Can I remortgage a home bought using a home equity loan?
I am about to purchase a foreclosure home. The bank will not adopt financing and want the money outright. My parents are helping me by lending me the amount. They are taking out a home equity loan on their house and giving the money to me. Is there anyway I can remortgage my house or would I own to take out a home equity loan on my house to repay them? Also can a home equity loan be used as a tax write-off? Thanks contained by advance!
Answers:
yes, you can write stale the interest on the home equity, but financially, its not the way to go, even if you win qualified for a heloc, and find one that will let you lock in rates, the rate they lock you surrounded by at is at least 1.5% higher, or a home equity loan rates. so you arranged to just go beside the low heloc rate, well once fed rates start to adjust sophisticated, so will your heloc rates, and they adjust MONTHLY. The big issue is getting qualified for a heloc. Lenders are drastically tightening underwriting for these. You better have outstanding credit. Also, your playing a winter sport of chicken here. Most lenders to an avm or sales comp for the appraisal on helocs. Basically it's a computer model of the sales of homes approaching yours in the area, you may or may not grasp the value you need, usually, you don't. Then if the appraisal is upgraded to full, you'll acquire hit with the kitchen issue and the loan will fall through. I would catch the kitchen repaired and refi, it's safer and a better choice all around. my sister in statute just had impossible to tell apart question, wanted a heloc for a deck. We would up knock 5 years off her term, lowering her monthly contribution from what it would have been near the heloc, getting her 48k cash out, 5 of which will start her daughter's college fund, skipped a month's mortgage payment and she's getting more money from uncle sam every month. Her home will be rewarded for in 10 years, good luck Source(s): mortgage broker
you said the bank will not adopt.......
not a problem; why not QUICKLY visit
a mortgage broker and [without paying
one penny for app fees, appraisal fees,
or any ther fees OUT Of pocket--they
are paid at close of escrow] capture qualified
so that YOUR wonderful parent[s] do not
have to get a loan to bring you cash.
----------
A re-mortgage and a home equity loan
are the same point, with different names.
--------
adjectives loans can be used as tax write-offs.
available to help further. Source(s): RE broker
Interesting set of answers so far, mostly incomplete, but still a lot of honest information. 1st, the loan your parents are taking out on their house. You are not legally involved or responsible in that transaction. That loan is theirs, not yours. THEY are taking the risk on YOU paying them put a bet on. In essence, they are becoming YOUR mortgage lender, risking their money on YOU as an investment. They are just not making a profit as a bank would be doing. What a borrower does beside the home equity loan funds is not a concern of the institution making the loan, though, they WOULD like to know. It IS bad form and frowned upon to use the funds to payment off your bookie to prevent your bookie from breaking your legs. 2nd, the house you intend to buy. Visit ANY mortgage broker and see what kind of loan you can qualify for. Shop around. Rates and expressions and amounts will vary from lender to lender. Your object is to prequalify for a loan. Then you might consider combining the two, use the funds from the loan you prequalified for plus if needed, some from your parents. Your lolly flow is critical here, so you do not get stuck up in the current mortgage loan mess. Even though the property is in foreclosure and has some problems, it would be best to win it assessed to determine its true value. Start with the county levy assessor and see what the current taxes are and what value they use to base the excise on. At the county clerk's office where they journal property deeds, check the property title. You can see every transaction made each time the house was bought and sold, plus return with a complete surveyor report of the property. You are interested in the most recent, the price the most recent owner paid which is piece of this public record. The most recent owner price and the value placed by the charge assessor should be in agreement, taking into account how much the property appreciated since that Dutch auction took place. My house, for example, was last purchased by me for 82.5k, but that be 20 years ago and over that time, the house has appreciated to a little over 200k as far as the taxes are concerned. Which also finances that my taxes have increased from $800/year to $3600/year. Anyone examining my public records (which as a citizen, you own the RIGHT to do, examine public records that is) would see the huge difference in appeal, but that is OK, since the twi values are 20 years apart in time. I am considering making a home equity loan on my house for in the order of 100k (I only have for a time under 30k left to take-home pay on my current mortgage.) and buying another smaller home outright, and then sell my big house and literally compensate everything off and maybe enjoy a little left over. In essence, you are doing exactly matching, just getting the money from your parents loan rather than your own and you will not be selling to repay the debt. By the passageway, avoid ARM, Adjustable Rate Mortgages like the plague and make SURE within are NO prepayment penalties or fees (which means you can foot the remaining balance without paying further interest at ANY time during the life span of the loan, maybe only paying a small processing duty to close the debt),. You will pay a slightly higher interest rate for a fixed 30 year mortgage near a prepayment clause, but believe me, had more people DONE this, we would not enjoy so many people within foreclosure. Beware the fixed rate, "fixed payment" type of loan as this type requires that to pay off untimely, you have to pay the sum of adjectives the fixed payments you WOULD have made, which means you compensate ALL of the interest EVEN if you pay off impulsive, hence my warning about prepayment. A lot of auto loans work this passageway, forcing you to make all of the payments. By the opening, if you itemize deductions on your taxes, ANY home mortgage interest is a deduction you can pilfer, but interest on something like a credit card are NOT deductible. This applies to ANY loan taken out on a property, 1st, 2nd, home equity, whatever. If the property is acting as guarantee for the loan, in general, the interest salaried is deductible..
Edit: Another thought... By the way, I have a son who turns 35 this year and I would thieve out an equity loan to help out as your parents are willing to do for you. However, I would hold a formal loan agreement made out by an attorney specifying the repayment schedule, exactly like a wall would do for a mortgage loan. I TRUST my son to repay me, as he is a decent honorable person, but not COMPLETELY and unconditionally. If your parents do not own this legal arrangement with you, afterwards YOU make the arrangement with THEM. You call for an attorney for this. This lessens their risk as YOU have something to lose if you evasion. Would you want your parents in foreclosure if you default on repayment of your debt to them? Remember, your parents are acting within the capacity of your private bank and are taking alike risk as any bank would take on you.
Wow! I dance away for a minute or two, have a few further thoughts on this and some idiot has given me a thumbs down on this answer! WTF is THAT adjectives about? Obviously a TWIT...
Banks won't bequeath a mortgage on a house that is not liveable (no kitchen, needs seriously of work, etc.). Try to get the money from your parents or through HELOCs. The interest is tax deductible but here are some constraints as noted by someone above. Ask your CPA for the exact details. The alternative is to purchase by using a hard money lender, but you will pay abundantly higher interest rate and a lot of points.
Once the house is rehabbed, afterwards go to a regular lender for a mortgage. If your parents set up the loan to you like a regular mortgage, it will in reality be considered a refinance, which will be used to pay the "mortgage" your parents are holding on you.
Good luck. Source(s): Real Estate Investor
You can write off the interest on a home equity loan on your taxes up to 100,000 of loan amount. If they took out a home equity loan for 110,000 they could write stale 10/11ths of the interest, for example.
As to the remortgaging question, sure you can typically put a mortgage on a property you own and use the $$$ for whatever you want, but the one million dollar cross-question is - Why won't the bank accept financing? Assumedly doesn`t matter what reason is keeping the bank from giving you a mortgage immediately, may keep them from giving you a mortgage once you own the place. Thus, I'd get it contained by my mind now (if I were surrounded by your shoes) that I'm either buying this house outright and it will stay that way, or I'm getting a loan past I buy the house (or possibly I will buy the house outright and fix whatever is keeping the bank from lend me $$$, and then I'll get a loan).
Anyhow, thats the situation - you should know how to get a loan on a home you own, but why can't you get one presently - and will this keep you from getting financing after you own the place.
PS - Even if one bank have told you that you can't get financing, you may want to apply at a few others and see if they can swing it. Don't stop just becuase one guy say it can't be done - maybe that one guy is an idiot.
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Answers:
yes, you can write stale the interest on the home equity, but financially, its not the way to go, even if you win qualified for a heloc, and find one that will let you lock in rates, the rate they lock you surrounded by at is at least 1.5% higher, or a home equity loan rates. so you arranged to just go beside the low heloc rate, well once fed rates start to adjust sophisticated, so will your heloc rates, and they adjust MONTHLY. The big issue is getting qualified for a heloc. Lenders are drastically tightening underwriting for these. You better have outstanding credit. Also, your playing a winter sport of chicken here. Most lenders to an avm or sales comp for the appraisal on helocs. Basically it's a computer model of the sales of homes approaching yours in the area, you may or may not grasp the value you need, usually, you don't. Then if the appraisal is upgraded to full, you'll acquire hit with the kitchen issue and the loan will fall through. I would catch the kitchen repaired and refi, it's safer and a better choice all around. my sister in statute just had impossible to tell apart question, wanted a heloc for a deck. We would up knock 5 years off her term, lowering her monthly contribution from what it would have been near the heloc, getting her 48k cash out, 5 of which will start her daughter's college fund, skipped a month's mortgage payment and she's getting more money from uncle sam every month. Her home will be rewarded for in 10 years, good luck Source(s): mortgage broker
you said the bank will not adopt.......
not a problem; why not QUICKLY visit
a mortgage broker and [without paying
one penny for app fees, appraisal fees,
or any ther fees OUT Of pocket--they
are paid at close of escrow] capture qualified
so that YOUR wonderful parent[s] do not
have to get a loan to bring you cash.
----------
A re-mortgage and a home equity loan
are the same point, with different names.
--------
adjectives loans can be used as tax write-offs.
available to help further. Source(s): RE broker
Interesting set of answers so far, mostly incomplete, but still a lot of honest information. 1st, the loan your parents are taking out on their house. You are not legally involved or responsible in that transaction. That loan is theirs, not yours. THEY are taking the risk on YOU paying them put a bet on. In essence, they are becoming YOUR mortgage lender, risking their money on YOU as an investment. They are just not making a profit as a bank would be doing. What a borrower does beside the home equity loan funds is not a concern of the institution making the loan, though, they WOULD like to know. It IS bad form and frowned upon to use the funds to payment off your bookie to prevent your bookie from breaking your legs. 2nd, the house you intend to buy. Visit ANY mortgage broker and see what kind of loan you can qualify for. Shop around. Rates and expressions and amounts will vary from lender to lender. Your object is to prequalify for a loan. Then you might consider combining the two, use the funds from the loan you prequalified for plus if needed, some from your parents. Your lolly flow is critical here, so you do not get stuck up in the current mortgage loan mess. Even though the property is in foreclosure and has some problems, it would be best to win it assessed to determine its true value. Start with the county levy assessor and see what the current taxes are and what value they use to base the excise on. At the county clerk's office where they journal property deeds, check the property title. You can see every transaction made each time the house was bought and sold, plus return with a complete surveyor report of the property. You are interested in the most recent, the price the most recent owner paid which is piece of this public record. The most recent owner price and the value placed by the charge assessor should be in agreement, taking into account how much the property appreciated since that Dutch auction took place. My house, for example, was last purchased by me for 82.5k, but that be 20 years ago and over that time, the house has appreciated to a little over 200k as far as the taxes are concerned. Which also finances that my taxes have increased from $800/year to $3600/year. Anyone examining my public records (which as a citizen, you own the RIGHT to do, examine public records that is) would see the huge difference in appeal, but that is OK, since the twi values are 20 years apart in time. I am considering making a home equity loan on my house for in the order of 100k (I only have for a time under 30k left to take-home pay on my current mortgage.) and buying another smaller home outright, and then sell my big house and literally compensate everything off and maybe enjoy a little left over. In essence, you are doing exactly matching, just getting the money from your parents loan rather than your own and you will not be selling to repay the debt. By the passageway, avoid ARM, Adjustable Rate Mortgages like the plague and make SURE within are NO prepayment penalties or fees (which means you can foot the remaining balance without paying further interest at ANY time during the life span of the loan, maybe only paying a small processing duty to close the debt),. You will pay a slightly higher interest rate for a fixed 30 year mortgage near a prepayment clause, but believe me, had more people DONE this, we would not enjoy so many people within foreclosure. Beware the fixed rate, "fixed payment" type of loan as this type requires that to pay off untimely, you have to pay the sum of adjectives the fixed payments you WOULD have made, which means you compensate ALL of the interest EVEN if you pay off impulsive, hence my warning about prepayment. A lot of auto loans work this passageway, forcing you to make all of the payments. By the opening, if you itemize deductions on your taxes, ANY home mortgage interest is a deduction you can pilfer, but interest on something like a credit card are NOT deductible. This applies to ANY loan taken out on a property, 1st, 2nd, home equity, whatever. If the property is acting as guarantee for the loan, in general, the interest salaried is deductible..
Edit: Another thought... By the way, I have a son who turns 35 this year and I would thieve out an equity loan to help out as your parents are willing to do for you. However, I would hold a formal loan agreement made out by an attorney specifying the repayment schedule, exactly like a wall would do for a mortgage loan. I TRUST my son to repay me, as he is a decent honorable person, but not COMPLETELY and unconditionally. If your parents do not own this legal arrangement with you, afterwards YOU make the arrangement with THEM. You call for an attorney for this. This lessens their risk as YOU have something to lose if you evasion. Would you want your parents in foreclosure if you default on repayment of your debt to them? Remember, your parents are acting within the capacity of your private bank and are taking alike risk as any bank would take on you.
Wow! I dance away for a minute or two, have a few further thoughts on this and some idiot has given me a thumbs down on this answer! WTF is THAT adjectives about? Obviously a TWIT...
Banks won't bequeath a mortgage on a house that is not liveable (no kitchen, needs seriously of work, etc.). Try to get the money from your parents or through HELOCs. The interest is tax deductible but here are some constraints as noted by someone above. Ask your CPA for the exact details. The alternative is to purchase by using a hard money lender, but you will pay abundantly higher interest rate and a lot of points.
Once the house is rehabbed, afterwards go to a regular lender for a mortgage. If your parents set up the loan to you like a regular mortgage, it will in reality be considered a refinance, which will be used to pay the "mortgage" your parents are holding on you.
Good luck. Source(s): Real Estate Investor
You can write off the interest on a home equity loan on your taxes up to 100,000 of loan amount. If they took out a home equity loan for 110,000 they could write stale 10/11ths of the interest, for example.
As to the remortgaging question, sure you can typically put a mortgage on a property you own and use the $$$ for whatever you want, but the one million dollar cross-question is - Why won't the bank accept financing? Assumedly doesn`t matter what reason is keeping the bank from giving you a mortgage immediately, may keep them from giving you a mortgage once you own the place. Thus, I'd get it contained by my mind now (if I were surrounded by your shoes) that I'm either buying this house outright and it will stay that way, or I'm getting a loan past I buy the house (or possibly I will buy the house outright and fix whatever is keeping the bank from lend me $$$, and then I'll get a loan).
Anyhow, thats the situation - you should know how to get a loan on a home you own, but why can't you get one presently - and will this keep you from getting financing after you own the place.
PS - Even if one bank have told you that you can't get financing, you may want to apply at a few others and see if they can swing it. Don't stop just becuase one guy say it can't be done - maybe that one guy is an idiot.
Related Questions: