Questions tagged [home-equity]

A home equity loan is a type of loan in which the borrower uses the equity of his or her home as collateral.

Filter by
Sorted by
Tagged with
2
votes
1answer
1k views

How can I get a home equity loan on a manufactured home?

I am looking for a loan on a 3-bedroom 2-bath, 1200' 1995 Fleetwood Manufactured home. I have qualified for a $10k loan for a new roof & other improvements but the interest rate is 42%. In ...
3
votes
2answers
106 views

Qualifying for home equity loan

We're in the initial stages of looking to downsize. The price of the new home is expected to be close to our current home (no mortgage), with the latter expected to sell quickly, so a short period ...
1
vote
1answer
39 views

1031 exchange and cash boot

My question is about 1031 exchange and whether I can get rid of the mortgages from my life once and for all, by investing only with the equity I got? Looks like this great idea is not possible. The ...
2
votes
1answer
94 views

If I take a home equity loan out can it “add” PMI to my mortgage?

So ironically I took out a 401k loan to avoid PMI on a property we purchased. I've recently left the job where I had the loan and want to repay the balance, but will need to borrow in order to do so. ...
0
votes
3answers
143 views

How does equity work if you use equity to for a down payment on a second house?

If home equity is used as a down payment on a second home, how much initial equity does the second home have? is it equal to the equity-down-payment as in a cash down payment for a home? Say you have ...
15
votes
7answers
3k views

How do you value your home when calculating your net worth?

I'm interested in tracking my net worth as a way of measuring progress and I'd like to include home equity in my net worth. How are you tracking home equity? Are you using purchase price? Average ...
2
votes
2answers
134 views

How to decide where to invest home equity?

Let's say I bought my home several years ago and now have (for example) $100k equity available if I refinance. Now I can take that $100k* and invest it in the stock market. Or I could take the 100k ...
3
votes
4answers
16k views

IF I have equity in my home and am selling it. Who pays me, the title co?

If i sell my home and have equity in it who pays me? Does the title co reimburse me at closing or does the lender pay me after the new mortgage is recorded?
1
vote
2answers
260 views

How common is it among people who are successful investing in a second property to pay the down payment with a home equity loan?

Can someone share insight into how common it is among people who make a decent profit buying a second home to pay for it by making a down payment using equity against their first home? I am ...
4
votes
2answers
166 views

Can I use home equity line of credit as second house down payment?

I recently moved to Boston where housing is very expensive compared to where I lived before. Buying a house requires a lot of money as down payment, and I am still short of $30000-$40000. But I have a ...
0
votes
1answer
89 views

Pay the downpayment in 24 months or save money then pay the downpayment in 1 go?

I am planning to buy a house. In our region, you have the option to either pay the downpayment in a monthly basis if it is too much of an amount for you. That is the first option. 2nd option is to ...
0
votes
1answer
205 views

Can you sue for half of the equity and mortgage payments? [closed]

EDIT: Name is both mortgage and deeds. Im trying to remove a name from a mortgage, the other party is requesting a payout of a large sum of money. They never paid a penny to the mortgage, upkeep. ...
0
votes
2answers
212 views

Gift of Equity Tax when selling to family member

I am buying a house from my brother, the house is worth $220,000. and my brother willing to sell it to me for whatever the house is owe the bank, which is $170,000. He is willing to give me all of the ...
2
votes
1answer
327 views

“Homeownership investment” company - what's the angle?

Today I received a mailing from Unison, which claims to be a "homeownership investment" company. Their sales pitch is that they grant a 0%-interest loan to homeowners in exchange for a partial equity ...
-1
votes
2answers
125 views

What is the best option for a loan to do a construction project at home without refinancing

I'm looking into advice and options to get a loan to pay for a construction project at home in the United States. Here is the situation: My family and I are living at one residential family home, ...
3
votes
1answer
253 views

What happens to a second mortgage once a first mortgage is paid off?

According to this website... "There's no legal order in which either loan must be paid off" Once the first is paid off, is the second mortgage then upgraded to a "first mortgage" (i.e. no other ...
0
votes
2answers
95 views

Splitting home equity with family, both family members on the loan, one brought in more down

In CA, how is it approached when 2 parties enter a loan to purchase a home then either want to sell and split ways or sell and move together. The issue: Party A brought 35% equity into the new loan, ...
-1
votes
2answers
813 views

I have 100k in home equity. What is the best way to use this to create more money? [closed]

I'm looking for the best option (good risk/reward ratio). So far, I've considered; using it partially as a down payment and partially towards remod on a house flip (Seattle suburbs area) buying a ...
6
votes
4answers
323 views

Products for withdrawing from a home's equity?

I am a current homeowner with a property that has no mortgage (everything has been paid off). A family member is in need of some cash to consolidate some credit card debt and I would like to help them ...
1
vote
2answers
815 views

Using HELOC for vehicle purchase: can this be done wisely?

I have a chevy suburban lined up to purchase for 10k. By my research, it has a market value of 13k. My goal is to keep monthly payments as low as possible while also being financially responsible. My ...
2
votes
2answers
150 views

Pros and cons of these 2 methods of property financing

Suppose a person wants to buy a property. There are 2 methods of financing that come to mind; 1) Get a mortgage and borrow up to 80% of property value to buy the property. This is so that not too ...
5
votes
1answer
331 views

Can a jobless person get a home equity loan if he has other sources of income such as stock dividends?

Suppose a jobless person has a fully paid property. He wants to take out a home equity loan. Will the bank reject his loan application due to his lack of salary income as a jobless person? This person ...
0
votes
2answers
134 views

Purchasing a rental property: Should I get a 401k loan or a home equity loan?

I needed cash right away to help pay for the downpayment. I took out a loan from my 401k which I'm currently contributing to per paycheck through my employer. I only needed about $10k, but I ended up ...
1
vote
0answers
181 views

Home equity loan against foreign property

I'm a United States citizen and own a house in Canada. I have a clean title and the entire house is paid off. Is it legal for any United States banks to give home equity loans against this foreign ...
23
votes
8answers
8k views

How to split home equity fairly where contributions differed?

My partner and I purchased a house together in DC. We each put the same amount down, but because of our salary differences, I pay 2/3 of the mortgage, and he pays 1/3. We have made a great deal of ...
4
votes
1answer
357 views

I own the condo but not the (13 year old) mortgage. What should I do?

This was my mother's home in Florida. She died and left it to me via ladybird deed. It has about $40,000 equity. I have been paying the mortgage out of my bank account for years - since long before ...
23
votes
10answers
3k views

Why do some people say a house “not an investment”?

I have heard a few people say that "a house is not an investment" as an argument to stay in an apartment. (To me, this seems like a stupid reason, but that is not my question.) Of course, this is ...
15
votes
3answers
2k views

Why are interest rates for home equity loans higher than for a mortgage?

The interest rates I see advertised for home equity loans are typically a little higher than the rates for mortgages used for a home purchase. Why is this? Is the reason because a home equity loan is ...
11
votes
4answers
3k views

Does home equity grow with the investment put into the house?

A home equity loan is a type of loan in which the borrower uses the equity of his or her home as collateral. The loan amount is determined by the value of the property, and the value of the ...
4
votes
3answers
258 views

Can a first home's equity be used to bring down the interest rate on a second home mortgage?

Supposing you have a home worth around $500k which you have completely paid off. Now you want to buy a second home, but don't want to sell the first because it brings good rental income. Can you put ...
28
votes
6answers
14k views

Why will the bank only loan us 80% of the value of our fully paid for home?

We own Land and a home, wanting to downsize and just buy a home and lot. We do not owe anything on our land and home, but have asked about a loan using our land and home as collateral, but, even ...
1
vote
0answers
114 views

Ex Spouse Buy Out Of Home Equity Help! [duplicate]

My husband and I had our divorce finalized 2 months ago. In that decree, he is to pay the mortgage on our house in Kansas, but I need to move. I have been living in the house with my 2 minor children ...
0
votes
2answers
3k views

Mortgage for a house on my own land doesn't make sense!

I really don't understand this. Let's say I have a land worth of $30k. I want to build a house for $60k. The bank will use $30k as a downpayment from my land value and give me $60k to build a house ...
9
votes
5answers
51k views

What equity would I have when selling early on in mortgage?

I'm trying to wrap my head around the idea of mortgages, and I hope someone can help me. Say I buy a house for $100,000. I put down $20,000, and get an $80,000 mortgage. I've heard that for the ...
2
votes
4answers
4k views

Do you avoid tax when taking a home equity loan?

Suppose I bought a home for $200k, and 20 years from now its value is $800k and I get a home equity line of credit for x dollars (e.g. to pay for my child's college education). A quick Google search ...
0
votes
1answer
103 views

How do brokerage fees affect the fair market value of a house in a buyout?

If Alice and Bob buy a house for $100,000, and one of them needs to buy out the other's share soon after, would the fair market value be $100,000 (the purchase price) or $94,000 (what they would get ...
0
votes
1answer
146 views

Take car loan out of mortgage to improve equity

I have my car loan as a part of my mortgage. Now, I want to buy a new house and I'm applying for a Proof of Funding (POF). My salary is (relatively) good, so the limiting factor is my equity. When ...
-1
votes
4answers
641 views

Renting or Buying an House

We are a young couple who are renting apartment near NYC. It has been almost 4 years that we have been renting and after every couple of years we had to move to a newer location and every time our ...
8
votes
2answers
9k views

Buying a new home and having 'equity' in it

I viewed a model home that was originally priced at about $207,000. The builder is offering it for $173,000 since it was a model. He says that for this reason the home will already have over $30,000 ...
2
votes
1answer
405 views

Pay cash for a home, get a reverse mortgage, and buy stock

I recently starting looking into purchasing a home and talked to a realtor if he knew how much any of the homes in the area went for. He said that a home across the street was purchased for 700k in ...
1
vote
4answers
5k views

How to take advantage of home appreciation

Lets say my home's value appreciates considerably. How can I take advantage of this? I'm unwilling to downgrade (all the other houses in my area has also appreciated, so if I sell and re-buy, I would ...
1
vote
1answer
1k views

How much will I get from an early withdrawal from a 401k and Roth 401k with employee contributions after taxes and penalties?

I am planning to buy a house and want to maximize my cash available. In my 401k account, I have a distribution like this: (x+x1 gains)+(y+y1 gains)+(z+z1 gains) where x: 401k, y: roth 401k, z: ...
2
votes
0answers
78 views

Is there any possibility of doing an equity release deal on a property you don't (currently) own?

There are various equity release schemes to let you release some of the tied-up value in a property you own, see eg. http://www.equityreleasecouncil.com/faqs/ Is it ever possible to jointly purchase ...
1
vote
2answers
1k views

Buying a house 50/50

I'm thinking on buying a house with my Business Partner. I would be living on it. We are thinking on going 50/50 on the loan and down payment and hoa and repairs . Since I would be living there we ...
3
votes
2answers
474 views

How can I use the equity out of my current property to purchase another one?

I got out a $200,000 loan for a property that is valued at $270,000. I managed to get the property for $250,000 and I threw $50,000 at the deposit. Therefore, I currently owe $200,000. I purchased ...
12
votes
4answers
2k views

Pros and Cons of Interest Only Loans

I currently have a home with an FHA loan which require me to make mortgage insurance payments for the next 4 years. I am considering a refinance and have came across the idea of interest only ...
4
votes
1answer
319 views

What are the costs of using home equity to invest in another property?

I'm wanting to find out some details of using the equity I have in my home to invest in another property. Specifically, about the costs of the loan(s) involved. I'm currently assuming I need a ...
4
votes
2answers
2k views

Formula for determining equity in a home (multiple parties)

I am buying a house with two other folks, my partner and her step mom. We are going to own it together, all of us on the mortgage. We are drafting a joint venture agreement with an attorney to make ...
2
votes
1answer
235 views

What would happen if I were to lose all equity in my condo when it's time to renew the mortgage?

I've been reading Condo Bible and it has the following passage: A solid down payment of at least 25 percent will act as a buffer for you at mortgage-renewal time should interest rates slowdown. If ...
0
votes
1answer
195 views

What is the difference between Protected-equity loan vs Equity loan?

I cannot understand what a protected-equity loan is and how it is different from an equity loan. Please keep your explanation layman and easy to understand. It's a research question for class, for ...