Hello,
I am finishing grad school and am completing rotations that are 40 hour a week, unpaid. I had saved money to get me through but due to unexpected car expenses and home repairs, I am left in a very tight spot financially. I have 3 months left until I graduate. I will need to take board exams, costing around 1000 dollars in total. I will hopefully obtain a job in 6 months. Until then, I would like to use a home equity loan to get me by. I bought a home foreclosed when the market was down about 6 years ago and now it is worth about 4x the amount. I emailed a loan officer about home a home equity loan, but am not well educated on this topic. This was his response/the options available. Any advice for what would be best? I would plan to use around 5 grand.
"Currently, we offer two types of home equities. The first one is a line of credit, this has a 10 year draw period then after the 10 years if there is a balance still owed it turns into a 15 year repayment loan. This is a variable rate so the interest rate does have the potential to change. 80-90% loan to value is the max we can do.
The second home equity loan we offer is a second mortgage option which is a onetime borrow loan with a 5, 10, or 15 year repayment term. This is a fixed rate it is based on the loan to value (80%,90%, and 95%) as well as the term of the loan.
Rates are dependent on an applicant’s Credit Score and the requested Combined Loan To Value. LMCU is currently only offering Max Equity products for the state of MI, and restricted products for FL. For the Home Equity Line of Credit rates are as low as 4.74% and for the 2nd fixed option the rates are as low as 4.49%. Both rates are quoted with 720+ credit scores, 80% or less of your home’s value total financed and .25% rate discount with automatic payments set up"
Thanks for any advice!
Submitted October 06, 2018 at 05:35PM by heatheraf https://ift.tt/2EeApB1
