Home Equity Loan

A home equity loan is a type of loan in which the borrower uses the equity built up in the home as collateral. A home equity loan is sometimes used to finance major expenses such as medical bills, home repairs or education expenses. It is sometimes referred to as a second mortgage or borrowing against your home. Learn more on this page about home equity loans and how you can use one.

Paying Off Second Mortgage with Home Equity Loan

Thinking about paying off your second mortgage with a home equity loan? Make sure you don’t pay more than nominal fees. Q: My first mortgage will be paid in full in a couple of weeks. My home is worth around …

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Should I Use a Home Equity Loan to Remodel?

Using a home equity loan to remodel can be a good decision, especially if you might need cash for future living expenses. Q: I have bought and sold many homes in the past. I made money on all but the …

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Refinancing Small Mortgage Proves Difficult

Refinancing small mortgages can be difficult, but you may be able to get a lower interest rate without refinancing through HELOC alternatives. Q: I have a house. The original mortgage I took out was for $110,000 at 7.5 percent, and …

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Using a Reverse Mortgage to Purchase a Second Home

You can use a reverse mortgage to purchase and buy a second home, but you should also investigate the use of a home equity line of credit (HELOC) or a second mortgage. Q: We have a home that is fully …

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Refinancing A Home Equity Loan In Texas

Q: We refinanced and took money out of our home in 2005 with a Texas home equity loan at 7.5 percent. Whenever I ask about refinancing with any one of numerous mortgage companies, I am told that any refinance would …

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Home Equity Loan Converted to Personal Loan By Bank

Q: My mother is about to turn 75. She took out a home equity loan years ago for about $33,000. At some point, the loan was converted by the bank from a home equity loan to a personal loan. Currently, …

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Using a HELOC to Buy Investment Property

Using a HELOC to buy investment property may or may not be the right choice for you. Shop around for interest rates on your HELOC before using a HELOC to buy investment property. A variable interest rate on a HELOC for investment property may end up costing you a lot more money. Think about paying off your first mortgage before using a HELOC to buy investment property.

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Use Home Equity Line of Credit to Purchase HUD Home

A home equity line of credit could help to buy an HUD home as an investment property. A good credit score and a solid cash position make it easier to get home equity line of credit. Investment property loans are another option with buying an HUD as a second home. It may be faster to get a second home loan instead of a home equity line of credit. A couple with good credit scores is looking for loans to start investing in real estate with an HUD property.

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Get Rid of Debt With Refinance or HELOC?

Refinance or HELOC? Should you refinance in order to pay off a mortgage, or should you use a Home Equity Line of Credit? If your goal is to pay off your mortgage and get rid of debt, refinancing is a bad idea. Refinancing can cost homeowners two to five thousand dollars. Using a home equity line of credit or HELOC to pay off your first mortgage can be a smart move if your HELOC interest rate is very low. Get rid of debt and take advantage of low HELOC interest rates by paying off your first mortgage and then use your savings to finish paying of the HELOC.

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Qualifying For a Mortgage Loan Stricter For Home Equity Lines Of Credit

Today, bank requirements for a loan are stricter for new home equity lines of credit than they were just a few years ago. Banks and lenders are tightening the requirements for home equity lines of credit and other personal lines of credit to make sure their funds are safe.
Now, banks might require higher credit scores, more equity in your home, and other strict requirements before they will give you a line of credit. However, if you shop around, you may be able to find a bank willing to give you a home equity line of credit.

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