KarenB asked:
We have been in our house 2 years, and want to take out a $5000 home equity loan. Do both me and my husband have to be on loan if we are both on mortgage? We are looking to sell our house in a year, is this a separate loan, or do we have to worry about covering it with the home sale?
LANCE
We have been in our house 2 years, and want to take out a $5000 home equity loan. Do both me and my husband have to be on loan if we are both on mortgage? We are looking to sell our house in a year, is this a separate loan, or do we have to worry about covering it with the home sale?
LANCE
FRED
One or both can be named on the loan, but the house is the collateral, so you do have to pay it back when you sell the house.
SALVATORE
why don’t you just refinance and then sell the house in a year as you said. if you refinance a lower interest rate and you can get way more than 5,000.
ARMANDO
Most states will require both of you to sign on to the second note, that is done to protect any unknowing spouses from the other getting these.
IGNACIO
it’s a separate loan and you’re both on the loan since all debts and assets are shared equally in a marriage, the loan will depend on the actual equity that you have gained in your house, ex. if you paid 100k and you put 10k down and you’ve paid off another 10k, then you have 20k equity plus any increase in the market value, you’ll need a market evaluation by the lender for that. most banks will lend up to 80% of the equity, so that would be $20k x 80% = $16k potential equity loan….you’re better off to try and get a line of credit, the rates are usually lower
KELVIN
The home equity loans fall into two categories.
The first type is a term or closed end loan and another is a typically a line of credit. Many people choose to describe them as a second mortgage as they are secured against your home just like your primary home loan. Usually these loans have repayment duration of 5-15 years.
The term loan is a one-time lump sum payment that should be repaid over a pre-determined duration. It carries a fixed interest rate that lets you pay the same loan installment every month. Once you get the loan, you cannot take further loan.
DIRK
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