100% Home Equity Loan for Adverse Remortgage
100% home equity loans usually come in 5-, 10- and 15-year fully amortizing loan terms and in amounts as low as $10,000. 100% home equity loans are great for consolidating your high interest rate credit cards, loans, or other expenses. Plus, with many 100% home equity loans, you can get the cash you need for home improvements or upcoming expenses, all with one easy payment.
If you need a quick way to build up your home equity to $40,000+ there is mortgage cycling program that may just be what you need.
With a 100% home equity loan, you can borrow up to 100-percent of the accrued equity of the house. Technically a 100% home equity loan is a second mortgage. So, as with any second mortgage, make sure that you are up to taking the inherent risk that comes with a home equity loan. When you take out a 100% home equity loan, make sure that you’re not using the loan like you would an ATM machine and using it to pay frivolous expenses. Many have lost their homes in just such a manor.
100% home equity loans should not be confused with 125% home equity loans, which let you borrow up to 125% the accrued equity in your house. 100% home equity loans are safer in this regard, as the most you will ever owe anyone upon defaultin is your home and no more. Defaulting on a home loan and losing a home is the low point in many people’s lives. A 125% loan is quicker road to get you to where you never want to end up.
On the position side, a 100% home equity loan can help you pay for college, pay off credit cards, consolidate other debts, doing home improvements and even may be a cheaper way to buy a car than taking out an auto loan. With a 100% home equity loan there are generally no points assessed and even the possibility of tax breaks at the end of the year.
Good credit and a good credit history is generally required for a 100% home equity loan, though some companies specialize in working with people with poor credit. Some mortgage lending companies are willing to lend 100% with one mortgage late payment in the past 12 months. You’ll need to check with your lender to see if this applies.
When a 100% home equity loan is used for home improvements, there is generally no minimum time required for occupancy in the subject property. In most the loan proceeds are made payable to the borrowers, not to the contractors. In addition, most lenders will require no inspections after the loan has closed.
While many homeowners are jumping on the refinancing bandwagons, many people with bad credit believe mistakenly that they can not remortgage their home because of the blemishes on their credit history. This is simply not true. The sub-prime market has also become increasingly competitive even for those with less than stellar credit.
As a result, the adverse mortgage lenders have been forced to discount their rates in order to attract just this market of clientele. With the current market, having adverse credit need not put one at a complete disadvantage when it comes to a remortgage agreement.
It is true that many lenders will not touch those with adverse credit. Those who specialize in this kind of customer, though, know that with every missed mortgage or loan payment comes penalties and extra fees which send the borrower further into debt. It is these homeowners who would benefit the most from the ability to release the cash stored in their property and thus consolidating all their debts and allowing them to make a fresh start.
This is exactly the target audience of the adverse remortgage lender. No longer do borrowers need to be trapped into a vicious downward spiral of debt. Past financial difficulty should not forever tarnish one’s future. Things such as County Court Judgments, repayment Arrears and even late payments on previous borrowing can all make a black mark against your financial viability.
Fortunately, there are lenders who are sympathetic and can offer bad credit loans to homeowners and in fact specialize in just such adverse remortgage loans. By obtaining an adverse remortage loan, you can be on your way to better interest rates, smaller mortgage payments and a better chance at succeeding in the future.
The Equity Loans website is an information site devoted to helping people make the right decision in regards to taking out equity loans. Equity loans are not right for everyone so it is best for everyone individually to weigh the pluses and minuses in regards to equity loans regarding each and every individual situation.