How long does one typically have to pay off the money they borrowed? If you take $40k loan what is the best guess on a monthly payment?
How long does one typically have to pay off the money they borrowed? If you take $40k loan what is the best guess on a monthly payment?
based on interest rate. you will only get bill for interest. up to you to pay down principal
If it is a line of credit. You can take as long as you want.
Most Equity Lines of Credit I have seen have maturities between 10 and 20 years. The interest rates on these tend to also float with Prime etc so they do increase more quickly with changes in the shorter term interest rates. If you decide to get one read the paperwork very thoroughly so you understand the interest rate and payment structures. If you want to get an idea of your payment then look at a loan online that is similar to what you want to get, figure out if you will be using a floating or fixed rate option for your advances, and figure out if you will be doing interest only or if it will be amortized. Once you have this information there are mortgage calculators online that can figure out your payment.
just refinance your existing mortgage and pull the equity out you need.
Tax laws have changed on HELOC loans - interest is no longer a deduction. Like Aggie said - do a cash out refi for up to 85% LTV and use your equity as you choose. If you're a vet using VA, you can possibly take more of your equity. You'll keep the interest deduction this way.
To refinance existing mortgage would there be closing costs?Originally Posted by JStew
Pretty sure HELOC is no closing cost.
On ours, it’s a 10 yr maturity. Meaning I have access to the full approved amount for 10 years. Easiest way to explain it is that it acts like a low interest cc. Prime plus 1-2% pts. I can pay a very low minimum payment or pay extra setting my own term or switch back and forth. During that period, I can turn it into a conventional loan with an interest rate about 2.5 points higher than a mortgage rate or about 1-1.5% higher than the variable rate. After the 10 years (which is from origination date, not borrow date) the balance is converted into a conventional loan. I paid zero cost up front. I am not sure if I’ll ever use it. Just wanted it while kids were in college in case something happened. I could’ve paid for appraisal and closing cost and lowered my interest rate by .25-.5.
Where did you get it from?
2004 Triton TR21X * 2021 Mercury 250 4 stroke
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