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| Home Equity Loans |
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A Home Equity Loan is a one lump sum, closed –end loan also known as a 2nd mortgage secured by your home’s equity. HELOANS are paid back monthly over a set period of time just like a 1st mortgage.
Home Equity Loans are used to lower monthly debt obligations. These loans usually offer lower interest rates than any existing credit cards you may have. They facilitate debt consolidation and one time large purchases/expenses such as:
Car Purchase
Down payment for a home
Medical bills
College tuitions
Cash for emergencies.
The interest on this loan may be tax deductible*. Mortgage insurance, also known as PMI, is not required on home equity loans thus reducing monthly payments. |
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| HELOC |
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A HELOC is a line of credit secured by your home’s equity, also known as a 2nd mortgage. Home equity lines of credit have an adjustable interest rate usually based on the prime indexes which offer flexible payment options.
One of the main advantages of a home equity line of credit is that it offers low interest rates and minimum payments which do not have to be paid until the funds are used. A HELOC is a loan in which the lender issues you a credit card or check(s) which allows you to borrow a set amount over a set period of time.
It may be used as needed and serves as a reserve of funds for ongoing expenses such as:
Home improvements
Medical expenses
Small business expenses
Emergency home repairs
Vacations
College tuitions.
Like home equity loans, home equity lines of credit can be used to reduce monthly obligations. You can pay off existing credit cards with the line of credit and pay a lower interest rate. Interest paid depends on the adjustable interest rate at the time you used the funds and on the amount funds used. The interest on this loan may be tax deductible*.
Mortgage insurance is not required on home equity loans thus reducing monthly payments. Less documentation is required for this type of loan, making it easier to qualify. |
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| FAQ’s |
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How do I know how much equity I have in my property?
Equity is the value of a homeowner's interest in real estate. Equity is computed by subtracting the total of the unpaid mortgage balance and any outstanding liens or other debts against the property from the property's fair market value. A homeowner's equity increases as he or she pays off his or her mortgage or as the property appreciates in value. When a mortgage and all other debts against the property are paid in full, the homeowner has 100 percent equity in his or her property. |
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Must I occupy the residence I'm using as loan collateral?
You do not have to occupy the residence you are using as collateral unless you are requesting a home equity loan or line of credit to access more than 80% of your available equity. |
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is the difference between a home equity loan and a home equity line of credit?
A home equity loan is closed, meaning you get all your money up front and make payments until it is paid if full. In many cases, a home equity loan’s interest rate is fixed and your loan payments stay the same each month over the life of the loan.
A home equity line of credit (HELOC) is open, meaning you can get numerous advances for various amounts as you desire. These home equity lines feature a variable interest rate with a draw period of 10 years and a repayment period of 15 or 30 years. During the draw period, your monthly payments may be as low as the interest on your outstanding balance.
If you want a loan for a specific purpose such as to pay off credit cards and other expenses or to remodel your home, a home equity loan will fit your needs. If you want a reserve of funds you can draw on in the future, choose our Home Equity Line of Credit. You'll have the credit you need when the need arises - and you make no monthly payments until you draw on it.
For both equity loans and lines, you can only be charged interest on the outstanding principal balance. |
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Are there any restrictions on how I can use my equity line of credit?
There are no restrictions. You may use the money for whatever you choose. It is entirely up to you. |
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What are the terms or repayment periods available?
Home equity loans offer terms between five and 30 years. Home equity lines of credit can be drawn on for 10 years. Equity United Mortgage Corporation offers a wide range of products to meet every need. |
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Can I convert my home equity line of credit to a fixed rate loan?
Yes you can. Equity United Mortgage Corporation will help you refinance quickly, possibly with little or no out-of-pocket costs (depending on the program you choose). |
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| RISKOMETER |
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| Risk of rates worsening |
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| Our Turn Times |
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• Currently, our turn time is less than 14 days of loan submission.
• Underwriting conditions recieved by 5:00pm ET 01.14.09 will be reviewed within 4 hours of reciept. |
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| QUICK CONTACT |
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Call Us Toll Free at,
866-828-1500 |
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Fax Us at,
443-836-0213 |
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