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Answers (5)
- David Hutchins, "MortgageDebtFreedom"
- Contributions:6
If you are going to use partial money as leverage to pay off your home in 1/2 to 1/3 the years, then use the Heloc loan.
- Clay Branch, "Georgia Loans"
- Contributions:7836
kjbg6gt, no one knows what you are trying to do, as Chris stated below. If you are comparing a 1st Lien LOC to a conventional mortgage, then I recommend the conventional mortgage unless the loan amount is small like 40K. The interest on a Line of Credit is based on the Prime Rate which looks good now but can be back up to 8-9% in just a year or two. You should explain what you are looking to do like debt consolidation, home improvement, etc and also list how much you owe now and what you think the property will appraise for. You will get much more input here.
- tchau_99
- Contributions:137
If you have LTV (loan to value) 80% or less, a typical bank can let you get a home equity line.
Advantage, Home equity line interest rate is much less than a mortgage. If plan to do a home improvement project, this type of loan is helpful. But, you need to be careful for tempted for withdrawn too much. You can use some of it for debt payments. The cost of open one account is $300 to $500.
A conventional mortgage loan is typical helpful for getting your mortgage intact. You must first have this loan before Home equity loan. The closing cost in general is range $4000 to $6000. So, the closing cost /fees can easily erase (DEFEAT) all of your purposes to try to do your home improvement projects.
Hope this is helpful.
Advantage, Home equity line interest rate is much less than a mortgage. If plan to do a home improvement project, this type of loan is helpful. But, you need to be careful for tempted for withdrawn too much. You can use some of it for debt payments. The cost of open one account is $300 to $500.
A conventional mortgage loan is typical helpful for getting your mortgage intact. You must first have this loan before Home equity loan. The closing cost in general is range $4000 to $6000. So, the closing cost /fees can easily erase (DEFEAT) all of your purposes to try to do your home improvement projects.
Hope this is helpful.
- Paul McFadden, "pmcfadden"
- Contributions:143
Generally, HELOC's are a lot cheaper to be had. A bank can often do one for $500 or so which is quite a bit less than refinancing your mortgage. That being said, they're also tougher to get because your loan-to-value usually has to be lower. It would be best if you had someone run the scenario both ways for you and you could compare the two. Good luck!
Paul
Paul
- Chris Corica, "Chris Corica"
- Contributions:1075
You will need to elaborate on what you would like to accompolish and the overall scenario.
Home Equity line of Credit vs. Convention Mortgages,which should I chose?
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