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I hate to come across as rude as my input is essentially a word of advice. The/My answer firstly depends on the situation/variables surrounding your life currently. If you recently purchased and want a lower interest rate, it's prob going to cost you more to do this than it would be worth, unless of course you don't care because you're rich and can afford the current mortgage (which is unlikely because you wouldn't be asking this question.). Essentially, you can do this today IF that loan hasn't already been sold to another bank. Why are you soliciting advice from, "answers.com" and not your bank? I mean this is akin to, "The tortoise and the Hair.".
If you're in a financial crunch and need cash fast remember the process can take 2 months, but you've had to have paid off all your other old debts prior to and required by current lender in order for your home loan to close - Your new chosen lender may cut you a deal by using the same "current" info for processing and not need to do all that research again (always get your plats/encumbrances, etc. from the underwriter/title company - recorded info.) which is the cost associated with a closing (research/record).
If you are a current student, or student loans are still in 'deferment', or 'grace period', there are some avenues open to you by using your good credit AND new COLLATERAL (the house) to refinance/debt consolidation of your many student loans issued from various lenders at different times during your college career... of 1, 2 , 300K w/no associated fees and no further questions, but you know that already. . .
Good luck and don't sell your soul by making an irrational decision. Whatever you do think forward and make sure IF you need a bankruptcy down the road that it (debt) ALL goes with the judgement and you can keep your shirt (basic needs; clothes/personal effects, home, car) when all is said/done and you start over clean.
-peace-
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∙ 11y ago
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How long to you have to own your home to be able to apply for a home equity loan?
You have to own your home for ten years before being allowed to apply for a home equity loan. After that period you have no guarantee that you will be approved.
How long do you have to have your new home loan before you can get a line of credit?
As soon as you have enough equity in the home to do so. As soon as you have enough equity
What is one tip on using the 125 percent home equity loan?
The 125 percent home equity loan should only be your choice if you do not plan on moving for a long time. It would also be great to have a good credit history, since the period for paying the 125 percent equity loan is quite long.
Is a home equity loan considered a long term debt?
Yes. Home equity loans are generally ten-year loans. Any loan lasting longer than one year is considered a long-term debt.
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?
How long to you have to own your home to be able to apply for a home equity loan?
You have to own your home for ten years before being allowed to apply for a home equity loan. After that period you have no guarantee that you will be approved.
How long do you have to have your new home loan before you can get a line of credit?
As soon as you have enough equity in the home to do so. As soon as you have enough equity
If you have available equity in your home at the time of purchase how long in Texas do you have to wait to get a home equity loan and are there any negatives in doing so?
In Texas you can only borrow up to 80% of the appraised value of your home in a home equity loan. The Texas Constitution states that you must wait 1 year before you can refinance a home loan.
What is one tip on using the 125 percent home equity loan?
The 125 percent home equity loan should only be your choice if you do not plan on moving for a long time. It would also be great to have a good credit history, since the period for paying the 125 percent equity loan is quite long.
Is a home equity loan considered a long term debt?
Yes. Home equity loans are generally ten-year loans. Any loan lasting longer than one year is considered a long-term debt.
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?
How long does it normally take to get a home equity loan after the application has been accepted?
After an application is accepted, a home equity loan can be acquired in any time period from one day to one year. It depends on the site applied to, honestly.
What is the difference between a reverse mortgage and a regular home equity loan?
A reverse mortgage is a home loan taken out by a senior home owner that requires no loan payments for as long as the borrower remains living in the house.
What is bestHome equity line of credit or home equity loan?
It depends on your goal. A home equity loan has the benefit of a fixed rate and payment, but you can not re-use the funds as they are paid back, and you pay interest on the whole amount borrowed. A HELOC allows you to draw money over time (for things like a long-term remodel, college fees, or emergency funds) but have a variable rate and payment. For a one-time set expense, the home equity loan is less flexible but more secure.
What is the best loan for a homeowner?
There are several loans available to a home owner, depending on what the loan is for. A home owner who has built up equity in their home can take out a line of credit or loan based on that equity. This loan is usually extended by the mortgage holder or the bank the home owner deals with. This has the advantage of having a low interest. The borrower can also determine their rate of repayment as long as the interest on the loan is paid every month. The principle does not have to be paid back until the home is sold. This is considered the best loan for a home owner because of the low interest rate and flexibility of payments.
Can you take out a home equity loan if you have a prepayment penalty if you sell your home before two years after you purchase it?
Yes, as long as there is equity to use. The lender that will do the home equity loan will have figured the prepayment penalty into the 1st mortgage balance just in case you do sell your home before 2 yrs. are up. The lender will ask for specific paperwork including your mortgage (promissory note) so they will know about the prepayment penalty.
How do you pay back Reverse mortgage?
A reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM) is a relatively new product. A reverse mortgage is a loan against the equity in your home that you don't need to pay back for as long as you live in the home.
