Easy Home Equity Loan » heloc

Easiest way to pay off the last $300 on a second mortgage?

admin — Thu, 21 Jul 2011 13:49:54 +0000

I’ve been paying extra on my second mortgage (HELOC), which was a ridiculous 8.5% APR. Now I have only about 0 left. There is no escrow or insurance, since it is a second mortgage. I called and got a verbal payoff quote of 1.31. There is also a 7 cent charge per day after today. I know there is a lot of red tape involved in paying off a loan, involving cashier’s checks. It seems like a small amount and time is not an issue. I was wondering if I could just pay the payoff amount from my electronic checking and see what happens.

What would happen if I just payed 1.31 from my online banking account? (The loan is with Chase.)

Interesting Blogs

Am I obligated to pay this appraisal fee?

admin — Sun, 05 Jun 2011 15:43:09 +0000

I contacted a mortgage broker I have used before about doing a cash out re-finance on my home combining the 1st and 2nd mortgage and getting some cash. He gave me all the details and sent over a good faith estimate and I provided all of the information in order to proceed. I later find out I cannot do a re-finance because our house is currently for sale. Therefore, I opt to go with a HELOC to refinance the existing 2nd mortgage. He quoted me a rate of prime and said it appears we are below 80% LTV and should have some additional equity to borrow against if we would like. The appraisal came back at 9K…far lower than the 8K appraisal I have done a few month earlier (that he would not accept) in order to remove my PMI. Coincidentally, the 9K put us right at 80% LTV and he proceeded to tell me the rate is no longer prime…it is now a 5% floor rate. I told him I was not interested…since I knew I could get a better deal (and I did with another bank). When I told him I was not interested and stated the appraisal seems way off…he said I still owe for the appraisal. Am I still obligated to pay this? Given my situation it seems like they purposely tried to get my appraisal to come in where I would not be under 80% LTV. From the recent sales in my area I know the 9K is low. Regardless, I was not happy with the entire process and was not informed of anything until after the appraisal. If he would have told me that it did not look like we would be under 80% LTV then he should have said so…instead of SURPRISE…you are not getting prime…the best we can do is a 5% floor. Another thing I should mention, I did not sign a Good Faith Estimate for the HELOC application…since I was originally applying for conventional loan. I only signed a Good Faith for the conventional loan.
What exactly did I sign that obligates me to pay?

Interesting Blogs

Second mortgage for seller-financed home?

admin — Fri, 27 May 2011 18:37:45 +0000

I love reading the advice here.

My wife and I are planning to buy a home in Indiana from our parents, which they own without a mortgage. We’re planning to let the parents finance the sale to us (at a reasonable, IRS-approved, rate).

The current value is about 0K. The home is about 20 years old. It is habitable, but needs repairs (roof, carpet, new mechanicals, cosmetic fixes, etc.) which should rapidly increase its value by 10-20%. We plan to buy the house as-is. We have the K for repairs.

Immediately after that (or during, if possible), we’d like to remodel the kitchen and baths. We will likely want to take a loan (5-20% of the home value) to do it. The parents won’t have the funds for that, so we’ll be looking for a mortgage.

What’s the best course for that second loan?

We don’t want to pay PMI or other unwarranted fees. We have decent credit, 690-710, a low DTI ratio, and good financial reserves.

Any other general advice is appreciated. Thanks!
I seen some answers that suggest a HELOC. I hadn’t thought of that, since I presume the rates will be significantly higher. Wouldn’t a 2nd mortgage make more sense?

Interesting Blogs

Can I use a home equity loan for a downpayment?

admin — Sat, 21 May 2011 02:52:15 +0000

We are looking to help our son purchase a house and use HELOC as part of the downpayment. Is this allowed or is gifting him money the only way? Our current house has been paid off for several years and we have outstanding credit.

Interesting Blogs

Best way to refinance mortgage/home equity line and remove co-borrower?

admin — Mon, 16 May 2011 05:03:53 +0000

1st = 0K @ 5.62%
2nd = M @ 6.20%
Home equity is 5K @ 7.2%

Hoping to have just two loans. Conforming 7K and Home equity that would allow up to 2M in total debt so Home equity loan = M.

Something like that. House is worth 0 or so…….

I want to get my husband off all the mortgages…

What kind of debt could gross income of K per month support?

Is this a bad idea. We have been seperated 3 years but never divorced — he is willing to stay on mortgages, but I would rather stand on my own and be able to change the title too.

I think too that would allow him to more easily purchase another home. I made 100% of the original downpayment on the one I am discussing.
Home equity loan was used for new roof, new windows, car note repayment, and debt consoldiation. Debt free except these mortgages/and the Heloc

Interesting Blogs

HELOC question – what would you do?

admin — Sun, 10 Apr 2011 22:57:29 +0000

My husband and I purchased our first home in January 2005. We put no money down other than 00 earnest money, which we got back at closing. We had never owned a home before and really didn’t know what we were doing.

The house was purchased for 9,900. We were told that PMI was bad, and we didn’t have any money to put down, so we did an 80/20. The 80 portion is a 30 year fixed at 6%. The payment is 36.00 a month, and was originally financed through Greenpoint Mortgage but was quickly sold to Countrywide in the first 3 months. I don’t have a problem with this mortgage or the rate.

The HELOC was originally ,000 and an adjustable rate, and is still through Greenpoint Mortgage. It’s ranged from as high as 11.5% to the current 8.25% interest rate. All of the payments each month (the payment that is due) is going towards interest only, so I still owe ,996.11 as of today, after nearly 4 years of payments – and yes, I’ve paid higher than the minimum payment, but it seems to be eaten up by fees every year.

The HELOC is listed on my credit report as a revolving account, so it looks like I have 40k of credit card debt. My current credit scores range for all three bureaus around 720.

I really hate the HELOC, but because my other loan is only 4 years old, I only have about k of equity.

Here’s the question. Knowing the mortgage industry right now and how hard it would be to get a loan, do I try to refinance the HELOC and my original loan into one loan? I’m afraid of losing the 6% interest rate if I do that. Do I just focus on the HELOC and throw every available cent into it to get it paid off as fast as possible? Or should I try to refinance just the HELOC to get a fixed rate – is that even possible?

I need suggestions

Interesting Blogs

Do I have to report the amount of equity I borrow from my home this year as income on my taxes?

admin — Fri, 01 Apr 2011 00:27:16 +0000

I’m looking to pull out equity in either a HELOC or home equity loan to consolidate credit card debt. Could I also use some of this $$$ to help pay some of my kids debt???

Interesting Blogs

Do all owners have to sign for a home equity loan?

admin — Tue, 22 Mar 2011 17:07:03 +0000

I have a 25% share in vacation home but don’t own a primary residence (I rent). The vacation house is almost paid off and is worth about ,000,000. Do all the owners have to sign for a home equity loan? I am just looking for around ,000 and don’t want to involve them… I don’t want a HELOC, but a straight 25 year loan to pay off my car and some credit card bills. The house will probably be sold in around 5 years so I can pay off the balance of the loan then. thanks…

Interesting Blogs

Refinance, Subordinate, PMI?

admin — Sun, 20 Mar 2011 23:07:58 +0000

Current situation:

- Purchased home in 2006 for 520K
- 1st mortgage was for 417K at 6.125% 30 yr fixed
- 2nd mortgage is 20yr fixed HELOC at 7.625%

- Home is currently only worth 450-480K (due to recession)

Current balances are 390K on the 1st mortgage, 51K on the HELOC

Mortgage broker is telling me only real option is to refinance primary using "DU Refi Plus" to 4.25% (or 4.5%) and then hope that the HELOC subordinates.

Is it worth considering a total refi of both into one loan with PMI?

This is frustrating because I have enough to pay more every month than I do now, and I have savings, but I can’t justify draining it all just to increase equity to get a better rate. So instead I am stuck paying silly interest rates …

Interesting Blogs

What about a home equity loan?

admin — Sat, 19 Mar 2011 19:50:12 +0000

Hi, I was just wondering if I have ,000 of equity in my home will I be able to get a home equity loan of ,000 for my daughters tuition. I also don’t have the greatest credit. Thanks.

Oh and I’m not talking about the HELOC I’m talking about a HOME EQUITY LOAN.