Comments for Equity Blog

Comment on Can you get a home equity loan even if you already got a second mortgage? by Jennifer

Jennifer — Sun, 03 May 2009 09:02:03 +0000

Hi,
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Comment on Can you get a home equity loan even if you already got a second mortgage? by Big daddy

Big daddy — Fri, 01 May 2009 06:38:15 +0000

a home equity is this case would be a 3rd mortgage, you might have gotten away with it 2 years ago, but not now. Even so, I would highly advise not using a home equity. The one answer did have a point, I would try to work with the creditors first, but if these bills have moved to collections, you may be in a tough spot as your credit may be detoriating because of them. I would list all the medical bills you have and call each one to see if your in collections and how they are reporting you. If you can work with them I would, but if they’re not willing to work with you, I would see a mortgage professional quickly to put everything into one loan so that those bills don’t get out of hand, good luck

Comment on How do you pull equity out of your home with taking a how equity loan out? by 2_Judson_2

2_Judson_2 — Wed, 29 Apr 2009 14:28:47 +0000

You increase your equity every time you make a payment (assuming the property value doesn’t decrease) that’s the portion that goes to principal. You can increase your equity faster with a 15 year vice 30 year mortgage. Your equity also increases as the homes value increases. A lender will need an appraisal to find your home’s current value. I have seen that appraisal fudged to make the deal work out. Either way you assume more debt to get at that money (equity).

Comment on How do you pull equity out of your home with taking a how equity loan out? by a_j_edwards2002

a_j_edwards2002 — Wed, 29 Apr 2009 11:54:09 +0000

To build equity in your home you must either pay down the mortgage or have the market value go up. Your lender will decide if you have equity in your home. They decide how much your home is worth then they deduct how much you owe the difference is the amount of equity that you have.

Lastly, I **** to tell you, their are only three ways to get equity out of a home.
1) Get an equity line of credit.
2) Refinance, and pull some money out.
3) Sell the property.

Comment on What is a home equity loan and what is the process to applying/being accepted for one? by Emily_Knell

Emily_Knell — Tue, 28 Apr 2009 14:44:56 +0000

Let’s say you owe around $70K for your house & it now appraises for $275K, you can “cash out” some of your equity.

Equity is the difference between what you owe & what the home is worth or appraised at now.

There are many programs for “cashing out” equity. You could get up to 100% of your equity out. I do not suggest this &your interest rate on your equity loan will be a lot higher.

You could cash out say 80%, based on my #’s above that would total about $164,000.

& you could use this money towards a down payment & for construction costs with the home you’re interested in building.

You want to make sure you’re using your money with the best programs. Talk to a lender who will show you the pros & cons. Don’t use all of your liquid cash to sink into building a home, leverage, leverage, leverage & talk to the lender about a “Construction to Perm” loan. (Construction to finished product)

Comment on Can you get a home equity loan even if you already got a second mortgage? by src50

src50 — Tue, 28 Apr 2009 12:33:18 +0000

You already have a second mortgage and you want to take out a THIRD? If you do in fact have “a lot of equity” in the home, you’d be better off refinancing your existing loans into a new fixed rate mortgage.

Comment on What is appropriate equity in a startup for employee #5? by In Science we trust

In Science we trust — Mon, 27 Apr 2009 20:53:03 +0000

The level of your position and your skills are much more important factors than your employee # in determining the appropriate number of shares. How many, if any, people will you be supervising? Are you a key engineer in a technical start-up? Or, are you perhaps an experienced marketing guy that knows the industry and customer base well? These type of positions can command higher amounts, typically between 1 and 5 percent. Without knowing your potential position and how special your talents are, it is not really possible to give you good feedback. .33% may be very appropriate.

Comment on What is a home equity loan and what is the process to applying/being accepted for one? by Mortgagemom

Mortgagemom — Mon, 27 Apr 2009 15:31:33 +0000

An equity loan is a loan against the difference in your home’s value and any outstanding liens you currently have (like your 1st mortgage). The new equity loan takes a 2nd lien position to your 1st mortgage and is sometimes called a second mortgage, which is the same as an equity loan.

Some banks and direct lenders require “seasoning” which means you have to own your home for sometimes 12 months before you can use the new value. Therefore I recommend you seek the assistance of a mortgage broker. Brokers work with several different lenders and will have options available to you right now. They can also explain the various types of equity loans available and can offer rates that are the same or lower than local banks. They also have several “no-cost” loans as well.

Since you’re looking to build a home, you may not need all your equity out at once. I recommend an equity line of credit where you can borrower and pay for only what you need when you need it. Equity lines can be fixed or variable, have interest-only payments or include principal payments. Again, talk to your local broker to get all the details.

Comment on Can you get a home equity loan even if you already got a second mortgage? by joe.attaboy

joe.attaboy — Sun, 26 Apr 2009 11:55:07 +0000

If your debt-to-income ration is positive and your credit score is high, you should be able to get the loan. However, lenders will be wary about anyone who appears to be overextended, especially in the current banking and mortgage environment.

One thing you might want to investigate is talking directly with the medical creditors and ask them to work with you on extending the time to pay off your debt. They’re not in the finance business, and they would rather eventually get their money than hand your debt off to a collector. Communicating with them is the key. I’ve been there.

Comment on How to finance a bathroom remodel when all equity is lost out of home? by bud68

bud68 — Sat, 25 Apr 2009 00:29:39 +0000

Save up till you have the cash. Homes were never meant to be ATMs.