Equity Home Loans

home equity loan vs. line of credit??

here's the stats: 611 credit score $3,400 a month income (but it's under the table and goes up or down sometimes) my banking deposits are not the same every month, but it always shows that some kind of deposits are made never paid a bill late score is lower due to high debt own my home "free and clear," and it appraised for $570,000 in california about... 3 to 4 months ago... i want to take out, like less than $160,000.. i need at least $100,000 to pay off all my student loans, car, credit cards, etc. but would like more to get one of my cars fixed and do home improvements (and have a little amount of "back-up" money).. will i qualify for anything?? and what's better in my situation, a line of credit or an equity loan?? the bank can cut the checks to my creditors and i will close my accounts too (on all of my credit cards, except maybe one or two) so they know i won't be getting back into debt.. what do you guys think?? and what's a good company to what's a good company to go with??

Public Comments

1. home equity loan has a fixed rate...and you can only draw once. heloc...is like a credit card...you can draw the money...pay it back..draw again etc....the rate is variable usually with the PRIME RATE
2. With such a low credit score and no verifiable income the odds of you finding a loan with a decent interest rate or a loan period is slim. Stated income loans are very hard to come by nowadays and you would need good credit. Plus if you have very high debt and only earn $3400 a month you probably have a high debt to income ratio. Check with a broker to see if they can find anything for you.
3. 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 determine<!--the 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://badcredits.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.