1. Welcome! Please take a few seconds to create your free account to post threads, make some friends, remove a few ads while surfing and much more. ClutchFans has been bringing fans together to talk Houston Sports since 1996. Join us!

Home equity loans

Discussion in 'BBS Hangout' started by BigSherv, Apr 27, 2011.

Tags:
  1. BigSherv

    BigSherv Member

    Joined:
    Jun 1, 2002
    Messages:
    4,494
    Likes Received:
    67
    Hi guys,

    Talk to me about home equity loans?

    Is this what people normally do if you buy a house and need to pay for remodeling and you don't have tons of liquid cash lying around?

    This sounds like a odd question but is this normal? When I did the updating of my current house I had cash on hand to do the work. My parents have always paid for remodels in cash.

    So essentially you have a note on your house plus a second note for the repairs?

    Basically should I avoid a house that needs a lot of work to avoid a home equity loan or should i find a house that needs work and remodel it to our likings and just have two notes.
     
  2. CrazyDave

    CrazyDave Member

    Joined:
    Nov 21, 2002
    Messages:
    6,027
    Likes Received:
    439
    So you don't own the house in question?

    I'm no expert, but if you're already thinking about borrowing money to buy a home that you will then need to get a loan against your equity (what equity, you haven't even bought it yet?) to pay to repair it, it doesn't sound like the best plan.
     
  3. Pete the Cheat

    Joined:
    Jun 30, 2006
    Messages:
    3,100
    Likes Received:
    487
    how much equity do you have in the house?
    I believe you only qualify for 85% of what your home appraises for minus the amount you still owe on your first mortgage. so if its a brand new house you don't have much money in, you either A) may not qualify or B) Not be able to pull out as much as you would like.
    the advantage is that the interest rate is ussually around mid 3% which is about as good as your are going to get.
     
  4. BigSherv

    BigSherv Member

    Joined:
    Jun 1, 2002
    Messages:
    4,494
    Likes Received:
    67
    I own one house. I would take a HEL against that house to fund the remodel of the new one I would buy. I have paid off 2/3 of the note already.
     

Share This Page