We are looking for Mortgage Brokers and Loan Officers
Experience not required
There are two types of home equity loans: term, or closed-end home equity loans, and lines of credit (HELOC). Both are usually referred to as second mortgages, because they're secured by your property, just like your original (first) mortgage. Home equity loans and lines of credit are usually for a shorter term than first mortgages.
A closed-end home equity loan, or term loan, is provided to you as a one-time lump sum that is paid off over a set period of time, with a fixed interest rate and equal payments each month. Once you get the money, you cannot borrow further from the loan.
A HELOC works more like a credit card. You are allowed to borrow up to a certain amount over the life of the loan -- a time limit set by the lender. During that time, you can withdraw money as you need it. As you pay off the principal, your credit revolves and you can use it again. This gives you more flexibility than a fixed-rate home equity loan.
Credit lines have a variable interest rate that fluctuates over the life of the loan. Payments will vary depending on the interest rate and how much credit you have used. When the life span of a line of credit has expired everything must be paid off. A lender may or may not allow a renewal.
Lines of credit are accessed by specially issued checks or a credit card. Lenders often require you to take an initial advance when you set up the loan, withdraw a minimum amount each time you dip into it, and keep a minimum amount outstanding.
Benefits:
Closed-End Loan Benefits
A closed-end home equity loan could be a great source of funds for a number of reasons: no change in an existing first mortgage, the possibility of tax deductible interest (consult your tax advisor), low interest rates, no mortgage insurance required, and you can use the loan for any purpose. A Home Equity Loan is the right choice for things like debt consolidation and single-purpose purchases. These purchases could include: automobiles, medical bills, college tuition, and even extra cash.
- Lower monthly obligations
- Possible tax deductions
- Lower interest rates vs. credit cards (learn more)
- Simple interest vs. compounding interest (learn more)
- Increase cash flow
- Fast money
As far as consumer loans go, Home Equity Lines of Credit have some of the lowest interest rates and minimum payments. Application and documentation requirements are generally less demanding than traditional first or second mortgages. This makes it easier to qualify. Mortgage insurance is not required on any Home Equity Lines of Credit, thus reducing monthly payments. Interest payments may be tax deductible (consult your tax advisor). Home Equity Lines of Credit may reduce your monthly debt payment if the borrower uses them to pay off existing debts.
