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Home Equity LoansFixed Rate Installment loans Smart Home Equity is your online connection for home equity loans. Home equity loans are installment loans that have fixed interest rates. Most borrowers take out home equity loans with repayment plans that range from 10-30 years. According to Ted Sullivan from Home Equity Source, “the fifteen year term is the most common amortization schedule that homeowners select for loan terms. Smart Home Equity has worked hard to maintain strong relationships with the top home equity lenders in the country translate to low rate cost effective home equity loans and credit lines for you.
Homeowners in every state are quickly converting their variable interest credit lines into fixed rate home equity loans because the rates are low and it makes budgeting so much easier. What a great time it is to pay off past due bills or simply roll all your adjustable rate loans into fixed rate equity loan with a better interest rate. Home-equity loans stood at $465 billion in the week ended Oct. 18, the Fed reported on the 25th, $25 billion more than a year ago. Since the end of 2003, the percentage of loans in negative amortization has gone from 1% to 47%. A loan goes into negative amortization when the minimum payment doesn't cover the interest and the shortfall gets tacked to the loan balance. This is common with payment option ARMS (adjustable rate mortgages) because most people choose the minimum payment option for affordability. Borrowers with home equity lines of credit (HELOCs) have seen their interest rates nearly double over the past two years as the Prime Rate has jumped from 4% to the current 8.25%. The interest rates on 2nd mortgage ARMs and home equity lines of credit have recently risen to a level above that of 30-year fixed-rate mortgage rates. This has spurred additional refinancing activity. "For the most part, what you see is people paying off their line of credit with a fixed-rate, closed-end second mortgage," says Bob Walters, senior vice president of Quicken Loans. He says about seven in 10 new second mortgages is a home equity installment loan, whereas a year ago it was one in 10. The Federal Reserves market forecast indicates that the average real gross domestic product (GDP) growth rate from mid-2006 to the end of 2007 of about 2.5%, moderately slower than the future trend growth rate of about 3% in the U.S. economy. According to Investopedia, the GDP is commonly used as an indicator of the economic health of a country, as well as to gauge a country's standard of living. Mortgage rates are forecasted to decline over the next year by only a modest amount, so now is not a time to wait for rate drops because it probably won't happen. If you need a home equity loan, now is as good a time as any to get it. The process of getting a home equity loan as a first time homebuyer is similar to the process for any other home owner except that most mortgage lenders use the purchase price for value purposes when approving a home equity loan rather than an appraisal, as they would with homeowners who have had their property for more than a year. Few home equity lenders will allow appraised value less than 1 year in the home, and very few will allow no seasoning with appraised value used for qualifying. Seasoning is the amount of time the homeowner has had the first mortgage loan.
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Smart Home Equity | 2nd Mortgage Loans | Secure Debt Consolidation Loans | Home Equity Credit Lines | High Loan-to-Value Equity Loans Smart Home Equity, 1-877-294-2134 |
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