Home Equity Mortgage Loan

[zinta]

Hai,

I am Zinta.

Your Home Equity Mortgage Loan Could Use a Fix

If you have a home equity line of credit or home equity loan with an adjustable rate, consider fixing your rate and payment while rates are still low.

Many borrowers have home equity lines of credit (HELOCs) to consolidate debt and avoid bad credit. Others took out second mortgages to pay for medical emergencies, home improvements, or other large purchases. While using debt secured by your home is often the cheapest financing available, and far superior to credit card debt, you should keep an eye on your interest rate.

What Rate Do You Pay For Your Home Equity Line of Credit? Most HELOCs carry rates based on the prime rate and may change every month. If you have bad credit, the rate on your home equity loan could be several points higher than the prime rate, and you have little protection against rate and payment increases.

Can This Problem Be Fixed? Check your loan documents. Some HELOCs and ARM second mortgages allow you to fix your interest rate at one or more times during the life of the loan. If your loan features this option, consider exercising it before rates go up.

Other Options for Fixing a Bad Credit Home Equity Loan include wrapping the line of credit or second mortgage into a new first mortgage, or refinancing your ARM home equity loan or HELOC with a fixed rate second mortgage. Replacing your existing first and second mortgage with a new first mortgage makes sense if you can get a better rate and terms than you have now.

Check Your Documents. Home Equity lines often carry a penalty of about $500 if you pay them off within three years of the origination date. Terms for a bad credit home equity loan may be more restrictive than that. Check your loan documents before applying for a home equity refinance to avoid expensive surprises. If you have a penalty, check with your current lender. Some are willing to waive the penalty if you refinance through them.

[lopez]

Hai,

I am Lopez.

Reverse
A reverse home mortgage is a loan instrument that allows Senior Citizens (age 62 or older) to borrow money against their home's equity. You can get this money in a lump sum, a line of credit or monthly installments. How much money you can borrow depends on your age and the value of the equity in your home. The HUD site Reverse Home Mortgage Info has a lot of information and a mortgage calculator you can use to figure out how much money you can borrow. The regulators seem to have taken much of the risk out of the system, for instance, you never have to pay the loan off until you're done with the house, so, you can't lose the house for missing a payment. The amount you can borrow with FHA approval is also set so low that you're not at risk of running out of equity before you no longer need the home. I know, this sounds like the other sites...all upside. I'll get to the downside when we discuss the costs. Even with high costs, the reverse home mortgage can solve a financial problem common to many seniors. To help you get more info, here are the latest, top-selling books on the reverse mortgage.

[andrew39]

Nice suggestion and links!

Thanks

[zack_cendol]

thanks,

this make me really that,

im not good idea for that, but im read this, thanks

[devidson11]

Yes!! Nice information that you have shared with us.
Thank you very much

[charis]

Nice post. Thank you for sharing useful information about mortgage loans.
A Home Equity Loan allows you maximum flexibility with your finances.you can use the line of credit to carry out renovations, invest in shares, purchase another investment property or pay the bills.If you'd like to know more about Home Equity Loans or would like to find one to suit you, contact DirectMoney HomeLoans on 1300 882 432. It takes the hard work out of finding the best low rate home loan for you, and their services are free of charge.