Home equity loans!

markel

New Forum Member
Registered
Oct 11, 2016
7
1
3
32
#1
Hi all,
I’m here to ask for some help.We have a plan to renovate my house. We are in short of funds for renovating the house.

I had discussed the matter to one of my friends and he had asked me to take a home equity loan. I am hearing it for the first time and so I don’t know much about it. I researched about it online and got to know that home equity loans provide with best interest rates.

But I would like to more about it. How can I apply for a mortgage? Is there any other mortgage other than home equity loans?

Thanks.
 

Vine Group

Frequent Forum Member
REIN Member
Mar 17, 2016
126
76
28
#3
A HELOC or refinancing into a new mortgage are usually the best options. We would need to know more to better advice you. For example, is there an existing mortgage? If there is, what are the mortgage terms regarding refinancing? Is a HELOC allowed behind this mortgage? I would recommend setting up a call to review in detail. 1.844.411.VINE
 

ThomasBeyer

Senior Forum Member
REIN Member
#4
Please note that mortgage brokers usually do not get paid on a LOC ... just on a mortgage.

A mortgage is cheaper than a mortgage plus LOC usually. Mortgages rates today 2.4-2.8% vs LOC prime at best to usually prime plus 1/2 ( ie 3.2%) or prime plus 1. As such , a new bigger mortgage is the better solution if the loan is needed for an extended time but it also comes with early payout penalties i.e. not as flexible. Then involve a broker. If you just want to bridge gap from current mortgage to 75% ( or sometimes 80%) loan to value talk to your bank and get a LOC.
 
Last edited: