Home equity loans are a great way of accessing cash to remodel, refurbish, and reinvest if you so desire. So, what do you need to do to get your home equity loan?
The first thing you need to do is talk to a trust loan officer or lender. Your loan officer will take a home equity loan application, run your credit report, and help you determine the amount you would like to borrow and discuss the different home equity loan products available and their costs. Today lenders offer low cost and no cost home equity loans saving borrowers lots of money. Your lender will also discuss various interest rate options with you as well.
Factors that determine the interest rate on your home equity loan are your credit scores and the amount of equity you wish to borrow. The higher your credit score the lower your interest rate will be on your home equity loan. Loan to value is important too. If you have a home worth $500,000, a first mortgage of $300,000, and are borrowing $100,000 for your home equity loan you have a combined loan to value of 80% which qualifies for a lower interest rate than a combined loan to value of over 80% (the lower the combined loan to value the lower the interest rate).
Now that you have some of the home equity loan basics, pick up the phone and call your lender to get started on your new home equity loan.
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