HARP loan program has been a dismal failure Examiner.com
The HARP loan refinance program, which was supposed to have aided four to five million home owners with a streamlined refinance of their existing mortgage has been a dismal failure.
The HARP (Home Affordable Refinance Program) program was designed to help those with loans owned by either Fannie Mae or Freddie Mac, but underwater, refinance their mortgages to lower prevailing mortgage rates. The program was rolled out in April 2009 with lots of anticipation that this program would free up cash for those home owners and help the economic recovery.
The guidelines, that this program was only for those whose loans were owned by either Fannie or Freddie (and therefore were presumed to be the strongest borrowers) were initially rolled out with a lot of pomp as a fix for homes that were losing value. The problem, as with so many government rolled out programs, is that participation by lenders was voluntary, and that lenders had autonomy in how the guidelines were interpreted, and which guidelines they could follow, and which they could ignore.
Refinance Help. Fill this form and get help!
Are there restrictions on 125% home equity loans in Tennessee?
If you try to sell your home in 5 years, you will be upside down on the loan. This means that you will owe more money to the bank than your house is worth. It can cost you thousands!
Rick Lanicek
www.primelendingonline.com
Is there a way to get a home equity loan of 150% of the loan to value, most places offer just 125% or lower?
125% is pretty much the max for home loans right now. Anything more than that and you can check out unsecured private loans from your credit union and local banks. Really at the rates that the lenders are charging on the 125% loans you may be better off with a signature loan as opposed to any 'over equity' product right now, it's definitely worth comparing.
where can I get a 125% equity loan with poor credit?
I have a 600 Fico score and want to borrow money at 25% of my homes equity
From a really dumb banker
a good place to start in my humble opinion is:
http://umgarticles.atspace.com/equity-loan.htm
a couple of years ago I took an equity loan, however I made some errors, luckily for you they are all tackled in this article.
good luck
When can I get a Home Equity Loan or HELOC?
Just bought a house for $214k 30yr 6.125%, it was appraised at $244k. I'd like to make several home improvments and consolidate some debt. How soon can I get a Equity Loan or Line of Credit , seeing how i just bought the home I wasn't sure if theres a waiting period i.e 6mo-1yr . Also which might be better for my situation the Loan or LOC?
There is no waiting period-- however its typically advised that you maintain 10-20% equity. Using up every dollar of equity is not a smart move-- selling a house costs up to 10%! So if you owe exactly what your house is worth, there's no way for you to sell and walk away from it.
Also a loan up to the last dollar is higher risk and will carry higher interest rates.
Talk to some lenders and see what their policies are-- some of the basic banks still expect you to maintain a certain percentage AFTER the HELOC.
I got a HELOC about two weeks after I bought my house last summer. As long as you have enough equity in the house for them to give you a line of credit, you shouldn't have a problem.
Search Around you will find a good rate. Watch out for teaser rates unless you are going to pay off the debt quickly or educate yourself on teaser rates so you dont end up with payment shock.
To answer your question you can get a heloc the same day you close your house at Title.
HAPPY LIVING
what is a home equity loan?
i'm pre-approved for a home equity loan of up to 125,000.00. what exactly does this mean? (i realize this sounds like a dumb question)
"up to" is the key phrase here.
If you have owned a home for a few years, you have equity built up in it.....In other words, you could sell it for more than you owe on it.
Lenders are willing to take a mortgage on your equity in turn for loaning you part of that equity. If you are having fianancial problems, that is a good way to lose your house. Be careful.
Other words, as far as I understand it, if you don't pay your loans or whatnot, they can go for the house and sell it to cover their costs.
Very rarely, if at all, would you be eligible for the amount they promise. You would first have to have that amount available in your home equity and then have to qualify for the loan.
Companies like these are just reeling you in for a high interest loan of a couple of thousand dollars.
A home equity line of credit is similar, except that they don't front you the whole $75,000, you just have it available to borrow against, as you need it. This saves you paying interest on money you're not using.
I'm guessing a bank sent you something in the mail saying you can get a home equity loan. Don't take the first offer they send you - negotiate the rate and loan fees, and talk to a couple different banks. And don't use it unless you need it - it's not free money.
Home equity loans are how your seemingly modest income neighbors have been driving a big SUV or BMW these past few years. They seem to have a lot of money, but in reality they're a paycheck or two away from being on the street.
HELOCs can be great, because the interest can be tax-deductible, and it can help you finance home improvement projects or pay off higher-interest debts. But spend it wisely, because the minimum payments are usually interest-only, so even if you pay your minimums faithfully for 30 years, you will not have paid off any of the principal. And, the interest rate is usually variable, like a credit card, so your minimums will change month to month.
Your best bet is to use it as a last resort, and when you do use it, budget paying double the minimum balance every month.
If you don't repay the debt, the lender can take your collateral and sell it to get its money back. With a home equity loan or line of credit, you pledge your home as collateral. You can lose the home and be forced to move out if you don't repay the debt.
There are two types of home equity debt: home equity loans and home equity lines of credit, also known as HELOCs. Both are sometimes referred to as second mortgages, because they are secured by your property, just like the original, or primary, mortgage.
Home equity loans and lines of credit usually are repaid in a shorter period than first mortgages. Most commonly, mortgages are set up to be repaid over 30 years. Equity loans and lines of credit often have a repayment period of 15 years, although it might be as short as five and as long as 30 years
A home equity line of credit, or HELOC, works more like a credit card because it has a revolving balance. A HELOC allows you to borrow up to a certain amount for the life of the loan -- a time limit set by the lender. During that time, you can withdraw money as you need it. As you pay off the principal, you can use the credit again, like a credit card.
A HELOC gives you more flexibility than a fixed-rate home equity loan. It also is possible to remain in debt with a home equity loan, paying only interest and not paying down principal.
A line of credit has a variable interest rate that fluctuates over the life of the loan. Payments vary depending on the interest rate, the amount owed and whether the credit line is in the draw period or the repayment period.
During the equity line's draw period, you can borrow against it and the minimum monthly payments cover only the interest, although you can elect to pay principal.
During the repayment period, you can't add new debt and must repay the balance over the remaining life of the loan.
The draw period often is five or 10 years, and the repayment period typically is 10 or 15 years. Those are generalizations, and each lender can set its own draw and repayment periods. Lenders have been known to have draw periods of nine years, six months, and repayment periods of 20 years
With either a home equity loan or a line of credit, you have to pay off the balance when you sell the house
If you or anyone you know needs advice or quotes on this type of loan please feel free to email me.
http://homearama.blogspot.com
I ended up going with http://www.surepoint.com for my home equity loan. They are very thorough and I really felt like they wanted to help me.
Which way do I borrow, 401K loan or home equity loan?
I want to borrow 5,000.00 My 401K loan has a cost of 125.00, all the rest of the payments and interest go back into my account, borrowing from the bank costs 75.00 and I end up paying them all the interest. Which is best for me?
You did not say why you need the $5,000. I will assume it is for a good purpose such as an educational loan. If it is for a vacation then I would suggest you do not need to borrow the money.
A home equity loan would probably be best for you. The 401(k) you would need to pay back with after tax monies. Then, when you withdraw the money, you need to pay taxes again therefore double taxation. Also, if you lose your job through no fault of your own, you must immediately repay the loan to the 401(k).
The 401k usually has more stringent rules and having to pay back faster. If you don't repay you are in tax penalty hell.
When you are repaying the HELOC as long as the loan has something to do with you house you will get a tax deduction(itemized)
Do I have enough equity to get a home equity loan?
I have a 80/20 loan. Both are fixed. The 80% loan is at 6.85 fixed and the 20% is at 7.25 fixed. The house is appraised at 168,000. I owe 125,000 on the 80% loan and 25,000on my 20% loan. Do I have enough equity to refinance to a lower rate (like 5.5?) and get a home equity loan for 5,000 -10,000? Thanks everyone.
Edit: The appraisal was sent by our county in October. Everyone gets one. I dont know if that has dropped now. I live in an area that has not been affected hard by the recession. I live in Nashville, TN. Homes in our area still sell very fast. If I am incorrect about my appraisal, how much does the house have to be worth for me to refinance given my numbers?
FHA allows up to 95% loan to value.
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what do you think of 125% appraise value of your home for a debt consolidating loan?
Me & my Hubby just brought a house in an area that is not fast for equity, 8 months ago and we only made a 5K equity, we wanted to consolidate our debt but there's no enough equity that we can used, and his credit score is not so great, I talked to few lenders and they denied us because of these matters, not sure how are we goin to consolidate our debt if no one give us a chance.
we also do not want to take a chance of refinancing we have a great 6% interest from the VA.
Debt consolidation loans are overated, and if you don't have the discipline to make it work, are hazardous to your financial health.
This article gives more information:
http://www.searchlightcrusade.net/posts/1142494469.shtml
125% loans are all full recourse loans, and they've got some other ugly features. There are times when they are cost effective, but if something happens you are hosed.
Refinancing or Home Equity?
I would like to know what to do about refinancing my home or if equity loans are best suited for my needs. I bought my house 3 years ago with a no down first time home owner mortage. I got a 5/1 ARM at 6.125% which will be over in 2008. I want to get a fixed rate now locked in but also would like to boworrow money to pay off debt and do some remodeling and consolidate into one payment. The property is appraised at $ 150,000 and the principal is $ 113,000 will I be able to accomplish my goal? I figure I would need $ 20,000 to pay off the debt and get some things fixed , Any advice would be appreciated.
If you plan on staying in the house for some time I would suggest a refinance with a fixed rate. rates are still quite attractive and can ultimately save you money and reduce your current monthly payments. obtaining a equity line of credit will probably save you some money consolidating your debts but your still adding another payment.ther is allot of use full information on my web site please feel free to check it out or contact me I would be more then happy to show you some different options.
http://homefrontmortgage.us
mobile home title inactive assessed real property permanent concrete foundation why no equity loan availiable?
the title on our doublewide is inactive and is being assessed as real property it is set on a permanent concrete foundation we had an appraisal for 180000.00 and only owe 144000.00 so we have 36000.00 in equity yet because it is a mobile home all of the banks say they will only lend 80% as opposed to the 100 to 125% they would lend on a stick built home. any solutions. thanks
The title on our double wide is inactive and is now assessed as real property. It is set on a permanent concrete foundation. We have an appraisal for $180000.00. We owe 144,000.00 which includes double wide and one acre of land. Our land is in our name and is included in the $144000.00. We have 36000.00 in equity. Because it is a mobile home banks will only lend 80% as opposed to the 100% they would lend on a stick built home. I want to empasize that our home is being assessed and taxed as real property by our county assessor, and we have deactivated our title through the motor vehicle department. We would like to make home improvements. We have good credit and good income. Any solutions. thanks.
A lot of banks only lend 80% on any home, mobile home or otherwise. You might check with a mortgage company instead of a bank. Just note that if you borrow 125% of the value of your home and then need to sell it you are going to have a problem.
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