I need some direction. Plan on doing some update to the exterior some that need it & some for looks. Anyone know the pros & cons between refinancing/equity loan thing. Can you point me to a no-nonsence website. Anyone in this line of business?
loans Rule number one: Spend less then you make.... In the world of mortgages, 1st and 2nds (Home equity) interest is tax deductable, a big plus! Home equity loans can be a straight loan (here's your money) or a line of credit that you draw on. LOC is best because you only borrow what you need at the time. This reduces your interest payments. All or most home equity loans are varible rates (ARMs). The frequency that the rate changes is negotiable and can vary from daily to 5 years. The longer the term the higher the rate and the less risk to you. Lendingtree.com is a great place to look for loans. I just used it and got two lenders with 6 different packages! Also check with your local bank, credit union, and current lenders. You can expect fixed rate 30 year mortgages under 6% and ARMs/LOCs under 5%. Rule number two: only borrow what you can pay back.... Lenders will bend to give you the most money. Its like candy, they want to sell you more so they make more. They are not financial planners and are not going to keep you out of trouble. Think carefully about making the payments and do not stretch yourself too thin. See rule number one! Heres a link: Lending Tree Don't sweat the credit report because it is what it is. Pay your bills on time and you won't have an issue. Good Luck! - Bill
Bills 2 rules are king! I totally agree. Some additional information: When shopping around for a mortgage, understand what you want. If you want minimum payments so you can keep your current spending habits, AND if you know you'll be in the house for a long time (your kids are likely to inherit it), then you'll want to shop for a long-term low rate. The vast majority of family homeowners are in this category. By and large, the majority of lenders make the most money from long-term mortgages and loans. A long term mortgage is also the worst way to recoup your investment on the house. The shorter the term, the lower the total interest paid on you principal. The rule of thumb is if you're more likely to move before the mortgage is paid off, it's too long. What I was taught to do by a 30-year banker and a 60 year 1st lender regarding home equity is to keep a low monthly cost (i.e. no high credit card bills, car leases, or additional loans) then go with the shortest term/lowest rate mortgage that your monthly payments can afford. Otherwise your improvment value goes straight to the bank in interest payments. You take the brunt of the interest payments up front and get a quicker initial tax deduction. It's also a larger lump-sum return which is put up against the possible closing cost, job loss, or early payment. One more thing, virtually any loan officer in the world can negotiate by an eighth to a quarter of a point. Always argue over the rate. ...not very detailed, but an insiders view at any rate. Hope it helps!
Good info Good info and I thanks you guys. WE[wife&I] have alway keep our spending to our budget.Our 15teen year mortgage is down to 3yrs on 60000.The home was in good shape when it was bought.I've remodeled most of the interior[My profession] and now with the kids gone[extra expensives] seem to be more money in the bank.I'm thinking this way. 1 refinance the house for lower mortgage payment for say another 5yrs. 2 take the extra money from the new lower mortgage payment & use that to pay the equity loan. i would pay a out of the pocket expense for both but in the long run have the same amount of money going out as i have now. what you think?
Hi Dave, That is the line of work I am now in! I work along with my brother and sister, who have been in the business for years. We are part of the Dana Capital Group - out of Laguna Woods, CA. [You'll find that most lenders are out of the Irvine/Orange Co. area]. My sister's office is down in Del Mar, CA. As mortgage brokers, we are able to shop your loan with most all lenders, to find you the best deal for you! We would be happy to help answer all of your questions and give you as many options as possible. Dana Capital is licensed in about 45 states - MI is one of them. Please give me a call if you're interested, at 858-350-8711 (business line) or toll free at 877-350-9711. If you want more info, you could also send me an email at gsxmen@sbcglobal.net. Include the original loan amount, current payoff, rate (if you'd like), credit score (if you know what your last pull was), etc. You may end up wanting to get a new appraisal, since it sounds like you've really increased the value of the home. As a general rule of thumb, property value usually doubles every 7-10 years - you may be 'pleasantly' suprised if you get a new one.:TU: One product in particular that might be of interest to you, is a HELOC. Most Home Equity Lines of Credit are 2nd mortgages - this one is a 1st. It would pay off your existing loan(s) and give you constant access and re-access, to this line of credit. Depending on your credit score, you could have up to 100% available - if you so choose. The best rates on that product are < or = 70% CLTV (combined loan to value). *If you do call or email, you would also want to have a total of your current debt - at least, what would report on your credit. That would be mortgage payment, car loans, and credit cards. You normally aren't required to factor in utilities, phone, cable, etc. If you would like to factor in ALL debt, to make sure you leave yourself a 'cushion', that wouldn't be a bad idea. The last thing anyone needs to do, is strap themselves into too much of a loan. A 'house-poor' borrower is not a happy borrower. A good broker will make sure you're not over your limit.:Smarty: **If anyone else has similar questions - please call! Let me know you're on this board!:TU: Dave - look forward to hearing from you!
