McBride offers one caution: "You might replace such loans with a home equity loan
or larger home mortgage, but if you refinance a mortgage to pay off other types of loans, keep the home mortgage to no more than 80% of the home's value.
As expectations of future home values rise, homeowners are more likely to assume a home equity loan
Common fees that are charged on a home equity loan
include closing costs, points, appraisal fees, escrow fees, flood certification fees, and recording fees.
If so, this regional pattern would be similar to the one that holds for the use of home equty credit: The proportion of mortgage debt holders with a home equity loan
in the Northeast is more than twice that pertaining in the South or in the North Central region.
The biggest 'pro' favoring a home equity loan
is also the biggest 'con' associated with a refinance loan: Home equity loans
have no closing costs, and that can mean a savings of hundreds - even thousands - of dollars compared to a cash-out refinance loan, which typically comes with all the same closing costs as a purchase mortgage.
Another option: an unsecured home equity loan
, meaning you don't have.
The specialization of finance companies in the traditional home equity loan
market may in part reflect long-time customer relationships as well as limits on the services available from finance companies.
A home equity loan
, which is sometimes referred to as a second mortgage, is simply a one-time loan that is secured using the equity in the borrower's home as collateral (equity is the difference between the appraised value of the home and current principal balance of the mortgages on the property).
Without authority for a home equity line of credit and with the restriction that borrowers can get only one home equity loan
advance in a 12 month period, Texans must borrow the full amount they project to need for the next year and pay interest on the full amount, even if they don't need it all up front.
NEW YORK, June 3 /PRNewswire/ -- CoreStates Home Equity Loan
The home equity lien ratio (the home equity loan
divided by the total indebtedness) is approximately 59.
officially offer homeowners a re-tooled home equity loan
with an initial