Home Equity ?............ (interest rate, heloc, credit, second mortgage)

[westchester]

I owe 100k on home equity i am taking out another 50k to fix up a rental ,property i just bought.......with interest rates so low on home equity,s shouldi just lock in a rate if i can...plus has anyone gotten an home equity lately and and at what rate and with who.i am with chase now.....thanks

[desertsun41]

Nearly all lenders have ceased all HELIQs. The few remaining who still do lend on equity require gobs and gobs of equity in addition to high 700 scores. Something less and less people have anymore.

The fact that you need $50K for a rehab suggests the home is in pretty bad shape. Appraisers no longer do drive by appraisals. They are bored with nothing to do all day so they will go inside the home and look thoroughly at the condition. If the condition is poor chances are almost zero of getting a home equity loan.

I am also hearing stories of Appraisers not assigning an estimate of value based on a couple of your neighbors selling prices. They are basing it on comps from bank auctions which means 50 cents on a dollar or so.

You have your work cut out for you.

[westchester]

and yes i have plenty of room left in my equity of my home i wont even be at 1/2 with my mortgage aftyer i borrow another 50k....i was just wondering if anyone heard of any good banks...with good rate locks.........thats if i should even lock in??????.......thanks

[TimtheGuy]

Originally Posted by desertsun41

Nearly all lenders have ceased all HELIQs. The few remaining who still do lend on equity require gobs and gobs of equity in addition to high 700 scores. Something less and less people have anymore. Banks are still pushing plenty of HELOCs and home equity loans. You can basically find them at any bank. Gobs & gobs of equity??? How about 20% after the new 2nd...is that GOBS

The fact that you need $50K for a rehab suggests the home is in pretty bad shape. Appraisers no longer do drive by appraisals. They are bored with nothing to do all day so they will go inside the home and look thoroughly at the condition. If the condition is poor chances are almost zero of getting a home equity loan. do you think the appraiser decides what type of appraisal he is going to do?? please.

I am also hearing stories of Appraisers not assigning an estimate of value based on a couple of your neighbors selling prices. They are basing it on comps from bank auctions which means 50 cents on a dollar or so. You "hear" huh? You clearly have no idea on how the process works.

You have your work cut out for you.

For all you know the OP can get a 2nd mortgage on the spot with little to no credit qualifying or appraisal needed at all. How do I know this...because I work at a bank. We have lots of customers who could walk in here right now and I could do just that-write up a 2nd mortgage without pulling credit and no appraisal needed and close the loan. The only wait for the cash would be the 3 day rescission period

[TimtheGuy]

Originally Posted by westchester

and yes i have plenty of room left in my equity of my home i wont even be at 1/2 with my mortgage aftyer i borrow another 50k....i was just wondering if anyone heard of any good banks...with good rate locks.........thats if i should even lock in??????.......thanks

I would say if you can lock the rate anywhere in the 6's or less you should do so. What state are you in?

[MotleyCrew]

I would personally would never take out a second on any property I own. If you can paint and patch, do that yourself. If it needs more extensive work, not sure what to tell you

[TimtheGuy]

Originally Posted by MotleyCrew

I would personally would never take out a second on any property I own. If you can paint and patch, do that yourself. If it needs more extensive work, not sure what to tell you

not sure what to tell you...that says it all.

[westchester]

i really do not want a second mortgage.......................i hope, key word being hope that i can pay off the home equity in about 3-5 years so............should i lock part all all of my balance.............when i first got my home eq the rate was around 8 1/2 i just got my statement today and it just went to 5%??????????????????????????

[TimtheGuy]

What can you lock at? It is probably not going to go any lower (lockable rates)! I would guess you can't lock at the 5% you are currently at, but if you could lock anywhere in the 5's or 6's I certainly would.