Harold asked:
My parents are giving me their current house and building a new one. The house needs some improvements (Kitchen, Bath, Carpets, etc) what is the best loan to get? I currently rent so I don’t have a mortgage. Do I get a home equity loan, first mortgage, home improvement loan? Please help.
EDWARD
My parents are giving me their current house and building a new one. The house needs some improvements (Kitchen, Bath, Carpets, etc) what is the best loan to get? I currently rent so I don’t have a mortgage. Do I get a home equity loan, first mortgage, home improvement loan? Please help.
EDWARD
THOMAS
home improvement loan.
Comment by *havin fun in the sun* — January 27, 2010 @ 4:51 pm
ELISEO
Shop around for the lowest rate – any of the three will do – the mortgage will probably have the lowest rate, a HELOC will have a slightly higher rate, but is more flexible since you only borrow what you are going to use.
Comment by Steve D — January 29, 2010 @ 11:37 pm
WILLIAM
A HELOC or Home Equity Line of Credit
Comment by Jason — February 1, 2010 @ 6:48 am
JOSH
It depends how well you can handle finances. Shop around and see what types of loans are available. A home equity loan or home improvement loan might be somewhat higher interest rate, but lower closing costs, than a regular mortgage. Rates could be fixed or variable and they will tell you what the payments will be, which would remain fixed with a fixed rate or could vary with variable rate, to pay it off by the end of the term you select.
A home equity line of credit (HELOC) usually has lower interest rate than a home equity loan with little or no closing costs (which can affect interest rate). You borrow what you need from it when you need it and only pay interest on the amount of it you are using. But the minimum payment is typically just variable interest (unless you lock in a fixed rate for a specific amount you borrowed), so you need to pay more than that on your own to pay down the principal, or you might find yourself scrambling in the end to either come up with the money or refinance.
Comment by efflandt — February 1, 2010 @ 10:50 am