Equity based mortgage is a preferable and suitable option for people who have a damaged credit history, and are unable to prove a sustainable source of income.
For a consumer to qualify for an equity based mortgage is to have equity in the current home property.
Equity Based Mortgage Options
Equity based mortgages are a favorable option to people, as these incurs lower rate of interest in comparison to a personal loan or a credit card.
The different ways a person can avail equity based mortgage are:
According to this option, you can borrow up to 75% of the value of the house, based on the condition of 25% down payment from your side. It depends on the property location and marketability.
This works on the same line as normal refinancing mortgage. You need to have at least 30% equity in your home, and can borrow up to 80% of the home’s appraised value, minus the repayment amount of the first mortgage.
- Home Equity Lines Of Credit
HELOC is similar to regular line of credit. It is highly beneficial and flexible mortgage option, as you can borrow it again after repaying. The money borrowed is up to the credit limit. It can be used for multiple financing commitments.
- Borrowing from the prepaid amount
In this case, if you have prepaid part payment of your mortgage in lump-sum, you can withdraw that amount again from the lender for your requirement. The newly borrowed funds will be added to the mortgage principal balance; and the interest rates may differ.
- Second Mortgage
As the name suggests, it is a second loan secured with home equity, in addition to your first mortgage. This is taken from a different lender, and is considered highly riskier as interest rate is normally higher and you have to repay both in conjunction.
How Equity Based Mortgage Helps:
There are a number of purposes, which can be fulfilled with equity based mortgage:
- Consolidation of debts
- Home renovations
- Starting a new business if you are self-employed
- Funding child education
- Resolving other financial problems
How we can help you
We are financial experts, and have an influential partnership with a large pool of lenders, which allow us to provide our clients with no-frills and fast, beneficial service. We provide expert consultation and proceed with full knowledge and competency to help the client get the best and low-rate plan.
We provide mortgage based on home equity and not your credit history or income.