Home equity loans describe a type of installment loan lent to properties with enough equity. Equity is the value of a home, less its mortgages. They are much different from bank mortgages, which are offered according to a borrower’s credit and employment history. Home equity lenders rely on equity as it helps them accurately assess the risks of lending to a particular property. Our experienced team has been providing home equity loans in St. Thomas for many years now.
This is a first or second mortgage offered at 7%-15% interest with the option to end in one year or less. If you decide to use the open clause and repay the loan in full before the deadline, there is a penalty. Three months interest is demanded as a fine for ending the loan early. Despite rather tough terms and conditions, clients are still attracted to home equity loans, perhaps for their flexibility. By closely listening to your needs, our loan experts are able to customize home equity loans in St.Thomas to your needs.
Customized Home Equity Loans
Our experts appreciate unique circumstances faced by individuals and are always willing to include any special demands in the loan agreement. The result is a customized loan that can indeed be used to actualize important goals.
The amount disbursed depends on how much equity there still is on your property. By dividing debts by the price, lenders obtain the loan to value (LTV)as a guiding factor for home equity loans approval. Our home equity lenders in St. Thomas are ready to extend loans to the property with up to 85%LTV but not any value above that. Substantial equity must be presented as it shows a lender that there is a chance for them to recoup the investment in case you default on a loan. The home equity loans in this St. Thomas are reasonable amounts with several uses.
Home equity loans are commonly taken by people in need of large amounts of money to meet various obligations. Our lenders have encountered varied reasons for needing the home equity loan but most popular are; home renovations, business investing, education and debt consolidation to name but a few. On a less urgent level, some people only need the loan to make care payments or purchase an expensive vacation package.
It is impossible to outline all uses of a home equity loan but you have the freedom to do as you wish with the loan. Unlike banks who might discredit your application over the reason for needing a loan, home equity lenders are lenient and ready to accept any reason. The only catch is that you pay this loan to avoid losing your credit score and valued property.
Differences begin with the fact that a home equity loan is paid in fixed installments while the home equity loans rates vary. Once approved, you can withdraw the HELOC at any time but remember to stay within the credit limit. The only reason why so many people mistake an HELOC for a home equity loan and vice versa is that both are approved based on the LTV of a property presented as loan security.