have house, paid for, need money to build on, equity loan?

Your options are a new First Mortgage (traditional mortgage) using cash out to provide the funds you need, a home equity loan which usually has lower costs than a traditional first mortgage, but usually a higher rate, and a Home Equity Line of Credit (HELOC). The answer depends on how much you need, how quickly you need it and the time you anticipate needing to pay it back. My advice is to work with a local licensed Mortgage Professional to determine the best option using the above criteria. You can find a local Certified Mortgage Professional at the National Association of Mortgage Professionals at www.NAMB.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Certified by the National Association of Mortgage Professionals and Licensed in California and Arizona ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

I take it you are looking to build an addition on this home? An equity loan would work but may not be your best option. A HELOC (Home Equity Line of Credit) is almost always an adjustable rate loan, not a fixed rate. If you are looking to pay it off within a few years I would say it would be fine, but if it will take 5-15 years or more to pay off then I would recommend a cash-out refinance on a fixed rate mortgage. The term on these can be set at 10 or 15 years, or longer for a lower payment. If you are in NM I can help you, otherwise find a local lender here on this forum. Best wishes!

More details would be helpful, HELOC's are very low cost but the rate is variable and not always as low as a fixed rate mortgage. So, it really depends how long you need the money. Another option might be to use the HELOC as the downpayment and get a construction-permanent mortgage from a reputable lender

PS> following up on Charlie's question, if you are looking for funds to improve that home including an addition, there are renovation loans that can do that too which would allow you to lock in the rate upfront rather than waiting until the home is completed.

I would do an prepare a side by side analysis of a 2nd mortgage or HELOC with your current loan against a cash out refinance of your existing mortgage. The analysis, based on your plan of action, should give you a clear winner of which would be the best strategy for you. If you need help to work up the comparisons, feel free to contact me.Thanks,Dennis W ClarkOmaha, NEFreedom Lending, LLCNMLS#13970402-333-5432dennis@mortgageloansofamerica.com

Equity loans are great for instant cash when you need it. You can access the money as you build an only have to pay on the amount you have outstanding. Most equity loans are a revolving line of credit attached to you house for collateral. They will have an adjustable interest rate after the initial fixed term and typically only require a minium interest only payment to be made, which makes the monthly payment appealing now as interest rates are low, however once rates start to climb so will your payment. Another avenue would be to do a first mortgage cash-out (fixed rate/term) loan. Since rates are low you can lock in a low rate for the full term and possible better manage paying off the loan. Which loan you choose may be determined by how many years you plan to stay in the home and how much money you are wanting to borrower.

An Equity loan may be your best option if you intend to pay it off quickly, as it will be a lower cost loan for you to acquire and you will do so before its unfixed rate can change too drastically. If you are thinking longer term, a traditional cash out refi would be better since you can lock in at an historically low rate and pay if off over a longer term.

Equity loans typically carry a slightly higher rate than what you would be able to get from a regular cash out refinance. If you own your home free and clear, you have the option to just to take a first lien against the home and use those funds to move forward with your next project. Is this loan needed to add onto your current home or are you looking to build another home? For additional questions or assistance, please feel free to call Danyel at 515-669-4560, or visit www.danyelpeck.comWe would need a few more details to determine all of the options available to you.

Helocs are one option, but we would like the opprotunity to discuss your long term goals before giving a recommendation as to which way you should go. Call us or email us at 201-962-3555 or Team@BestMortgageOption.com for ano cost no obligation analysis of your situation. Ask for Michelle or Benny We will find the Best Mortgage Option to suit your needs!You can check us out at www.BestMortgageOption.com We are also proud Homes for Heroes affiliates!

Yeah, there are variables but remember a 1st Lien fixed rate loan is Generally the cheaperst money you will every borrow so weigh all the options with your end out goals.

Obtain a fixed rate cash-out loan; you can pay it off at an accelerated rate, if you prefer. Do this BEFORE you start your work.