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What else can I help you with?
What is the difference between a second mortgage and a home equity loan?
The difference is pretty simple, a 2nd mortgage is just that it's a mortgage that is in 2nd lien position. Basically if god forbid say a forclosure took place, that mortgage doesn't get paid off until the first lien mortgage is cleared. A home equity line of credit or HELOC can also be a 2nd mortgage since it is a lien on the property but it can also be a 1st lien mortgage if your home is completely paid off. A HELOC works like a credit card basically except in this case the house is collateral. A HELOC is basically a revolving line of credit on your home and you use it like a credit card, you make monthly payments which are interest only, you only pay interest on the money you are using at the time. If you take out say a 20,000 heloc and are only using 10,000 of it then you pay interest only on the 10,000, you have a minimum payment like a credit card and you can put money towards the principle to pay it down. Money that is paid off can be used again and this can go on for a 10 year period after which the heloc turns into a 20 year loan and you begin paying it like a normal mortgage, if there is a balance remaining. The rate is usually prime plus a certain percentage which is based on the amount of money being financed, you credit, and the loan to value percentage. It's a great alternative to doing a cash out refinance if you have a good interest rate on your first mortgage, I do many helocs and in most cases I do them with no closing costs at all.
Can a home equity line of credit be used like a checking account?
A home equity line of credit (HELOC) is similar to a checking account in the following ways: * Checks drawing funds on a HELOC are written like normal checks * A HELOC check will bounce (NSF) if you exceed the credit line (and you will likely pay fees for such an occurrence) * Some HELOC programs are free if you write checks, some require an annual fee whether you use them or not The HELOC is different from a checking account as follows: * Money spent on HELOC checks is money that you don't generally have at the time (it must be paid back eventually) * Minimum amount per check (checks from a HELOC usually must be at least $100, some banks want at least $250) * When using a HELOC check, your minimum monthly payment on the HELOC will change in the month after the check is cashed * If you don't pay the HELOC or default on the HELOC, the bank may go after your home * The interest rate on a HELOC generally changes once or twice per year
Can they base a mortgage on two separate incomes living in the home?
Absolutely. The income of any person living in a home can be used for mortgage approval as long as they are on the application and the income is verifiable. There are even instances where a non-occupying co-borrower's income can be used (this varies by loan program). Source: I'm a loan officer.
Is the heloc mortgage calculator accurate?
Oh, dude, is anything really accurate in this crazy world? I mean, the HELOC mortgage calculator gives you a rough estimate based on the info you provide, but it's not like it can predict the future or anything. It's like those magic eight balls - sometimes it's on point, sometimes it's way off. So, take it with a grain of salt and don't stress too much about it.
What are mortgage services used for?
All banks employ some form of mortgage services to keep tract of the "bank-homeowner" contract. The homeowner is obligated to pay back the principal mortgage loan of the house, plus interest, until it is paid off. If a homeowner finds it difficult to make a mortgage payment, the bank can offer a special forbearance service, which is a temporary reprieve from having to make a mortgage payment or two on time. However, those payments become due when the forbearance is over. Also, for people with good credit and substantial equity built up, the bank allows them to take out a HELOC loan.
Are HELOC loans tax deductible?
Yes, HELOC loan interest can be tax deductible, but only if you use the money for home-related improvements. For example: Deductible – If you use the HELOC to renovate your kitchen, fix your roof, or upgrade your home. Not Deductible – If you use it to pay off personal debts, fund a vacation, or cover daily expenses. To make sure your interest qualifies, keep clear records of how the funds are used. Platforms like PFScores help you stay informed about how your credit and home loan choices can impact your finances—taxes included.
What Is Variable Mortgage used For?
Variable mortgage is used for things that involve mortgage such as a house. Every time the prime rate changes, so does the mortgage, therefore the mortgage is variable.
What is piggyback mortagage?
A type of mortgage where a second mortgage or home equity loan is taken out by a borrower at the same time the first mortgage is started or refinanced. Piggyback mortgages are frequently used to lower the loan-to-value ratio (LTV) of a first position mortgage to under 80%, thereby eliminating the need for private mortgage insurance (PMI).
What would mortgage software be used for?
"Mortgage software is used for a variety of mortgage-related services. Mortgage software can be used to calculate rates of interest, savings based on early payments, and more."
When is an arm mortgage calculator used in banking?
An ARM mortgage calculator is used when you have an adjustable rate mortgage instead of a fixed rate mortgage. It is recommended that you get a fixed rate mortgage to avoid sudden spikes in your monthly payment.
What is a mortgage amortization chart used for?
A mortgage amortization chart used for determining monthly payments.
What are mortgage websites used for?
Mortgage websites are used for calculating whether you qualify for a mortgage loan. They can determine if your credit history meets the requirements for approval.
