Easy Home Equity Loan

We bought a new home 3 1/2 years ago for 260,000 dollars and improved it in many ways. We have significant equity in this home; we owe just 113,000 dollars on a 30 year conventional (fixed) mortgage at 6.25 percent. My wife and I have credit scores of 750-760 depending upon the bureau asked. Aside from our home loan (113k), we have no debt whatsoever. My wife & I are both teachers.

About six weeks ago, we decided to refinance the home at a much lower interest rate and pull out 15,000 dollars equity. Everything was going fine until, about three weeks later, I decided to relocate for a better-paying job out-of-state. Because property values have declined in my community, we chose to rent the home for 1,500 per month with the goal of selling it after a year or so when the housing market improves. The home will be rented tomorrow.

Unfortunately, the appraiser somehow got the idea that we were selling our home, and our bank initially declined to refinance because of this. When I explained the situation to my loan officer, she said they’d have to “start the process over again” and that we’d pay higher fees and have a higher interest rate if approved.

So I have a couple of questions.

First, how long is this approval process going to take on average? Will it take another month?

Second, what is the possibility of getting a second mortgage to buy an inexpensive home where I am now? In today’s market situation, is that difficult to accomplish?
Our income isn’t very high because my wife chooses to only work part-time these days and spend more time with the kids. We generally have a 55-60K income. We had planned on initially renting in our new community, which is a rural area, and then (after a year or so), selling our home and purchasing with mostly cash. But the rental market is outrageous due to the military base I think. It’s much cheaper to buy: a fairly nice home (15 years old) rents for 17-800, but can be purchased for 150k. So rents are high, but prices are pretty low.

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can anyone anwser ANY of these?

1. Real Property is NOT: (Points: 10)
attached to the ground
often mortgaged
taxed
capable of being moved

2. When a large value item or asset is sold voluntarily, it could be called what? (Points: 10)
foreclosed
repossessed
liquidated
auctioned

3. If you break an automobile or apartment rental lease before the contract expires, you could be subject to what? (Points: 10)
prepayment penalty
early termination penalty
finances charges
higher interest rates

4. When you begin paying a 30-year loan, what part of the loan are you paying first? (Points: 10)
equity
interest
principal
assets

5. If you don’t own your residence, what kind of insurance do you need? (Points: 10)
Homeowners insurance
Supplemental insurance
Renters insurance
Private Mortgage insurance

6. What are expenses like telephone, electricity and natural gas called? (Points: 10)
assessment expenses
utility expenses
luxuries
budget items

7. Insurance approval and evidence of coverage is required to get a mortgage. (Points: 10)
True
False

8. When you rent your residence, taxes are paid as part of your rent payment. (Points: 10)
True
False

9. When you pay finance charges, or interest payments on your first home the amount is deducted from your federal income tax. (Points: 10)
True
False

10. What are good reasons for buying/mortgaging a home? (Points: 10)
to build equity as savings
you expect to reside in the same area for a long time
your credit is established and you can get a very low interest rate
your income is high enough to claim a deduction on your income tax
all of the above

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we are debating because of our situation whether to take this loan or not. we have applied elsewhere, and this is all we have been offered.
we are 30k in debt want to consolidate and lower our interest rate. our payments in total average 1100 a month and interest averages 15-21%
the loan presented to us, is 50K , 5% interest only ( of course we would pay down on principal) 25 years ( our intent is pay off all within 10 years.) the difference of the 30K would be available to us like an a line of equity. Our concern is that shortly I will be without of a job because they are closing down in 4 months and we have a mortgage. We plan on selling our house but this will be a short sale because the value is less than we owe by 20k.this was not due to our home loan we had fixed, but our area was the highest hit in foreclosure thus the value decrease! please no rude comments we are extremely stressed.
the reason we are taking 50K is not because we need the additional amount but to help our credit. If we take 30k it looks as though we maxzed out on a 30 k credit card, whereas if we took 50K (which is a line of credit) then it looks better. If I am incorrect please tell me.
MORE IMPORTANTLY TOTAL CLOSING FEES AND BROKERAGE FEES 6,500!
this is in no way part of the home loan, its a personal line of credit.

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Just wondering whether or not the interest rate will be determined as a vacation home, second home, or first home since the primary residence is paid off.

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We currently have a first and a second, but are considering refinancing and would have a lower interest rate and only one mortgage. What are the advantages/disavantages to having one mortage loan?

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Hello – Since interest in the bank is only .25% these days, should I pay off my second mortgage on my house or pay off my student loan?

I live in Florida. The house that I purchased is now worth k less than when I bought it. My student loans are k and my second mortgage is k. Interest on my student loan is 1.625% and my second mortgage is 8.125%. I save several thousands each month and I fully contribute to my 401k.

I understand that Florida is a full recourse state so my thought was that the student loan should be top priority for paying down despite the fact that the second mortgage is at the higher interest rate.

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Excellent credit. Currently at 100 LTV on home so no equity there. Just want to consolidate CC bills into 1 payment at a reasonable interest rate for a 4-6 year term. I am not
interested in credit counseling agencies. Just looking for a loan to pay back in the above mentioned time frame.

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I bought a house two years ago after completing college and starting a decent paying career.
About 6 months ago I experienced several unexpected major expenses that I have not been able to recover from. Since then I have fallen behind on my credit card bills (now I have 28% interest rate acorss the board) and more recently my home mortgage.

I’ve just lost my job, so my financial situation has just worsened signifianctly. The house is still pending several major repairs as a result of Hurricane Ike, and a recent devastating flood my neighborhood experienced back in April.

I had 100% financing on the home, I have no equity and I owe the amount that I financed it for before it experienced damaged by Ike and then the flood.

My credit is so poor right now that I seriously doubt that filing for bankruptcy (and having it own my record for years) even matters at this point. I do not even care if I keep the house at this point because I owe much more than I’ll be able to even sale it for in the future.

I’ve never filed for bankruptcy, but I’m not sure I have any other option at this point. I’m looking for a job, but even if I find one soon I still have weeks before I will even receive a paycheck, and I presently have about 0 to my name and a pile of past due bills that = over 00 (mortgage, utilities, student loans, etc) and I am a single parent of three young children who receives no support what so ever and our refrigerator is just about empty right now.

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