Home Eqity Loan and Mortgage Loans Sites and Resources

Benefits of Home Eqity Loans and Refinancing ...

Home equity is the value of a homeowner's unencumbered interest in their property, that is to say the difference between the home's fair market value and the unpaid balance of the mortgage and any outstanding debt over the home. Equity increases as the mortgage is paid or as the property value increases over time. This is sometimes called real property value in economics.

Technically, home equity has a zero rate of return and is not liquid. Home eqity management is the process of using a equity extraction via loans, at favorable and often tax favored interest rates, to invest otherwise idle value in higher yield (after tax), liquid, safe, way to create an arbitrage. Arbitrage is in essence borrowing money at one rate and earning a higher rate elsewhere. Note that home eqity management actually reduces home equity, so that safety and liquidity are essential to preserving nominal home eqity. Thus the process excludes all equity extraction that is actually spent or invested in non-liquid ways.

Mortgage Calculators
Advantages of mortgage calculator
There are various advantages of using our mortgage calculator, some of them are:

You can get answer to lots of mortgage queries and other financial calculations instantly.

You can see how much you qualify for and determine your monthly payments if qualified.

It allows you to discover the outcome of changes to your loan balance, terms and interest rate.

It is easy to understand and operate.

It will create an amortization table, to find the payments to be made in future on mortgage loans and the interest accrued thereon.

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Home, Mortgage, Refinance Loans Quicken Which home loan is best? Need to leverage your home eqity? Get the refinancing answers you need here.

Refinance Home Loans and Mortgage Rates
Major Online Home Loan Lenders and Current Mortgage Refinance Rates

Ace Mortgage Funding, LLC
Offers home purchase loans, mortgage refinance, home eqity loan financing and debt consolidation mortgages.

Best Refinance Mortgage Rate
Your Resource for the Best ...4 Tips to Get the Best Refinance Mortgage Rate possible and more.

Mortgage Eqity Secrets Exposed
Learn how anyone, with any credit - can get a great mortgage fast, easy & free!

Home Loans, Mortgage & Refinance Loans
Home Eqity Loans
Eqity Investing Strategies

Low Cost Refinance
100% free refinance quotes to get the most value for your home. For Home Buyers, Home Sellers and Home Owners

Countrywide Financial
Home Loans - Equity Loan Mortgages Countrywide Home Loans is the nations largest independent mortgage lender offering home eqity, HELOC, refinance, mortgages, debt consolidation

LendingTree Home Loans
Refinance Home Equity Mortgage Refinance at Lendingtree. An online mortgage loan marketplace connecting you to a network of home loan specialists

When Your Home Is on the Line:
If you are thinking about a home equity line of credit, you might also want to consider a traditional second mortgage loan. Read more from the Federal Reserve Board.

Citibank Home Equity Loan
Home Equity Loan and Home Equity Line of Credit info from Citibank. Are you Looking for a home equity loan or a home equity line of credit?

What is a Home Equity Loan?

A home equity loan (sometimes abbreviated HEL) is a type of loan in which the borrower uses the equity in their home as collateral. These loans are sometimes useful to help finance major home repairs, medical bills or college education. A home equity loan creates a lien against the borrower's house, and reduces actual home equity.

Home equity loans are most commonly second position liens (second trust deed), although they can be held in first or, less commonly, third position. Most home equity loans require good to excellent credit history, and reasonable loan-to-value and combined loan-to-value ratios. Home equity loans come in two types, closed end and open end.

Both are usually referred to as second mortgages, because they are secured against the value of the property, just like a traditional mortgage. Home eqity loans and lines of credit are usually, but not always, for a shorter term than first mortgages. In the United States, it is sometimes possible to deduct home equity loan interest on one's personal income taxes.

Closed end home equity loan
The borrower receives a lump sum at the time of the closing and cannot borrow further. The maximum amount of money that can be borrowed is determined by variables including credit history, income, and the appraised value of the collateral, among others. It is common to be able to borrow up to 100% of the appraised value of the home, less any liens, although there are lenders that will go above 100% when doing over-equity loans. However, state law governs in this area; for example, Texas (which was, for many years, the only state to not allow home equity loans) only allows borrowing up to 80% of equity.

Closed-end home equity loans generally have fixed rates and can be amortized for periods usually up to 15 years. Some home equity loans offer reduced amortization whereby at the end of the term, a balloon payment is due. These larger lump-sum payments can be avoided by paying above the minimum payment or refinancing the loan.

Open end home equity loan
This is a revolving credit loan, also referred to as a home equity line of credit (HELOC), where the borrower can choose when and how often to borrow against the equity in the property, with the lender setting an initial limit to the credit line based on criteria similar to those used for closed-end loans. Like the closed-end loan, it may be possible to borrow up to 100% of the value of a home, less any liens. These lines of credit are available up to 30 years, usually at a variable interest rate. The minimum monthly payment can be as low as only the interest that is due. Typically, the interest rate is based on the Prime rate plus a margin.

Home Equity Loan Fees
Here is a brief list of possible fees that may apply to your home equity loan: Appraisal fees, originator fees, title fees, stamp duties, arrangement fees, closing fees, early pay-off and other costs are often included in loans. Surveyor and conveyor or valuation fees may also apply to loans, some may be waived. The survey or conveyor and valuation costs can often be reduced, provided you find your own licensed surveyor to inspect the property considered for purchase. The title charges in secondary mortgages or equity loans are often fees for renewing the title information. Most loans will have fees of some sort, so make sure you read and ask several questions about the fees that are charged.

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