Remodeling our home was long and
arduous, full of decision making and negotiating. Numerous problems arose, and
we ended up needing to do more than we had planned. We needed twice the
materials we started with, old fixtures could not be reused, and my wife’s
entire kitchen had to be broken down. The best opportunity for a loan we had was
with a home equity credit. This ended up working in our favor because the value
of the house increased with our addition.
The Home Equity Line of Credit Concept
My wife and I were at loose ends with a mound of bad credit
on our laps. Our reports were abysmal, juggling car and medical payments.
Having eight kids is like living on the edge. It’s even worse when your house
is unfit to contain everyone. Luckily our mortgage payments had been current. A
friend suggested that we look into home equity line of credit for this new
remodeling project. Home equity is the value of the house against the amount
that is currently owed. It can be calculated by subtracting the amount owed
from the value. Establishing a line of credit with a home equity loan gives the
lender a solid form of collateral; the entire house, as a guarantee against
default. Also known as a second
mortgage, payment options can come either with a fixed monthly rate or a
changing, adjustable rate. Real-Estate-Yogi.com
representatives can determine whether a consumer should take an adjustable rate
mortgage option, in which the loan is paid in piecemeal, and the interest rate
on monthly payments changes, or a fixed interest rate mortgage option.
Finding a Lender
With our bad credit, there was an appreciable risk to
borrowing against the repossession of the house. We had to search around to
find the lender with the best interest rates. Most gave us a high interest rate
because of our credit. Applying for a homeequity line of credit with bad credit will put most up against this
inconvenience, despite having the house as collateral.
Home Equity Line of Credit with Bad
Credit
Most will want to look further into the home equity process
with bad credit hanging over their heads. If payments defaulted and suddenly we
could not keep up, the lender would have to foreclose our house once it was
finished being remodeled. We were reassured by a friendly Real-Estate-Yogi.com
Representative, and took careful note of their direction in case our second
mortgage fell through.
Some people may need to hold off on taking this kind of loan.
They may feel the risk of letting payments get out of hand or defaulting would
be too great. These people might want to get their finances in order before
finding the best home equity line of
credit available to them. Real-Estate-Yogi can work with consumers by
helping them manage their credit giving advice on loan rates before searching
for lenders.
If you’re unsure about home remodeling or any other item
that a home equity might adequately support, www.real-estate-yogi.com can provide
personnel with knowledge and intuition on both finance and real estate. Call 1-800-987-1397 for a free consultation.
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