Tag Archive for: HELOC

Financing And Building ADUs Or In-Laws

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Cutest House I Ever Saw I have been in the mortgage industry since 1994 and have seen thousands of homes in every setting imaginable. And the cutest house I have […]Read More

Are Home Equity Loans Tax Deductible?

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Homeowners cannot claim tax deductions on home equity loans in some cases. However, they can still benefit from cash-out refinancing programs to use the equity they've accrued in their homes. The Tax Cuts and Jobs Act, signed by President Trump in December 2017, introduced this change. Interest paid on home equity loans is no longer tax-deductible, although there is one exception. The IRS clarified that deductions are allowed if homeowners use the loan to "buy, build or substantially improve" the property the equity is coming from.Read More

HELOCs For Bridge Loans; Online Lender Horror Stories

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MORE ONLINE LENDING HORROR STORIES In response to my blog about Quicken’s pending IPO on Friday, I received several reminders of online lending/call-center horror stories. With every instance, the call-center […]Read More

Elephant In Room: Housing Prices; HELOCs Too

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Chase stopped accepting applications for home equity lines of credit (HELOCs). I mentioned this previously, but in 2008, HELOC lenders not only stopped taking applications but they also froze existing HELOCs. […]Read More

1st/2nd Combos Instead of Jumbo; Backup Offers; Temporary Loans; Self-Employed Borrowers

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1ST/2ND COMBOS INSTEAD OF JUMBO This is a reminder that 1st/2nd combo financing remains a great alternative to jumbo.  CA 2nd liens are Home Equity Lines of Credit (HELOCS) while […]Read More

10% Down to $1.24 Million; 5% Down to $1.07 Million

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“High Balance” Conforming Loan Limits are now $765,600 in “High Cost” areas, which include much of coastal California including the Bay Area. These much higher conforming limits now allow buyers […]Read More

HELOC vs. Cash Out; Fed Cuts Fed Funds Rate

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Borrowers in need of cash often wonder if they should get a Home Equity Line of Credit (HELOC) or if they should just refinance into a larger first mortgage with […]Read More

$5.4 Trillion of Home Equity; How To Tap It? HELOC or Cash Out Mortgage?

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CONFORMING AND FHA LOAN LIMITS This is a reminder that Conforming and FHA Loan Limits are up for 2018.             $5.4 TRILLION OF HOME EQUITY […]Read More

Prime Rate Up; HELOCs Up; PMI Down

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Prime Rate was 3.5% last year at this time. Currently the Prime Rate is 4.25%. It has been climbing steadily with every increase in the Fed Funds Rate. Prime Rate […]Read More

Post-Close HELOC to Reclaim Liquidity; 90% CLTV

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We often encourage buyers to put down 20% or more not just to avoid mortgage insurance, but also to make their offers much stronger and to allow us to close […]Read More

What Is With 80/10/10?

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We are getting many questions about “80/10/10” financing lately. “80/10/10” stands for an 80% loan-to-value (LTV) first mortgage, a 10% LTV 2nd mortgage, and a 10% down payment. The purpose […]Read More

“80/10/10” HELOC Lender Now Requires 720 FICO In CA Only

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Our Home Equity Line Of Credit (HELOC) Lender, that offers the “10%” second mortgages in conjunction with “80/10/10” financing, increased its minimum FICO from 700 to 720. This applies to […]Read More

Post-Close HELOC to Reclaim Liquidity; 90% CLTV

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We often encourage buyers to put down 20% or more not just to avoid mortgage insurance, but also to make their offers much stronger and to allow us to close […]Read More

89.99% CLTV to $1.275 Million (10% Down to $1.275 Million)

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Our 2nd Mortgage Provider (TCF) announced last week that they will finance $1.42 Million purchases with as little as 10% down. In other words, they now offer 2nd mortgages (Home […]Read More