Home Equity Mortgage Loan Demand Soars

Homeowners and mortgage lenders alike have excited to revisit home equity loan programs because with increased house values comes new opportunities. It's no secret that Americans love leveraging their property's value with an equity mortgage loan that provides quick cash and financial solutions to consolidate bills and high rate loans. With home equity mortgage rates hovering at record lows the cost for accessing tax deductible cash is minimal. A few banks, credit unions and lenders like BD Nationwide have announced new home equity mortgage products for qualified homeowners.

Equity Mortgage Loan

Home Equity Mortgage Rates Lower as Home Values Rebound

BD Nationwide created an online marketplace for homeowners to get quick online access to refinance, credit lines and home equity mortgage loans that provide financing for home remodeling, construction 2nd home purchases and much more. Our lenders have significant experience in the arena of equity lending and it's the basis for which our company was founded. We offer no cost loan quotes for a wide variety of equity mortgage loan programs for borrowers with all types of credit and equity credentials.

125% Loans - Do 125% equity mortgage loans still exist? Yes and No. At the present time, the HARP 2.0 has no LTV restrictions, so qualified homeowners can refinance beyond 125% without cash back. The 125% second mortgage that was popular five or six years ago has been put on hold. Lenders shelved this program because too many borrowers defaulted when the housing crisis erupted in 2007. With consumer credit card debt climbing too an all-time high the demand for this program remains, but at the moment the risk is too great. FHA does offer a 115% home rehab and construction loan that enable borrowers to finance solar energy and house remodeling costs into the mortgage, above and beyond the value of the property.

Bad Credit Home Equity Loan - What requirements are needed to qualify for a home equity mortgage with bad credit? First of all, if you have low fico scores, you will need more equity to compensate for the credit risk. Think of it this way, the worse the credit, the more the equity the borrower will need to qualify for a 2nd mortgage loan with poor credit.

Hard Money Loans There are so many homeowners that need cash but that do not meet the requirements of traditional loan programs like Fannie Mae and Freddie Mac that the demand for hard money lending has soared. If you need emergency funds or a short-term solution, hard money loans can be very helpful. You will need a lot more equity in a hard money transaction than with traditional home equity mortgage products and expect to pay a higher rate as well.

Stated Mortgage Before the Dodd-Frank Reform went into effect "stated income loans" were all the rage. Self-employed homeowners used them for buying, refinancing and cashing out in the form of home equity mortgage loans. Times have changed however and unless you are looking at private money, it is very difficult to find stated income mortgages.

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To get more insight about the entire suite of equity mortgage loan programs today, please complete the quick quote form above and our competitive lenders will follow up with you so you can rates, terms and more information you need to make the best financial decision. Home equity mortgage rates are subject to change without notice.

Pros and Cons Of Home Equity Mortgage Loans

Home-equity mortgage loans are an excellent option for individuals that are looking for a way to put the equity that they have in their homes to use in other parts of their life. Whether a person is looking for funds that they can finance a dream vacation, make a large purchase such as a vehicle, or simply wants to start on a home improvement project, the equity that a person has built up in their home can be a valuable asset.

Of course, this type of loan is not right choice for everyone and it should be carefully considered before actually signing on the dotted line. With this in mind, here are just a few of the pros and cons of this type of loan.

Pros of Home Equity Mortgages:

  • No need to change the primary mortgage
  • Ability to get quick cash for home improvements or other projects
  • Tax deduction

Cons of an Equity Home Mortgage:

  • Higher mortgage rates
  • Second monthly payment
  • A second lien will be added to the home
  • Higher credit scores are necessary to qualify

If you are already well aware of this list of pros and cons, then it is well worth taking a moment to consider exactly what each one will mean for you. If you are already happy with the primary mortgage that you have and the rates that you are getting, then refinancing is probably not something that you are interested in. Depending on the amount of money that you are interested in getting, a home-equity loan can often be as large or as small as you need so long as your equity allows for it.

Unfortunately, if you have had a few dents or dings in your credit score since the first mortgage you received, you may find that a home equity loan is either out of reach or will come with an interest rate that is too high to make it worthwhile. You should also keep in mind that having a second monthly payment and a second lien on your house can have unintended consequences, especially if your house happens to lose value or you find yourself in a tough market and looking to sell.

The best home-equity loans are often used to make improvements around the house to increase the overall value of the home. This is probably the best way to make this type of loan really work for you since you will be increasing your equity even though you are borrowing against it.

Online Resources

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Equity Mortgage Loans for People with Low Credit Scores - Are there still lenders that provide home equity mortgages for people with low fico sores? Yes there are lenders that approve refinancing for people with past bankruptcies, foreclosures and short-sales, but most conventional lenders are not.

To get access to unique loan products, you will need to work with a company, Like BD Nationwide because we provide alternative programs, like subprime, government and hard money solutions.

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