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The Bad Guy
06-03-2012, 11:00 PM
I wish I was a tad bit smarter with my mortgage application and put it in my mortgage for a driveway, sidewalk, steps, retaining wall and patio, but live and learn I guess.

I have some savings left, but I want to keep it for an emergency situation.

The concrete subcontractors around here all accept cash only. I understand why, but now I'm in a bind because I don't have a ton of disposable cash.

Which leads me to a home equity loan situation. How difficult is this process? Is it anything like the mortgage? I have no frame of reference here.

Any advice or tips on this type of loan would be much appreciated.

Thanks in advance.

Pawnmower
06-03-2012, 11:11 PM
It is very similar to a regular mortgage. The only difference is that it may be even more difficult to qualify for than a '1st.' (As it is a riskier loan for them) If you have sufficient equity in your property , you should be able to qualify.......as long as your credit score and debt to income ratio is ok. Also they do not like loaning on 'projects' so your place needs to be fairly well fixed up and not a 'construction zone' but YMMV.

Do you have a person you trust who you can ask if you qualify or not?

I would start with your credit union if you have one, then use that as a comparison.....

The Bad Guy
06-03-2012, 11:13 PM
It is very similar to a regular mortgage. The only difference is that it may be even more difficult to qualify for than a '1st.' If you have sufficient equity in your property , you should be able to qualify.......as long as your credit score and debt to income ratio is ok.

Do you have a person you trust who you can ask if you qualify or not?

I would start with your credit union if you have one, then use that as a comparison.....

Yeah, I became quasi-friendly with the bank branch manager. Credit scores should be no problem. Debt to credit might be a tad bit tight due to the wife not working currently, but I don't think it's going to be a huge issue. We have about 35k in equity right now and the concrete will only improve that. Thanks man.

Phobia
06-03-2012, 11:13 PM
Home equity loans are loans which allow you to borrow money against the equity you have in your house. Considering you just built your house, I wonder how much equity you actually have. Unless it appraises for higher than what you paid, I'm not sure you'll even quality for a home equity loan.

The Bad Guy
06-03-2012, 11:14 PM
Home equity loans are loans which allow you to borrow money against the equity you have in your house. Considering you just built your house, I wonder how much equity you actually have. Unless it appraises for higher than what you paid, I'm not sure you'll even quality for a home equity loan.

Our mortgage is about 35k less than the total value of the home right now due to our down payment being high. Does that factor in?

Pawnmower
06-03-2012, 11:16 PM
Yeah, I became quasi-friendly with the bank branch manager. Credit scores should be no problem. Debt to credit might be a tad bit tight due to the wife not working currently, but I don't think it's going to be a huge issue. We have about 35k in equity right now and the concrete will only improve that. Thanks man.

The only issue may be an appraisal then....you would take a risk of paying for an appraisal to verify that it is worth 35k above your loan.....($250ish?)

Then you need all your papers--taxes, last few paystubs, loan info, savings, 401k, stocks....bring in to the bank one day and let them photocopy it all.


Also compare 'www.cashcall.com' to their prices.........and be sure to check how much they are going to charge you for all of the closing costs...

cashcall does alot of biz over the phone, and has good rates

Pawnmower
06-03-2012, 11:20 PM
Also, Im not sure exactly how much % they will let you go into debt on your house with a second, that may be an issue....depending on how much % that 35k is (the equity) in your house.

The Bad Guy
06-03-2012, 11:21 PM
The only issue may be an appraisal then....you would take a risk of paying for an appraisal to verify that it is worth 35k above your loan.....($250ish?)

Then you need all your papers--taxes, last few paystubs, loan info, savings, 401k, stocks....bring in to the bank one day and let them photocopy it all.


Also compare 'www.cashcall.com' to their prices.........and be sure to check how much they are going to charge you for all of the closing costs...

cashcall does alot of biz over the phone, and has good rates

I'll check that out. Thanks man. I appreciate it.

Since our appraisal was done literally 3 months ago, they might be willing to waive that.

Good point on the closing costs. I wish I didn't have a hangup asking to borrow from family members, but I don't want to be on the hook with family.

Pawnmower
06-03-2012, 11:21 PM
Our mortgage is about 35k less than the total value of the home right now due to our down payment being high. Does that factor in?

If you dont mind , what % down was that

The Bad Guy
06-03-2012, 11:24 PM
If you dont mind , what % down was that

We put down close to 30%

Pawnmower
06-03-2012, 11:26 PM
I'll check that out. Thanks man. I appreciate it.

Since our appraisal was done literally 3 months ago, they might be willing to waive that.

Good point on the closing costs. I wish I didn't have a hangup asking to borrow from family members, but I don't want to be on the hook with family.

Actually I do not see any heloc products from them....hrm...and their %125 second is crap........forget cashcall i guess unless you are doing a refi...hrm

Pawnmower
06-03-2012, 11:26 PM
We put down close to 30%

what is your current rate , and term?

The Bad Guy
06-03-2012, 11:27 PM
what is your current rate , and term?

4.12, 30 year.

Pawnmower
06-03-2012, 11:28 PM
ks or mo?

The Bad Guy
06-03-2012, 11:28 PM
ks or mo?

Neither. I live in PA.

Pawnmower
06-03-2012, 11:30 PM
Neither. I live in PA.

aha rgr

LiveSteam
06-03-2012, 11:31 PM
http://sphotos.xx.fbcdn.net/hphotos-snc6/s320x320/253295_3234389462214_1979639623_n.jpg

Pawnmower
06-03-2012, 11:34 PM
shit man...looks like bank of america has decent rates currently in PA

https://www8.bankofamerica.com/home-loans/home-equity/line-of-credit.go?state=PA


edit tell your buddy B of A has a 3.49 rate but you wanna do biz with THEM! See if he can match/beat it LOL....

Pawnmower
06-03-2012, 11:37 PM
Also see:

https://www8.bankofamerica.com/home-loans/home-equity/compare-heloc-vs-heloan.go

compare Heloc to Hel

Pawnmower
06-03-2012, 11:38 PM
Helocs are nice, cuz they are always there for you if you pay them off...

tmax63
06-04-2012, 06:56 AM
I have a HELOC (line of credit) set up. Got it about 6months before I paid off the mortgage lump sum. My bank did 80% of equity and of course they low-balled my appraisal. set up on 5 years, interest rate about 5.5% if you have a balance. Cost a couple hundred dollars closing. I have minimum payment due each month of the interest accrued. If any balance at the end of 5 years you have to re-fi. I only have to make a phone call and tell them to transfer the money into my account. It works pretty slick and gives me an emergency fund.