I will share with you my experience of obtaining our first Home Equity Line of Credit. I am going to assume you know what a HELOC is and the difference between a HELOC and an Equity Loan.We pursued a HELOC because of the major renovations we are doing on our home. For example we've gutted the kitchen, gutted the basement which includes a bedroom and full bath. Hence these are large renovations that cost a lot of money.We've used our money that we set aside from the sale of our previous home and need a little more money to fully finish the job and to be finished with all our renovations.My first step was to Google HELOC and read one or two articles about the components of the line of credit and the language used, such as prime rate, margins, no floor, terms and fees. This prepped me for the appropriate questions and information I needed to gather from the lenders.You will need to know what you owe on your present mortgage and you'll need to have an idea of what your home is wo
rth. You can contact a local realtor and ask for the comps for your home in your area over the last 6 months. That can give you a good idea of its worth.First things first, do you have enough equity in your house to obtain a HELOC. Here's how to figure it out. Take what your home is worth, $250,000 times by their percentage (I found it to be generally 80%), so 250,000 X .80 = 200,000 If you owe $150,000 on your home, subtract that from $200,000. So 200,000 - 150,000 = 50,000 $50,000 is the limit of your HELOC at 80%.I then went to Bankrate.com, entered my zip code and started at the top. I grabbed a notebook and pen and started dialing.I asked the same questions to each provider. What is your rate? What is your margin? What fees do you have? What is your term? What percentage of the mortgage can you borrow against? Can I convert this to an Equity Loan?I learned that some banks state the prime rate differently then others. Not sure how that can be different, but after talking
with over 10 banks, I learned what the real rate was. Hence those banks with stating a higher prime rate were off the list.All facets of a HELOC can be different; the margin's can have a huge range, along with the fees and terms.On my last call, bank number 11, I had hit the jack pot. They were having special! Who knew a HELOC special could be so cool! We need to gather our pay stubs and start an application.I had assumed gathering the information would be much harder but I found I was able to do all my research along with contacting the banks within 2.5 hours. It was well worth my time!Don't be afraid to ask any question. I had asked a few lenders what a "No Floor" meant. First couple of banks couldn't answer it. I kept asking and finally learned what it meant.I encourage you to do your research, become comfortable with the topic and start dialing. You don't have to decide on the phone and you'll need time to review your data to make your decision.Here's to Home Improvemen
ts financed through Home Equity Line of Credits!Anita Knaack is an entrepreneurial network marketing mom of two young boys. She fully believes and successfully lives a life of both business and family. To learn more on living a full life of both click here http://www.lessworkmorefamily.com
View this post on my blog: http://www.mortgageloanus.org/how-to-obtain-your-first-heloc/
rth. You can contact a local realtor and ask for the comps for your home in your area over the last 6 months. That can give you a good idea of its worth.First things first, do you have enough equity in your house to obtain a HELOC. Here's how to figure it out. Take what your home is worth, $250,000 times by their percentage (I found it to be generally 80%), so 250,000 X .80 = 200,000 If you owe $150,000 on your home, subtract that from $200,000. So 200,000 - 150,000 = 50,000 $50,000 is the limit of your HELOC at 80%.I then went to Bankrate.com, entered my zip code and started at the top. I grabbed a notebook and pen and started dialing.I asked the same questions to each provider. What is your rate? What is your margin? What fees do you have? What is your term? What percentage of the mortgage can you borrow against? Can I convert this to an Equity Loan?I learned that some banks state the prime rate differently then others. Not sure how that can be different, but after talking
with over 10 banks, I learned what the real rate was. Hence those banks with stating a higher prime rate were off the list.All facets of a HELOC can be different; the margin's can have a huge range, along with the fees and terms.On my last call, bank number 11, I had hit the jack pot. They were having special! Who knew a HELOC special could be so cool! We need to gather our pay stubs and start an application.I had assumed gathering the information would be much harder but I found I was able to do all my research along with contacting the banks within 2.5 hours. It was well worth my time!Don't be afraid to ask any question. I had asked a few lenders what a "No Floor" meant. First couple of banks couldn't answer it. I kept asking and finally learned what it meant.I encourage you to do your research, become comfortable with the topic and start dialing. You don't have to decide on the phone and you'll need time to review your data to make your decision.Here's to Home Improvemen
ts financed through Home Equity Line of Credits!Anita Knaack is an entrepreneurial network marketing mom of two young boys. She fully believes and successfully lives a life of both business and family. To learn more on living a full life of both click here http://www.lessworkmorefamily.com
View this post on my blog: http://www.mortgageloanus.org/how-to-obtain-your-first-heloc/
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