How do you get a home equity loan to purchase a car?
The lender looks at the amount of ownership you have in the home and projects the cost of loaning you an amount of money up to that point.
Say for instance your home is worth $100,000. If you owe $20,000, then you own 80% of the value ($80,000).
The lender will take your application, have it appraised, offer you a certain amount of money (including interest). Next you are offered a closing date. Then you are offered checks that you can write out in the amount you want.
If its not the same lender on your primary mortgage, a deed is created giving that lender rights to your property if you default on your payments.
It's a loan that you can take out, outside of your home loan. It's due within 30 years just like your home loan. It usually has a higher interest rate than your home loan though. If you default on the loan, you can lose your house just like if you don't pay your mortgage. I suggest you contact you mortgagor and ask them about their home equity loans. Personally, I'd rather refinance my existing loan on my home, and take out money from the refinance to pay for my car (especially since interest rates are low) but there have been problems with appraisals now a days.
Google HELOC.
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