Ready to use your home equity? Read this firstNews from CNBC:
A sharp recovery in home prices over the past few years has given homeowners considerably more equity to tap, about $ 825 billion collectively, according to Black Knight Financial Services. This is nearly 2 1/2 times the home equity that existed just four years ago, but tapping that equity, in the form of a home equity line of credit (HELOC), is far more difficult than it was in the last decade, when a home was synonymous with an ATM.
“There is no question that HELOCs being originated today are [...] Continue Reading…
Should I Pay for College With a 401(k) or Home Equity Loan?News from TIME:Paying for College: Should You Use Your 401(k), Home Equity Loan, Or Other Option
… Read the full article
LoanDepot Introducing Home Equity LoansNews from Mortgageorb:Non-bank lender LoanDepot, headquartered in both California and Texas, says it will now provide home equity products in addition to its current offerings. As such, the company claims to be the first marketplace lender to offer American consumers a choice of credit products through purchase and refinance home loans, unsecured personal loans, and now also home equity loans on one tech-enabled lending platform.The announcement comes just two months after loanDepot launched a platform for personal loans, which quickly gained market acceptance.”This is a substantial step forward for consumers and marketplace lending after the [...] Continue Reading…
Fewer Options for Home Equity LoansNews from Hampshire Review:
Wells Fargo and Bank of America announced they are discontinuing some of their home equity loan products, Bankrate reports.
Bank of America says it’s ending the loans because it is working on “product simplification,” but Wells Fargo attributes its decision to the “Know Before You Owe” rule, which goes into effect Oct. 3. The rule — also known as TILA-RESPA Integrated Disclosure — brings new documents to the mortgage lending process.
Home equity loans come in two types: closed-ended (usually just called a home equity loan) and open-ended (referred to as a home [...] Continue Reading…
TRID pushes Wells Fargo out of home equity loansNews from HousingWire:
Wells Fargo (WFC) stopped offering closed-end home equity loans in light of the upcoming TILA-RESPA Integrated Disclosure Rule taking effect on Oct. 3.
“Because closed-end loans were a small percentage of our overall home equity volume, we chose to focus on our line-of-credit offering and not to expend the resources required to retool our closed-end home equity disclosures to meet the new TRID regulations,” said Kelly Kockos, SVP, Home Equity Product Manager, Wells Fargo.
Instead, Wells Fargo decided to invest in other resources and made improvements to its home equity (non-TRID) [...] Continue Reading…
Second mortgages and home equity lines of credit threaten housing recoveryNews from Inman.com:
Joe Schwarz is sick and tired of being a landlord.
“The property has pretty much been a nightmare since day one,” he said of a home he bought while a student at Arizona State University in 2007 near the height of the housing market in the Phoenix area. “I’ve wanted to be done with it for years but I couldn’t because of the second (mortgage) to be honest … A lot of people shy away from me because of the second.”
Schwarz said he purchased the property for $ [...] Continue Reading…
Is it Ever OK to Finance a Startup with Home Equity?News from Fox Business:
Who are the big idea innovators in the startup world these days? Is it the fearless 20-year olds? Not so much.
Actually, the majority of new business owners are innovators who are over the age of 40.
According to the Kauffman Foundation, during the last 16 years, entrepreneurship among 55 to 64-year-olds increased by an astounding 64%. For 45 to 54-year-olds, new business formation increased by 10%. Yet during the same period, entrepreneurs aged 20 to 34 dropped by 24%.
Given the recent recovery of home valuations and advancing [...] Continue Reading…
Amanda Lipski, Peoples Home Equity Inc. Mortgage LendingNews from Milwaukee Journal Sentinel:
A chance encounter at a social event brought Amanda Lipski into the mortgage lending industry at age 18. Some mortgage brokers were celebrating a good month of business and Lipski struck up a conversation with one of them. This encounter sparked her interest in the business, and she joined his national firm. Lipski was then recruited by a firm and worked in Florida for a few years, later moving to another firm and developing its national training program. She returned to the Milwaukee area, eventually landing with a [...] Continue Reading…
More Consumers Applying for Home Equity Lines of CreditNews from National Mortgage News:
… Read the full article
Home State Bank Offers Competitive Home Equity Lines Of CreditNews from Northwest Herald:
Many homeowners use the equity in their home to help pay for home improvements, college tuition expenses, major purchases, or to pay down other debt. A Home Equity Line of Credit (HELOC) utilizes a portion of the value of your home as collateral. Your home’s equity, according to www.consumer.ftc.gov, is the difference between what your home could sell for and what you owe on the mortgage. The line of credit provides a source of funds that you can draw on as needed. Payments are interest only and [...] Continue Reading…