Welcome to Mortgage Loans Guide
Jumbo Mortgage Loans Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Comprehending Mortgage Equity Loans
from: There are times when you find yourself in desperate need of money, whether it is to finance a college education, on-going house renovations, hospital bills or any other reason. Although there are other options available for you to address this need, one very viable option that you should consider is take on mortgage equity loans.Mortgage equity loans, or commonly known as home equity loans, are loans that you take against the equity of your home. Mortgage equity loans are usually second lien loans. Second liens mean they are second in line to be paid, such that when your finances are in trouble, whatever you have left will be paid to your first loan. And if there is an excess after payment is made to your first loan, then it will be paid to your second loan, in this case, your mortgage equity loans.
By taking on mortgage equity loans, you are reducing your home’s equity value. In order for you to avail of this type of loan, you have to have a good credit history and enough equity in your home.
Mortgage equity loans come in two types – closed end and open end.
Closed End Equity Loan
In the closed end equity loan, you will receive one lump sum of money when the loan is closed. You will not be able to borrow more money. The maximum amount that can be loaned may reach up to 100%, or even more in the case of over equity loans. However, the approval of this loan is directly affected by your income, credit history, and the value of your home.
Closed end loans have fixed interest rates that can be amortized up to 15 years. To reduce amortization, balloon payments can be made depending on the loan conditions.
Open End Equity Loan
This loan is commonly called home equity line of credit (HELOC). In this case, you can choose when you are going to borrow against the equity in the property. The credit limit of this type of loan is initially set by the lender according to the variables similar to close end loans. As with the closed end equity loan, you can borrow up to 100% of the loan amount.
Payment for this type of loan has a variable interest rate and the loan period can reach up to 30 years.
From the two types of mortgage equity loans, it is up to you to choose which you want to avail of. Just note that when you take equity loans, there are certain fees assessed to them.
Jumbo Mortgage Loans Specific links
Jumbo Mortgage Loans News
Look Before You Leap Into Jumbo ARMs
A low-rate adjustable jumbo mortgage costs less at first -- at the risk of increases later.
Read more...Bankrate: Mortgage Rates Hold at Record Lows
NEW YORK, May 24, 2012 /PRNewswire/ -- Mortgage rates were little changed, remaining at record low levels. The average rate on the benchmark 30-year fixed mortgage rate was unchanged at the record low ...
Read more...Jumbo ARM has lower payments -- at first
With rates so low, most borrowers want the security of a 30-year fixed mortgage . But when getting a jumbo mortgage, that long-term safety means much higher monthly payments than an adjustable-rate mortgage would offer.
Read more...Mortgage rates for May 24, 2012
I'm Greg McBride with Bankrate.com and here is your weekly look at mortgage rates. Mortgage rates were little changed this week, remaining at record low levels. The average rate on the benchmark 30-year fixed rate mortgage was unchanged at the record low of 3.97 percent.
Read more...Jumbo Mortgages Offer Low Rates, Strict Terms
Jumbo loans were hard to find for a while, but they've returned. How do you qualify for one?
Read more...