FAQ's

• What is the difference between an Equity Line of Credit and another type of second mortgage?
• How can I find out how much equity I have in my property?
• What are points and how many do I have to pay?
• How do I qualify for a loan?
• What is the APR?
• Do I get a tax advantage from having a mortgage?
• Can I make extra principal payments so I can pay off the loan more quickly?
• Can you refinance after bankruptcy?
• What are the typical lending ratios for a home loan?
• Will my lender be the one that I make my mortgage payments to?
• Can you refinance a house that is listed for sale?
• How soon can you refinance your mortgage?
• Can you really get a no closing cost loan?
• What is a stated income loan?

What is the difference between an Equity Line of Credit and another type of second mortgage?

A HELOC is a secure line of credit using the available equity in the applicant's residence as collateral. HELOC stands for Home Equity line of credit. The interest rate is usually variable and is tied to the prime rate. A second mortgage is a mortgage that is in second position to the first mortgage. This means that if the property goes into foreclosure, the first mortgage must be paid in full before the second mortgage holder is entitled to be paid

How can I find out how much equity I have in my property?

Equity is basically a homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage. You can find out how much equity you have by using a simple calculation. You subtract the total of the unpaid mortgage balance and any outstanding liens against the property from the property's fair market value. This equity will increase as the homeowner pays off their mortgage or as the property appreciates in value

What are points and how many do I have to pay?

Generally speaking, points are fees levied by the lender based on the loan amount. One point is equal to 1% of your loan amount. For example, two points on a $200,000 mortgage is $4,000. Discount points are used to buy down the interest rate. Some points are referred to as loan origination points; this is usually one point and is charged by the lender. How many points you pay is determined by several factors including your lender, your FICO scores and others.

How do I qualify for a loan?

Lenders use specific criteria to determine if you qualify for a loan, and the amount you can qualify for. You can use the Home Equity Loan Source calculator to determine whether you can qualify for a loan, the types of loan products that are best for you, and many other things. Home Equity Loan Source allows you to apply and get pre-approved right here online - it's fast, easy, and free (Home Equity Loan Source charges no application fee).

What is the APR?

The Annual Percentage Rate (APR) is a measure of the cost of credit, expressed as a yearly rate. Because APR includes points and other costs such as origination fees, it's usually higher than the advertised rate.

Do I get a tax advantage from having a mortgage?

Interest on a mortgage is typically tax deductible but you should always consult a tax CPA or tax attorney to determine what you can and can’t claim. Interest on other types of loans such as credit cards is normally not tax deductible.

Can I make extra principal payments so I can pay off the loan more quickly?

Depending on the type of loan you have and which state you live in, it can be advantageous for you to make extra payments on the loan. Even one extra mortgage payment a year directly to the principle can cut years off of you mortgage saving you thousands in interest.

Can you refinance after bankruptcy?

These days with the new more liberal lending practices you can actually find lenders that will refinance your mortgage within a few months of your bankruptcy, even if it hasn’t been discharged yet.

If you currently have an FHA mortgage you can usually refinance one year after filing a Ch. 13 and showing proof that you were paying your trustee payments and your mortgage payments on time.

What are the typical lending ratios for a home loan?

Most conforming loan lenders use a front end and back end ratio to qualify candidates for home loans. Typically your total mortgage payment cannot surpass 28% of your gross monthly income. Likewise your total debt obligations including your mortgage payment cannot typically surpass 36% of your gross monthly income. Non-conforming lenders however have more lenient guidelines and will usually only use one guideline. Typically they will qualify a candidate whose total monthly obligation ratio is 50% or less.

Will my lender be the one that I make my mortgage payments to?

Typically a mortgage broker will simply broker your home loan on behalf of a large mortgage lender. This lender may or may not service your home loan. Many times they will sell your loan to a very large lender who is staffed and structured to service your mortgage.

Can you refinance a house that is listed for sale?

Typically your lender will not allow you to refinance a home that is currently listed. Usually you will have to unlist your property and have your realtor remove any advertising or any ads in the multiple listing service. Lenders who service these loans want to keep your loan for a long time in order to fully benefit from the interest they charge for carrying the note. If the property is listed they will expect the property to sell at some point and they will lose money on the note.

How soon can you refinance your mortgage?

Most mortgage lenders won't allow you to refinance your home loan for at least a year. Other lenders will refinance your loan after a period of six months and sometimes less.

Can you really get a no closing cost loan?

You really need to be careful when hearing claims about a “no cost” home loan. The reason is that there are costs associated with any home loan. There are third party fees such as the title insurance etc that must be paid by someone. There is also the cost of processing and underwriting your loan. The money to pay the people who perform these functions must come from somewhere. Some lenders will say there are no closing costs but will actually give you a higher rate and use the overage in the loan to take of these costs. So while you won’t see these charges you are paying for them nonetheless with a higher interest rate.

What is a stated income loan?

Stated income loans are often used by self employed people who make enough money to qualify for the loan but due to extensive write offs for tax reason actually shoe very little income coming into their pockets. Because home loan institutions use tax records and paycheck stubs to qualify your income these self-employed people will often have too high debt ratios because they are claiming they make very little income. As long s their FICO scores are high enough they can claim any amount of monthly gross income they wish as long as it’s typical within their profession.

Services Include:

• California Home Equity Loan
  The equity you have in your home is one of the best sources of funds available to most consumers. Not just the low interest rate of the money available but also the flexible ways in which you can repay this note. This equity can be in the form of a Home Equity Line of Credit (HELOC) or a Stand Alone 2nd Mortgage. Use this equity in your home to get cash out for things such as vacations, your children's education, cars or anything else you might want. We have many creative ways to tap into your equity, take advantage of today’s low rates and let your equity go to work for you.
• California Debt Consolidation Loan
  Debt is a growing problem among consumers today. Americans are now carrying $683 billion in revolving credit card debt. That’s not the amount we charge every month; it’s the outstanding unpaid balances on which people pay interest. And, according to a report by Cambridge Consumer Credit Index, 47% of the people who paid less than the full amount on their credit card bills in a recent month, made only the minimum payment due. In fact, only 13% of Americans with an outstanding balance could afford to pay more than half the balance. Home Equity Loan Source can help consolidate your high interest debt. Your overall monthly payments can be reduced and may even be Tax deductible.*
• California New Purchase Home Loan
  With Home Equity Loan Source you have the ability to choose from numerous loan programs. We have over 90 different money sources, we will find a program that’s right for you. These programs include special financing for First Time Home Buyers, 100% financing for those borrowers with limited funds for a down payment as well as many others. We also provide financing for those home buyers with bad credit. Make your dream of home ownership come true with a new home purchase loan regardless of your current financial situation with Home Equity Loan Source.
• California Mortgage Refinancing Loan
  Home Equity Loan Source provides refinancing solutions for borrowers with all types of credit and refinancing needs. Apply now and take advantage of some of the lowest interest rates in 30 years before they disappear. By getting a lower interest rate when you refinance your current home mortgage, you will save yourself thousands to tens of thousands of dollars in interest over the life of your loan. There are also programs designed for investors, which have very low start rates and four pay options each month. Contact us and let us help you decide which refinance option best fits your needs.

Orange County, California Home Loan Center
Home Equity Loan Source
3943 Irvine Blvd., Suite 44
Irvine, CA 92602
sourcecompanies@gmail.com

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