everybody else what you can, don't ignore the debt. call them in advance to tell them when you aren't making the entire minimum payment.

Is there a good site to compare rates on home equity loans?

A great site for that is

http://homeequity-linecredit.com/

They have lots of choices...

SURE, I found interesting information about your HOME LOANS & options here. Goodhttp://all-debt-consolidation-loan.blogspot.com/2007/08/home-loans.html Good luck!

Try http://www.bankrate.com/

rates vary if you are looking for a home equity line of credit or heloc they start at prime plus what ever they want to charge. you will not get a real idea of what your rate will be due to the rate you get for a home equity loan varies because of several factors credit score, amount of equity you are wanting to take out, payment history etc. if you are refinancing to pull out the equity you pull out is also a factor. sure you will find teaser rates online and youll certianly find very low rates some as low as 1.5%

stay away form these loans also must consider closing costs and if you find a no closing cost loan ill tell you now your paying a higer rate!

its better to contact several different people

directlendingplanet.com

There are hundreds if not thousands of websites on the internet enumerating the ways to apply and receive home loan when you are plagued with bad credit issues. These sites help consumers with bad credit scores to increase the viability of their existing credit scores and set up loans regardless of their credit history.Companies that specialize in bad credit home loans; usually offer a wide range of options for consumers with bad creditBad credit hasn't stopped them from purchasing a home. There are several programs available for people with bad credit that helps to restore their credit status and to live debt free lives.

My brother and I need cash for a business venture and would like to take a loan out against an residential investment property that we co-own free and clear. Is our only option a Home Equity Loan? Ideally we would like to take advantage of the lower rates of a standard mortgage.

You'd want a cashout refinance, and then you'd take 100% of the loan proceeds, minus closing costs. Fixed mortgages have better rates than HELOCs, so a regular mortgage is the way to go.

Yes you can get a mortgage on an investment property assuming your credit is ok and income can handle the extra costs. I agree that rates are low right now and I'd highly suggest doing this rather than a heloc. Just go to a bank and ask, heck go to the one that used to have your mortgage - they'll have a history with you.

For matters pertaining to equity the authority that I go to is Marian Snow - best-selling author of "Stop Sitting on Your Assets". She talks about how to let your equity work for you, how to become your own bank, and secure your financial future. I got a lot of new ideas, and now view my money and financial management in a different way. She also tells you why your equity is your best asset, and the best strategies to leverage this asset.

Preview the book here -- there's a lot of vital information you can't find anywhere else. I suggest too that you make a small investment on the book. It changed my total outlook on investments, mortgage, equity and personal finance.

http://www.stopsittingonyourassets.com/MarianSnow/preview/contents.html

You can contact Marian through her personal blog here:

http://mariansnow.typepad.com/assets

You can take out a traditional mortgage, no problem.

Do either of you live in home? If not, can't get HELOC, but can take out a first mortgage.

Whatever you do, do not take an equity line of credit out on your property.

These are the "side loans" banks offer, like a signature line of credit tied to your house. Read the fine print: it says that if you default on payments (including being merely late) they can call the ENTIRE loan amount due: including your house!

Many people are getting caught in that - along with other financial scams big brother is trapping the middle class consumer with. Be very cautious: operate like someone IS trying to separate you from your assets.

As an example, I have a friend in Sacramento, CA that had a mortgage with a major bank (Wamu). Her son went away to college and increased her expenses so she called the bank to restructure her loan. They did, but they didn't tell her they were sending data to the credit reporting agency that she was LATE on her payments (that she WAS making on time, just not the orinigal amount - the new amount they had worked out with her). Now they are saying they want to go into foreclosure due to the Lates!" Amazing! Also, they have wrecked her credit rating, and now she doesn't want to pay them anything - having a bad taste in her mouth because she feels betrayed by the very company she trusted and worked with in good faith.

As for your business, I would say test market first. Most businesses don't actually need a large amount of cash to get started. Do some low cost materials on good paper. I use www.PSPrint.com to order short run four color materials on glossy stock. I like their business cards, club cards and posters (you can get a 4 color poster made for $10). I have a desiger work up a professional layout in Photoshop for less than $100. This will sell your "sizzle" and you will see if there is any consumer interest.

Your next step is to build a website - but make sure you have something to sell, and people can buy it via the website. Use Paypal to conduct your transactions. They have a virtual terminal that allows you to process checks and credit card orders by phone, fax, email, snail mail and web. I use www.netspend.com for my debit card tied to Paypal to tranfer funds and use them; but you can also use Paypal's debit card now.

Consider this:

1. I have $30k in credit card debt.

2. I have a 1st mortgage for $200k (4%) and a Home Equity line of $170k (at prime rate) with no additional credit available.

3. I am buying another house at the end of April.

Would I be better off refinancing my Home Equity and Credit Cards into a new Home Equity loan, or just stick with it as is?

I have heard that I may be able to get better rates on my loan for my new house if I refinance. Could this be true?

Thoughts? Opinions? Alternatives?

You don't mention how much equity you have left in the home, but lets assume you have some equity. You would not want to "max out" your equity. Save at least 5-10% since you are going to be buying another home soon. Now if you have equity left to refinance your equity loan & pay down some credit cards, by all means do so. To best improve your credit score, pay off what you can, but at least reduce each credit card so that you have some available credit if any are at or near their limits. These are important factors in credit scoring and will get you a better rate on your new home. Its best not to close the cards that you pay off. Having that available credit will help your score. Close the cards after you secure your new home loan. Good luck!

Save as much equity as you can. With recent fed rate cuts now is the time to refinance your equity loan. Protect your credit score and credit standing. Cut credit cards you don’t really need. Keep one for emergencies and another for daily use.

http://refinanceloanrates.fimark.net/ http://answers.yahoo.com/question/accuse_write?qid=1005121401867&kid=NbUvWDK_VzlOjTkH6ksJ&s=comm&date=2008-01-29+11%3A27%3A10&.crumb=

Buying another home with a HELOC of $170K is a bit risky. If you are doing this for investment purposes, be sure you can cover your new mortgage / taxes / monthly maintenance. That said, consolidating your credit card debt is a good idea ONLY if you are willing to cut up all of your credit cards and never use them again. Learn to pay cash before you leverage yourself with debt through owning 2 homes, a HELOC, and credit cards.

What is a debt to income ratio to qualify for Home Equity Loan / Home Equity line of credit.

What if I go to mortgage brokers who have access to "B" type lenders at higher rates?

Thanks guys!

Home Equity Loan and Home Equity Line of Credit are separate financing terms. Please remember, you don't want Home Equity Line of Credit but want Home Equity Loan.

Debt to income ratio of 1 to 10 is the minimum requirements in most cases.

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?

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.

I am completely against HomeEquity Loans because if you can't pay that bill they have every right to foreclose on your home. I don't ever want to use up the equity I have invested in my home... That's the only major purchase where I actually make money from it. So my vote is don't do that...especially when it won't increase the value of your home...such as a remodel, etc.

How big are the bills? If you just need a small amount of money, I suggest that you apply for a home equity credit line instead of a loan so that you will have to pay interest for only the amount that you actually spend.

Source: http://hubpages.com/hub/Home-Improvement-grants-and-loans

Very likely. Talk to your banker, and compare the rates he quotes against whatever rates the hospital wants in finance charges.

What are some benefits of a home equity loan? How does it work? Whats a good interest rate for someone with OK credit? My is good, but my husbands is fair. We are planning on consolidating high interest cards and possibly using sometowards a newer vehicle.

The rate will be somewhere between 7-8% right now. The main benefit is its tax deductibility. You'll be able to finance high rate credit card debt at a much lower rate and get a tax deduction. You also be able to spread the payments over a longer period of time. Home Equity Lines of Credit generally only require an interest only payment while a home Equity loan is generally amortized over 10 years. Just be careful, you're potentially spending your home's equity on frivolous items.

Home Equity Loans (HELOC) are a good idea for debt consolidation. They are based around the current equity in your home and your "loan to value" worth. Thus, you will also need an appraisal to prove current market value.

There are initial fees involved with HELOC's, but many lenders will pay for those out of the loan money. Your best bet is to go to www.bankratemonitor.com to check out current loans and interest rates. Some will be higher with points but less in interest, or visa-versa so do some homework first for sure.

The great advantage to a HELOC is that unlike credit cards, you will be able to deduct the interest in your tax return for 2007. If you have a credit rating 700+ that would be optional. If not, your interest rate will reflect a higher percentage based on your credit history.

You are wise to look into it. I currently have one and did the same thing-paid my credit cards plus my school loan and saved quite a bit in interest. My credit rating is 765 and I was still only able to get 8% on the interest. The rates just are not as good as they used to be, but do your homework as I said.

Good luck!

There are never any benefits of giving up what you have saved, as in the equity or your actual ownership portion of the home. While home equity loan is made against that portion or part of it, you may find your bank will offer a consolidation loan without tying up collateral in your home. It all depends on debt to income ratio. If you have low debt, bank is a good bet. If you are convinced you need to follow through with using a part of the value of your home as in an equity loan, shop around and get best interest rates and terms, especially no pre-payment penalty. Also, make sure your mortgage and equity debt will not be more than the cost of selling your home. A frank discussion with you personal banker will probably offer more options for planning and financing.

Many people use a home equity loan to pay off high interest credit cards. It is a separate loan (like a second lien on your home). Basically you are taking the cash value out of your home (the difference between what you owe and what your home is worth). The benefit is that your home equity loan(HEL) interest rate is lower than your credit card rate (ie most HEL will run you 7% vs 14-19% for your credit card). The down side is that you will probably be paying on this loan for a very long time. I think it is a good idea to use a HEL to payoff high interest credit cards but to try to pay off the loan as soon as possible. I wouldn't use it to buy a car. If you want a newer vehicle save up the money. Good luck.

contact Fidelity Financial Group ask for Ken Stark 1-888-892-1858 they have the best rates and can do what you want

i think that the below website will help you to find the right solution

A home equity loan or line of credit allows you to borrow money, using your home's equity as collateral.

Wait. Don't click to another page. If the above paragraph seems like gibberish, you have surfed to the right place. We will explain what home equity is, what collateral is, how these loans and lines of credit work, why people use them, and what pitfalls to avoid.

First, some definitions:

Collateral is property that you pledge as a guarantee that you will repay a debt. If you don't repay the debt, the lender can take your collateral and sell it to get its money back. With a home equity loan or line of credit, you pledge your home as collateral. You can lose the home and be forced to move out if you don't repay the debt.

Equity is the difference between how much the home is worth and how much you owe on the mortgage (or mortgages, if you have more than one on the property).

A home equity loan (or line of credit) is a second mortgage that lets you turn equity into cash, allowing you to spend it on home improvements, debt consolidation, college education or other expenses.

Equity loans, lines of credit defined ...

There are two types of home equity debt: home equity loans and home equity lines of credit, also known as HELOCs. Both are sometimes referred to as second mortgages, because they are secured by your property, just like the original, or primary, mortgage.

Home equity loans and lines of credit usually are repaid in a shorter period than first mortgages. Most commonly, mortgages are set up to be repaid over 30 years. Equity loans and lines of credit often have a repayment period of 15 years, although it might be as short as five and as long as 30 years.

I left off the following information about my previous question. The first mortgage of $190,000 has a fixed rate of 5.375% and the home equity loan in the amount of $35,000 has a variable interest rate currently at 12.13%. Please see my earlier question for more details. Thanks so much for your help!!!! I want to pay my house off as fast as I can!

You will not get the same rate of 5.375 if you combine them. Those rates typically do not exist anymore. It MAY be possible if the value of your home is more than 276K, but still unlikely if we are talking FIXED rates. HOWEVER, you have to look at the overall value you would be saving.

How long will it take to pay of the 35K? 10 years? Longer? If you do refinance into 1 mortgage how much money will you save? People look at rate as though it some badge of honor the lower it is. Is it worth cutting off your nose in spite of your face? If you can save over $200/ month by refinancing into 1 mortgage, and apply that money towards the principal of your mortgage, you could pay off your home 10 years sooner.

You can get a free analysis at http://www.newprimehomeloans.com

Do you mean the tax assessment? If so, appeal it. Almost everyone I've know who has appealed it, got it reduced. In the meantime, try to clear up that home equity loan asap.

Does the principal and interest payment remain the same each month?

Yes, if you can find a fixed rate equity loan. Most are ARM, interst only, or prime plus 2 when you lock in.

I just refinanced and got 4.875

Yes, they stay the same each month. As you pay down the loan, the portion of your payment that gets applied to principal will increase and the portion that gets applied to interest will decrease, but the payment will stay the same.

By contrast, with home equity line of credit, the payments can change with each advance or when the interest rate is changed.

It's still possible to get a fixed-rate home equity loan. It's more common to find this product at a credit union than a bank these days.

yes fixed note is fixed. The problem is home equity loans are revolving so you need just a simple second deed of trust closed end fixed note rather than a home equity line of credit

Debt consolidation, consolidates any debts you have, like 3 different credit cards and you end up paying one price for all three. Usually you save some money with a debt consolidation loan. A home equity loan is is a loan based on the equity of your home, if you bought your home for 150K and now it appraises for 225k, this equity built up goes toward the collateral of a loan. They do usually require excellent credit to get though.

-Now about rates, there is an ARM mortgage which is an adjustable rate mortgage, meaning for the first 5 or so years of a loan you pay a low fixed interest rate, then after that term ends the rate goes up a considerable amount. A fixed rate mortgage is 30 year fixed interest rate. If you have crappy credit you are usually offered an ARM loan, and in my opnion I would not take it unless you know in 5 years you could afford what the monthly payment would be.

-There are many different terms to loans, usually you have to pay 10% down so you will not have to pay Mortgage Insurance, if it is not met you will have to pay even more for added PMI insurance included in your monthly payment.

A debt consolidation loan can be any loan taken out to aggregate a number of other loans or debts into a single loan. It describes what you're doing with the loan proceeds, not how the loan is funded or secured.

A home equity loan is simply a loan secured by your home, other than a mortgage loan used to purchase the home. The funds could be used for repairs or improvements to the home or for pretty much any other purpose, including debt consolidation.

Rates and terms for any type of loan are all over the chart and will depend upon your creditworthiness more than anything else.

basically, a home equity loan uses the equity in your home as collateral, kind of like a mortgage, whereas debt consolidation loans are generally just personal loans, no collateral. rates vary.

I have some credit card debt on a few diffrent cards. I'm getting tired of trying to keep track of when they are due and paying the high rates. I have owned my home for over a year and a half, and I was looking at and Home Equity Loan, which it appears the APR is at 7% with most banks. Would it be worth getting to pay off my credit cards? And, If I wanted to sell my home, would there be any probelm with having the loan?

You could get a home equity loan if you have enough equity in the house.

The bank will do an appraisal on your house to determine the value. Subtract your current mortgage amount. What's left is the approximate equity. However, they usually won't give you the total amount in an equity loan as you would have 100% financing and most banks don't want to do that on an equity loan.

The interest on Home Equity loans is tax deductible, just like your mortgage loan (one of the advantages of a home equity loan). When you sell the house, the Home Equity loan would have to be satisfied, just like your mortgage loan.

If your mortgage loan was $100,000 and your Home equity loan was $50,000 and you sold the house for $175,000, you'd net $25,000, less commissions and other expenses of the sale if the house sold.

Your mortgage company has a 1st lien, meaning they would be paid first in a sale. The home equity loan will put another lien on your house, a 2nd lien, meaning they will get paid next. You get the rest.

It depends on the numbers - how much would the interest rate be on the HELOC, and how much are you paying now Find out rates at http://www.anrdoezrs.net/click-1995821-10400648. But here's the thing - don't take out a loan and run up more debt.

hmm, I am not sure if this could help but I have this resource and it helps a lot when faced with credit and loans difficulties

all the best, I know you'll get through it all

Stay safe

DON'T !!! YOu need to get rid of the credit cards and the debt. A HEL just shifts the debt to another payment without addressing the real problem. YOU NEED TO MANAGE YOUR DEBT.

I recommend Dave Ramsey's book The Total Money Makeover to assist you in budgeting and managing your debt and the root cause.

Good Luck

Yes, it is worth it. For one thing you will save money on interest and you can write off the interest paid on a home equity loan on your taxes.

I did the same thing a couple of years ago and it saved me over $600.00 a month. Just be sure not to take the loan out for a long period. Nothing ove 5-years.

If you sell your home? The home equity loan will have to be paid off from your profit.

dont do it. dont put your house on the line.

first you need to cut up all the credit cards.

sit down and do a written budget. you can find the money and pay of the smallest debt first and then the next smallest and so on.

I speak from experience when I say DON'T do it! HELOCs are like snowballs that from month to month get bigger and bigger and bigger... Before I knew it, my balance was double what I had spent to pay my debts. I had to refinance just to get rid of the HELOC because I couldn't stomach it getting so out of control. Seriously, do not do it. If you need to consolidate, get a personal loan with a set monthly payment at least this way its more managable.

The Home Equity Loan is a rapid method of reducing huge credit card debt, funding college education as well as vacation expenses. As the stock market has gone down from its previous high, people have resorted to buying homes as a type of investment. This has resulted in escalation of housing prices. These higher prices have resulted in escalation in the value of the home. This has proved beneficial to people mired in debt, who can repay the debt with a home equity loan. Home Equity Loans have provided succor and flexibility to help the homeowner eliminate debt and improve their financial situation.

You may be interested in this new program. It works well with a 30, 20, or 15 year mortgage. I am currently using a HELOC (home equity line of credit) with a new software program that helps build equity fast, and will payoff my home and other loans in less than half the time without refinancing, and without extra payments. It is saving me thousands in interest, and pays off home in less than half the years. Those who take an honest look at all the facts and figures from a reputable source will find that this system truly creates a significant advantage for homeowners. E-mail me if interested.

my father and his two brothers were gifted my grandfather's house when he passed away. i told my father i would like to take the house from them so he moved the house from my grandfather's trust to my name. in return i need to pay them for the house. however, because i will now already own the house, can i still get a mortgage to pay them or can i only get a home equity loan? i ask because mortgage rates seem much lower than loan rates. are there any other options?

If you planned to rent the home you could get a mortgage based on the rent it will generate. I would ask you local banker about there loan programs for income property. Also mortgages are cheaper interest rates then home equity loans.

The bank will want to know how you planned top pay them back! You are most likely able to get a equity loan or a mortgage in this case. The mortgage would be a cheaper route.

The key is your income and credit.

You should get a mortgage. It will work like a refinance of a land contract.

Well first of all interest rates aren't everything. Most banks will give you relationship discounts. This means if you have tons of things with the bank already they will give you a small interest rate discount. In addition, if you keep a large amount of money deposited or owed with one bank they will usually grant you special priveledges (usually combined amount of $25,000). So check with your current bank first to see what they will do for you (I know Wells Fargo has huge benefits for people who keep many things with them).

Look for applications fees. You should not have to pay any application fees up front. This include appraisal fees and trust fees, usually the bank will pay for these.

Look at the early closing fees, if any. If you are planning to stay in the house for more than 3 years there is usually no fee.

Of course interest rates are good ways to compare loans, but check these other things too.

I own a home that is paid off but would like to take out a loan to fund some home improvements as well as help my parents pay off their home equity loan. Given this scenario can I take out a mortgage since mortgage rates are lower or am I limited to a home equity loan. I'm not interested in HELOC's.

Just the packaging of the financial product. Once upon a time Home Equity Loans were called 2nd mortgages. The real difference is risk factor for the bank. Typically Home Equity Loans are 2nd to be paid in the event of a foreclosure or other bad financial happening - leaving them exposed if there wans't any many for them at the end of the day. So they charge you a bit more interest to compensate for this additional risk. Since you would be leveraging your house for the 1st time again, and the holder of this new "note" would be the only creditor and thus 1st in line for payment in the event of default, lenders may negotiate a little and get you a better rate.

Its probably something you should take to a local bank or branch where you can work with a real person. I wouldn't advise trying to work this deal through an online lender.

All answers were helpful but unfortunately I could only pick one for th best answer. http://answers.yahoo.com/question/accuse_write?qid=20070712144149AAAa0Jc&kid=Dpx2HGm_UmxsfbBkhv_X&s=comm&date=2007-07-13+05%3A31%3A15&.crumb=

Mortgage repayments are generally over a much longer period of time than with a home equity loan, and the interest rates are lower with the mortgage. Go for it.

No, you can take out a first mortgage. HELOC's are generally second liens on a home, but the loan structure may allow them to be first liens as well.

The major difference is how much you are committed to and the time frame in which they can be paid.

If you KNOW you need to take out $30-50K or more, then get a mortgage on your home, as these are definately the best rates. HELOC's cost more b/c you are not required to take an immediate draw, and it's actually a line of credit...much like a credit card.

You don't want to take out a HELOC if you have another alternative.

PS: $30,000 is usually the minimum for a first mortgage...HELOCS are less...that may also make a difference to you.

The main difference is that with a mortgage you are borrowing all of the money at once and will be paying interest on the entire amount from day one. Home equity loans allow you to draw the funds on an as needed basis and only pay on the money you are using. They are both liens on your real estate and can be in first or second position. Most equity lines adjust the interest rate based on a % over prime and are therefore similar to adjustable rate mortgages in terms of interest.

There is no difference. They are both mortgages. Both will take a lien agaisnt your property. You have a couple options.

1. You take out a set amount of money, say 50,000. You will pay payments on that until you pay it off.

2. You take out a home equity line of credit for 50,000. That is like a credit card you can pay it down and then borrower against it again. You only pay what you take out. It can go up and down.

The first choice is amortized with a fixed payment to fixed terms, the second can adjust according to what you do with the money.

You can easily get a fixed rate first mortgage and get cash out (equity) for your scenario. Check with your local bank or mortgage company. You are not required to take out a HELOC.

I have an adjustable rate loan for my second mortgage, and I want to transfer that balance into a fixed loan with a lower interest rate - and 8-9% would be lower than my current rate. Is this the best way to go?

sounds like it. talk with an experienced loan officer so you can walk through your specific situation.

I would get a Home Equity Loan just a refinanced 2nd. Home Equity Loans interest rates tend to adjust quite a bit.

If you already owe the debt, and are not going deeper into debt on your home, it really doesn't matter. Other than the savings of your interest rate.

Transfering a loan has no (or very little) difference in effect.

After the first of the year I'm doing the exact same thing.

But in Michigan, I would not add any more debt to this house. Nothing is selling around here.

Rates are btwn 6 and 7% in my neighborhood.

I need a loan & some people had suggested I look into this because of the lower interest rates, instead of using high interest (not to mention EVIL) credit cards. But it's not for a home & I don't have enough collateral for the amount I'd like to borrow. I have a great credit score over 700, but also have student loans & other credit card debt, which I am very good at paying at, & make enough to make the payments comfortably. If I can't get a home equity loan, what kind of loan can I get, & at what amount & rate should I expect? I've looked around online, but all the bank terminology does nothing but confuse me, so anyone who could explain this a little more "user friendly" would be helpful!

You can use the equity loan for anything. They will literally give you a check book and debit card in many cases. You are basically borrowing against the equity you have in your home. The interest you pay on this loan will be tax deductable and that is also what makes it more attractive than a credit card or personal loan. Be very carefull! Turning your home in to an ATM machine is what has gotten many people in trouble and is what has caused the "credit crisis" that we are seeing right now. The stock market has plunged because of this and the negative effects on the economy are still being played out. I would only do this if it is necessary or if the loan will add value to your home. You may find yourself in a position where your home is worth less than your first mortgage and equity loan which means you will not be able to sell your home if you have a financial hardship and you may be forced to forclose like all those people out there...

In some cases your total loans may not exceed a certain percentage of the home value.

You should not be looking to start a business, which will drain you dry in the first years, until you get some of the debt paid down.

Never a good idea to jeopardize your home for fancy or credit card debt.

You have to own a home to get a home equity loan. Equity is the amount of value the house has that you don't owe.

Say you put down 5k on a 100k condo, and after living there a year they tell you the condo is now worth 120k. You owe 95k on a 120k home, so you have 25k equity, more or less.

You can then get a 25k home equity loan, and use the money for a car, a face lift, new furniture, or a big bag of crack, whatever you want.

You can try to get a signature loan or unsecured loan, but it's going to be at a high interest rate because it's a high-risk loan.

You can get your parents or someone to co-sign a loan based on their home equity, but then it become their risk and they own you. They get to judge you. They get to ask what the loan is for.

Many mortgage companies will allow YOU (over 700 credit score) to refi your home for whatever you need--not just home improvements. Ask for a "home equity refi(refinancing)". Shop around for the best deal as there are many companies who WANT YOUR BUSINESS. Good luck!

you can as usually the loan is just put into your bank account and you spend it on home renos or what ever we were told by the bank manager to say a loan was for the house and look at buying a business with the money

Seek a professional financial advisor, your finances seem to be in disarray. Looking for more loans while you have so many other debts is a serious indicator of financial trouble. If you make enough to make the payments comfortably, you should be able to pay them off soon or reduce your debt significantly.

I owe about 20k in credit card debt,

8k of that is at 2.9% or 3.9% til paid off!

The rest is at 0% til April '08.

By then I'll get more offers for new cards, with bal. transfers free, and often 18 months at 0%

I could keep moving the balances and not worry, since I've done this for years and it doesn't seem to have affected credit score enough to matter.

I know there are tax advantages for home equity loans, and I

could easily get one, but is it worth paying 7+%?

Is there a math calculation to figure this out?

Another factor: I'll probably sell the house within 10 years and pay everything off.

A complete cash out refi. doesn't look good because my mortgage is at 5.38% and would surely go up to at least 6%

if i were you i would keep transferring them while paying them down. i, myself would be too scared to play that strategy but since its workin for you then keep doin it but pay it down while youre at it. if you do the equity loan.. well thats not gonna be "transferrable" until you sell the house so youll have to pay it every month no matter what! and it depends on your situation of course but taking out a loan could break some peoples bank and cause them to come up short every month which would makes them spend more on credit cards! so now they have to pay the loan plus more credit cards which were supposed to be paid by the loan anyway and that defeats the purpose!! the tax deduction wouldnt be worth it if the loan makes you come up short of the monthly payments!

so thats what i would do if i were you, but again as myself i would probably take the loan because id be afraid to try and keep transferrin my balances because ive never done anything like that before but youre a pro at it so...

Continue till you can. Don't you thnik this a crime?

If you are planning to sell, why should it matter if your interest goes up? As long as it does not go up past 3.9%. A refi would be better than a HELOC. Especially if it is refi'd through a Company that allows free bi-weekly payments. I have been in my new mortgage for 7 months. In these seven months, I have paid more to principal than I did in the whole year of the previous refi. By the end of this year, I will have paid almost 4k to principal. This covers almost all fees to complete this loan and it is bi-weekly payments. This is a 30 yr fixed and if I do not add anypayments it will be paid in 22 yrs. We do not plan to stay til then but we are increasing equity much faster than we ever did before with any"normal" banks and mortgage companies. Very satisfied.

Don't blow your mortgage. Transfer them to lower apr. Most important is stop creating new debt. Get rid of the debt you have.

Which is a better way of taking out the loan.. small business loan?, home equity loan?, or personal loan? I am starting a corporation and I need a startup money.. Do they give out loan for a new corporation? or do i need to personally guarantee it??

SBA Loan will be your lowest rate but you will have to sign personally.

If you are individual, you can easily get a loan offered by the federal government. This loan allows you to start a small business. The department of Small Business Administration (SBA) acts as a guarantor for these loans.

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I want to take out a $10,000 loan and I want to see if the credit card deal is better for overall savings. It's a lower rate than the home equity loan, but will the higher APR of the Home Equity loan paired with the tax breaks be better than a lower credit card(i.e. non-deductible interest) loan?

4.9% is better.

If you are in the 28% tax bracket, you will only recoup 28% of that 9.2% paid. With that tax break in mind, it would only lower the interest rate to about 6.5%.

The only benefit to the home equity loan is that the montly payments may be lower, but your overall cost in the end would be higher.

4.9% on a credit card sounds like it might be an introductory rate. Be sure that it will last the entire time it will take you to pay off the loan.

The credit card is revolving line unsecured debt.

The home equity loan is fixed uses your home for collateral.

If you want the low rate of the credit card but the tax advantages of the home loan consider a home equity line of credit.

With the home equity line of credit. the rate is variable and tied to prime currently 8.25%. (you could qualify for lower).

It is tax deductible. Only, the interest portion of the balance is billed monthly.

Also, the line stays open (revoloving) for 10yrs so if you need another 10,000 or so later on...you can just draw from your line without having to reapply or take out a new loan.

hope it helps

yes. find out how long is your FIXED(make sure) 4.9 rate going to stay, 1yr or more at 4.9 fixed is good. thats if you dont default or anything. if 1 yr then transfer it to a 9.2% home equity.

Obviously, the higher your FICO score (credit rating) is, the lower the interest rates that financial institutions will offer you. However, there are some "tricks" you can utilize to obtain the lowest possible rates for your situation. This blog was developed to help consumers understand the loan approval process, and to advise how to take advantage of this process....

http://lowertheinterest.blogspot.com

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Hi,check out this link

http://moneysavingexpert.com/mortgages

He is good he is the one that told everyone to claim back bank charges.Good Luck

Be sure to shop around, and make sure your credit rating is in as good a shape as it can be. That's about all you can do.

Three best ones:

1) have a LOT of equity in your home

2) have an impeccably high credit score and income

3) put up a compensating balance in the institution if they will give you the lowest rate..that's where you keep money in an account with them that you can not close for awhile.

If you are a first time borrower of a home equity loan it is imperative that you have a checklist of essential questions that you need to ask each and every lender. The answers to these questions will provide a valuable reference to base your comparisons on. What’s the interest rate? Knowing this is crucial. The interest rate will determinepercentage by which the adjustable rate will change. What is the Annual Percentage Rate or APR? The APR on the home equity loan will determine the yearly payment you will need to make towards this.The higher the payment in terms of points, the lower is the interest rate.

yes check this site http://www.nocreditcheckinstallmentloans.co.uk/ for your query

try a credit union

Just got $60,000 for 10 years at 4.99% no fees.

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.

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 more than 50% of the limit, you may want to pay it down or transfer some of the balance to another account so that none of your balances are over 50% of the limits.

Again, a 740 is a great score so you really don't need to be worried about anything and it will probably go back up in a month or two once the new loan is a little more seasoned.

A couple of years ago, my spouse and I doubled the size of our home which we had owned "free and clear." To do so, we took out a 20 year home equity loan for $250,000 at a rate of 5.85%. Since we already owned the home and this was technically not a mortgage, there was no downpayment on this loan. With rates coming down, do we have any hope of refinancing our home equity loan? Or, is refinancing basically restricted to mortgages? Thanks.

because the loan was secured by real estate it is technically a mortgage. If you do refinance you will be looking at a either a new conventional mortgage or a new home equity loan.

You can refinance a home equity loan. 5.85 seem like a very low rate as it is for a home equity though.

Obviously, the higher your FICO score (credit rating) is, the lower the interest rates that financial institutions will offer you. However, there are some "tricks" you can utilize to obtain the lowest possible rates for your situation. This blog was developed to help consumers understand the loan approval process, and to advise how to take advantage of this process....

http://lowertheinterest.blogspot.com

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Make sure you have the best credit, and you'll get the best rate.

Great credit and a large downpayment, say 30%, that should do the trick

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.

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

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Yes, it is not uncommon. A home equity loan is a second mortgage, and the process is essentially the same as refinancing your primary mortgage.

Depending on your financial goals, you may want to consolidate your first and second mortgage into a single, low interest primary mortgage.

This can be beneficial since second mortgages (home equity loans, HELOCS, etc) always have higher rates than first mortgages.

However, if you are certain you want a new second mortgage, keep your credit clean, as second mortgage rates are heavily dependent on your credit score (even more so than first mortgages)

Feel free to check out my mortgage information site (no, it's not a sales site) http://www.mortgagemystery.com/ - it containts a good deal of useful information about every aspect of the loan process

attack this debt the smart way? The credit card has a pretty good fixed rate. The home equity loan is adjustable and it is creeping up steadily. So far, I've been paying extra on both debts. Would it make sense to pay more on one than the other?

Pay on the credit card debt. The interest on your home eq is tax deductible, so it helps with your IRS taxes at the end of the year. The credit card is not.

being in debt sucks. use this site to get quotes on debt consolidation. you'll be debt free in no time!

Put more money to the smallest balance. When that gets paid add that payment to your monthly payment for the larger balance.

Stop buying stuff.

My personal opinion is to clear the equity loan first. If you default on the credit card, your credit will be affected. If you default on the equity loan you'll lose your house.

pay as much as you can to the one with the highest rate. Minimum payments to the other. When the first is paid, then apply the same amount, the combined amount, to the remaining debt.

Another approach is to refinance and stay away from the adjusted ARM and go to a fixed interest rate (5-6% presently if I remember correctly)

Refinance the credit card debt into the refinance to get rid of the higher interest rate over time ratio.

6% over several years is a lot less than 15% - 29.99% for a credit card.

Besides, paying on one debt rather than two will be less initially, but if you pay extra on the one, you will have more cash going on the principle and less on interest compared to having a higher interest rate credit card with an adjustable ARM creeping up.

I have 24 years left on 30 year mortgage. I am thinking about a home equity loan at a favorable rate, rather than roll in to refinance consolidation. If rates are favorable later this year i may like to refinance 1st mortgage at 15 years. Will home equity loan affect my refinancing even if i am not looking for any cash out.

Right now rates are LOW, I would just refi instead of the HELOC that might cost you 7% on up. Why pay for 2 transactions.

I agree with Pam, I wouldn't take out a HELOC, just refi. You'll have to pay out two notes when you could just pay one lower one. Do you have a prepayment penalty on your current mtg? http://answers.yahoo.com/question/accuse_write?qid=20080130152646AAaFloN&kid=RMN4XmS7UzCJCcV.fE4RBFoVQOsasESJC4ohey0RTbdvm6Ggcftw&s=comm&date=2008-02-27+11%3A38%3A02&.crumb=

Do NOT apply with Ben_aggie123. This is a scam, if you send money to him, you will never see your loan. http://answers.yahoo.com/question/accuse_write?qid=20080130152646AAaFloN&kid=AcNSKVa4LEmnHAaRql5v&s=comm&date=2008-03-10+11%3A32%3A01&.crumb=

All of your borrowing is based on the equity you have in your home, your credit, and ability to repay the loans. In your case if you have the equity for the 2nd, and take it out now - and then re-fi the first later on down the road you will likely have more closing costs for these transactions that if you did one, but as long as you have equity, credit, and ability to pay, then a lender will do the transactions for you.

Note: as the year goes on, it's possible that the value of housing may decline some (negating some of the equity you have), and if you go from a 30 to a 15, then your higher payement will bring your debt to income ratio up - which means that your loan won't look as favorable to take advantage of the best rates offered, which may make that waiting game not so good an idea.

best bet, make an appointment with a mortgage lender that has the tools on his/her desk to run the numbers though the scenario and find the best solution for you.

if you pay your loan out early be carful that there is no penalty for doing so.. ask your lender

You bet it will affect your ability to refi. A refi with cash out is always better than a second loan.

Im wanting to finance a pool with a home equity loan. Does that loan effect my current interest rate on my mortgage, or are they seperate?

They are completely separate. You have a contract with the company that holds your mortgage and that is whatever it is. If you get a home equity, even if it is with the same company, that is a separate account with it's own agreement.

They are separate. Check into a home improvement loan while looking at the home equity loan. You may have more benefits that way.

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Normally Higher because of its "Second Lien" Status. The fact is they are more of a risk to the bank. Why?? What happens if you loose your job and can only make your 1st mortgage?? The truth is that u can go without making a payment on your second but they can never go into foreclosure proceedings unless the lender who has the first mortgage subordinates, which will almost never happen. It will obviously effect your credit and mortgage history but it can an only become a lien. Hope that explains why 99% of HELOC's and HEL's have higher rates..

Usually higher.

I think you meant Home Equity Line of Credit vs. Mortgage.

Almost inevitably higher.

try this website for answer.

It's higher and will adjust with the market each month.

If you want to take a second out on your house, consider a line of credit. You only have to pay what you use, just like a credit card.

It's higher than a regular mortgage. If you want to figure out payments, here's an online mortgage payment calculator:

http://www.robhenry.com/calc.htm

It will be higher...Plus if your credit limit is not 630 or above they won't lend you anything...You might just look into refinacing..If you have credit card debt..You could consolidate your credit card debt and be able to claim it on your taxes..I work for a mortgage company in Michigan ...I would love to run some numbers and see if I can help you in any way ...Thanks Dave

Generally higher, because it will be a junior mortgage. That means that while it is Secured, if the property goes into foreclosure, the prior mortgage(s) get paid before they see a nickel. That makes it a little riskier, which demands a higher return than a First.

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?

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.

Just make sure whichever you choose to make sure it is a fixed rate. With the home equity, you can pay off or consolidate other bills and put it under your home interest to take off at the end of the year with deductions. Refinancing at a lower rate would be ideal

This depends on the conditions of the home loan. If one can make extra repayments without penalty then the lower interest rate is better. The only positive of equity loan one can borrow up to the equity of the property ie if in the future one needs more money its easier to access the cash without having to refinance. The decision is depends what one future plans are! The big downside of an equity loan is the temptation of being to be able to get more cash on a whim.

why not do both!

Seriously... you can refinance at a lower rate... lock it in, and maybe leverage some of your equity at the same time.

re-fi at lower rate,with cash out for add-on,if you can qualify...I heard equity lines were all frozen ,without alot of media coverage,untill the banks review write-downs...

home equailty lone

I think a home equity interest rate would be higher. But it would depend on how long you borrow the $ for.

Read how your interst is charged and any hidden lines about credit rating and interest rates as well. Fixed rate mortages are usually the best as ARM are adjustable and can go to high in interest to ever pay.

If the appraised value of your home has risen and depending on the terms of your 80/20 you could possibly refi. Go back to your Lender (if you were satisfied) and see what they can do to help you. You will still have to pay closing cost again or you do in most cases. And be sure you have paid all your payments on time. Maybe this will help you.

Yes... you can refi for the full amount of both loans... I am assuming you did the 80/20 to avoid PMI... Go to your nearest SunTrust Bank. #1 in Mortgages

as ranked by JD Power

A home equity loan should be less because the loan is well collateralized. But shop around and don't be afraid of those places that advertise on the television.

loan info here .visit

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The answer varies greatly. Fixed rate vs. variable. If you're trying to figure out what's cheaper....it's better to evaluate the *length of the loan* in total.

Home equity lines of credit typically involve variable rather than fixed interest rates. The variable rate must be based on a publicly available index (such as the prime rate published in some major daily newspapers or a U.S. Treasury bill rate); the interest rate for borrowing under the home equity line changes, mirroring fluctuations in the value of the index. Most lenders cite the interest rate you will pay as the value of the index at a particular time plus a "margin," such as 2 percentage points. Because the cost of borrowing is tied directly to the value of the index, it is important to find out which index is used, how often the value of the index changes, and how high it has risen in the past as well as the amount of the margin.

Lenders sometimes offer a temporarily discounted interest rate for home equity lines--a rate that is unusually low and may last for only an introductory period, such as 6 months.

Variable-rate plans secured by a dwelling must, by law, have a ceiling (or cap) on how much your interest rate may increase over the life of the plan. Some variable-rate plans limit how much your payment may increase and how low your interest rate may fall if interest rates drop.

Some lenders allow you to convert from a variable interest rate to a fixed rate during the life of the plan, or to convert all or a portion of your line to a fixed-term installment loan.

Plans generally permit the lender to freeze or reduce your credit line under certain circumstances. For example, some variable-rate plans may not allow you to draw additional funds during a period in which the interest rate reaches the cap.

Also of interest....second mortgages vs. ELOC:

If you are thinking about a home equity line of credit, you might also want to consider a traditional second mortgage loan. A second mortgage provides you with a fixed amount of money repayable over a fixed period. In most cases the payment schedule calls for equal payments that will pay off the entire loan within the loan period. You might consider a second mortgage instead of a home equity line if, for example, you need a set amount for a specific purpose, such as an addition to your home.

In deciding which type of loan best suits your needs, consider the costs under the two alternatives. Look at both the APR and other charges. Do not, however, simply compare the APRs, because the APRs on the two types of loans are figured differently:

The APR for a traditional second mortgage loan takes into account the interest rate charged plus points and other finance charges.

The APR for a home equity line of credit is based on the periodic interest rate alone. It does not include points or other charges.

Best of luck....

I believe that regular loan has less of an interest!

Obviously, the higher your FICO score (credit rating) is, the lower the interest rates that financial institutions will offer you. However, there are some "tricks" you can utilize to obtain the lowest possible rates for your situation. This blog was developed to help consumers understand the loan approval process, and to advise how to take advantage of this process....

http://lowertheinterest.blogspot.com

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Yes, having access to the best lender to work with the credit and income you have and their special resources. Email my friend, he is a genius. mike@afbankloans. com

every web site is tied to a bank or lending service. i'm looking to shop for the best rates before applying or giving out personal info. any suggestions?

this web site has a ton of information including free reports...tons of mortgage information.. hope it helps

http://www.derekbeisner.com

There are many lenders who are keen to quote you their best home equity loan rates free of charge. You are not obligated to apply for a loan from them either before or after receiving their free quotes.

All they need is some basic, non-intrusive information from you such as your property's locality, its current market value, and how much loan you require. Since you haven't made up your mind to apply for a loan, you can assume your property's market value and the loan amount required. Given your data, they will be able to quote you personalized loan rates and provide other relevant information. These will be helpful in your consideration.

You can find more information here:

http://homeequityloananswer.com/main/how-do-i-shop-for-the-best-home-equity-loan-rates/

Sorry but your going to have to apply for the loan and furnish your credit score to get the interest rate. Everyone will have a different score directly related to your crdit reports and scores!

Look, go to the website below and read it all, especially the section called "how credit scoring works".

Is there one site where you can easily compare interest rates?

If you want to compare home equity loans rates try this site -

http://homeequity-linecredit.com/

They have a bunch of companies you can look into.

Just go to bankrate.com