Nov
24
If you make extra payments, is it better to pay toward mortgage or a home equity loan?
Filed Under Renting & Real Estate | 3 Comments
Laura M asked:
I’m guessing this varies based on the loan details, but generally speaking, if you make extra payments, is it better to target the mortgage (30 yr. fixed, 80% of purchase amount) or a home equity loan (15yr interest only, roughly 20% of purchase amount)
Just to make sure the question is clear…which is better to do (as far as which makes better financial sense)? Apply the extra toward the mortgage or apply the extra toward the home equity loan? If I can only apply extra payment toward one or the other.
DEREK
I’m guessing this varies based on the loan details, but generally speaking, if you make extra payments, is it better to target the mortgage (30 yr. fixed, 80% of purchase amount) or a home equity loan (15yr interest only, roughly 20% of purchase amount)
Just to make sure the question is clear…which is better to do (as far as which makes better financial sense)? Apply the extra toward the mortgage or apply the extra toward the home equity loan? If I can only apply extra payment toward one or the other.
DEREK
Nov
17
caffeinespike asked:
I am looking to consolidate/ pay off my bills with a home equity loan but I only have a credit score of 630! I am afraid that the credit inquiries will LOWER my score more if I am denied. Should I even bother trying to get one? I don’t want to mess up my credit any more.
I am looking to consolidate/ pay off my bills with a home equity loan but I only have a credit score of 630! I am afraid that the credit inquiries will LOWER my score more if I am denied. Should I even bother trying to get one? I don’t want to mess up my credit any more.
Are home equity loans credit based?
SIDNEY
Nov
16
Sunshine8803 asked:
My parents recently signed the deed of their house over to me with a Life Estate clause added to it so that they will still have a place to live. The intentions were for me to get a home equity loan in order to make some much needed renovations to the house, including a handicapped suite for the both of them to make them more comfortable. However, everyone with whom I have spoken has told me that with the life estate clause on the deed, it is impossible for me to secure a home equity or other type of loan, even if my parents cosign since they are the beneficiaries of the life estate. What options do I have so that I can get a loan for the renovations?
CARLO
My parents recently signed the deed of their house over to me with a Life Estate clause added to it so that they will still have a place to live. The intentions were for me to get a home equity loan in order to make some much needed renovations to the house, including a handicapped suite for the both of them to make them more comfortable. However, everyone with whom I have spoken has told me that with the life estate clause on the deed, it is impossible for me to secure a home equity or other type of loan, even if my parents cosign since they are the beneficiaries of the life estate. What options do I have so that I can get a loan for the renovations?
CARLO
Nov
7
Are Home Equity loans good choice to use for Emergency Fund?
Filed Under Renting & Real Estate | 1 Comment
SOPOWE asked:
US Bank has a Home Equity Loan ,5.0 % variable interest rate, 2.0 % prime. no cap on variable rate lowest 3.00 %., amt of line of credit $39,000.00..Flexible in which the variable rate can be changed to fixed rate 7%, 3 times a variable can be changed to a fixed rate..
Fee:$ 90.00 annually(Ist yr waived) surrender 3 yrs(includes waived yr).
HERMAN
US Bank has a Home Equity Loan ,5.0 % variable interest rate, 2.0 % prime. no cap on variable rate lowest 3.00 %., amt of line of credit $39,000.00..Flexible in which the variable rate can be changed to fixed rate 7%, 3 times a variable can be changed to a fixed rate..
Fee:$ 90.00 annually(Ist yr waived) surrender 3 yrs(includes waived yr).
HERMAN
Nov
4
If I get a home equity loan do I have to claim the money as capital gains if I sell it and don’t buy another?
Filed Under United States | 4 Comments
Kat asked:
The equity is from the gain from past homes. I need the money to pay off debt and will not be buying another home. If the money is taken out as a second mortgage but repayed late this summer when I decide to sell the home and move into another home we own, will it be subject to capital gains tax?
HERIBERTO
The equity is from the gain from past homes. I need the money to pay off debt and will not be buying another home. If the money is taken out as a second mortgage but repayed late this summer when I decide to sell the home and move into another home we own, will it be subject to capital gains tax?
HERIBERTO