Equity Home Loans

Cash on Equity Loans?

When someone says they have cash for your home equity loan, what does this mean? Does it mean they will give u the cash for the downpayment of the home (as a loan) or what??? I'm having trouble comprehending....

Public Comments

1. Equity loans on homes are based upon how much you have already paid on your home. For instance, if your house is worth $250,000 and you've already paid off $200,000 you can get an equity loan based on that $200,000 in equity that you've already built up in the house. So you borrow against the equity in your house. If you fall behind in the payments of the loan, the lender can file a lien against your home so that whenever it is sold they can recover the money you owe them.
2. An equity loan is a loan that bridges the gap between the appraised value of a property and all out standing debts against the property. If you have a mortgage for $50,000.00 on a $100,000.00 <appraised or state equalized value> home, you can then get an equity loan of the difference... $50,000.00. In the current economy many lenders are only allowing an 80% loan to value ratio. So what that would mean is you could borrow <as in an equity or second mortgage loan> $30,000.00. All an equity loan is, is a second or more mortgage, or lein against that particular piece of property. Currently in the US we have a very high forecloser rate, in my opinion if you have equity in your home, let it sit. There may come a time in the future that you need that cash out of your home. The only time I really suggest an equity or second on a home is if you have high credit card debt and want to clear that up. Or auto loans that you want to consildate. In all honesty, if you do take out an equity loan to consildate, don't get more credit or re run up the CC debt. You would be defeating the purpose of what you have just done.