Home Equity Loan
A home equity loan is a loan where your home is used as collateral while not affecting your current mortgage. A home equity loan approval is based on the amount of equity you currently have. Both credit and income do not factor in on whether you are approved or not. In order to determine how much equity is in your home, you simply subtract the mortgage balance from the value of your home. Two types of home equity loans occur; the first is a loan having a fixed term provided to the borrower as one lump sum. The second type of home equity loan is known as a revolving loan that resembles a line of credit. Home equity lines of credit can also resemble a credit card, where you only pay what you owe.
A fixed rate home equity loans is easier to get approval because they do not require the borrower to show any income or credit. There are many benefits to a home equity loan if you need cash fast. This is great for consolidating high interest debt, adding value to your home with home renovations and much more. So if you are wondering if you have equity but bad credit, will it matter? That is ok. We will secure a home equity loan for you in little time and a great rate, so give us a call today.