Home Equity Loans
Make Your Equity Work For You
A home equity loan from Nuline Funding, Inc. can provide you with cash when you need it. Similar to a HELOC, a home equity loan lets you borrow against the equity in your home to receive a lump sum loan.
What Are The Benefits?
- A fixed interest rate that doesn’t change, so you always know what your monthly payment will be.
- A variety of amortization periods that let you pay back your loan with favorable terms and conditions.
- A solution for those with imperfect credit to get access to additional funds.
- May be an ideal solution for single projects, such as a kitchen remodeling.
- Interest paid may be tax deductible depending on your situation and the state in which you reside. Not all states may permit this deduction. Consult a tax advisor to make sure you’re eligible.
What Are The Features?
- A variety of amortization periods
- More choices for individuals with imperfect credit
- Fixed interest rates available
Generally speaking, your credit history and score don’t have a major effect on obtaining a home equity loan because your home secures the loan. Equity in your home will be a key component in determining your available credit. Keep this in mind when considering a home equity loan. Failure to pay could damage your credit standing and result in the loss of your home through foreclosure.
Home Equity Lines of Credit (HELOC)
What Is A HELOC?
A home equity line of credit (HELOC) offers a flexible way to borrow funds. HELOCs differ from traditional home equity loans in that you can draw money from a HELOC as needed instead of taking out a single lump sum loan.
What Are The Benefits?
With a HELOC from Nuline Funding, Inc. you can:
- Set up emergency access to credit
- Buy a new car, truck, boat or RV
- Pay for college tuition
- Renovate your home
- Consolidate your bills
How Does A HELOC Work?
A HELOC is a revolving line of credit similar to a credit card. You can borrow funds up to a set credit limit, and interest is charged on the amount borrowed. The revolving credit line can be paid down and reused during your draw term, which typically lasts 5 to 10 years. You’ll only pay interest throughout the draw term. After the draw term is complete, you may either pay the balance in full or pay according to a set schedule (interest must still be paid). You may also refinance the equity line for an additional 5 to 10 years. A home appraisal may be required to obtain a HELOC.
Variable From Top To Bottom
HELOCs offer variable or fixed interest rates that are usually lower than the interest rate on a credit card. Credit limits are also variable and depend on your equity.
Convenient From Open To Close
Closing is easy and may even take place in your own home. You also don’t have to pay closing costs or appraisal fees.
Accessible At All Times
Several options are available to you for accessing cash, including personal withdrawals, check writing and card use.
Flexible For The Future
With a HELOC, you choose how much to borrow and use, as well as how much to repay and when, provided it’s equal to or more than the minimum payment.
Friendly For Your Taxes
Depending on your situation, interest paid on a HELOC may be 100% tax deductible under federal and state income tax laws. Not all states may allow this deduction. Consult a tax advisor to make sure you’re eligible.
Generally speaking, your credit history and score don’t have a major effect on obtaining a HELOC because your home secures the loan. Equity in your home will be a key component in determining your available credit. When considering a HELOC, remember that the loans are secured by your home. Failure to pay could damage your credit standing and result in the loss of your home through foreclosure.
Home Equity as Low Interest Rate Credit
It’s an often-asked question: Should I pay off my credit cards with a home equity loan or home equity line of credit (HELOC)? Also, many people may be wondering if it’s better to pay for a home improvement, like a kitchen renovation, using a credit card, a store-sponsored credit card, or the equity in their home.
It would be great if the answers to these questions were simple, but they aren’t. Interest rates change daily, introductory rates are offered, and payment terms and conditions can have a big impact on what makes the most sense.
Under normal conditions, rates for credit cards, and especially store-sponsored credit cards, tend to be higher than rates associated with home equity loans and lines of credit. Under these circumstances, you may want to review the benefits of home equity to consolidate debt or for use for home improvement projects.
A QUICK OVERVIEW
A home equity loan, sometimes called a second mortgage, is a lump sum loan based on the equity you’ve built up in your home. It can be particularly helpful if you have imperfect credit, and offers a fixed interest rate and a variety of amortizations periods so that you can pay back your debt under favorable terms.
A home equity line of credit (HELOC) is different from a home equity loan in that you withdraw money from your account as you need it, rather than taking out a loan in a lump sum. In addition, a HELOC is revolving debt, like a credit card. You can borrow up to a specific credit limit and interest is charged on the amount borrowed. You can pay your debt down and then borrow again when you need to during the draw term, which is usually between five and 10 years. A home appraisal may be required to obtain a HELOC.
What Is A Home Equity Conversion Mortgage?
It’s a mortgage that allows homeowners 62 years and older to access a portion of the equity in their homes for use in retirement. HECMs are insured by the Federal Housing Administration (FHA). Note that not all reverse mortgages are federally insured.
What Are The Benefits?
A HECM from Nuline Funding, Inc. can provide you with the following benefits:
- You can stay in your home — you don’t need to sell it for access to funds.
- HECM proceeds from the equity in your home is available when you need it and can help you pay bills and other expenses.
- The credit line has a growth factor.
- You can receive your funds as a monthly payment, line of credit, lump sum or as a combination of these.
- After years of paying on your mortgage and building equity, you can finally make that equity work for you.
- This loan can help you with your financial and retirement planning.
You must meet the following criteria to be eligible for a reverse mortgage:
- Be at least 62 years old.
- Take HUD approved counseling session (available at little to no cost) and receive a certificate of completion required during the application process.
- Live in the home as your primary residence.
- Current mortgage balance must be low enough that it can be paid off with the HECM proceeds.
HECMs follow FHA property eligibility standards, so your home must be one of the following:
- Single family home
- 2–4 unit home
- A FHA approved condominium
- Manufactured housing (must be on a permanent foundation)
Before you apply for a HECM, you must first consult a HUD housing counselor. This will help you determine whether a HECM is right for your situation. Contact us for a list of counseling agencies.
How Repayment Works
Unlike a traditional mortgage in which you make monthly payments, a HECM uses your home equity to provide you with proceeds. The mortgage becomes due when you die, sell your home, or move out. If you pass away, your heirs can pay the loan by selling the home or by refinancing the HECM.
While you don’t have to make monthly mortgage payments, you’re still responsible for property taxes and homeowner’s insurance. You must also keep the home in good condition.