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Home Equity Loans, Forward Bank, home equity loans.#Home #equity #loans


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Home is where the heart is…

it is also your greatest asset!

Home equity loansConstruction Loans

When you are building a home, you are really building the future for your family. You’re selecting a builder that you know and trust will take your vision and make it a reality. Take the same care in selecting your financing – talk with one of our home lending experts and we’ll make the process easy for you.

Home Equity Loans

Does your kitchen need an upgrade, could your bathroom need some work, or do you need to add another bedroom for your growing family? A little equity could go a long way! Use the equity in your home to make those projects happen. Lock in your interest rate and enjoy the convenience of affordable monthly payments over a set time period with a home equity loan. Talk with your tax adviser to explore additional value of using the equity in your home.

Home Equity Line of Credit

Your home has the potential to help you meet your goals. Whether you need your equity to send you on vacation, build an addition, send a child to college, or purchase a vehicle- a line of credit can help. Use this flexible financing tool to maximize your home’s value and potentially receive tax benefits!* If you are looking for the certainty of a set payment and term, while using your home’s equity for projects; a home equity line is perfect for you.

From the moment you decide to purchase your first home through using the equity in your home to remodel or add on, our team will guide you to the best option to meet your unique needs.

Forward Financial Bank NMLS 422932

*Consult with your tax advisor

Home equity loans Home equity loans

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Housing – Housing, equity loan.#Equity #loan


Housing Steve Walker, Director

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Seattle, WA 98124-4725

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Performance Seattle

Welcome

The Seattle Office of Housing builds strong healthy communities and increases opportunities for people of all income levels to live in our city. For 35 years, the City has managed investments from the Seattle Housing Levy and other state and federal sources to fund the preservation and production of affordable apartments and homes. The Office of Housing also develops policies and manages programs that support further affordable housing production. To date, the City has created and preserved over 13,000 affordable homes throughout the city, helped 900 families purchase their first home, and provided emergency rental assistance to 6,500 households.

Request for Proposals for Equitable Transit-Oriented Development at Northgate Station

A Pre-Proposal Conference will be held on Tuesday, November 14, 2017 at 10:00am in Procurement Conference Room #328, 401 Fifth Avenue, 3rd Floor, Seattle, Washington, 98104

Proposals are due by December 21, 2017 at 2:00 PM . View the RFP on King County’s procurement website.

Seattle Housing Levy Dashboard Launched

As part of the City’s commitment to transparency around voter-approved initiatives, two new public facing websites were launched in September 2017 for the Seattle Preschool Program and the Housing Levy. These sites contribute to a growing body of work that will provide transparency to voters by describing progress over time toward stated goals and commitments. Check out the Housing Levy Dashboard as well as others on Seattle’s new Performance Hub.

Request for Proposals for Equitable Transit-Oriented Development at Roosevelt Station

On August 4, 2017, the Office of Housing and Sound Transit published a joint request for proposals (RFP) for equitable transit-oriented development on property adjacent to the future Roosevelt light rail station. OH announced $15 million in funding is available for site-specific affordable housing development on land offered by Sound Transit. OH and Sound Transit are seeking proposals to maximize the creation of affordable homes and meet a range of shared goals. Read the press release.

Request for Proposals for Resale-Restricted, Affordable Homeownership Development on Surplus Property

On July 25, 2017, the Office of Housing published a request for proposals (RFP) seeking proposals from qualified developers interested in acquiring City-owned land at 1312-1326 Yakima Avenue South to develop resale-restricted, affordable ownership housing on the site. The City’s objectives to create lasting community benefit include an affordability period of not less than 50 years, maximizing the site’s development potential and the creation of high-quality product.

Proposals are due by September 28, 2017 at 5:00 PM. View the RFP here. Questions can be directed to Erika Malone 206-684-0247, [email protected]

Foreclosure Prevention Pilot Program: Request for Proposals to Administer Loan Fund

On July 24, 2017, the Office of Housing published a request for proposals (RFP) for an administrator for the new Foreclosure Prevention Pilot Program. The pilot period is 24-months and the efficacy of the program will be evaluated after that period.

Proposals are due by August 31, 2017 at 5:00 PM. View the RFP here. Questions can be directed to Erika Malone 206-684-0247, [email protected]

2017 Rental Housing Program Notice of Funding Availability Announcement – $49.5 million

On July 6th, 2017, the Office of Housing is announcing $49.5 million in funding for affordable multifamily rental housing. View full Notice of Funding Availability announcement and application.

Housing Levy Admin Finance Plan Approved

The Seattle City Council recently approved the Administrative and Financial Plan for the 2016 Seattle Housing Levy. This plan guides implementation of the levy for the next two years. Download the A F Plan

2009 Seattle Housing Levy Fulfills on its Promise

The 2016 Annual Report has been published for the 2009 Housing Levy, wrapping up seven years of investment in affordable housing. The Levy has exceeded its goals for all programs, fulfilling the promise made to voters. Read the Housing Levy Annual Report


Home Equity Loan Advice, Line of Credit, HELOC, equity loan rates.#Equity #loan #rates


Home Equity – All about line of credit

Equity loan rates

Monthly payment requirements can vary, depending on whether you have a fixed term loan or a line of credit that permits much smaller payments.

Home Equity Advice

The average cost of a $30,000 home equity line of credit has been around 4.8% all year. That’s as cheap as those loans have been in more than a decade. But you still need to be very careful when tapping the value of your home.

November 7th 2017

These are the predictable pitfalls that can turn the renovations of your dreams into a nightmare you’ll be reliving, and possibly regretting, for years to come. Avoid them, and you’ll dramatically increase the odds of bringing your project in on budget, on time and with absolutely delightful results.

October 30th 2017

Home equity lines of credit can be a cheap way to borrow money for home renovations, college bills or credit card debt. But is your home worth enough to support a second mortgage?

October 24th 2017

The simplest, most likely answer is that your heirs will be allowed to assume your loan and keep the home as long as they make the payments. But, as you’ll see, nothing is simple in estate law.

October 17th 2017

If you’re among the millions of Americans bracing for the minimum payment on your home equity line of credit to go up — way up — there’s no need to panic. There are lots of ways to deal with repaying this debt.

if you’ve had a “For Sale” sign languishing in your yard for more than a couple of months, there’s a good chance you’re doing something wrong or have a problem that you’re unaware of and haven’t addressed. Here’s how to get your property moving.

Whether you’re redoing your kitchen or tackling a smaller project, our expert tips will help you avoid the biggest remodeling mistakes.

If your home isn’t getting the right amount of heat at the right price, it could be time to replace your furnace. Our 10 tips will guide you.

Some home repairs you can postpone forever. These are the kinds of leaks, shorts, cracks and critters that can lead to exceptionally expensive, even catastrophic, damage that you simply can’t ignore.

Wells Fargo no longer allows home equity line of credit borrowers to make interest-only payments on their loans, meaning minimum monthly payments will rise. But this move could also save your house from foreclosure.


Home Equity Loan, Home Equity Loans, home equity loans.#Home #equity #loans


Find a Location

Home equity loans Compare Home Loans and Lines of Credit

Home equity loans Mortgage Loan Originator ID Numbers

Helpful Calculators

These tools can help you make good financial decisions

Get Rewarded

Our KeyBank Relationship Rewards program rewards you for your everyday banking activities.

Home Equity Loans

Home Equity Loan Features and Benefits

  • Standard and High Value Home Equity Loan options offered, with borrowing limit based on your home’s appraised value
  • Manage your home equity loan through Online Banking
  • Transfer funds online from another KeyBank account to make payments to your home equity loan
  • Interest paid on home equity loans may be tax-deductible 2
  • Earn 25,000 KeyBank Relationship Rewards ® points for opening a new Home Equity Loan † and expanding your relationship with KeyBank.

Standard Home Equity Loan

Up to 85% Loan to Value *

High Value Home Equity Loan

85%-100% Loan to Value *

To apply for one of our home equity loans, you must be:

  • 18 years of age or older
  • * For Home Equity Loan: live within the following states: AK, CO, CT, ID, IN, MA, ME, MI, NY, OH, OR, PA, UT, VT, or WA
  • * For Home Equity Line of Credit: live within any one of the United States except the following: AL, AZ, CA, DC, NV, TX. For subject properties outside of AK, CO, CT, ID, IN, MA, ME, MI, NY, OH, OR, PA, UT, VT or WA call 1-800-KEY2YOU (1-800-539-2968) for product information or to submit an application
  • Agree to provide additional personal and business information, if requested, such as tax returns and financial statements
  • Certify that all information submitted in the application is true and correct
  • Authorize the bank and or a credit bureau to investigate the information on the application

Please read our Disclosures. If you applied for your credit account online within the last 90 days, you may also review the original disclosures provided to you.

1 Subject to credit approval. The APRs listed in the “Get Rates” links above include a $125.00 origination fee and assumes use of the bank’s optional automatic payment deduction plan from a KeyBank checking or savings account. Add 0.25% to stated rates when an automatic deduction plan is not established from a KeyBank checking or savings account. Normal checking or savings account service charges apply. Please refer to specific checking or savings account disclosures for details. Loans $500,000.00 and above pay title insurance premium from $12.50 – $2,859.00. NY and FL loans above $500,000.00 pay mortgage tax and doc stamps. Typical loan payment examples are as follows: If you borrow $10,000 secured by an owner occupied home, for 60 months at 5.90% APR, the monthly payment would be $192.89 or if you borrow $10,000 secured by a non-owner occupied home, for 60 months at 7.91% APR, the monthly payment would be $202.36. Actual rates, APRs, fees, payment amounts and terms are based on loan to value (LTV), product, term, loan amount and credit qualifications. Rates are subject to change without notice and are determined from those offered as of the date of application.

Reimbursement of Lender Paid Costs: If you voluntarily prepay your loan in full and terminate your account within 36 months after you sign the Note, you will reimburse Key for bona fide fees it paid to third parties on your behalf in connection with the opening of your account. These fees may include costs of appraisal, title, flood and, where applicable, mortgage tax. The fees are shown as itemized estimates on your Loan Estimate provided to you within three (3) days of your application, as final itemized amounts on your Closing Disclosure sent to you at the time of final loan approval and as itemized amounts in your Fixed Rate Note. This provision will not apply to the exercise of any applicable right to cancel or rescind under the federal Truth in Lending Act or Regulation Z, or if the term of the loan is 36 months or less.

2 Consult your tax advisor regarding the deductibility of interest.

* Loan to value ratios apply only to loans secured by owner occupied real estate.

Subject to credit approval.

KeyBank is Member FDIC.

† Your checking account must be enrolled in KeyBank Relationship Rewards prior to account opening to qualify for points.

Point values earned for Activities, Bonus Activities and for opening, signing up for or being approved for a Relationship Product are subject to change. There is a monthly cap of 1,500 points for Activity Point categories.

Home equity loans

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Home equity loans


Home Equity Loan, Second Mortgages, Police and Fire Federal Credit Union, home equity loans.#Home #equity #loans


Home Equity Loans

Make your dreams a reality.

Home Equity Loans

Your Home is your most valuable asset and the most economical method of borrowing. Get a PFFCU Home Equity Loan (Second Mortgage) and enjoy Great Rates, Service and More!

  • No Out-of-Pocket Expenses – No application fee, no closing costs 1 and no points!
  • Finance up to 80% of the total LTV of your primary home 2 , for up to 20 years, for a maximum of $600,000.
  • Finance up to 100% of the total LTV of your primary home 2 , for up to 15 years, for a maximum of $50,000.
  • Terms as short as 5 years and as long as 20 years with low fixed rates. Typically, the longest term will offer the lowest monthly payments.
  • Save with tax-deductible interest. Consult your tax advisor for details.
  • Enjoy a 1/4% discount with automatic payment. 3
  • Estimate your payment with our fixed-rate mortgage payments Monthly Payment Calculator.
  • You can close your Home Equity Loan (Second Mortgage) at any of our conveniently-located branches.

Home equity loans

Applying is easy and takes only about 10 minutes. Apply Now. »

If you prefer, you can apply by calling 800-673-1836, or visiting any PFFCU branch. Apply during regular business hours and you’ll receive a loan decision within one business day.

Home equity loans

PFFCU Home Equity Loan Personalized Service

For Personalized Service, apply for your PFFCU Home Equity Loan (Second Mortgage) six-days-a-week in person or by telephone. Visit any of our conveniently located branches in Philadelphia, Bucks County and Montgomery County, PA and NJ for all of your financial needs. Members in Washington Township, NJ area can stop by our branch on Route 42. Members in the Mt. Laurel, Cherry Hill area can stop by our branch on Lenola Road across from the Moorestown Mall.

Not near a branch? Contact our Call Center at 800-673-1836 and one of our knowledgeable Telephone Member Service Representatives can guide you through your Home Equity Loan application process.

Convenient PFFCU branch locations

PFFCU has conveniently located branches in Philadelphia, Bucks County and Montgomery County, PA and NJ. Members who live, work or travel in Mt. Laurel, Cherry Hill and Washington Township can stop into our two NJ branches to get a Home Equity Loan (Second Mortgage). Our Moorestown Mall branch on Lenola Road, across from Macy s, is easily accessible from Mt. Laurel and Cherry Hill. Members in the Washington Township area enjoy the convenience of our branch on Rt. 42.

Come to PFFCU for the best home equity loan rates in Bucks County, PA, Montgomery County PA and best home equity loan rates in Cherry Hill, Mt. Laurel and Washington Township, NJ.

PFFCU is the best source for a home equity line of credit in Mt. Laurel, Cherry Hill and Washington Township, NJ. And the best source for a home equity line of credit in Bucks County and Montgomery County PA.

Loan Protection Insurance 4

Credit Life Insurance is designed to pay off the loan if the borrower dies; while Credit Disability Insurance takes over the loan payments if the borrower becomes disabled. Certain restrictions apply.

For more information, call us at 215-931-0300 or 800-228-8801.

How To Calculate Your Loan-to-Value (LTV) Ratio

Add your loan amount and the amount of any outstanding liens on your property. Divide the total by the appraised value of your home. The result is your Loan-to-Value (LTV) ratio. Your LTV will be a factor in determining your interest rate and how much you can borrow.

  1. $250 is charged for the appraisal of an investment property. $100 is charged if you choose an appraisal upgrade.
  2. Single-family owner-occupied vacation properties have a maximum loan-to-value (LTV) ratio of 80%. Investment properties have a maximum loan-to-value of 70%, and must be owned for a minimum of 24 months.
  3. The Annual Percentage Rate (APR) you will receive will depend upon loan amount, term of the loan, Loan-to-Value (LTV), and credit score. The stated rates for loans up to 80% reflect a 1/4% discount with automatic payment from an active PFFCU Checking Account or distribution from a payroll check automatically deposited with PFFCU and are SUBJECT TO CHANGE WITHOUT NOTICE. Automatic payment required for loans with greater than 80% LTV.
  4. Loan protection insurance is optional and is not required to be approved for a loan.

Call Us with Questions

If you have questions or want to apply for a loan over the phone please call us at 800-673-1836.

Home equity loansHome equity loansHome equity loans

ABA Routing #236084285

Police and Fire Federal Credit Union

901 Arch Street, Philadelphia, PA 19107

©2017 Police and Fire Federal Credit Union.


Vermont Home Equity Loans – New England Federal Credit Union, home equity loans.#Home #equity #loans


Home Equity Loans

Your home may be your largest asset. Let NEFCU help you utilize it. Access the benefits within your home by using the equity in your house to fund education for your children, purchase a new vehicle, make improvements to your home, or to take a vacation. You may receive a tax benefit for doing so! (See your tax advisor to learn if you would qualify for a tax benefit.)

NEFCU offers Home Equities as fixed rate term loans or as a revolving line of credit. You can choose the loan that is right for you so your payments stay manageable.

This variable rate revolving line of credit puts you in control. Need cash now? Take funds when needed, or get peace of mind knowing your money is available when you need it – use it as a line of credit. You control how much you owe by how much you borrow.

  • Home Equity Line of Credit (HELOC): During the Advance Period , pay $12 per $1000 borrowed (or $50 as your minimum) of your outstanding principal.
  • Home Equity Line of Credit Interest-Only (HELOC Interest-Only): For the first 5 years make interest-only payments; then pay $12 per $1000 (or $50 as your minimum) of your outstanding principal balance for the remainder of your Advance Period . “Advance Period” means you have 15 years to draw against the line and then after that draw period you have another 15 years to repay.

*Or you can choose to pay down principal as well- it’s your choice.

Home Equity Line of Credit

  • 1 All rates quoted are subject to change monthly, the maximum interest rate is 18% and the minimum interest rate is 3.50%. The rate may increase after the consummation of the loan. These are our posted rates; your rate could vary according to your credit.
  • 2 The Index is the Prime Rate published in the Wall Street Journal on the last Wednesday of each month.
  • 3 Maximum allowable loan to values may vary based on current market conditions. Call a loan officer for further details.

Institutional ID # 446767

The proceeds of this loan are fully disbursed at the loan closing. Principal plus interest payments begin immediately for the term of the loan. This loan is good for amounts known to you and that you want to repay in a specific time period. It is good for the purchase of autos, RVs, ATVs, education expenses and vacations.

Home Equity Plus

  • 1 These are our posted rates; your rate could vary according to your credit.
  • 2 The payment amount may be higher if escrows for property taxes, homeowner’s insurance or mortgage insurance are applicable.
  • 3 Maximum allowable loan to values may vary based on current market conditions. Call a loan officer for further details.
  • 4 Fixed Rate

Home Equity Plus CLTV 80.01% to 85%

  • 1 These are our posted rates; your rate could vary according to your credit.
  • 2 The payment amount may be higher if escrows for property taxes, homeowner’s insurance or mortgage insurance are applicable.
  • 3 Maximum allowable loan to values may vary based on current market conditions. Call a loan officer for further details.
  • 4 Fixed Rate

CLTV is combined loan to value.

Institutional ID # 446767

NEFCU puts you in control of the refinancing process.

With NEFCU s MyChoice Mortgage, we don t choose the terms of your loan you do! Just pick the interest rate or the loan term that best suits your needs and get a mortgage that is truly tailored to your individual goals. Here s how it works:

The lower the term, the lower the rate!

NEFCU s MyChoice Mortgage is designed to be quick and easy. No appraisal is needed (in most cases) and closing costs are generally limited to $150. As a result, it is a great way to:

  • Pay off your mortgage on your own schedule
  • Save money by reducing your interest rate
  • Tailor your mortgage to your financial goals
  • Reduce your overall debt

Ready to learn more? Call us at 866-80-LOANS, visit the NEFCU branch nearest you, or apply online.

*APR=Annual Percentage Rate. The APR is the Credit Union s as low as rate effective July 5, 2016. PAYMENT EXAMPLES: The monthly payment on a 10 year loan with a rate of 2.625% APR would be $9.48 per $1,000 borrowed. The monthly payment on a 1 year loan with a rate of 1.5% APR would be $84.01 per $1,000 borrowed. All Credit Union loan programs, rates, terms and conditions are subject to change at any time without notice. Rate listed is for a refinance mortgage on owner-occupied single family detached primary residences only. Other restrictions may apply.


Home Equity & Credit Loans, Mortgage, St, home equity loan.#Home #equity #loan


Home Loan Products

There s no feeling quite like holding the key to your new house for the first time. Although it s such a simple piece of metal, one key has the power to unlock the walls guarding the space where your most significant life events will unfold.

Home is where you will entertain your closest friends and family; it provides a safe haven for your children s imaginations to flourish; it comforts you each night when you rest your head. It does all of this and everything in between.

At Arsenal, we know that home is the epicenter of your world. Our home loans are designed to help you stop dreaming and start living in a space you can call your own.

Our fast, professional mortgage team will guide you through the process with the superior service you ve come to expect from your credit union. (Click here for a current list of Mortgage Loan Originators at Arsenal Credit Union who are registered with NMLS.) Our licensed loan officers will help you determine which of the many different types of mortgage products we offer best fits your need.

We re here to help you any way we can. You may find this FAQ document and these mortgage calculators helpful, plus these other resources.

A great first step is to get pre-qualified so you have a good idea of how much you can afford; there s no obligation to borrow. Use this form. Or, you can skip that step and apply for a mortgage loan now.

Rates may change daily. For current rates and terms, click here or call 314.962.6363 and say or press 4 then 1. If you have found your dream home, consider locking in a rate as soon as possible.

Home equity loan If you are a first-time homebuyer, our local partner, First Integrity Mortgage Services, can show you how you can become a home owner.

Protect your home and what s inside it with homeowner s insurance. Cover yourself against losses or damage from fire, weather, theft and more. Protect yourself from liability if an accident happens on your property.

Go Green Loans

These loans carry special rates and terms for homeowners looking to make energy-efficient improvements. Borrow as little as $500 or as much as $15,000 for up to 60 months at interest rates as low as 5.99% APR*. Click here to read more.

*APR = Annual Percentage Rate. Rate varies and is based on creditworthiness. Lowest rate cited as of September 1, 2017, and is subject to change. Contact the credit union for complete details.

Home Equity Loans and Lines of Credit

The equity you have in your house is the difference between what you still owe on your house (your mortgage balance) and what your house is worth on the market now (the appraised value).

You can borrow against your equity to consolidate bills, fix up your home, finance college tuition, even purchase a new car. Unlike many other lenders, we allow you to borrow up to 100% of the equity you have in your home, plus we pay for the associated closing costs * on such loans a $500 to $700 value on average! Interest on home equity loans is often tax deductible, too. Check with your tax advisor for details.

If you choose a home equity line of credit, you can draw on it as you need it. For example, if your credit line is $22,000, you might decide to initially use $5,000 to pay off all your credit card debts. A year or two later, you may want to remodel your kitchen or basement and get a $10,000 advance from your credit line to make it a reality. Tap into your line of credit anytime without reapplying with special checks from the credit union. As you pay off your credit line, the money becomes available for you to borrow again.

Home equity loans (fixed rate)

  • Borrow 60%, 80%, or 100% of your home s equity.
  • At 60%, borrow a minimum of $20,000.

Home equity lines-of-credit (variable rate)

  • Borrow up to 80% ($10,000 – $150,000) at the prime rate**
  • Borrow up to 100% ($5,000 – $100,000) at the prime rate + 1.0% APR***

*ACU may pay closing costs for home equity loans or lines of credit. If the borrower repays the loan within the first 12 months, the borrower must reimburse the credit union for the closing costs. Borrower is responsible for obtaining and paying for comprehensive insurance to cover the value of the real estate. In the provided example, if borrowing 60% of the equity you have in your home, you could borrow $33,000. At 100%, $55,000.

**Floor 4.50%, May adjust monthly. Adjustment cap 2%, lifetime cap 20%

***APR = Annual Percentage Rate. Floor 6%. May adjust monthly. Adjustment cap 2%, lifetime cap 20%.

To apply for a home equity loan or line of credit, please visit any of our branches or call us at 314.962.6363 or 618.239.6363, option 4.

If you currently have a home equity loan or line of credit with us, you can update your insurance information here.


Home Equity Loan Advice, Line of Credit, HELOC, equity loan rates.#Equity #loan #rates


Home Equity – All about line of credit

Equity loan rates

Monthly payment requirements can vary, depending on whether you have a fixed term loan or a line of credit that permits much smaller payments.

Home Equity Advice

The average cost of a $30,000 home equity line of credit has been around 4.8% all year. That’s as cheap as those loans have been in more than a decade. But you still need to be very careful when tapping the value of your home.

November 7th 2017

These are the predictable pitfalls that can turn the renovations of your dreams into a nightmare you’ll be reliving, and possibly regretting, for years to come. Avoid them, and you’ll dramatically increase the odds of bringing your project in on budget, on time and with absolutely delightful results.

October 30th 2017

Home equity lines of credit can be a cheap way to borrow money for home renovations, college bills or credit card debt. But is your home worth enough to support a second mortgage?

October 24th 2017

The simplest, most likely answer is that your heirs will be allowed to assume your loan and keep the home as long as they make the payments. But, as you’ll see, nothing is simple in estate law.

October 17th 2017

If you’re among the millions of Americans bracing for the minimum payment on your home equity line of credit to go up — way up — there’s no need to panic. There are lots of ways to deal with repaying this debt.

if you’ve had a “For Sale” sign languishing in your yard for more than a couple of months, there’s a good chance you’re doing something wrong or have a problem that you’re unaware of and haven’t addressed. Here’s how to get your property moving.

Whether you’re redoing your kitchen or tackling a smaller project, our expert tips will help you avoid the biggest remodeling mistakes.

If your home isn’t getting the right amount of heat at the right price, it could be time to replace your furnace. Our 10 tips will guide you.

Some home repairs you can postpone forever. These are the kinds of leaks, shorts, cracks and critters that can lead to exceptionally expensive, even catastrophic, damage that you simply can’t ignore.

Wells Fargo no longer allows home equity line of credit borrowers to make interest-only payments on their loans, meaning minimum monthly payments will rise. But this move could also save your house from foreclosure.


How Home Equity Loans Work, Pros and Cons, equity loans.#Equity #loans


Home Equity Loans

Equity loans

Home equity loans allow you to borrow against the value stored in your home. They can be useful for borrowing large amounts of money, and they’re easier to qualify for than other types of loans because they are secured by your house.

If your home is worth more than you owe on it, a home equity loan can provide funds for anything you want (you don’t just have to use it on home-related expenses, for example).

A home equity loan is a type of second mortgage. Your “first” mortgage is the one you used to purchase your home, but you can use additional loans to borrow against the property if you have built up enough equity.

Benefits of Home Equity Loans

Home equity loans are attractive to both borrowers and lenders. Here are a few of the key benefits for borrowers:

  • Low rates: Home equity loans typically have a lower interest rate than unsecured loans (usually quoted as APR), which can help keep borrowing costs low.
  • Approval: They are (somewhat) easier to qualify for if you have bad credit.
  • Potential tax benefits: Interest costs on a home equity loan may be tax deductible, but not everybody qualifies for that benefit.
  • Large amounts: Borrowers can qualify for relatively large loans with this type of loan, assuming you have significant equity in the home.

Safe for lenders: Most the benefits above (except for the tax deduction) are available because home equity loans are generally safe loans for banks to make: the loan is secured with your house as collateral.

If you fail to repay, the bank can take your property, sell it, and recover any unpaid funds (this process is known as foreclosure). What s more, borrowers tend to prioritize these loans over other loans because they don’t want to lose their homes (faced with the choice of missing a mortgage payment or a credit card payment, you might skip the card payment).

Approval is not guaranteed: Banks have to be careful not to lend too much, or they risk significant losses. Before 2007, it was extremely easy to get approved. Since the housing crisis, things have changed, and lenders will actually evaluate your application. To protect themselves, they try to make sure that you don’t borrow any more than 80% or so of your home’s value – taking into account your original purchase mortgage as well as any home equity loan you’re applying for. The percentage of your home s value available is called the loan to value ratio, and may vary from bank to bank.

Home equity loans are only approved if you can demonstrate that you have the ability to repay. Lenders are required to verify your finances, and you ll need to provide proof.

How a Home Equity Loan Works

When you borrow with a home equity loan, you can use one of two options:

  1. Lump-sum: Take a large sum of cash and repay the loan over time with fixed monthly payments. Your interest rate can be set up-front, and each monthly payment reduces your loan balance and covers some of your interest costs (it is an amortizing loan).
  2. Line of credit: Get approved for a maximum amount available, and only borrow what you need. Known as a home equity line of credit (HELOC), this option allows you to borrow multiple times, and make smaller payments for several years until you have to start making fully amortizing payments to eliminate the loan.

The HELOC is the most flexible option, as you only pay interest only on the amount that you actually draw out of your pool of available money. Interest rates on HELOCs are generally variable, so your interest costs can change (for better or worse) over time. However, your lender can freeze or cancel your line of credit before you’ve had a chance to use money that you need (possibly just before you were planning to use the money), so that flexibility comes with some risk.

To get a loan, you’ll apply with a lender, and it’s wise to shop among several different sources. Interest rates may vary from place to place, and you’ll have to pay closing costs to get your loan funded. Lenders will check your credit, require an appraisal, and take several weeks (or more) to release any money. Treat the process as if you were applying for a home purchase loan: get your pay stubs and other documents organized to make it go faster.

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Repayment depends on the type of loan you get. With a lump-sum loan, you’ll typically make fixed monthly payments (the same amount every month) until the loan is paid off. With a line of credit, you may be able to make small payments for several years during your “draw period” (which might last ten years or so). After the draw period ends, you’ll need to make regular payments to pay off the debt. However, you can generally pay off either type of loan early to save money.

Common Home Equity Loan Uses

You can use a home equity loan for anything you want. However, they usually get used for some of life’s larger expenses because homes tend to have a lot of value to borrow against. For example, you find that a lot of borrowers want to:

  • Remodel, renovate, or otherwise improve the house and property
  • Pay for a family member’s college education
  • Fund the purchase of a second home
  • Consolidate high-interest debts

Pitfalls of Home Equity Loans

Before using a home equity loan for any purpose, you should be aware of the risks of using these loans. The main problem is that you can lose your home if you fail to meet the payment schedule required by the lender.

Because these loans can provide a lot of cash, it s tempting to use your home as an ATM. Be sure to use your home s equity only for things that will improve the value of your home, add significant value to your life (this does not include “wants” or luxuries), or lead to a higher income for your family. This is a case where it’s particularly important to evaluate “good” debt and “bad” debt.

Another common pitfall of home equity loans is that scammers have found plenty of ways to cheat homeowners out of their most valuable asset (or at least get a lot of cash out of the deal). Be sure that you know who you’re doing business with. If something smells fishy (like a high-pressure sales pitch or a reluctance to put things in writing), then take a step back and make sure you’re not dealing with a con artist.

How to Find the Best Home Equity Loans

Finding the best home equity loan can save you thousands of dollars – or more. To get the best loan:

  • Shop around. Try a variety of sources (credit unions, banks, mortgage brokers, and online lenders).
  • Manage your credit score and make sure your credit reports are accurate.
  • Ask your network of friends and family who they recommend.
  • Compare your offers to those found on websites and advertisements.

Additional Tips

Before you borrow, pause and make sure that this type of loan makes sense. Is a home equity loan a better fit for your needs than a simple credit card account or an unsecured loan? If you’re not sure, figure it out before you put your home at risk.

Also, make a detailed plan of your income and expenses (including this new loan payment) ahead of time. These large loans can come with large payments.

Review and consider insurance (life and disability) to cover the payments if something happens. You may or may not need insurance, and nobody can force you to use it. If you decide to include insurance as part of a home equity loan, go with monthly premium payments – not an up-front option – so that you only pay for what you use (assuming the insurance is just for the home equity loan).


Home Equity – What Is a Home Equity Loan, equity loans.#Equity #loans


Home equity debt: What is it and how can you make it work for you?

Equity loans

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.
  • 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 a home equity loan or line of credit).

Example 1

Let’s say you buy a house for $200,000. You make a down payment of $20,000 and borrow $180,000. The day you buy the house, your equity is the same as the down payment ($20,000):

$200,000 (home’s purchase price) – $180,000 (amount owed) = $20,000 (equity)

Fast forward 5 years. You have been making your monthly payments faithfully and have paid down $13,000 of the mortgage debt, so you owe $167,000. During the same time, the value of the house has increased. Now it is worth $300,000. Your equity is $133,000:

$300,000 (home’s current appraised value) – $167,000 (amount owed) = $133,000 (equity)

Example 2

In the housing meltdown that began in 2006, many homes lost equity rather than gained it. Instead of increasing, the value of the house dropped after the home was purchased. In many instances, a home equity loan would not be available.

Using the above example, let’s say you buy a house for $200,000. You make a down payment of $20,000 and borrow $180,000. During the next 5 years, you paid down $13,000 of your mortgage debt.

As home prices fell and homes in your neighborhood went into foreclosure, your home’s value dropped by 30% (or $54,000) to $126,000. Because the value of your home is less than the amount you owe, you have $41,000 in negative equity and would not be eligible for a home equity loan.

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 and lines of credit defined

There are 2 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 5 and as long as 30 years.

A home equity loan is a one-time lump sum that is paid off over a set amount of time, with a fixed-interest rate and the same payments each month. Once you get the money, you cannot borrow further from the loan.

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A home equity line of credit , or HELOC, works more like a credit card because it has a revolving balance. A HELOC allows you to borrow up to a certain amount for the life of the loan — a time limit set by the lender. During that time, you can withdraw money as you need it. As you pay off the principal, you can use the credit again.

Example

Let’s say you have a $10,000 line of credit. You borrow $5,000 to pay for new kitchen cabinets. At that point, you owe the $5,000 you borrowed, and you have $5,000 remaining in your credit line, meaning that you could borrow another $5,000.

Instead of borrowing more from the line of credit, you pay back $3,000. At this point, you still owe $2,000, and you have $8,000 in available credit.