Home Equity

ladyt1961 · Joined: 25 Sep 2007 Posts: 2 1.73 Dollars($)

Is there such a loan where you can take out loan and have the loan paid back to the bank when the house is sold? I bought my house in Brentwood Contra Costa area 10 years ago for the price of $229,000 and I would say my house could sell easy for $500,000 or more. We would like to make some improvements, but don't want to add more to our monthly mortgage payment now or take out a second loan. We owe about $198,000 still on the house

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Ladyt,

Welcome to the forum.

It seems that reverse mortgage is a type of loan that you are seeking about. This is a type of loan which does not require the borrower to pay back the amount until he dies or sells the property apart from relocating to some other place. But to qualify for such loan, you must be 62 years of age. To know more on reverse mortgage, you may refer to http://www.mortgagefit.com/reverse.html

Guest 0.10 Dollars($)

Hi Ladyt,

A Reverse Mortgage will perfectly suit your purpose, if you are of the qualifying age. You can use this loan to make improvements in your house and pay off after your house is sold. But there are a few conditions when your lender might ask you to repay before time. They are as follows:-

a) If you file a bankruptcy
b) If you donate or abandon the home
c) If you fail to pay the property taxes.

evolovik26 · Posted: Wed Sep 26, 2007 8:13 am Post subject:

Both posters are correct however remember you need to be over 62 years old and there is no free lunches (meaning you will have to pay interest on whatever money you will take reguardless of how you structure your mortgage.) Another solution would be to take out a second mortgage or even refi your first mortgage (if you can get a better rate and good terms) and take out enough money for the improvements + a year worth of payments wich you can put into your savings account and make your payments with that money. Talk to a mortgage professional that you trust and they would be able to find solution that best fits your needs.
Also if you will need money a little bit at a time a Home Equity Line of Credit might do the trick as with that option you only pay on what you borrow and you can get cash advances to make your bill payments.

Caron

A reverse mortgage is no doubt a typical choice. But it can be a home equity loan also. Such loans are often used for home improvement purposes. And, when you wish to sell the home, you can do so and pay off the loan with the sale proceeds. To know more on Home equity loan, go through the section on this topic.

However, if you are looking for a short term loan, a HELOC as mentioned by Eugene would do. But both equity loans and heloc are second mortgages. So in case you wish to avoid them, you can go for cash-out refinance of the existing loan. Check out by calculations which loan option you should choose out of a second loan or cash-out refinance, use the Second Mortage vs Cash-refinance Calculator.

Good luck

Guest 0.10 Dollars($)

I heard about this company on the radio and was wondering about this type of service and what are some of the down falls in doing something like this?
You can find there web page under Rexagreement

I'm tying to do improvements on my home, but don't want to take out a second loan or increase my current mortgage payment. And do not or old enough to do a reverse mortgage.

helping_user · Posted: Thu Sep 27, 2007 11:35 pm Post subject: RE:

Hi ladyt,

I've already given a reply at a previous discussion on Rex Agreement . Just have a look and if you need any more clarifications, please feel free to ask me.

Thanks.

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