Home equity bad credit Faq
Bad Credit Guide knows well that the Home equity bad credit process
is more often than not very confusing and often sometimes hard to understand. We are hopeful that we can help you avoid some of those issues with the aid of this faq. If not, please don't hesitate
to send us
an e-mail and we will be happy to assist you!
Q:
Can I get approved for a Home equity loan if I have bad credit?
A: In most cases, yes. That's really what Bad Credit Guide is all about - helping consumers receive a Home equity loan with poor credit. We specialize in bad credit financing of all kinds.
Q: How long does
it take to apply for a Home equity loan?
A: For most of our lenders, the application only takes a few minutes to fill out. When completed, the applicant should be notified by a representative of that lender. If you're approved for a Home equity bad credit loan, you should have notice of approval within 48 hours.
Q: What
is cash-out refinancing?
A: Cash-out refinancing is a transaction
in which a new mortgage is issued that is greater than the outstanding unpaid
principal balance of the previous mortgage. Cash-out transactions allow homeowners
to spend the equity they have accumulated in their homes. It differs from a home
equity loan or line of credit in that it's a new mortgage, not a second loan against
the equity in a home. Both cash-out refis and home equity loans provide vehicles
for taking cash from the home's equity.
Q: How much
does it cost to fill out an application?
A: There is absolutely NO CHARGE
to apply for a bad credit loan with Bad Credit Guide's participating lenders!
Q:
I want
cash for home repairs. Should I refinance my mortgage or get a home equity loan?
A: Whether it makes more sense to refinance and take cash out or borrow using
a home equity loan depends on your financial goals, the interest rates on the
new loans, the interest rate on your existing mortgage, your marginal income tax
rate and your ability to use the mortgage interest deduction on your income taxes.
A
good method for deciding is to look at the "weighted APRs" of the loan
alternatives. "Weighting" the APRs is easy: You take the interest rate
of each loan and multiply it by its portion of the total debt. Let's say a homeowner
owes $100,000 on an existing mortgage and wants to spend $50,000 on renovations.
If the homeowner takes out a $50,000 home equity loan or line of credit, the homeowner
would owe a total of $150,000: two-thirds of it in the form of the original $100,000
mortgage, one-third of it from the new home equity debt. So to get the weighted
APRs, you would multiply the rate of the $100,000 mortgage by two-thirds and the
$50,000 equity loan by one-third (see table below for example).
Choose
the alternative that has the lowest weighted APR with payments that fit your budget.
Because APRs include estimates of closing costs, this method adjusts for the differences
in closing costs among the alternatives.
Substitute your own
values into this table to help you decide which type of loan is right for you.
Specializing in unsecured personal loans and bad credit loans. 
