Orange County Home Equity Loan

With access to some of the Nations top Lenders and 100’s of Loan Programs to choose from, I have a loan for just about every financial situation. Whether you are looking to Refinance, Purchase a new home, take Cash-Out, or are looking to build your own Dream Home with a Construction Loan, No Problem! Let me do the Shopping for you on your next Mortgage Loan.

Together, you and I can review your present situation, discuss the advantages of your loan, and find the option that works best for you and your family.

Below, you will find some useful information that was put together by a group of Mortgage Professionals from www.brokeroutpost.com . Enjoy, and I look forward to speaking with you soon!

125% home equity loans - Before you decide to refinance with a 125% home equity loan there are some you should consider. The main concern with these programs are that you will owe more on the home then it is actually worth. This may cause a problem if you want to move in the near future

Be very careful when using the 125% loan. If you don't gain back the extra 25% through appreciation or making improvements, then you will be obligated for the extra amount if you sell your home. Can you handle the thought of owing more on your home than your home is worth? If not, then this loan probably isn't for you.

This may be an excellent way to finance any improvements that need to be made in the home. The improvements in turn may increase the value of the home after they are completed.

For some consumers, financial burdens may make this an attractive choice for debt consolidation. If you aren't planning on moving for awhile and your budget is stretched to the limit, this would be an alternative.

Talk to your loan professional today about the pros and cons of using this loan product in your situation.

Remember that if you are taking equity out of your home in amounts over $100,000 that is not related to the improvement of the home nor to purchase additional property then you are not able to deduct the interest payments on your taxes.

Lenders offer 125% Home Equity Loans in markets where property values are on the rise. The loan is made with the expectation that the property will increase in value and give equity protection to the lender. Lenders become very hesitant to offer these kinds of loan programs in markets where property value are stable or declining.

Qualifying for a loan that is 125% of the value of your home is much harder and more strict than applying for a mortgage loan that is 100%, or under, of the value of your home. Normally, you will not be able to have any late payments over the last 12 months, and many times no late payments during the last 24 months. Your credit scores should definitely be over 700 and some lenders will require even higher credit scores for 125% financing.

Home Equity Line of Credit (HELOC) - Home Equity Line of Credit (HELOC) is a line of credit against which a homeowner can borrow as often as his financial situation calls for. He can borrow and pay off the debt any time he chooses. When there is an outstanding balance, the required payment is the interest accrued every month. When there is no balance, he incurs no finance charges.

A heloc can be used when interest rates are low to purchase vehicles and other large items which would normally be financed with fixed rate loans. Check with your tax consultant about writing off the interest that is paid on these items. HELOCS can have a check and credit card attached to them for ease of use when purchasing against the equity of your home.

HELOC's are usually fully indexed at the Prime Lending Rate plus an additional number of interest points depending on what the borrowers credit score is, and how much money is borrowed against the property -vs- its' value.

Home Equity Loans, similar to all mortgages, are secured by the house. Should the homeowner defaults on payments, the bank can foreclose on the house that is used as collateral.

Home Equity Line of Credit a.k.a HELOC - Interest rates have been at a historic low. If you have a home equity line of credit, you may consider taking out a home equity loan to repay it when interesst rates rise. Since interest rates on home equity lines of credit are tied to the prime rate, if rates rise, so will the interest on your loan and your monthly payment. By replacing the home equity line of credit with a home equity loan, you lock in a lower interest rate.

It is currently an excellent time to refinance your Home Equity Line of Credit or other secured line of credit product or personal loans into your mortgage, locking in a low fixed rate and saving money each month.

It is important to know when the draw period ends on your line of credit. At the end of the draw period, your loan will convert to a fixed mortgage at the current rate. You may also lose the option of making interest-only payments. Refinancing will allow you to control when you lock in.