Easy Home Equity Loan

We bought our house in 2002 for ,900. Because we put no money down, we had to obtain Mortgage insurance. If I understand correctly, this would have to be carried as long as their was less than 20% equity in the home.

When we bought the house, there was fear that the local Navy base would close and people were selling their homes to anyone who could breath. We got our house cheap and with a 5.7% fixed interest rate.

The base stayed open and close to 2,000 jobs have been added. Home construction is booming here. At last check, Zillow.com says our house is worth 1,000 after falling from a high of 6,000.

My question is, shouldn’t I be able to drop the mortgage insurance? If so, how do I go about doing it? I have heard it is almost a nightmare to have it dropped. I have not taken out any loans against the house and have paid an additional 0 on my principle almost every month.

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I’ve always had very good credit score. 11/2007 was 725. Today it’s 680 and going down (I’m sure). Owe about 43000 in credit cards, have 2 mortgages and 2 401k loans. All taken to put children through college and help with their finances. Was doing will however over the past 10 months, 2 of the children lost their jobs and now I’m in financial trouble.The creditors are constantly calling, I’m only late by 2 wks, however do not see a way to now pay for 2 months and late fees too, pluse interest rate was jacked up. This is a nightmare, depressing and embarrassing. I need some help/advice as to what are my options. Tried Home Equity but qualify for high interest which only buys me a little time before I’ll be back in trouble again. I just can’t make ends meet anymore. Pl help soon.

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My wife and I are expecting a child coming in May and we will be looking at added expenses, in the last year I was laid off at work and had to accept a position that hasn’t allowed us to afford the lifestyle we are stuck in currently. We have had our house for 2.5 years and have never had a delinquency nor on any other credit items. The option was brought up to me that the loan we have through our first time home buyers agency "Kentucky Housing" has a forbearance program that if you are 90 days past due that they have the ability to adjust the mortgage for up to 3 years that can lower our interest rate from 6.5 to 3% for that term to give us a chance to bounce back, I would hope in this time period we would be able to rework our finances. I am currently selling the cars we have payments on and doing anything else to lower our debts. Our current credit scores are 740-750, so I am really concerned about being 90 days delinqent. This would save us aprox 300-350 for 3 years and would allow us to keep the equity in the house vs. refinancing which since we have only had the house for a short period would put us back to where we started at on the original value and would only save us aprox 130 a month granted long term would be more benificial but we would probably plan to sell this house with in 3-4 years.

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For family reasons in this risky market, I bought a new home in October before selling my existing home, taking out a mortgage to do so, about 0K on an 0K condo…I live in California, thus the prices. The interest rate is 5.25%.

I’m pretty sure I am FINALLY going to close escrow with a qualified buyer on my current home after falling through escrow 3 times before, usually because of bank loan rejection reasons. I own my current home (no mortgage) and was going to take the proceeds of the sale and pay off the mortgage to lower my monthly outgoing expenses and put the rest back in my investment account. I am in high tech so I was also laid off in October but was lucky to find a new job in November.

My question is, should I do the "safe thing" and take the proceeds and pay back the loan? I thought I was going to, but others have told me that (1) If I am laid off again in this economy no bank will approve giving any equity out of my house if I lose my job so keeping the money as "near cash" is a safety net to get through these hard times, and (2) With the record debt the USA has incurred, high inflation sooner or later is a near certainty and I may be able to get a higher return (possibly tax free in a muni) in a low-risk near-cash investment, while still getting a tax deduction.

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I have a good income (,000) but very very bad credit (Long story). What are my chances of getting a home equity loan on I house I own valued at 0,000. What amount might they let me borrow? What kind of interest rate can I expect? I want to use this to rebuild my credit and pay for some other things.
Yes, I want to use the house as a piggy bank. It is the best option for my plans. Will any banks work with me?

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We are 30 years old and have a little over 200,000. mortgage. Even in this economy we have over 100,000. in equity because my husband built our home. We have no investments other than our home and my husbands display lot (he is a carpenter and building garages and storage sheds, this lot is a commercial piece of property and we owe about 35,000. it would sell right now for about 70,000. with some time on the market.) These two real estate investments are it for us. We have been making extra payments on the commercial lot and hope to pay it off int he next 5 years. We usually pay about 0.00 extra on our home each month. We are a corporation so we choose not to pay into S.S. We do qualify for it though because we have paid in for enough years. We need to think about our future and we just aren’t sure where we need to focus our attention….Pay the mortgage off asap or invest in a IRA or what? I will really look forward to some intelligent advice!!!! Thanks so so much!
P.S. We have very small car loans totaling about 10,000. for both vehicles. We have a very low interest rate on a school loan.

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The problem right now is that if you show positive income to your bank they have no reason to lower your payments since that is how they make money and want to squeeze every penny you make towards that payment, and if you do not show enough to pay the bill the Bank prefers to right up a loss and ask the government for their money back.

My solution, which I hope March 4th the administrations will look like, would be this:
-There is a fixed interest rate between 4.5 to 6% that the Banks MUST modify at. You get the lower end or higher end based on credit. Banks are still profitable at 5% and if they are not it is because the FED is trying to make too much money off its money monopoly.
-Like in many Western European countries, your income needs to be 3 times your new mortgage payment to get the modification.
-As a borrower you are not absolved of any debt, it goes to the back end of the loan and/or should you ask the lender to re-appraise your home at current value to qualify for the above rules, you release any right to positive equity gain from that moment forward to the parties absorbing the loss.

That is it. So if you have a 500,000 loan on a house worth 300,000, at 5% you would get payments of roughly 2K a month for which you need to show you make 6K a month, should you want the property re-evaluated at the market value, your loan payments will drop to 50 for which your income needs to be roughly 4K a month, but you lose all future equity in your home.

If this is still too expensive you cannot afford to be in it any longer. The deal can only be done once and if something happens in the future where you lose your job, your only option is the current repayment type plans.

What do you guys think about it, and what is so hard in implementing this?
The only problem i see is that Banks will prefer to pout and go under on purpose to get bailed out than curtail any lowering of rates.

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American economy has been fueled by consumption. Everybody thought their house was going to appreciate forever. They keep taking the $$$ out of their home equity and banks are more than happy to lend 100% on any loan. The president spends our money like American consumers. Over a trillion dollars for what??? I don’t feel any safer.Alan Greenspan, in fear of recession citing Japan., kept the interest rate so low that every Tom, Dick, and Harry with social can get an easy loan. The difference between japan and the U.S is that Japan produces more than it consumes. Japan had trade surplus, we have trade deficit. Japanese yen is actually appreciating while our dollar is depreciating. Japan is a country of savers, the U.S is a country of spenders.

What’s going to bail us out after Bush? I hate this sh!t.
On top of that most of the stuff we consume comes from overseas.

O.k, I admit I didn’t go to ivy league school but they did. They should know better.

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