Q&A: Home Equity

Question: #1: home equity?
im looking to buy a home. and my brother told me that the home im looking to buy has equity and at closing i can cash out the homes equity. Im confused because i thought i built the equity in the home buy pay my mortage every month. please tell me if he is right or not . it would be nice if he is. i could use the money for my business . thank you for your time - asked by J D

Answer: ... - answered by: HeyDonny
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Question: #3: What is a home equity loan and what is the processto applying/being accepted for one?
I paid roughly $90,000 for my home. It was a TLC home and I've fixed it up in the past 9 years dramatically. New roof, new walls, siding, porch, heating system, well etc. My home and property was valued at $275,000 last year. Does equity play a part in this. Am I eligable for an equity loan? I don't want to go into it without fully understanding what it is--I also don't want to go to my banker with stupid questions....Another thing. Im looking to build my own home--hence the loan inquisition. - asked by Phoenix

Answer: ... - answered by: Miss Emily1
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Question: #5: How does home equity loan qualification works ifyou’re self employed?
I am self employed and want to get qualified for home equity loan. What are the qualifications lenders look at. What do I need to show them and have? Been trying to find out on the net, but can find any good resources. If you know any and dont mind sharing would be awesome.Thanks!!! - asked by smiling_chicka

Answer: ... - answered by: Steve D
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Question: #7: Is the interest on $200k home equity loan used tobuy a new primary residence deductible on Sch A.?
We are planning to rent our existing home and pull $200k equity from that home to buy a new primary residence. I am not clear about the $100k deductible limit on the home-equity loans. Can I deduct it on Sch A or against the rental income and is the deductible equity loan capped at $100k. We file married jointly and our AGI is $160k. - asked by Rajan A

Answer: ... - answered by: Landlord
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Question: #9: How does a home equity loan work?
I need to know all the details and if it is a good choice. I have payed off my vehicle and credit cards and have none, but I have alot of student loan debt. Our dilema are the student loans. And paying them. I have heard about home equity loans and heard about being tax deductible. How do they work? Do they look bad on your credit? How much can you borrow ? Does it add to the years to pay off your house? We only have eleven years left to pay as it is right now. Just wondering what is a good option. I even thought that after I graduate and am working that my pay checks can go all to my student loans. I am just looking for some good ideas without having to stress out about debt and bills and such. We are trying to pay our bills off and so far have done good. But those student loans are looming in the background. - asked by newmoon

Answer: ... - answered by: PCL-R
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Question: #11: What is the difference between a mortgage and ahome equity loan?
I own a home that is paid off but would like to take out a loan to fund some home improvements as well as help my parents pay off their home equity loan. Given this scenario can I take out a mortgage since mortgage rates are lower or am I limited to a home equity loan. I'm not interested in HELOC's. - asked by BC

Answer: ... - answered by: dmaturin12
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Question: #13: Can you pay off a home mortgage with a home equityline of credit?
My sister is asking me for money to pay up her home equity line. When I asked about her mortgage payment, she said she paid it off with her home equity line. Is that possible to borrow money on your home to pay off your home? - asked by Karen S

Answer: ... - answered by: zbikenut
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Question: #15: How long do you have to wait for a home equityloan?
How long after purchasing a home do you have to wait to take out a home equity loan? Do you have to re-close? Are there loan you can take out beside equity if you own a home? Answer: ... - answered by: Texas Girl
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Question: #17: Can you get a home equity loan while in a debtmanagement program?
I just entered a debt management program to get control over my credit card debt. I have done this seperate from my husband. Only my credit is affected. Just after I entered into the program, my husband started showing interest in a home equity loan to consolidate our debt (his credit card and vehicles) and do home improvements. In our marriage I am responsible for my own debts, but I am wondering if being in the DMP will affect the chances of us obtaining the Home eq. Loan. Serious educated replies will be very much appreciated. - asked by disappearingact

Answer: ... - answered by: bianca
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Question: #19: What would be better, a home equity loan orrefinance at lower rate to add on to my home?
I'm wanting to add on to my home but I've never used a home equity loan. I have used the refinance method where you borrow a little extra to add on. What would be the best now, with the way the economy is and the interest rates unstable? - asked by BamaboynTN

Answer: ... - answered by: Tony D
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Question: #21: What are the benefits of a home equity loan?
What are some benefits of a home equity loan? How does it work? Whats a good interest rate for someone with OK credit? My is good, but my husbands is fair. We are planning on consolidating high interest cards and possibly using sometowards a newer vehicle. - asked by cheerful2

Answer: ... - answered by: nickfromct
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Question: #23: Can you change a home equity loan to a personalloan?
My brother-in-law took out a home equity loan and he went to refinance his house and for whatever reason the house did not appraise for what it needed to partly because of the home equity loan that he already had. He was told to pay off his home equity loan and come back to refinance his house. Is there anyway that he can change his home equity loan to a personal loan? Or would that even help? please help. thanks. - asked by Jessica B

Answer: ... - answered by: David M
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Question: #25: What's a safe way to use my home equity to makemoney?
I own my home and don't have a mortgage payment. Can I get a home equity loan, and then invest that money into a safe investment (such as a bond mutual fund) and pocket the difference each month, assuming that the fund's monthly distribution is higher than the mortgage payment? Or, is there some other "scheme" I can set up that would be similar? I don't want to use the home equity loan money to start a business or buy real estate or anything like that - too risky. I'd prefer to stick with things like mutual funds. I just got to thinking that my home is just sitting here, not really going up in value (in my area, anyway), and that money isn't doing anything for me. Surely there has to be a safe way to let it make me a little money, right? - asked by lieinourpig

Answer: ... - answered by: sniper
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Question: #27: Can my partner get a home equity line of creditwithout my signature?
My partner and I are splitting up. We own a home together. Can she take out a home equity line of credit without my signature? - asked by Vicky

Answer: ... - answered by: Patricia C
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Question: #29: what happens in a home equity default when the 1stmortgage is current?
If I can not pay a home equity line of credit with one bank but I continue to pay the 1st mortgage what action does the home equity line of credit holder take? Both loans are up to date, but I will be unable to pay the HELOC much longer. I do not live in the property in question. It is vacant and with a realtor but it is in Florida and the value is dropping almost daily due to the crisis in the real estate market in florida. Should I let the banks forclose? - asked by crisislooming

Answer: ... - answered by: ScottMortgageExpert
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