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Profile picture for thecloser3412

home equity loan

I purchased a home for 114K two years ago with 9K down.  30 year fixed rate.  We bought the house to sell and are going to do so this coming summer.  I need a home equity loan for the final repairs.  The house was a repo and the value is considerably higher than the loan balance however we have very little of the loan paid off.  Is it possible and if so what are our options for getting a home equity loan

  • August 11 2010 - Saint Clairsville
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Answers (4)

I am a broker and I can't believe I am saying this, but the best place I have found for home equity lines of credit(HELOC) is the bank you have your checking account with.  You will need really really good credit and there will be no or very limited closing costs.

Now back to being a broker.  If this place is your primary residence you should try and refinance it through FHA.  the interest rates will be better and the credit does not have to be great.  A 620 score will still get you rates in the 4% range on a 30 year fixed.

Hope this helps
Paul
  • August 12 2010
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Profile picture for Debbie Holmes
I sometimes like to use credit cards with zero interest if I can figure out how to pay them off by the deadline....
  • August 12 2010
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Profile picture for VINTAGEHOME
It would be a mistake to get a home equity loan at all.  If you are fortunate enough to even HAVE equity these days, you should guard it with your life.  Home prices will not be rising anytime soon.  In fact, there are more foreclosures coming, just slower because homeowners are entering worthless programs and seeking worthless modifications.  As these distressed homes enter the market, your home's equity will be worth it's weight in gold -- don't mess with it !!!   To take out your precious equity to fix up a home in this market is a really bad idea.  If a true emergency occurred in your life (like huge medical bills, job loss, etc...) you are going to need that equity just to survive.  Good Luck
  • August 17 2010
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Profile picture for Mills Realty
If you are sure that the repairs/renovations are going to add value AND you are sure you are going to be able to sell then it is not a bad idea to contact your local bank to do the HELOC.  You need to be responsible as most people would agree we are not going to see any appreciation in the near future.  You must be responsible and not use the funds for a new car or vacation!

Simon Mills
Mills Realty
  • August 17 2010
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