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Advantages of a Home Equity Loan

VA Loans for Vets NMLS#184169<br>5050 North 40th Street, Ste 260<br>Phoenix, AZ 85018<br>602-908-5849<br><br>Jimmy Vercellino is one of the nationu2019s top VA Home Loan mortgage originators. A Marine veteran, he and his team work hard to help veterans take advantage of their VA loan benefit and become homeowners. From start to finish, they guide their clients through the process and make it as smooth and stress-free as possible. Visit the site at https://www.valoansforvets.com

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Advantages of a Home Equity Loan

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  1. You are in need of: • Cash for remodeling • College expenses • Some other large expense

  2. …but not sure how you'll manage funding ?

  3. If you own your home, you may be eligible for a home equity loan.

  4. Learn everything you need to know about this unique loan type and determine if it's right for you.

  5. WHAT IS A HOME EQUITY LOAN?

  6. A home equity-based loan, or second mortgage, is when the equity or value of your home is used as collateral.

  7. Homeowners may be eligible for this type of loan, even if they already have a mortgage loan on the home…

  8. … as long as they still have sufficient equity in the home beyond what's owed on the first mortgage.

  9. For example, you have a $75,000 conventional mortgageon your home. Since your home is valued at $200,000, you have $125,000 in equity left in the home.

  10. Therefore, you may be eligible for a home equity-based loan.

  11. DIFFERENT TYPES OF SECOND MORTGAGES

  12. Home equity-based loans are usually referred to as second mortgages and are generally one of two kinds: • Closed end • Open end

  13. Although this is not always the case, usually this type of loan is for a shorter term than a regular mortgage.

  14. You can use the funds from an equity loan for anything you want, but they cannot be used to purchase the home.

  15. With a closed end, you are approved for a certain amount of money, and you get the money all at once upon signing.

  16. An open-end loan works more like a credit card, in that you're approved for a certain amount of money, but you get it in increments until you've received it all.

  17. Open-end equity loans are typically used as construction loans for individuals building a home.

  18. They draw the money as needed it until it's all used up. Once the construction is complete, the equity loan is often converted to a regular mortgage.

  19. ELIGIBILITY FOR HOME EQUITY LOANS

  20. To be eligible for a home equity loan, you must typically meet the following requirements: • You must have equity in the home.

  21. • You must have good credit. • You must have sufficient income to repay the loan. • You must a low income- to-debt ratio.

  22. While all the above are requirements, the most important one is equity

  23. You must have a good loan-to-value ratio, which is the amount of your loan in relation to the value of your home.

  24. Lenders consider 80% to be a good loan-to-value amount. What this means is that, for instance, if your home is worth $100,000, lenders will usually borrow up to 80% or $80,000.

  25. In the example up above where you still have $125,000 equity in the home, you may be able to borrow up to 80% of that or $100,000 if you meet the other eligibility requirements.

  26. ADVANTAGES OF AN EQUITY-BASED LOAN

  27. Besides the obvious benefit of having access to money when you need it, there are several advantages of home equity- based loans.

  28. • Lower interest rates While open-end equity loans may act like credit cards, the interest they charge is much less than with credit cards.

  29. • Instant cash payment Home equity-based loans provide you with large sums of money to use as you see fit, whether it be medical bills, remodeling, college expenses and so forth.

  30. • Tax deductible The interest you pay on your home loan is usually tax deductible, unlike with auto loans and credit cards.

  31. Jimmy Vercellino, an experienced professional with mortgage lender First Choice Loan Services, works hard to provide a personalized home loan process for you.

  32. Options include FHA and VA loans, fixed / adjustable rate mortgages, Jumbo loans and more.

  33. VISIT SITE: http://phxhomeloan.com/

  34. First Choice Loan Services –Jimmy Vercellino 7600 E. Doubletree Ranch Road, Suite 200, Scottsdale, AZ 85258 480-800-8387

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