Looking to pay of credit cards and other loans, consolidate holiday bills, or have the comfort of access to ready funds to pay for any major expenses? The Home Equity Line of Credit from Lakeland Bank is an affordable way to finance anything you need. Visit us at lakelandbank.com
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propertysold.ca discusses Home Equity Line of Credit, also known as a HELOC. A “Home Equity Line Of Credit” is a loan that is secured by a property. Home owners can borrow money at a lower interest rate than credit cards, or personal lines of credits. Home owners can borrow money based on the equity available in their home.
Question by Joseph: Help me understand a “12 month line of credit” and other questions about getting a HOME LONE.?
Im attempting to purchase my first home, something in the ,000 up to ,000 range. The problem is I have very VERY little credit.
I was raised that you save up for the things you want, then buy them when you can afford them. The only thing in your life you should ever finance is your house. My television, my computers, my motorcycle, my giant military truck, and my daily driven truck are all items I have bought with CASH after saving for months. Now, I am told that my credit score is about an 800, but something like I only have 1 credit score and I need to have 3? Basically I was told I need two 12 month lines of credit. I have heard some hearsay and need some help sifting through the Bull Crap and finding the FACTS.
If you take out a 12-18 month loan on something like a used car, computer, or piece of furniture, then pay it off after only 3 months, does it count as 12 months of good credit, or only 3 months of good credit? My boss told me that she bought a bed through Rent a Center, 18 month loan, paid it off in the first month, and it was reported as 18 months of good credit. Fact or Fiction? Does it depend upon who your financed through?
I was told by a friend of mine that I need a loan of over ,000 before it will really count, is this correct? Even if I was going to go by a car I cant imagine paying more than ,000 without feeling I am throwing money away. The only item I want (Now or ever) that is over ,000 is a HOUSE.
In conjunction with the previous question, what amount of money do I need to barrow and pay off for it to be enough?
I have spent the last 5 months saving up enough for a healthy down payment, but even with 10% down I am told that I cant get a loan without acquiring two, twelve month lines of credit. I guess it may sound like a short cut, but I dont want to have to wait 12 more months to buy my home.
Thanks for reading,
Joe
Best answer:
Answer by bdancer222
Have you bothered to check your credit? You can get your free annual credit report for each of the three credit bureaus online thru AnnualCreditReport.com. Reports are free, scores are not.
Frankly, I am amazed that you have an 800 score with one of the credit bureaus. It doesn’t sound like you have ever taken out a loan or credit card. No credit history usually means no score. To have an 800 FICO score, you would need to have about 10 years of credit history with multiple loans and credit cards.
Don’t bother buying the scores from the credit bureaus as they are not FICO scores. The only place consumers can get real FICO scores is MyFico.com. CreditKarma.com offers a score estimator based on your TransUnion report. It’s not FICO, but within 50 points or so. Good enough for your purposes right now.
You may want to stop asking your friends about credit. It sounds like they haven’t a clue. This site will give you some real info on what goes into your FICO score: http://www.myfico.com/CreditEducation/
Installment loans build credit by making the payments over time. You have to pay on an installment loan for at least 12 months (paying interest for the whole time) to do much for your score. Paying off an installment loan early does not help your score at all.
Rent to own places usually do not even report to the credit bureaus. They don’t even bother to do credit checks. People with bad credit tend to resort to rent to own places and pay the exorbitant prices for low quality furniture.
I suggest you get a credit card. Use the card for regular purchases, wait for the statement, and pay the balance in full every month. This will build your credit and avoid interest. You will still have to use the card for 12 months to do much for your score, but you won’t be paying interest. After 6 months, apply for a second credit card and use both. This will further expand your credit history.
Even with a limited credit history, it is possible to qualify for a mortgage. You will probably need a much larger downpayment — at least 20%. Clean credit reports are more important than scores. Other factors considered in the mortgage application are: minimum 2 years stable employment history, income, low debt to income ratio, and other assets.
You may have to wait to get that home.
What do you think? Answer below!
Calculating a home equity line of credit starts with determining the value of the property, estimating a first mortgage balance and subtracting it from the value of the house. Learn about the money that will be available for borrowing needs with help from a financial services manager in this free video on calculating home equity lines of credit. Expert: Matthew McKillen Contact: www.excelmortgage.com/ Bio: Matthew McKillen brings 21 years of industry experience in arranging loans for his clients. Filmmaker: Christopher Rokosz
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This digital document is an article from The Santa Fe New Mexican (Santa Fe, NM), published by The Santa Fe New Mexican on June 6, 2010. The length of the article is 606 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser. List Price: $ 9.95 Price: $ 9.95
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Title: HOME EQUITY ADVANTAGE: GOING GREEN SYNTHETICALLY, PART 1.(Real Estate Guide)
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www.debtshepherd.com A recent magazine ad offered a home equity line of credit (HELOC) for financing a college education. Why is this a bad idea? Because the value of your home isn’t going to go up forever and it’s artificially inflated anyway. Who gave you the idea it’s your responsibility to finance your kids college education anyway? I’m willing to bet it was a banks idea. Stop using your home like an ATM machine in your personal finance program. It’s a big part of why The US dollar is on the verge of collapse. If you can’t pay cash, you can’t afford it. Get used to that idea. Get over it and live with it. Very, very soon you won’t have a choice not to. Economic recovery is about mind and money. To Your Financial Freedom, Greg Whitaker http
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Home Page > Finance > Mortgage > Home Equity Q&A
Home Equity Q&A
Posted: Dec 21, 2009 |Comments: 0
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Do I refinance or get a HELOC (Home Ewuity Line of Credit)… That is the question. Watch this short video to learn which one is best for you. Presented by Craig Turner and Chris Courtland with First Priority Financial – The mortgage loan esperts you refer your friends to! Your Colorado Springs mortgage experts
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Question by robling_dwrdesign: Using home equity to build?
Keeping it simple, can you use your home equity to build acting as a contractor, so you have “instant equity” in the new home? I worked construction, both in the field and in the office, so I know the process of construction and can build, but what is the best way to use home equity to build bigger, and sell existing home? At the end, I hope to have more equity, because I have the same principle or even smaller, but more house.
Best answer:
Answer by chocaholic
Here are a few things to consider before renovating your home for the sole reason of making it worth more. Maybe this will help you decide.
Keep in mind your neighborhood when adding on. The largest house in the neighborhood usually sells at a discount. For example, if the homes in your neighborhood are around 2100 – 2300 sqare feet, and you expand your house to be 2800 – 3000 sq ft., your house will sell for fewer dollars per square foot to pull it in line with the selling price of the other homes in the area. If other homes near you are larger, or have also had building additions, this may not be as much of an issue. Home additions also command a lower $/sq ft value than the original structure.
Renovations rarely recover 100% of the costs. You will proabably be able to save money since you have been in the business and can act as your own contractor, but you also need to keep in mind the intrest and loan costs of the remodel, not just the construction costs.
In theory, you will have more equity because you have more house, but if you use a bank loan to access the equity, then it is actually the bank that has the equity, not you.
I recommend talking to a local real estate agent about your plans if you primary goal is to have a more valuable home. He or she will be able to tell you what your neighborhood and its buyers consider valuable.
Know better? Leave your own answer in the comments!