Maryland Lending - Home Equity Loan and Home Equity Line

Information.

Information displayed is on general mortgage rate opinion on market movement: computed using a non-statistical survey.

Loan Type Information:

Refinance Mortgage

Cash Out Refinance

Bad Credit Mortgage

Interest Only Mortgage

JUMBO Mortgage loans

Adjustable Rate Mortgage

Home Equity Loan vs. Home Equity Line

Mortgage Loan Types : FHA Loan VA Veterans Home Loan

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Use the Equity in your home to get cash.

There are two main ways to get access to the equity in your home without having to go through an entire refinance mortgage!

The first main option is the Home Equity Loan.

A home equity LOAN is not a product that can be drawn on at any point during its term. This product is a one time cash release from the equity in the house. As with both products it uses the equity in the home.

Positive Home Equity Loan

Can be a fixed rate with a fixed payment.

A one time large lump sum.

Tends to be used as an alt to a strait second for a purchase 100% financing options.

Possible negative Home Equity Loan

Only is a one time cash option.

May have a prepaid penalty for several years after it has been open

Most likely will require a Full appraisal and have strict qualifying guidelines

The second main option is the Home Equity Line.

This second option tends to be the more popular equity type. The interest rates on Home equity lines tend to lower than the fixed product. It allows for regular drawing of funds as long as the account is in good standing. Plus the added possibility of paying interest only which keeps the minimum required payment low.

Positive Of Home Equity Line

Allows anytime access to cash

Very varied payment options.

Possible negative Home Equity Line

Tends to be a variable rate usually prime plus (x)

No real term and interest only payment means that the equity borrower will have to pay off the principle at will.

Both Home Equity Loan/Line products offer varied rates and payments.

What the borrower qualifies for depends on the exact home's value and the ratio/credit requirements. Both offer the positive point that the current first mortgage stays intact and does not have to be touched. This means less fees involved in the transaction. In fact, most of these loan types allow for the fees to waived during the transaction as long as the product is keep open an active for several years.

Look out for the following when searching for a HELOC (Home Equity Line Of Credit)

The RATE - Is it adjustable and how does it adjust?

The cost - It may say it is free but truly more often there is "Rolled In" expense.

View the payoff options - Will there be a prepayment penalty? Many states have specific rules for prepayment penalties. But be careful because the state laws may not be in effect if the lending Equity Institution is charter nationally or in another state

Visit Our Mortgage Home Page for a home equity mortgage quotes!

Utilizing this web site is agreement to our privacy policy. This is not an advertisement for credit as defined by paragraph 226.24 of regulation Z. Mortgage Rates, quotes/loans provided by respective state's licensed mortgage lenders or mortgage broker and are subject to change without notification. Quotes usually delivered within one business day. There is no Mortgage rate guarantee for all applicants. This a web site and intended to be used as a financing tool and is not a mortgage company. The information provided for mortgage rates are just from surveys and are opinions of the editors and survey recipients, please use your own judgments when securing a loan or a mortgage rate.