Home Equity Lines for Good Credit and Bad Credit Mortgage Loans

February 9th, 2009

Tip! Another reason to get a home equity loan is for the payment for education. With today’s soaring tuition, most homeowners would rather use home equity loans than to pay it with cash.

strongTruth in Lending Laws/strong

As a borrower, it is often difficult to know your legal rights regarding home equity lines of credit. This is especially true with private hard money loans from bad credit mortgage lenders. Borrowers need to be aware that the Truth in Lending Act requires lenders to disclose the specific terms and costs of their home equity plans - terms such as APR, broker charges, the payment terms, and any variable-rates that may apply. It is also important to note that a lender and anyone else associated with the transaction may not charge a fee until after the terms and costs have been disclosed to the borrower. These disclosures will typically be available to you once your receive the application form from the lender. If a term or cost in the loan is altered or changed before the loan goes into effect (other than a variable-rate feature), the borrower must be informed. If this causes the borrower the change their mind about the loan, the lender is required to refund any fees collected.

strongYour Rights with a Home Equity Line of Credit/strong

Whether you are dealing with a bad credit loan or an A-paper home equity line, the Truth in Lending Act gives borrowers a three day rescission period, essentially a small window of time to change their mind about the bad credit loan. If a borrower decides that the bad credit loan or traditional home equity loan is not right for them, they can inform the creditor in writing during this recession period of their change of heart. The bad credit lender must then cancel the security interest in the home and return to the borrower all fees involved.

Tip! If you are considering getting a home equity loan, you can either get a fixed rate loan or a home equity line of credit. Lenders usually base the rates on their home equity loans on their Prime Interest Rate, the interest rate they charge their most qualified clients or borrowers.

Knowing your rights can save you from making the wrong decision when it comes to a bad credit lender loan or traditional home equity loan!

strongCalifornia Bad Credit Home Equity Loans/strong

Bad Credit Lender offers California bad credit home equity loans for non-conforming conditions, including low credit scores, excessive debt, collection accounts, bankruptcy, or foreclosure. Our bad credit home equity loans, also known as a HELOC loans, offer flexible guidelines and carry higher rates and a necessary 20% or higher borrower equity in real estate property.

Tip! Preserve your home equity. Having home equity untapped in your house can provide a level of reassurance.

Corey Senn is a Senior Partner with a target=_blank target=_new href=http://www.badcreditlender.netBad Credit Lender/a, a California based private lender that specializes in hard money loans and bad credit loans. Located in La Jolla, California, Bad Credit Lender provides competitive private a target=_blank target=_new href=http://www.badcreditlender.net/badcreditlender/bad-credit-home-equity-loan.htmlCalifornia home equity loans/a, bad credit home loans, and bridge loans. In addition, Corey is one of the main contributors to the a target=_blank target=_new href=http://californiahomemortgageloans.blogspot.com/California Home Mortgage Loan/a web blog.

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Entry Filed under: Cheap Home Equity Loans

1 Comment

  • 1. Payday Loan Store&hellip  |  April 15th, 2009 at 10:23 am

    Payday Loan Store

    Good job with this page and keep it up. I think the lay out is on point and the content is very good. Again, keep it up and great job with it.

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