A home equity loan or second mortgage gives you the opportunity to
borrow money, using your home as collateral. If you are in need of quick
cash, a home equity loan is easier than getting a personal bank loan.
Banks have certain requirements, and you need collateral. With a home
equity loan, your home secures the loan.
Benefits of Getting a Home Equity Loan
Home equity loans are often associated with refinancing. In both cases,
you can receive a lump sum of money that can be used for any purpose –
home improvement, debt consolidation, etc. On the other hand,
refinancing your home involves applying for a new mortgage. Hence, you are
responsible for closing costs and other mortgage fees. Home equity loans
have low fees.
The process of getting a home equity loan depends on your credit. If
you have a high credit rating, you are likely able to obtain a home
equity loan from your choice of lenders. Moreover, you can expect a good
interest rate on the loan. If your credit score is low, lenders will
charge higher rates.
Home Equity Loan Applications
When choosing a lender for your home equity loan, it is important to
speak to several lenders. You may begin by phoning your existing mortgage
lender. If they offer home equity loans, submit an application, and
wait for a response. If you have a bad payment history with the lender,
chances are your application will be denied.
Regardless of whether your home equity loan application is approved or
denied, requests quotes from other lenders. There is a lot of
competition in the mortgage business, and lenders are eager to compete for your
business. Thus, submitting a quote request through a mortgage broker is
your best option. Mortgage brokers have access to loans programs for
people with good and bad credit.
Choosing Home Equity Lender
Completing an application is easy. For your convenience, some mortgage
brokers have online applications. Upon submitting your information, you
will receive a response within 24 hours. In some instances, the
approval time is less than an hour. Mortgage brokers will send offers for
various finance packages. Choosing the right lender involves reviewing the
loan offers, and selecting the mortgage with the lowest rate and best
terms.
Here are our
Recommended Home Equity Loan Companies Online.
Carrie Reeder is the owner of ABC Loan
Guide, an informational website about various types of loans.
