Buying a second home can pose some challenges you don't face when buying a home for your primary residence. The mortgage interest rates are higher. Lenders will scrutinize your credit reports and income documentation very closely to ensure you have sufficient income to meet all your obligations. The property itself may be difficult to qualify for a mortgage.
Home Equity Loans Articles
Like many types of loans that were easy to get years ago during the housing crisis, home equity loans and other loans to cash out on equity in rental properties were relatively easy to get. Now, not so much.
One of the main concerns people have about home equity loans has to do with how they are affected by tax policy. Specifically, what are the rules when it comes taxation and taking a deduction for the home equity loan interest that you pay?
America’s financial institutions, like most businesses, know how to fill a need when they see one. Borrowers who are self-employed, have bad credit or are somehow shut out from obtaining a mortgage from a bank can instead go to non-bank lenders and have an easier time being approved for a home loan, including a non-qualified mortgage loan.
Home equity loans have long been attractive ways for homeowners to borrow money to pay for everything from major home improvements to a child's college education. But these loans just lost a major benefit: When filing their income taxes, homeowners can no longer deduct the interest they pay on home equity loans each year.
San Diego is finally catching up to other high-priced housing markets in California, giving homeowners a chance to use home equity loans in San Diego to renovate or pay off debt.
Using a home equity loan for improvements such as new kitchens, bathrooms and fireplaces can help get a higher selling price for a home. The remodeled areas, real estate agents say, should lead to a better price for a home that needed the repairs anyway.
Taking out a home equity loan to make your home more “green” and energy efficient can have the long-term effect of increasing your home’s value. But don’t forget the immediate benefits: a warmer home in the winter and a cooler one in the summer.