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Paying off Home Equity Loan Mortgage

A home equity loan allows you as a homeowner to get a loan by using the equity in your home as collateral. The equity consists of whatever funds you have invested in your property in order to own it or improve it.
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Since it is a debt against your own property, which you are in actual possession of, a home equity loan is a secured debt. The property can be required to be sold if the creditor wants the money back that you have borrowed.
Home Equity Guide

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Guide to Home Equity Loans »
o Introduction to Home Equity Loans
o Home Equity Lending Lingo
o The Home Equity Family Tree
o Choosing the Right Home Equity Financing
o Funding a Home Equity Loan

Home equity loan vs. Home equity line of credit

A home equity loan can be obtained in a lump sum or used as a revolving home equity line of credit.

A home equity loan can be either of the following:

* A fixed rate mortgage
* An adjustable rate mortgage

A homeowner who requires more money in large amounts usually applies for a home equity loan. Some expenses that make a home equity loan useful are:

* Debt consolidation
* Home repairs
* Medical bills
* College tuition for family members

Tax benefits of home equity loans

A home equity loan is also beneficial because the home equity loan rate charged is usually tax deductible, as the loan is used for its primary functions. You can use our home equity loan calculator to check what various home equity loan rates will mean for your monthly payments. Always compare offers from several lenders and brokers to obtain the lowest home equity rate possible.
More information on home equity loans and rates

If you would like more information on home equity loan rates, and how to find the best home equity loan, please fill out the form above! Home equity loan specialists will get in touch with you to consider your options and see how a home equity loan can help you make the most of what you have.

There are several choices available for homeowners to free up the equity they possess in their homes.
Other Home Equity Resources

Home Equity FAQ

Home Equity Conversion Mortgage

Paying off Debt with Home Equity Loan

Useful resources for help on Home Equity Loans

I found some good resources on where to find help on information regarding home equity loans. Rules and regulations are tough to find. Here is a list of resources:


State Banks that Are Members of the Federal Reserve System
Division of Consumer and Community Affairs
Mail Stop 801
Federal Reserve Board
Washington DC 20551
(202) 452-3693
www.federalreserve.gov

National Banks
Office of the Comptroller of the Currency
Customer Assistance Unit
1301 McKinney St.
Suite 3710
Houston, TX 77010
(800) 613-6743
www.occ.treas.gov

Federal Credit Unions
National Credit Union Administration
Office of Public and Congressional Affairs
1775 Duke St.
Alexandria, VA 22314
(703) 518-6330
www.ncua.gov

Federally Insured Non-Member State-Chartered Banks and Savings Banks
Federal Deposit Insurance Corporation
Office of Compliance and Consumer Affairs
550 17th Street, NW
Room PA-1730, 7th Floor
Washington, DC 20429
(202) 942-3100 or
(800) 934-FDIC
www.fdic.gov

Federally Insured Savings and Loan Institutions and Federally Chartered Savings Banks
Office of Thrift Supervision
Consumer Programs
1700 G Street, NW, 6thFloor
Washington, DC 20552
(202) 906-6237 or
(800) 842-6929
www.ots.treas.gov

Mortgage Companies and Other Lenders
Federal Trade Commission
Consumer Response Center
600 Pennsylvania Avenue, NW
Washington, DC 20580
(202) 326-3758 or
(877) FTC-HELP
www.ftc.gov

Home Equity Credit Limits

Depending on your creditworthiness (your income, credit rating, etc.) and the amount of your outstanding debt, home equity lenders may let you borrow up to 85% of the appraised value of your home minus the amount you still owe on your first mortgage. Ask the lender about the length of the home equity loan, whether there is a minimum withdrawal requirement when you open your account, and whether there are minimum or maximum withdrawal requirements after your account is opened. Inquire how you gain access to your credit line -- with checks, credit cards, or both.

Also, find out if your home equity plan sets a fixed time -- a draw period -- when you can make withdrawals from your account. Once the draw period expires, you may be able to renew your credit line. If you cannot, you will not be permitted to borrow additional funds. Also, in some plans, you may have to pay your full outstanding balance. In others, you may be able to repay the balance over a fixed time.

Are Home Equity Lines of Credit right for you?

If you need to borrow money, home equity lines may be one useful source of credit. Initially at least, they may provide you with large amounts of cash at relatively low interest rates. And they may provide you with certain tax advantages unavailable with other kinds of loans. (Check with your tax adviser for details.)

At the same time, home equity lines of credit require you to use your home as collateral for the loan. This may put your home at risk if you are late or cannot make your monthly payments. Those loans with a large final (balloon) payment may lead you to borrow more money to pay off this debt, or they may put your home in jeopardy if you cannot qualify for refinancing. And, if you sell your home, most plans require you to pay off your credit line at that time. In addition, because home equity loans give you relatively easy access to cash, you might find you borrow money more freely.

Remember too, there are other ways to borrow money from a lending institution. For example, you may want to explore second mortgage installment loans. Although these plans also place an additional mortgage on your home, second mortgage money usually is loaned in a lump sum, rather than in a series of advances made available by writing checks on an account. Also, second mortgages usually have fixed interest rates and fixed payment amounts.

You also may want to explore borrowing from credit lines that do not use your home as collateral. These are available with your credit cards or with unsecured credit lines that let you write checks as you need the money. In addition, you may want to ask about loans for specific items, such as cars or tuition.

Home Equity Line Defined

Using a home equity credit line to borrow against the equity in your home has become a popular source of consumer credit. And lenders are offering these home equity credit lines in a variety of ways.

You will find most loans come with variable interest rates, some come with attractive low introductory rates, and a few come with fixed rates. You also may find most loans have large one-time upfront fees, others have closing costs, and some have continuing costs, such as annual fees. You can find loans with large balloon payments at the end of the loan, and others with no balloons but with higher monthly payments.

No one loan is right for every homeowner. The challenge, then, is to contact different lenders, compare options, and select the home equity credit line best tailored to your needs.

Be sure to review the home equity contract carefully before you sign it. Do not hesitate to ask questions about the terms and conditions of your financing.

What Home Buyers Really Want

Home buyers want the basics. But they also demand the best. Or at least the best their money can buy.

The features most in-demand by buyers? According to the National Association of Realtors, or NAR, the top five are:
# Centralized air conditioning
# Walk-in closet in the master bedroom
# Bedroom on the main floor
# Patio
# Oversized garage

But Realtors caution that the association's 2004 profile of buyers' home-feature preferences study only tells part of the story. Buyers might be seeking common features, but they want high quality. The findings were based on almost 1,500 responses to a six-page questionnaire sent to 25,000 home buyers who purchased their homes between mid-2003 and mid-2004.

In years past, square footage was the major factor. "What was in the box was less important than the size of the box," says Ron Phipps, the organization's presidential liaison for housing and diversity, and broker with Phipps Realty in Warwick, R.I.

"The intriguing thing now is that people will focus on quality over quantity, because values have gone up," says Phipps. "They are so much less willing to compromise."

Instead of just a walk-in closet, they look for indications that the seller or builder has put some thought, and money, into the feature. They want an air-conditioning system that's going to cool the house and help them save money. And the patio no longer means a cement slab off the den but instead some actual outdoor living space.

Buyers are also looking behind the walls. Phipps recently had one potential buyer show up for a walk-through with a compass. On the shopping list: a southern exposure. Buyers are also looking for more eco-friendly treatments, more environmentally smart building plans and more efficient use of energy -- especially as the price of oil and gas escalate.

"The greening of our consciousness is something that I think you're going to find a lot more conversations about," Phipps says.

Buyers are also looking for homes to fit specific lifestyle needs, like bedrooms on the main floor for aging parents or extra large gathering areas for larger, blended families.

"Life's needs are driving family decisions more than they have for quite some time," says Phipps.

Buyers are also willing to pay more to get what they want. Two-thirds of the people who bought a home last year without a walk-in closet in the master bedroom said they'd be willing to pay extra to get one. (Half admit they'd shell out $825 or more.) Fifty-four percent of buyers were willing to pay extra to have a patio, too. (And half would pay $1,075 or more.)

Favorite rooms
More buyers want a garage than a living room. Seventy-eight percent of home buyers rank a garage as very important, compared to 74 percent for a living room, according to the survey. And a laundry room, say 71 percent, is more critical than a family room, 63 percent.

Remember the days of the formal seldom-used living room and the everyday family room? Over, says Phipps. Instead, families are looking for one large area where they can congregate, live and entertain. But what is hanging in there is the idea of a formal dining room for those festive, special occasions. "Holidays matter," says Phipps. "And I think that's likely to continue."
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Buyers also want multiple bathrooms, according to the survey. Nearly three-quarters want two or more. And the figure jumps to 80 percent for repeat buyers.

Kitchens and bathrooms can still sell a house.

Buyers are looking for a little luxury and features and treatments that are the highest quality the price range will permit.

Investing in stainless-steel kitchen appliances, fine wood cabinets and marble or similar quality counters "would be money well-spent," says Charles McMillan, board member with the National Association of Realtors and director of realty relations for Coldwell Banker Residential Brokerage in Dallas-Fort Worth, Texas. "These are the types of amenities expected to be found in homes that command the additional dollars."

In bathrooms, hot items include high-quality fixtures and good tile. Also popular: pedestal sinks and free-standing (think claw-foot) tubs, he says. "The separate tub and shower has been a kind of standard for some time."

The lifestyle equation
The survey also shows that buyers' tastes aren't uniform. Such factors as the buyer's age, whether it's a first-home purchase and even the region of the country alter the shopping list. And buyers who are scouting new houses set different priorities than those looking at existing homes.

Buyers age 44 and less tend to want homes in the suburbs or in subdivisions, along with access to schools, parks and playgrounds. Older buyers are more likely to want a home that is one story, less than 10 years old, and have a flat lot and lawn sprinkler system. They care more about proximity to a golf course and less about the distance to parks or schools.

First-time buyers are less likely to place a lot of value on some of the "extras," like walk-in closets in the master bedroom, separate showers in the master bath, lawn sprinklers, granite counters or oversized garages. They are also less likely to include a single-story home or bedroom, on the main floor, on their list of "must haves."

But more repeat buyers want a shower that's separate from the tub, an oversized garage and lawn sprinklers. They are less likely to value a finished basement, proximity to schools or access to public transportation.

A bedroom on the main floor is very important. And 81 percent of buyers 65 and older ranked it as "very important."

The age of the house also makes a difference. New homes make up 29 percent of last year's sales, according to estimates from the NAR. Those buyers place a higher importance on features like high ceilings, cable or satellite readiness, oversized garages and security systems.

Location can influence choices, too. In the South, nearly 90 percent of home buyers want central air conditioning. In the Northeast, only 37 percent rank it as a very important feature. Similarly, urban buyers want floors, finished basements and access to public transportation. Suburban buyers tend to prefer sprinkler systems, eat-in kitchens and homes less than 10 years old.

Bigger and better
It's not your imagination. Homes are getting bigger. According to the Realtors survey, half the houses sold last year were bigger than 1,727 square feet and more than one-third were larger than 2,000. Nearly 10 percent topped 3,000 square feet.

Houses get bigger with successive purchases, too, the study found. For first-time buyers, the median size was 1,451 square feet, while it was 1,920 square feet for repeat buyers.

If you were to average the square footage of all the homes sold last year, the typical house would be between 2,300 and 2,400 square feet, estimates Paul C. Bishop, manager of real estate research for NAR.

So what's the average buyer paying? That depends on how you define "average." The median price indicated in the survey was $212,000 -- meaning half the homes sold for more than $212,000 and half for less. But if you average the cost of the homes sold, the "average" price would be about $260,000, says Bishop. Many realtors feel that a few bigger homes on the high end skew the average, so the group prefers to use the halfway marker or "median price."

In the third quarter of 2005 the national median price has climbed to $216,000, according to the association's most recent figures.

But one of the biggest changes Realtors are seeing is in the buyers themselves, says Bishop. Buyers are doing their homework before they start to shop. "They are continuing to make greater use of the Internet in their home search," he says. "They are gathering information about property for sale and doing legwork in advance of working with a Realtor."

Home Equity Line of Credit

Home Equity lines of credit offered by CountryWide homeloans don't have any closing costs apprantly. I wonder what the hidden ffees are and what they try to sell you when you get on the phone with them.
I've been behind on this posting. but here's the latest news on Home Equity Loans.

August Outlook: Despite the price of oil hovering around $60 per barrel, the U.S. economy still continues to grow. Expensive oil takes the pressure off the Federal Reserve Board to aggressively hike interest rates to cool down hyper economic activity. The good news is 30 year mortgage rates are just coming off historical lows. If you haven't looked into a refinance mortgage, now would be a good time. The 30 year fixed mortgage rate is expected to top up between 6.25% to 6.50% this year.

10 things new Home Buyers should NOT do

Here are some tips for first time home buyers. This doesn't have much to do with Home Equity loans and advice on it, but as the subject of my postings are related to the home buying industry, I thought I post this as a starter. Hope it helps.

10 Things NOT to do during the home buying process

1. Do not make a large purchase when you have good credit

If you just found that you have great credit, don’t be hasty to buy that new car that you always wanted. If you’re depending on a mortgage to move to your new home, then a major purchase might jeopardize that chance.

If you take on a higher car payment, the lendor might decide you cannot afford the home.

Using cash to purchase the car could also create a problem, since banks consider cash reserves when approving your mortgage. Talk to your loan officer before you make a large purchase, if your situation calls for you to make that big purchase.

2. Don't Change Jobs Unless It's Necessary

Consistent job history is a positive note to lendors. They aren't usually as nervous if you change jobs within the same field, but make sure you don’t put in your two weeks notice before you get the keys to your new house.

3. Do not give a direct deposit to a For Sale By Owner seller.

Your good faith deposit should go into a trust account. Some for sale by owner sellers don't understand that funds are to be applied to your expenses at closing.
I've heard many stories about sellers who spent the deposit money prior to closing. When the transactions didn't take place for valid reasons--such as financing or repair issues, the buyers had to fight for a refund.

Find an attorney or other neutral party who will hold the deposit for you until closing day and make sure your contract dictates what happens to the funds if the transaction doesn't close.

4. Do not let your emotions run your decision

Keep a cool head during the entire home buying process, especially during and after an inspection. Be realistic. No home is perfect, especially older homes. It's not unusual for new owners to take care of some repairs themselves. Don't let the seller's refusal to do a small repair kill the deal on a home you truly love.
On the other hand, don't fall so much in love with the house that you'll buy it no matter what needs to be done--unless you're absolutely sure you can handle it emotionally and financially. Decide what type of repairs you can realistically tackle, then stick with the decision.

5. Do not wait for the last minute to switch utilities

You may be surprised at how many people wait until the last minute to change their utilities. Call your utility company and make sure that everything is working for when you need it to be active.



6. Line Up Your Hazard Insurance

A no-brainer, right? But it's another often-forgotten task that buyers scramble to take care of at the last minute. Before closing, your lender will want to see an insurance binder showing you have coverage for the new home. Get it as early as possible so that closing isn't delayed.
In some locations, additional types of insurance coverage might be necessary. Talk to your lender about insurance requirements well before the closing date.


7. Don't Become Best Friends with the Seller

I'll get some flack on this one. It's great to be friendly, but don't get into too many long discussions with the sellers, because personality conflicts often cloud judgments.
Remember, this is their home. You're no doubt excited about moving in, and if you didn't like the house you wouldn't have offered to buy it. But you'll make changes--everyone does. A casual statement about "ripping up that ugly carpet" might be hurtful enough to keep the seller from negotiating with you about repairs or other issues that crop up.

8. Don't Panic if the Appraisal Comes in Low

At least not at first. There are some things you (and your agent) can do to correct the problem. Study your options.

9. Don't Go It Alone

If you're working with an agent, it's the agent's duty to track many of the day to day details that involve the lender, the seller, or the seller's agent. Make sure that you aren’t doing all the work when the agent should be doing it.


10. Don't Ignore Lender Requirements

Know what is expected of you and take care of it. For instance, a Certificate of Eligibility is required to move forward on a VA loan. That's something you must handle yourself. Answer lender questions and provide required paperwork as quickly as possible--your closing depends on it.