I put 20% down on the purchase of a home. There are several improvements and repairs that I would like to make to it, but I don’t have the money. Is there a way I can immediately tap into the equity?
On the purchase of a $120,000 home, I put down $24,000. Based on the county tax assessor, the home has a market value of $127,000.
Asked by:cl3v3r boy
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Go to the bank… a loan specialist could help you out.
yes you can you could get an equity line or a home equity loan.
the equity line may be a good choice because it basically gives you a set amount of money lets say 50k and when you need the money you just write a check for what you need. that way your only paying interest on what you have used and not the whole amount!
here is source for great equity lines and home equity loans!
“DON’T DO IT.”
Even with 20% down. You have “no equity” in your home.
On a mortgage. All the “interest” is paid off first. Which takes
several years. Then you start paying on the “principal.”
So. “Do not ” get a home equity loan, when you have “no
equity” in your home.
My son made that mistake, and he is now living with us again.
Of course you will be told you qualify for a loan, but then when
you are spending the loan on the repairs.
You still have to make the house payments, and the loan
payments, plus the taxes.
So, when you “forclose” on your house. All your investment,
is now theirs. Learn from my son. “DON’T DO IT.”
Sure that’s not a problem, because you have the option of getting a home equity line of credit, which is basically a credit card, using the equity in your home. You could also refinance and get cashout. You may have to pay a prepay penalty, but you can find out by calling the bank who holds your mortgage.
Do not try and pull the equity out of your home. There are a few reasons for this:
1) The Property Appraiser used different techniques to arrive at that opinion of market value for your property. They use Mass Appraisal techniques which are based on recent sales in your area and the square footage of your home. The county Property Appraiser does not consider the interior of your property when valuing simply because the Property Appraiser cannot appraise every property every year.
2) The Property Appraiser estimates the opinion of market value according to what they think the value is on January 1st of each year. That means that even if the $127,000 your county Property Appraiser assigned is for 2007, it is based on what they think it was worth on January 1, 2007 when the market was stronger. I **** to tell you this but like the rest of us, your home is probably worth less now than when you bought it a couple months ago.