My brother helped me buying the house off. Now I need to finance the house to pay him back. Will this be considered a new mortgage, a refinancing or an equity loan (since they have different interest rates…)
thanks!
Definitly go with a fixed rate first mortgage..
As the other responses tell you, you will simply borrowing against your property that you own free and clear. It will be considered just a new first mortgage (refinance).
You definitely do not want a Home Equity Line of Credit..even though every LARGE bank in america tries to advertise and SELL these loans, they are a bad move for any borrower. Not only are they bad for your credit, you will have a much higher interest rate.. Banks try to SELL them to people because they make much more money on a equity line of credit..
I would also advise that you work with a nationwide lender that has a portfolio of investors. The reason i say that is becasue if a loan consultant can shop your loan for you among their many investors, you will get the best possible loan program for yourself. What i mean by that is you will get lower fee’s, lower rates, and faster service…
My name is Jason Fry, and I am a loan officer with Providential Bancorp, a nationwide mortgage lender. I’d be happy to assist you in a refinance, or at least be able to let you know exactly what YOU QUALIFY FOR. You can then make a more informed, and educated decision whether it would be the right move for you.
Feel free to give me a call at 312-264-6448, or
you can email me at Jasonf@providential.com.
Thank You,
Jason Fry
Providential Bancorp
It will be an equity loan.
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Equity is the percentage of the property of which you own. Since the house is paid in full you have a 100% equity position. In your case borrowing money against your house with a mortgage is using your equity. A mortgage & equity loan in this case is the same as car & automobile. Contact a mortgage company and tell them that you want a 1st lien mortgage on your house, which is free and clear. Be wise and take a fixed rate loan with payments that you can afford. Also insure that the loan does not have a prepayment penalty. The best way to find rates and payments on your home is through bankrate.com. If you have a mobile home, farm or mixed use property, it would be best to contact the original mortgage company.
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Senior mortgage loan officer
Contact a lender not a broker if your credit is good a lender is the best way they will not charge origination fee, check with your bank or credit union to see what kind of offers are out there. If you get a line of credit or home equity it usually going to be a rate that fluctuates if the prime goes up so does the line of credit rate. And prime just went up another quarter bring it to 8.250%. If you do a cash out refinance you can payoff you family member and the interest can be written off at the end of the year when you do your taxes.
Hope this helps.
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If its paid off just go with the equity loan.
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Don’t do it because the rates is going 2 be high.See can u pay him a little at a time write up a contract and both u sign saying how much u gonna pay him back instead.
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if the house is already pay off, you have to take an equity loan, mortgage and refinance are for money owe for house. maybe you can take a personal loan if you don’t want equity loan, or don’t take a loan at all, just pay your brother each month with a portion of your paycheck.
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Get a new mortgage. The rate will be better than a Home Equity Line of Credit or a straight fixed "2nd".
If you are in CA, I can help. Tom4Loans@sbcglobal.net
References :
Definitly go with a fixed rate first mortgage..
As the other responses tell you, you will simply borrowing against your property that you own free and clear. It will be considered just a new first mortgage (refinance).
You definitely do not want a Home Equity Line of Credit..even though every LARGE bank in america tries to advertise and SELL these loans, they are a bad move for any borrower. Not only are they bad for your credit, you will have a much higher interest rate.. Banks try to SELL them to people because they make much more money on a equity line of credit..
I would also advise that you work with a nationwide lender that has a portfolio of investors. The reason i say that is becasue if a loan consultant can shop your loan for you among their many investors, you will get the best possible loan program for yourself. What i mean by that is you will get lower fee’s, lower rates, and faster service…
My name is Jason Fry, and I am a loan officer with Providential Bancorp, a nationwide mortgage lender. I’d be happy to assist you in a refinance, or at least be able to let you know exactly what YOU QUALIFY FOR. You can then make a more informed, and educated decision whether it would be the right move for you.
Feel free to give me a call at 312-264-6448, or
you can email me at Jasonf@providential.com.
Thank You,
Jason Fry
Providential Bancorp
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