Home equity loans for home improvement :: Equity lines of credit

Home Improvement Loans

Apply for Home Equity Lines of Credit for Your Home Improvement

Decision, Decision: Do a Home Improvement or Just Relocate?

Improving your home with remodelling or relocating can be quite costly. The difference is that the money you borrow to spend on home improvement is reinvested into your house. If finance wisely the interest on the payments from your home improvement loans can be tax deductible.

According to the American Homeowner Foundation, you can expect the cost of moving to be at least 10% of your current home value. So, if you can accomplish a home improvement for less than 10% of your selling price, then, it makes more sense to just stay put and remodel your home.

Use Your Home Equity Loans for Home Improvement

A home equity loan (or line of credit) refers to a second mortgage loan that lets homeowner turn equity into cash, thus, allowing homeowner to spend the money on home improvements, remodelling, debt consolidation, college education or other expenses.

There are two types of home equity debt: home equity loans and home equity lines of credit, which is also known as HELOCs. Home equity loans and HELOCs are also sometimes referred to as second mortgages, because your property is used to secured the loan just like when you first get your primiary or first mortgage.

Unlike first mortgages, Home equity loans and home equity lines of credit are usually short-term. Most common, mortgages are set up to be repaid over 30 years. Home Equity loans and home equity lines of credit's repayment perios can range from 5 years, 15 years, or as long as 30 years.

No Doc Home Equity Loan

Refinancing your home? Need to take money out for remodelling, buying new car or pay for college education? Do you know that you may be eligible for 100% home refinancing (no payment down). Read below if you can get pre-approved for a no doc home equity mortgage loan.

Home Equity Lines of Credit & Home Equity Loans:.

Adjustabe Mortgage Interest Rate for No Doc Mortgage Loan (Rate may varies)

Borrow $100,000 to purchase a new home. Various mortgage options are available:

2 Year Adjustable Rate Mortgage (Fixed Rate for 2 years; variable rate for 28 years)

1st Mortgage representing 80% of the purchase price = $80,000 @ 7.175% = $ 541.68 per month.
2nd Mortgage representing 20% of the purchase price = $20,000 @ 11.25% = $ 194.25 per month.

Your total monthly mortgage payment is $ 735.93 plus taxes and homeowners insurance

3 Year Adjustable Rate Mortgage (Fixed Rate for 3 years; variable rate for 27 years)

1st Mortgage representing 80% of the purchase price = $80,000 @ 7.425% = $ 555.26 per month.
2nd Mortgage representing 20% of the purchase price = $20,000 @ 11.25% = $ 194.25 per month.

Your total monthly mortgage payment is $ 749.52 plus taxes and homeowners insurance

5 Year Adjustable Rate Mortgage (Fixed Rate for 5 years; variable rate for 25 years)

1st Mortgage representing 80% of the purchase price = $80,000 @ 7.675% = $ 568.99 per month.
2nd Mortgage representing 20% of the purchase price = $20,000 @ 11.25% = $ 194.25 per month.

Your total monthly mortgage payment is $ 763.23 plus taxes and homeowners insurance

30 Year Fixed Rate Mortgage

1st Mortgage representing 80% of the purchase price = $80,000 @ 7.825 = $ 577.28 per month.
2nd Mortgage representing 20% of the purchase price = $20,000 @ 11.25% = $ 194.25 per month.

Your total monthly mortgage payment is $ 771.53 plus taxes and homeowners insurance

40 Year Fixed Rate Mortgage Due In 30 Years

1st Mortgage representing 80% of the purchase price = $80,000 @ 7.925 = $ 551.75 per month.
2nd Mortgage representing 20% of the purchase price = $20,000 @ 11.25% = $ 194.25 per month.

Your total monthly mortgage payment is $ 746.00 plus taxes and homeowners insurance

Borrow $250,000 as follows:

2 Year Adjustable Rate Mortgage (Fixed Rate for 2 years; variable rate for 28 years)

1st Mortgage representing 80% of the purchase price = $200,000 @ 7.175% = $ $1,354 per month.
2nd Mortgage representing 20% of the purchase price = $50,000 @ 11.25% = $ $486 per month.

Your total monthly mortgage payment is $ $1,839.82 plus taxes and homeowners insurance

3 Year Adjustable Rate Mortgage (Fixed Rate for 3 years; variable rate for 27 years)

1st Mortgage representing 80% of the purchase price = $200,000 @ 7.425% = $ 1388 per month.
2nd Mortgage representing 20% of the purchase price = $50,000 @ 11.25% = $ 486 per month.

Your total monthly mortgage payment is $ $1,873.80 plus taxes and homeowners insurance

5 Year Adjustable Rate Mortgage (Fixed Rate for 5 years; variable rate for 25 years)

1st Mortgage representing 80% of the purchase price = $200,000 @ 7.675% = $ 1422 per month.
2nd Mortgage representing 20% of the purchase price = $50,000 @ 11.25% = $ 486 per month.

Your total monthly mortgage payment is $ $1,908.10 plus taxes and homeowners insurance

30 Year Fixed Rate Mortgage

1st Mortgage representing 80% of the purchase price = $200,000 @ 7.825 = $ 1443 per month.
2nd Mortgage representing 20% of the purchase price = $50,000 @ 11.25% = $ 486 per month.

Your total monthly mortgage payment is $ $1,928.83 plus taxes and homeowners insurance

40 Year Fixed Rate Mortgage Due In 30 Years

1st Mortgage representing 80% of the purchase price = $200,000 @ 7.925 = $ 1379 per month.
2nd Mortgage representing 20% of the purchase price = $50,000 @ 11.25% = $ 486 per month.

Your total monthly mortgage payment is $ $1,865.01 plus taxes and homeowners insurance

Option ARM loan programs - Adjustable Rate Refinance Mortgages - You will note many variations of this innovative home financing product on the market: PayOption ARM, Pick-A-Payment Loan, 1 Month Option ARM, Cash Flow Option Loan, LIBOR (or 12-MAT) Pay Option Loan, etc. It is important to shop carefully for an option ARM or Adjustable Rate Mortgage and investigate several loan products, to find the one best for you.

Option ARM loan programs vary in the initial rate, negative amortization and lifetime caps, ARM index, or optional features, however, when comparing option ARM's/Adjustable Rate Mortgages, pay close attention to the margin and the fully indexed rate. Keep in mind that the initial interest rate holds only for the initial timeframe - x months, 1 year, 3 year, or 5 year.

Features to compare with different Option ARM loans:

Loan Term - Option ARM loans are available for 30 or 15 years.

Initial Interest Rate (Note Rate)

Your Minimum Payment Rate or 'Start Rate'. It may vary from 7.1% up to 7.925% and depends on your Loan-to-Value Ratio (LTV).

Initial Interest Rate Period (Introductory Period, Initial Fixed-Rate Period)

Option ARM loans are available with an initial introductory period, usually of 1, 3 or 6 months, 2-5 years, after which the interest rate may change.