Home equity loans are a kind provided by private lenders who are not tied down by the same rules as banks and credit institutions in the city. The Holy Grail for institutional lenders when making lending decisions is the credit score but that is much different with a home equity lender who is more interested in the piece of real estate presented as security. Our experts have been in the business for many years, offering home equity loans in Bradford and other Oregon cities. The money gained allows people with a bad credit score that wouldn’t be approved for loans by banks to meet financial obligations.
Payment Terms and Conditions for these Loans
Home equity loans are generally issued as the standard first or second open mortgage. This means that the loan may be repaid in less than the one year required to finish payments. The interest rates for such a loan would be between 7%-15%, which might be higher than that offered by banks, but understandably so. The clients who seek home equity mortgages often have a poor credit score which shows that they have defaulted on loans in the past. This is why money lenders try to recoup as much of their investment as possible to avoid major losses should the loan go into default.
Flexibility is the main contributing factor to the interest in home equity loans. Our home equity lenders are ready to customize a loan according to your needs so that it can help you make significant financial strides.
Traditional Customized Loans Include:
- Interest Only Mortgages: These are loans offered for the interest only to be paid, as the loan principal remains unaltered.
- Construction Draw Mortgage: We help by paying your construction workers until the building project is complete.
- Blanket Mortgage: Multiple properties are fronted as loan security in an attempt to secure more funding.
Approval Criteria for Home Equity Loans
Though not keen on the borrower’s credit situation, home equity lenders must first establish how much equity is left. This is done by dividing total debts by the price of a property to get a value better known as LTV. Our home equity lenders in Bradford are ready to lend up to 75% LTV on the property but they are too sensitive to risk lending to homes with a high debt burden.
The loans we offer in the city are reasonable amounts that people use in unique ways. Most people choose to repay debts, fund a business, or keep their children in school. Fortunately, we don’t reject loan applications according to the reasons for needing it. Whatever you do with this money, it is important to repay as agreed to avoid dire consequences.
- Renovation: Home repairs and upgrades are necessary with the passage of time but the money for that isn’t always available. Instead of leaving things as they are, you can access the property’s equity to finance home renovations that will not only make it more comfortable but also increase its price in the market.
- Education: School fees are expensive and the tough economic times make it harder to pay. If you have property, you can use the equity in it to finance your children’s education.
- Debt Consolidation: Many people choose a home equity loan to repay outstanding loans to avoid further damaging their credit score.
There are much more ways in which the money could be put to use. Our experts believe that you are the best person to decide how loan money is spent, as you own the property. Some people choose the loan to go on holiday while some rely on it to stop a foreclosure or a power of sale, both of which could lead to loss of the property.
Differences Between Home Equity Line of Credit and Home Equity Loans
Many people mix up because lenders seek to know equity before approving both these diverse loan products. A home equity loan has pre-defined terms, which must be adhered to by people who would not like a poor credit score. For the home equity line if credit, you are free to use any amount of the loan extended to you without exceeding the maximum. AN HELOC also boasts flexible terms to match the client’s situation.