K Gill Mortgage Broker

FHA loans and VA Loans.

If you need to borrow cash to consolidate debts or make a large purchase, a home equity line of credit (HELOC) may help. A form of revolving credit, a HELOC is secured by your home equity. This is an open-ended of loan that may be paid down or charged up for the a set length of time, similar to a credit card. The loan interest typically changes monthly. Your lender will determine your credit limit (the biggest amount you can borrow) with the HELOC. Your credit status, salary, debts and various other financial information will determine your credit limit. An appraisal is required on your house to determine the property's market value. Your credit limit will be set considering all of the above, as well as a fraction of your property's appraised market value, which is subtracted from the balance owed on your present mortgage.

There are not as many loan options as there are applicants, but it seems like it sometimes! Call us and we can match you with the loan program that fits you best. There are several things to have in mind while you look at the options. Making Your Payments Lower, Refinancing to Cash Out, Debt Consolidation, Building up Equity Faster.

Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to use their equity without having to sell their home. The lender pays you funds determined by your home equity amount; you receive a lump sum, a payment every month or a line of credit. The borrowed money doesn't have to be paid back until the homeowner sells his home, moves out, or passes away. At the time you sell your property or is no longer used as your primary residence, you (or your estate) must repay the lender for the cash you received from your reverse mortgage plus interest among other fees.

A second mortgage is essentially a loan secured by your home or another piece of property with a first mortgage. The second mortgage allows the homeowner to tap into his or her equity to pay for college tuition, essential home improvements, pay off credit card balances or other pressing financial needs. By definition, a second mortgage is any loan that involves a second lien on the property, but you generally have two options: a home equity loan or a home equity line of credit. Both options combine your first and second loan, so your loan will be limited to 75 to 80 percent of your home's appraised value. With a home equity loan, you borrow a lump sum of money to be paid back monthly over a set time frame, much like your first mortgage. However, the closing costs (often 2-3 percent of loan amount) are often higher than your first mortgage and the rate - usually fixed – is also higher.