There are various forms available for lines of credit. Individuals involved in any aspects of a line of credit have had many questions throughout the process. Uncertainties of what the advantages of a home equity line of credit are or if a surviving spouse can still draw funds from a line of credit after their spouse dies often lead to questions like the ones answered below by Experts.
Case Details: Line of credit is $28,000 with an interest rate of 5.75%. Credit card is $17,000 with an interest rate of 9.96%.
If you would like to save the most money then you should pay off the credit card balance first. You would be saving 4.21% in interest per year by paying of the credit card. The line of credit has a smaller interest rate therefor hold on to that one.
Obtaining a home equity line of credit can be a good idea. Home equity lines of credit can in some case fare better than refinancing the main mortgage. An advantage to getting an equity line of credit instead of refinancing is a low to no closing cost. You can also utilize a line of credit similar to a credit card, as you pay down the balance you can reuse the money again. Interest payments on a line of credit are generally tax deductible just like with a regular mortgage. The main disadvantage to getting an equity line of credit is that you are borrowing against the equity in your home. If you cannot make the payments on the equity line of credit you home is in jeopardy of foreclosure.
Case Details: Both the mortgage equity line of credit equal more than the house is worth. Both have low interest rates, but the Line of Credit (LOC) has a lower one.
Even though the Home Equity Line of Credit (HELOC) may have a lower interest rate it is typically wiser to pay it down for good chances for a refinance. The HELOC being paid down will free up more equity in your home as well as reduce the monthly drain on your cash flow. Freeing up more equity in your home will make qualifying for the refinance a bit sooner and quite possible allow for a lower interest rate on your mortgage.
Just because the individual has been turned down by the more traditional routes does not mean that all hope is lost. Housing Urban Development (HUD) has a program called 203(k) that is geared toward home improvements that will allow the individual to stay in their current home. There are many lenders that work with individuals with the HUD program. These lenders know that the HUD 203(K) program is typically for those that have a hardship that’s why it is a different route than someone’s traditional lenders with whom the individual was denied.
Case Details: The line of credit on the house is not fully drawn on.
If married individuals jointly sign a line of credit on their house and one of them dies then the surviving spouse would still have access to that line of credit. The surviving spouse being on that line of credit before the death of their spouse can still draw funds from the line of credit account.
Gathering good information and having a clear understanding about a line of credit can help when faced with circumstances regarding lines of credit. Experts can help answer if it is more beneficial to pay off a line a credit versus a credit card or if a surviving spouse can still draw on a home equity line of credit. Get the answers fast and affordably by asking an Expert.
For Rakhi Vasavada or LEV only : Please clarify me in detail on the below : (1) Can i take home equity line of credit (HELOC) or IInd Mortgage or Loan against property on my primary home (bought in 2012 on 5% cash down @ fixed rate interest for 30yrs repayment) where i live ? If yes , how will it work like where should i contact / how much will i get / how long repayment period , etc. ? (2) Can i use HELOC Funds for any purpose like education or shopping ? (3) Is interest paid on HELOC Funds or IInd Mortgage Loan Funds by me allowed for deduction as Itemized in my income tax return irrelevant of the fact whether i used these loan funds for any purpose like shopping or education ? (4) Can i also get HELOC or Home Loan against Property for 30 Yrs repayment period as i got the first mortgage in 2012 on this home ? (5) As i mentioned above that i bought my Primary Home in 2012 on 95% Home Loan Mortgage & 5% cash down @ fixed rate interest for 30yrs repayment with one bank and regularly paying monthly instalment since then , so now made some equity in this home over this period of 3yrs and market value of house has also increased a bit over this period of 3 yrs . Now , i want to do 2 things in regard with my only this home : (1) To get Mortgage Insurance Premium removed from my monthly instalment if loan value comes back less than 80% of revised home appraisal now , (2) To get home equity line of credit (HELOC) or IInd Mortgage or Loan against property on my this home from any bank on the basis of equity i have made in this home till now & the current home appraisal . Guide me how should i move to achieve above both 2 things in most economic & best order so as not to waste my payment of Appraisal Fees two times one for appraisal done by my current mortgage bank & other appraisal done by some other bank ready for HELOC Loan or IInd Mortgage ? (6) I want to buy my next home property (already have one self-occupied home bought in 2012 as i mentioned above) for investment purpose and I am exploring a way that I don't require to cash down anything or very minimal . My credit record is excellent and no problem on that front . I know if I find a house of around 150K to buy , bank will finance it 80% and I heard that rest 20% can also be financed through Subordinate Mortgage or IInd Mortgage with a different bank . Is this possible or you have some other option ? (7) Can i use the HELOC Funds of my current primary home to pay for Cash Down while buying my second home property for rental purpose or investment ?
So I opened up this and you can answer what was pending and provide some new ideas.. Definitely most welcome!
Just an update, the RBS card you had in the list changed to Citizens bank, no idea if the same, easier or harder now.