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100%
Home Equity Loan
(Sphincter
Bleaching and Clown College)
FACT: 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.
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.
Fiction:
Some of the positive uses for getting a 100-percent home
equity loan include starting a gambling addiction, as a
down payment on sphincter bleaching, buying an old car and
restoring it to semi-mint condition and tuition payments
for clown college.
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