Comments for Real Estate Mortgage Loan Refinacing

Comment on Paid Off Investment Home. Can I Take A 1st Mortgage On That Property Or Must I Go With A Home Equity Loan? by chatspla

chatspla — Tue, 19 May 2009 02:59:09 +0000

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 http://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 http://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.

Comment on Paid Off Investment Home. Can I Take A 1st Mortgage On That Property Or Must I Go With A Home Equity Loan? by godged

godged — Tue, 19 May 2009 02:59:09 +0000

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

Comment on Is A Home Equity Loan A Good Idea? Or Are They Bad? by Sticky

Sticky — Mon, 18 May 2009 20:51:13 +0000

A home equity loan can be a life saver because of it usually low interest withdrawal on your equity but is still considered a second mortgage on your house and will have to be paid off on top of your original loan to get your title.

Comment on Is A Home Equity Loan A Good Idea? Or Are They Bad? by Jeff

Jeff — Mon, 18 May 2009 20:51:13 +0000

The whole point of a home equity loan is:
“We can loan you money at 15%, but if you promise that if you miss a payment we can take away your house, then we’ll loan you the money at 5%.”
Does that sound like a good deal to you?

Comment on Is A Home Equity Loan A Good Idea? Or Are They Bad? by Anonymous

Anonymous — Mon, 18 May 2009 20:51:13 +0000

If the home equity loan is to pay off credit cards it is a bad idea, utilizing settlements would be better, contacting creditors, getting it in writing first, then remitting, then submitting letters to trans union, equifax, and experian, that the debts are paid.
If you want to get home equity loan to pay off credit card debt it is a bad idea: consider, credit card debt is unsecured, no collateral. If you pay them off w/a home equity loan, you have now turned unsecured debt, in to secured debt w/collateral, your house. And risk foreclosure, whereas credit card debt, can cause a lien on your home, but can’t force sale. Most people who choose home equity loans to pay off credit card debt, now their credit restored, go get new credit cards. Surveys show they are right back in debt, within four years. Now what?
You did not state the reason for home equity loan, so this answer may only be a education for others, if home equity loan is for an operation to cure a life threatening disease, that is a different story.
Again the reason for the home equity loan is the key, and of course Wells Fargo is a reputable lender. I do not know if this is any help, it is an American organization, you must have something similar in Canada, this is website for Natl foundation of Cr. counseling, American. http://www.nfcc.org/
Reason for home equity loan the key. If it is to pay off unsecured debt, not a good idea, you are turning unsecured debt to secured debt and risk foreclosure proceedings, if still have the same amt. of debt.
Also see below.

Comment on How Can I Borrow Money To Fix Up A Rental Property That Is Paid For Through My Home Equity Loan? by Paul in San Diego

Paul in San Diego — Mon, 18 May 2009 15:53:04 +0000

If you have enough equity in your primary residence to take out a loan (probably a home equity line of credit, or HELOC), you can use that cash for whatever you want. Including fixing up a rental property.
And, remember that those repairs are tax deductible. And, so is the interest on the HELOC.

Comment on How Can I Borrow Money To Fix Up A Rental Property That Is Paid For Through My Home Equity Loan? by Ed Atun

Ed Atun — Mon, 18 May 2009 15:53:04 +0000

You are going to have to make the workmen into “partners”. When the work is done, you will sell the house and pay them 110% of their normal pay. Otherwise, no one is loaning for fixup money..

Comment on Can A Person Get A Home Equity Loan On A House While They Are Trying To Purchase It If The Appraisal Allows ? by Brother Otter

Brother Otter — Mon, 18 May 2009 08:49:51 +0000

Should be able to. If the appraisal actually shows that you have $50K in equity after you’ve bought the house, then you should easily be able to borrow half of that.
BTW – please do yourself a favor and Report all of the SPAM/SCAM answers you get from online loan outfits. Nobody reputable does business that way…

Comment on Home Equity Loan – How Is Amount Available Determined? by Anonymous

Anonymous — Mon, 18 May 2009 03:30:09 +0000

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”

Comment on Home Equity Loan – How Is Amount Available Determined? by n2mama

n2mama — Mon, 18 May 2009 03:30:09 +0000

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.

Comment on Home Equity Loan – How Is Amount Available Determined? by golfgirl

golfgirl — Mon, 18 May 2009 03:30:09 +0000

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.

Comment on How Should I Go About Selling My Current Home That I Have A Mortgage And Home Equity Loan On And Go About….. by iocook

iocook — Sun, 17 May 2009 20:57:12 +0000

First off — talk to a real estate professional. They should be able to answer your questions.
Think of this as two integrated but separate steps.
Step 1. Sell you current house. Determine the selling price less the debt you owe and the costs to sell. The amount remaining will determine how much down payment you’ll have for step 2.
Step 2. Identify a new home in the place you want to move to. Determine the purchase price. Then figure out how you want to pay for it using a combination of debt (new mortgage) and downpayment.
Never forget to consider income taxes on the gain (if any) on the sale of your home, insurance and property taxes.

Comment on How Should I Go About Selling My Current Home That I Have A Mortgage And Home Equity Loan On And Go About….. by Anonymous

Anonymous — Sun, 17 May 2009 20:57:12 +0000

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 determine