By Levetta Rivera
If you are a homeowner in need of a home equity loan but you have not yet built up any equity in your home, don’t despair. A 125 percent equity home loan may be the answer.
A 125 percent equity home loan is a second mortgage loan that allows you to borrow up to 25% more than the value of your home. For example, if your home is worth $100,000 and you owe $100,000 on the mortgage, this loan program would allow you to still borrow up to $25,000.
The 125 percent equity home loan is offered by various online lenders. Each lender has their own qualification and loan term guidelines but generally this is a credit score driven loan program. Credit score driven means that you have to have a certain credit score to qualify for the loan. In addition, your credit score usually determines the maximum loan amount you may qualify for and the maximum cash in hand you may receive. Also, some 125 percent equity home loan lenders may require seasoning on the length of time you have lived in your home. Three months is normally the minimum.
When it comes to a property appraisal, most 125 percent home equity loan lenders do not require you to obtain one. They generally will use the purchase price of your home as the value if you have lived in your residence for 12 months or less. If you have lived in your home over 12 months, a recent tax assessment, simple drive-by appraisal, or automated value model (avm) can be used. An avm is a computer generated assessment of your home’s value which is based on recent home sales of comparable houses in your neighborhood.
For more information on 125% home equity loans, or to compare rates and programs of 125% home equity loan lenders visit http://www.equityloansource.com
Posted by leaddog50 as Home Loans at 1:11 PM CDT
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by Jimmy Sturo
A Home Equity Line of Credit, abbreviated as HELOC, allows a mortgager to borrow money using the home’s equity as collateral. In a way, it helps the borrower to increase monthly savings by reducing payments. In this borrowing method, the equity that the borrower built up in the home acts as security for any financial needs.
The term equity in a Home Equity Line of Credit is defined as the difference between a home’s market value and the amount outstanding on the mortgage. HELOC is entirely different from a standard loan, because the borrower is restricted to a period of time, preventing excess borrowing and limiting interest costs.
For people who don’t have ready cash for a down payment, the Home Equity Line of Credit is a good alternative. HELOC have been in demand since the mid-80s. The loan provides the mortgager with extra cash in large amounts that can be used for expenses such as home improvements, property purchases, educational and medical expenses and small business expenses. HELOC works like a credit card because it has a revolving balance. It is sometimes referred to as a second mortgage.
The repayment period of HELOC is about 15 years, which is shorter than the first mortgage. The interest rate varies over the life of the loan. The payments also vary depending on the interest rate and the amount owed. Flexible repayments, flexible term and personalized equity checks are some of the features of HELOC. It also provides certain tax advantages that are not available with other loans. The line of credit in HELOC has no expiry date and the borrower can use it as long as he needs it.
In short, a Home Equity Line of Credit is a resource that can be used any time, for any kind of expense.
Equity Line Of Credit provides detailed information on Equity Line Of Credit, Home Equity Line Of Credit, Commercial Equity Line Of Credit, Best Home Equity Line Of Credit and more. Equity Line Of Credit is affiliated with
Financial Freedom Resources.Â
Article Source: http://EzineArticles.com/?expert=Jimmy_Sturo
Posted by leaddog50 as Home Loans at 3:11 PM CDT
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by Louie Latour
People are denied mortgages for a variety of reasons. If your mortgage application is denied, it is a hard thing not to take personally. Here is what you need to turn that denial into an approval with a better mortgage lender.
Mortgage lenders are required by law to tell you exactly why they are denying your mortgage application. Common reasons for mortgage denial include an insufficient credit rating, too much debt versus income, and requesting too high a loan compared to the value of your home. Most reasons for denial can be corrected. Improving your financial situation requires discipline and patience, both of which will not cost you a dime. Here is how to get started improving your financial picture.
Clean Up Your Credit
If you did not check your credit report before applying for the mortgage, that was your first mistake. You need to request copies of your credit reports from each of the three credit reporting bureaus and carefully check for errors. Inaccuracies in credit records are an extremely common occurrence and having these errors in your credit records can kill your credit score.
If you find errors in your credit records you will need to dispute the error with the corresponding credit bureau and the creditor responsible for placing it there. Once you are certain that your credit reports are accurate you should work to lower your debt-to-income ratio.
Debt-to-Income Ratio
Your debt-to-income ratio is simply the sum of your debts versus your income. There are two ways to improve this ratio: get a better paying job, or pay off your debts. High paying jobs do not grow on trees so chances are your best option is to pay down the balances on your credit cards. If you have accounts that you rarely use such as department store credit cards consider closing these accounts.
On Time Payment History
A large part of your credit score depends on your repayment history. It is important to have at least six months of on time repayments on your record before you apply for a mortgage. Making all of your payments on time and reducing your debt-to-income ratio is the quickest way to boost your credit score and get you on the path to a mortgage approval.
Get a Little Help From Uncle Sam
FHA loans are an excellent way to get the mortgage you need. These mortgages are insured by the US government, and if you clean up your credit you might do much better qualifying under the Federal Housing Authority.
Cleaning up your finances is not quick and easy; with a little help, you can do it. To get the help you need sign up for a free mortgage guidebook.
To get your free mortgage guidebook visit RefiAdvisor.com using the link below.
Louie Latour is a mortgage professional and the owner of RefiAdvisor.com, a mortgage resource site offering a free gift for homeowners: “Mortgage Refinancing - What You Need to Know.” This guidebook helps homeowners avoid common mortgage mistakes and predatory lending practices.
Claim your free guidebook today at: http://www.refiadvisor.com
Minneapolis Mortgage Refinance
Article Source: http://EzineArticles.com/?expert=Louie_Latour
Posted by leaddog50 as Home Loans at 12:36 PM CDT
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