HOME EQUITY LOAN

[Nasavunensastha]

Bhayya evaraina idi teeskunara? Does it affect any of our credit? Can i use the amount i get from it to clear out my other loans?serious replies plzz.thank you

[pandit]

Yes you can take. Nenu teskoledu kani I have some knowledge on it.

And if your overall loan balance amount increases, yes your credit history will reflect it.

The loan balance depends on the equity you have on  your home.

Lot of them recommend taking Home Equity Loan if you have too much of equity on your home.

 

 

[Nasavunensastha]

1 minute ago, pandit said:

Yes you can take. Nenu teskoledu kani I have some knowledge on it.

And if your overall loan balance amount increases, yes your credit history will reflect it.

The loan balance depends on the equity you have on  your home.

Lot of them recommend taking Home Equity Loan if you have too much of equity on your home.

 

 

Bro aa last sentence konchem clear ga explain cheyu plz

[trent]

35 minutes ago, Nasavunensastha said:

Bro aa last sentence konchem clear ga explain cheyu plz

Basically, [it’s] the difference between the market value of a property and what somebody owes on the property.” In other words, when you want to determine what your equity is, you look at the amount your home could sell for and subtract what you owe on the home in loans and mortgages. The amount remaining is your equity.

[Aakupaccha_caradu]

ltt

[hyperbole]

Home equity rates have either fixed and varying APR untayi. Fixed ayite it is basically a loan offered at full amount(basically equity)

Secondly there is home line of credit(varying APR) which pretty much operates like a credit card with the exception you can withdraw/borrow as much you need  and pay interest only for that amount.

I have used the latter option. Many people  repurpose their equity to either pay off higher interest loans or use it for investment.

 

[neekunuvvetopu]

1 hour ago, Nasavunensastha said:

Bhayya evaraina idi teeskunara? Does it affect any of our credit? Can i use the amount i get from it to clear out my other loans?serious replies plzz.thank you

It does affect the credit.  Try discover loans, I heard they provide good service.

[hyperbole]

By the way, I got it from DCU, they had the lowest rate but they offer only upto 100k if you have more equity on your house

[pandit]

Lets say you bought $100K house for 20% down which is $20K, then the loan amount is $80K.

By next month if your house values for $120K, typically banks will be willing to pay 80% of your home value which is $96K.

$96K-$80K(balance loan amount) will be your equity on home.

PS: This is my opinion. Not legal advice.

[Nasavunensastha]

So nenu konna illu 250k bro so ippudu dani value 279 undi..nenu only 5% down chesa ..its been an yr i took home..na credit score 706 undi wt r my options?

[Nasavunensastha]

2 hours ago, hyperbole said:

Home equity rates have either fixed and varying APR untayi. Fixed ayite it is basically a loan offered at full amount(basically equity)

Secondly there is home line of credit(varying APR) which pretty much operates like a credit card with the exception you can withdraw/borrow as much you need  and pay interest only for that amount.

I have used the latter option. Many people  repurpose their equity to either pay off higher interest loans or use it for investment.

 

Thanjs bro

[Nasavunensastha]

2 hours ago, trent said:

Basically, [it’s] the difference between the market value of a property and what somebody owes on the property.” In other words, when you want to determine what your equity is, you look at the amount your home could sell for and subtract what you owe on the home in loans and mortgages. The amount remaining is your equity.

[Nasavunensastha]

1 hour ago, pandit said:

Lets say you bought $100K house for 20% down which is $20K, then the loan amount is $80K.

By next month if your house values for $120K, typically banks will be willing to pay 80% of your home value which is $96K.

$96K-$80K(balance loan amount) will be your equity on home.

PS: This is my opinion. Not legal advice.

Thanks bro

[pandit]

@Nasavunensastha Mastaru, since you paid only 5% down I'm assuming you are paying PMI for your loan amount. If you take home equity loan you will be paying PMI for longer time. My advise is not to go for HELOC. Build 20% equity on your home and refinance to get rid of PMI. If you are in urjent need of money look for other alternatives like 0% interest rate balance tranfers etc. Just my 2 cents.

[pandit]

Ne savu nuvu e savu. Correct set ayindi po