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Alabama AL - Loans & Mortgages :: Refinancing :: Bad credit loans :: First time buyers home loans :: Advice on the best loan for you :: Mortgage advisor
You can use a home equity loan or line of credit for almost any expense -- to buy a car, consolidate debt, build an addition, remodel your home, or pay college tuition. Many people use home equity loans to pay off higher interest debt such as credit cards, auto loans, and personal loans.
BANKS and SAVINGS & LOANS
Their major strength is that you will recognize their name. Banks and Savings & Loans often operate as portfolio lenders, but as the lending world has changed, most also operate as mortgage bankers and sometimes brokers.
If you are self-employed or receive 1099 income, then you need a two-year track record. Lenders go by what you declare to the IRS as income, since that is documentable. Since some self-employed people overstate their expenses, this may understate your income. Look at the Schedule C of your tax returns for the last two years and the number at the bottom that says profit is your annual income. You can add any depreciation to that figure. Add them together and divide by twenty-four.
Adjustable rate mortgage (ARM) products:
Or they could refinance the $88,400 at a cost of $573.36 a month, then take out a $20,000 home equity loan at 9 percent for 20 years. That would cost $179.95 a month. Added together, they would pay $753.31 a month for 20 years, then $573.36 a month for the last 10 years. Total cost over 30 years: $249,597.60.
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