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Can you convert a HELOC which has a variable rate into a home equity loan at a fixed rate and if so would you need to go through the same lender that holds your home equity line?
Wiki User
∙ 17y ago
Yes, you can convert your HELOC into a fixed home equity loan. And, no you don't have to go through your current lender. There are also HELOC's with a fixed rate option which means that you can select expended amounts of your HELOC for the lender to assign a fixed rate to it. For example, let's say that you take out $100k at a variable rate of 7%, then you use $10K, but rates are continuing to increase. You can ask the lender to place the $10k on a fixed rate that fully amoritizes and leave the $90K on the variable rate. Hope that helps. I'm currently considering this program with Washington Mutual. I think that Well Fargo and Union bank also have similar options. Perhaps a bit piciune - but I believe the term convert would mean change the terms of the exisiting loan - which is only done with the same lender. Getting another lender involved, would require a new or refinance, frequently needing the exisitng loan to be paid off with the proceeds.
Wiki User
∙ 17y ago
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What is debt to equity conversion?
Debt to equity conversion is also known as hybrid transaction or debt-equity swap. In such a swap, the borrower is allowed to convert his debt into equity shares and the lender of the loan, hence, becomes the shareholder in due process.
Are rates fixed on home equity lines of credit?
The majority of HELOC loans still have a variable rate. They may be tied to either the LIBOR or Prime index. Many lender will have an option that allows you to convert the rate to a fixed rate loan. Also, you may be able to find a lender in your area that will allow a fixed rate option from the beginning, however they are harder to come by.
How does refinancing primary mortgage affect a home equity line of credit?
The lender for the refinance will require the home equity lender execute a subordination to the new mortgage. Also, the balance due on the home equity mortgage will factor into whether the new lender rates you as a good risk for loaning more money.The lender for the refinance will require the home equity lender execute a subordination to the new mortgage. Also, the balance due on the home equity mortgage will factor into whether the new lender rates you as a good risk for loaning more money.The lender for the refinance will require the home equity lender execute a subordination to the new mortgage. Also, the balance due on the home equity mortgage will factor into whether the new lender rates you as a good risk for loaning more money.The lender for the refinance will require the home equity lender execute a subordination to the new mortgage. Also, the balance due on the home equity mortgage will factor into whether the new lender rates you as a good risk for loaning more money.
How long does the lender has to redisclose on a home equity loan?
How long does a lender have to re-disclose to the consumer after a change in circumstance?
What if you pay your first mortgage but not your home equity?
If you have a first mortgage and a home equity mortgage, the home equity mortgage is a second mortgage. If the home equity mortgage is not paid, the lender can foreclose and take possession of the property subject to the first mortgage. The home equity lender can pay off the first mortgage and keep any excess proceeds from a sale.
What is debt to equity conversion?
Debt to equity conversion is also known as hybrid transaction or debt-equity swap. In such a swap, the borrower is allowed to convert his debt into equity shares and the lender of the loan, hence, becomes the shareholder in due process.
How does refinancing primary mortgage affect a home equity line of credit?
The lender for the refinance will require the home equity lender execute a subordination to the new mortgage. Also, the balance due on the home equity mortgage will factor into whether the new lender rates you as a good risk for loaning more money.The lender for the refinance will require the home equity lender execute a subordination to the new mortgage. Also, the balance due on the home equity mortgage will factor into whether the new lender rates you as a good risk for loaning more money.The lender for the refinance will require the home equity lender execute a subordination to the new mortgage. Also, the balance due on the home equity mortgage will factor into whether the new lender rates you as a good risk for loaning more money.The lender for the refinance will require the home equity lender execute a subordination to the new mortgage. Also, the balance due on the home equity mortgage will factor into whether the new lender rates you as a good risk for loaning more money.
Are rates fixed on home equity lines of credit?
The majority of HELOC loans still have a variable rate. They may be tied to either the LIBOR or Prime index. Many lender will have an option that allows you to convert the rate to a fixed rate loan. Also, you may be able to find a lender in your area that will allow a fixed rate option from the beginning, however they are harder to come by.
How do you open an equity line?
To open an equity line of credit you need to discuss your needs with a lender. The lender will then obtain your information and run a credit check. If you pass the credit check, the lender will then make sure your property is free and clear of any judgments and/or liens. After the property is found to be free and clear, the lender will allow you to take out an equity line of credit loan against the property.
How long does the lender has to redisclose on a home equity loan?
How long does a lender have to re-disclose to the consumer after a change in circumstance?
What if you pay your first mortgage but not your home equity?
If you have a first mortgage and a home equity mortgage, the home equity mortgage is a second mortgage. If the home equity mortgage is not paid, the lender can foreclose and take possession of the property subject to the first mortgage. The home equity lender can pay off the first mortgage and keep any excess proceeds from a sale.
How can one check their home equity status?
The first thing to do when checking a home equity status would be to get in touch with your mortgage lender. They will be able to inform you about how much equity you have and what you can do with it.
Are there restrictions for getting a home equity line of credit if you own a condo?
Your mortgage lender who is offering you an equity line of credit can answer your question.
Can you take out a home equity loan without equity in your house?
A home equity loan is a mortgage based on the value of your home that exceeds any outstanding mortgages. Your equity is the value of your home that is actually paid for. If your home is fair market valued at $100,000 and there is an outstanding mortgage in the amount of $40,000 then you have $60,000 in equity. However, note that due to costs, fees and fluctuating home values a lender will generally not loan the full amount of equity but something less than the fair market difference. In your case, having no equity in the home means that you have nothing to offer the lender as collateral and the lender has no reason to loan you any money. No equity means no home equity loan.
How do you apply for an equity loan?
To apply for an equity loan you have to contact a mortgage or home equity lender and see what kind of equity your home has. If your property value has declined it is possible that you could have negative equity.
Equity lender never recorded a deed of trust Do you have to pay back anything?
Yes
Is there an equity of redemption for a second mortgage holder in Connecticut?
Equity redemption is a right that only applies to owner/mortgagor/borrower not lender/mortgagee; therefore, the answer is NO.
