Questions

How can I access a portion of the equity I have in my home to resolve debt?

How can I access a portion of the $750k equity I have in my $1.4m home to resolve $30k in debt? The bank won't lend more as my income hasn't increased I'm self-employed, business is strong and expect to have a great financial year with the recent launch of a second businesss. I have a slightly damaged credit score due to a judgment debt which has been settled. How can I resolve my situation to eliminate debt?

3answers

Talk to a mortgage specialist and borrow from a private lender, the interest rate will be more then the bank rate, but less then the rates on your unsecured credit.


Answered 3 years ago

Saw your question, I was a Senior Loan Processor & an underwriter for about 4 years in wholesale banklending. If i were you, I would not refinance, its a temporary fix that will only erode your equity and enlarge the principle. I would say if you really need the money get an asset based loan, you don't add years to your mortgage, you'll get the money you need NOW and since your business is doing well you'll be able to recover to allocate repayment. What is the 30K if you don't mind me asking?Taxes/medical bills ?


Answered 3 years ago

Call local Mortgage Brokers + ask how to do this.

Likely they'll know people who write cash out loans on large equity properties.

And... $30K is fairly low... Likely you can acquire enough credit cards to pay off this low an amount.

Start by hiring a credit cleaning service. You can contact me for my personal list.

I always clean my credit before doing any loan applications, because credit reports tend to build up all sorts of cruft over time.

Last time I had to refi a house, my FICA mid score was 618 + after paying $200 + six weeks of work by a credit cleaner, my FICA mid score was 796.

After your FICA mid score is near 800, then go out for credit cards or refi your home or apply for a 2nd loan for cash out.

You have 50%+ equity in your home.

You can pretty much get a cash out loan any day for if you have 35%+ equity (last I checked).

Your local Mortgage Brokers will know better what's available in your area/state.


Answered 2 years ago

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