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A second mortgage, or a home equity loan, consider your options carefully if you need money to pay bills or make home improvements, and think the answer is in refinancing. If you cannot make the repayments, you can lose your property plus the equity you have built up.
Keep in touch with a lawyer, financial consultant, or somebody else you trust before you will be making any choices about borrowing cash making use of your home as security.
- Early Indicators
- Protecting Your Property and Equity
- High-Rate, High-Fee Loans
- Higher-Priced Loans
DonвЂ™t let anyone talk you into using your home as security to borrow funds you may never be in a position to pay off. High rates of interest and credit costs makes it extremely expensive to borrow funds, even though you make use of your house as security. Not absolutely all loans or loan providers (referred to as вЂњcreditorsвЂќ) are made equal. Some unscrupulous creditors target older or income that is low and folks with credit dilemmas. These creditors can offer loans on the basis of the equity at home, maybe not on your capability to settle the mortgage.
Avoid any creditor whom:
- instructs you to lie from the application for the loan. As an example, avoid a loan provider whom orders you to state your earnings is more than it really is.
- pressures you into trying to get that loan and for more income than you will need.
- pressures you into accepting monthly premiums you can not easily make.
- does not provide necessary loan disclosures or informs you to not read them.
- misrepresents the type of credit you are getting, like calling a loan that is one-time credit line.