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MrsM84
LIF Adult
Member since 2/13 2352 total posts
Name:
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Home Equity Loan?
Can someone explain how this works to me? I know that you are essentially borrowing against the value of your home so it has to be worth more than you currently owe to take the money. Do you have to get a loan through the same place your mortgage is through? Or can you go into a credit union/bank? Also if you get the home equity loan, would you be making 2 payments each month -- one to your mortgage and one to the loan? We're looking into renovating an entire floor of our house and don't have the cash to do it (nor is it likely we'd be able to save up that amount). Thanks!
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Posted 6/30/15 7:34 PM  |
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JJ2014
LIF Adolescent
Member since 11/14 686 total posts
Name:
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Re: Home Equity Loan?
My husband is a Mortgage Banker and can explain this to you. If you're interested in speaking to him you can FM me.
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| Posted 7/2/15 7:54 AM |
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LMFitz
life is good
Member since 5/05 2013 total posts
Name:
L
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Re: Home Equity Loan?
The HELOC doesn't need to be held by the same bank that holds your first mortgage - and yes, you'll be making two payments per month: your existing mortgage payment, plus a payment to the HELOC.
For what it's worth, I've found that credit unions and the more "local" or community type banks are better for HELOCs. Big banks rely so heavily on computer models to determine your equity position, whereas a more local bank knows the community and is more incentivized to produce for you.
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| Posted 7/2/15 8:07 AM |
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Re: Home Equity Loan?
Look into refinancing with a home equity loan. That's what we did. We make one payment each month that is actually slightly lower than what we paid before. I believe it is also called "refinancing with cash out." We did not use the same bank.
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| Posted 7/2/15 8:37 AM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: Home Equity Loan?
We recently used Teachers Federal Credit Union for a home equity. This is not who our primary mortgage is through. We did a fixed rate/term. It was a fairly smooth process with only expense being appraisal.
Yes you have to have enough equity to pull from your house.
We make two payments each month.
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| Posted 7/2/15 10:01 AM |
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chilltocam
LIF Adult
Member since 11/11 9141 total posts
Name:
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Re: Home Equity Loan?
Posted by oldtimerocknroll
Look into refinancing with a home equity loan. That's what we did. We make one payment each month that is actually slightly lower than what we paid before. I believe it is also called "refinancing with cash out." We did not use the same bank.
That would not be a HELOC, but just a regular refinance for more than your current mortgage. With a HELOC, you can make interest only payments for some time period or you can pay principle and interest; and you only make payments on the part of the loan you have actually used. You are given checks to use to access the money, like a bank account (At least that's the way it used to work, when I worked in the banking industry a long time ago). And, no, it does not have to be with the same bank that holds your fist mortgage
Message edited 7/2/2015 11:38:52 AM.
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| Posted 7/2/15 11:38 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Home Equity Loan?
Posted by LMFitz
For what it's worth, I've found that credit unions and the more "local" or community type banks are better for HELOCs. Big banks rely so heavily on computer models to determine your equity position, whereas a more local bank knows the community and is more incentivized to produce for you.
Pffffft. I applied for a HELOC with NEFCU. They initially did an online appraisal like any out of state bank would have done. They didn't even do a drive by. The market value of my house is probably mid 700s. I figured appraisal would come in mid 600s. I only needed it to appraise for 500k. They came in at 460k. Was a total joke and they wanted to charge ME an extra $100 or whatever to do a drive by.
I told them to go pound sand and if they didn't waive the drive by appraisal of cancel the application and I'd pull the other accounts I have with them which includes my primary mortgage. They eventually gave in did a drive by and came back 675k.
So just cause they were local it didn't mean squat.
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| Posted 7/3/15 3:44 PM |
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LMFitz
life is good
Member since 5/05 2013 total posts
Name:
L
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Re: Home Equity Loan?
Posted by ave1024
Posted by LMFitz
For what it's worth, I've found that credit unions and the more "local" or community type banks are better for HELOCs. Big banks rely so heavily on computer models to determine your equity position, whereas a more local bank knows the community and is more incentivized to produce for you.
Pffffft. I applied for a HELOC with NEFCU. They initially did an online appraisal like any out of state bank would have done. They didn't even do a drive by. The market value of my house is probably mid 700s. I figured appraisal would come in mid 600s. I only needed it to appraise for 500k. They came in at 460k. Was a total joke and they wanted to charge ME an extra $100 or whatever to do a drive by.
I told them to go pound sand and if they didn't waive the drive by appraisal of cancel the application and I'd pull the other accounts I have with them which includes my primary mortgage. They eventually gave in did a drive by and came back 675k.
So just cause they were local it didn't mean squat.
TD screwed us in the exact same way. Their computer appraisal failed to account for the fact that we have water access (among many other omissions or flat-out errors)….and they comped us to condos. Three revised appraisals later and I told them to f-off. People's United came through with more than double the TD approved amount. The loan officer understood the local neighborhoods and what drives values.
I have less experience with the credit union on HELOCs (but always find NEFCU exponentially more helpful than the big banks…at least that's been our experience with the other accounts we have w them).
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| Posted 7/4/15 9:25 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Home Equity Loan?
Posted by LMFitz
Posted by ave1024
Posted by LMFitz
For what it's worth, I've found that credit unions and the more "local" or community type banks are better for HELOCs. Big banks rely so heavily on computer models to determine your equity position, whereas a more local bank knows the community and is more incentivized to produce for you.
Pffffft. I applied for a HELOC with NEFCU. They initially did an online appraisal like any out of state bank would have done. They didn't even do a drive by. The market value of my house is probably mid 700s. I figured appraisal would come in mid 600s. I only needed it to appraise for 500k. They came in at 460k. Was a total joke and they wanted to charge ME an extra $100 or whatever to do a drive by.
I told them to go pound sand and if they didn't waive the drive by appraisal of cancel the application and I'd pull the other accounts I have with them which includes my primary mortgage. They eventually gave in did a drive by and came back 675k.
So just cause they were local it didn't mean squat.
TD screwed us in the exact same way. Their computer appraisal failed to account for the fact that we have water access (among many other omissions or flat-out errors)….and they comped us to condos. Three revised appraisals later and I told them to f-off. People's United came through with more than double the TD approved amount. The loan officer understood the local neighborhoods and what drives values.
I have less experience with the credit union on HELOCs (but always find NEFCU exponentially more helpful than the big banks…at least that's been our experience with the other accounts we have w them).
NEFCU makes everything a process. I am not a huge fan. But it seems like all the local credit unions are the same in this regard.
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| Posted 7/5/15 9:23 AM |
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muffaboo
LIF Adult
Member since 12/10 3797 total posts
Name:
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Re: Home Equity Loan?
We have our home equity through TFCU...was super easy and quick. The appraiser came and took pics of everything. We don't have a mortgage but yes, you would make 2 payments--your mortgage and the home equity payment. They do not need to be from the same bank.
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| Posted 7/15/15 5:28 PM |
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