A 100% home equity will allow you to borrow money from the value of your home that you can use for whatever you want.
There are a number of uses for these loans and you can often receive lower interest rates than your credit cards, however the interest rate will generally be higher than your primary mortgage.
A 100% home equity loan will allow you to borrow the complete value of your home.
There are some key documents that you will need to get approved for a 100% home equity loan.
These documents include: oThe tax assessor's home appraisal oYour two most recent paycheck stubs from your employer oMost recent mortgage statement oThe legal description of your property oCurrent property insurance policy oIf you are self-employed, you will need to have your two most recent 1040 tax returns including all schedules oW-2 or 1099 forms from the past 2 years When you go to get approved for your home equity loan you will need to be prepared as to what additional costs may be involved.
There is generally a fee for a property appraisal to estimate the value of your home.
An application fee may or may not be refunded, especially if you are turned down due to bad credit.
There are generally points that must be paid upfront.
One point equals one percent of your credit limit.
Closing costs may include attorney fees, title search, preparation, filing, property and title insurance and taxes.
Before you make your decision on your home equity loan you will need to include all of these costs into the loan and determine how much you are really going to be spending over the life of the loan.
You may also want to consider shorter repayment periods, especially if you do not know how much longer you will be living in your home.