Equity Loan Information
How hard it is to get Home Equity Lines of Credit in the USA?
I would like to consolidate some debt. I know that the banks are having a tough time right now. I was wondering if anyone knew what the guidelines were for getting HELOCs (Home Equity Lines of Credit)? My husband and I both started new jobs recently, but we both have excellent credit? Any idea what the debt-to-income ratio is that they are looking for and if all banks are now doing full documentation loans? Sorry, I understand HOW a HELOC works. I used to work at a mortgage company. I just need to know what the current guidelines are and if I will qualify. I know the questions to ask the lenders. I just don't know how all the stuff happening with the economy has changed the guidelines since I worked there (1 1/2 ago). Specifically: Combined 1st and HELOCs will be 80% loan to value. How many years employment do you need to have? Can that be overlooked by the fact that we both have mid-700 FICOs? Do all lenders make you prove your income now instead of going stated income? What debt to income ratios do we need to qualify?
Public Comments
- If you are a first time borrower of a home equity loan it is imperative that you have a checklist of essential questions that you need to ask each and every lender. The answers to these questions will provide a valuable reference to base your comparisons on. What’s the interest rate? Knowing this is crucial. The interest rate will determinethe monthly payment you will need to make. You also need to know if the interest rate is of a fixed or adjustable nature. Fixed rate implies that the monthly payments will remain constant, while an adjustable rate implies that rates will fluctuate depending on market conditions. http://best-loans.awardspace.com/homeloans.htm In adjustable rate, when will rates change? If your interest rate on the home equity loan is of the adjustable variety, you need to know three things: when the rate is going to change (that is under what conditions), how frequently will the rate change and what’s the average percentage by which the adjustable rate will change. What is the Annual Percentage Rate or APR? The APR on the home equity loan will determine the yearly payment you will need to make towards this.The higher the payment in terms of points, the lower is the interest rate.
