What do I need in order to qualify and pull roughly about $20k equity out of my house?

When I bought house 6 years ago at $390 K I put in a new pool/backyard for $52k and placed $110k on cha loan. PMI was just removed six months ago. Would I be able to get home equity line of credit or even a 2nd on my house with a low interest rate?

Asked by Mike

3 Answers

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Answered by Heath Schneider, Mortgage BrokerPRO+ in Las Vegas, NV
You would need to show the ability to make the payment and OK credit to qualify.. A local credit union is usually best for this type of need. | 03.13.15 @ 01:01
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$commenter.renderDisplayableName() — {comment} | 12.09.16 @ 07:59
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Answered by Les Berman
Interest rates for a 2nd are not what you consider to be low - if you can find one. Depending on the numbers, you might be better off doing a complete refi and getting rid of the variable rate loan altogether. | 05.05.15 @ 22:07
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$commenter.renderDisplayableName() — {comment} | 12.09.16 @ 07:59
Answered by Ted Rood, Mortgage BrokerPRO+ in Maryland Heights, MO
One thing to take into account here is your comment on the 110K CHA loan. I presume that's a California Housing loan, that is put in 2nd lien position behind your first mortgage? If so, it might deter lenders from doing a home equity line, given that they'd be in 3rd lien position, behind the CHA loan. Home equity rates are based on prime, which is still 3.25-3.5%. They are subject to change, when the Fed raises its overnight rate (likely to happen late this year or first part of 2016). The advantage of a home equity line is that there's far less cost than redoing the first and obtaining cash. You don't mention what your current interest rate is, and that's an important factor in whether a new first, or a second would be the best solution for you. Lots of info here, I know, hope it's at least given you some answers and perhaps a couple of items to consider. | 05.06.15 @ 00:22
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$commenter.renderDisplayableName() — {comment} | 12.09.16 @ 07:59
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