Those that are not currenly thinking about any Florida home loans may have renovations on the mind instead. Many homeowners in this climate are delaying buying or selling and trying to fix their current residences instead.

If this sounds like your situation, there’s a good chance you’re contemplating the use of a Florida home equity loan, right? Let’s discuss how much you’ll be able to take out.

Properly gauge your Florida home mortgage

If you have enough equity in your home to cover the loan you need, the state of your renovation project shouldn’t be a problem. You’re free to use the money from a Florida home equity loan for any purpose. Most lenders will lend you an amount equal to 100 percent of your home value, while some will even lend up to 125 percent if you have a good credit score.

However, if your renovation is only partially completed when you apply for the loan, this could cause difficulties in appraising the house accurately. This could then affect the amount of money you’re able to borrow. Some lenders offer Florida home improvement loans that allow you to receive the money in stages during the renovation process, based on inspections. Don’t forget about these options.

Time for Florida home loan refinancing?

Another option is to consider Florida home mortgage refinancing for a higher amount, taking a cash-out payment to fund your renovation project. If your credit score is lower, you may be able to get more cash to pay for your renovation by refinancing your first mortgage versus adding a home equity loan.

When considering this approach, you need to weigh the benefits of receiving more cash out versus the change in your total monthly payments and interest rate on your new Florida mortgage loan. This is usually worthwhile only if current mortgage rates are close to the rate you have now.

You may still be able to receive approval on a home improvement loan if you don’t have enough equity to borrow all the money you need via a home equity loan. It depends on your credit rating. You may also be able to get enough funds to make up the difference through a personal loan or line of credit.

These Florida home mortgage loans also carry a higher interest rate because they aren’t secured by your home and the interest payments are not tax-deductible, like the interest on a home equity loan. However, the set-up fees are usually lower.

Complete our COST-FREE, RISK-FREE form now and we can talk about this more at length.

From Florida home loan equity rates to other fees attached to such resources, it’s understandable individuals may have a lot of questions. Lenders often impose expensive, extraneous charges on those seeking Florida home loans of this nature.

For example, you may come across any of the following as you complete an application:

- A loan origination fee
- Appraisal fee
- Credit report fee, processing fe
- Underwriting fee
- Flood certification
- Escrow settlement fee
- Title fee
- Mortgage tax

The pressing issue, therefore, is: must you truly pay all these fees when taking out a Florida home equity loan?

The answer is: NO.

Virtually every local bank and credit union will eagerly approve you a home equity loan or home equity credit line (HELOC) without any junk fees - as long as you possess a FICO credit score around 700 or higher.

The only legitimate Florida home equity loan fees that are difficult to avoid are the local mortgage tax, the intangible tax and the recording fee. Any other charges should be absorbed or paid by the home equity lender if they want your business.

Let us know if you have any other questions. While sales are down in some areas, Florida home loan popularity is still at near-record levels and inquiries are bound to arise.

Wait!

Before you begin the process of finding a new house, perhaps you haven’t thought long enough about renovating your current residence? A Florida home equity loan can make this easier than you may have imagined.

If you aren’t sure about which direction to head in, consider a few factors. First, can your home can be adjusted to meet your needs?

Is your property big enough for an addition? Will your foundation handle the weight of an extra floor? Plan out the changes you would make, and don’t jump into major renovations until you know they are feasible. Ask a professional renovator for an opinion.

Assuming the renovations are doable, think about the tangible and intangible costs of renovating compared to buying a new home, going through the Florida home loan process - and then actually moving.

Financial costs to consider …

Whether you take out a new mortgage or a Florida home equity loan, you’ll face closing costs that include fees for appraisals, credit reports and title insurance. Remember this, in order to determine an estimate of these fees: they’re typically two to six percent of your Florida home mortgage loan. A home equity loan, however, is likely to be smaller than a new mortgage, so the closing costs will probably be lower.

If you’re thinking of selling your home and buying a new one, you’ll also pay real estate commissions and seller’s closing costs, which together can total as much as 10 percent of the sale price of your home. You must also factor in your moving costs, which can amount to several thousand dollars. There’s a lot to pay for.

For tax purposes, you usually can deduct your interest payments on both standard Florida home loans and home equity loans used for substantial improvements. Overall, renovating is likely to be less expensive than moving up to a bigger house - but, of course, you may just be interested in a change of location.

If that’s the case, good luck! Let us know if we can help.

Rates. They can be a confusing issue within the financial world.

Let’s take the example of someone that recently applied for a home equity line of credit, suppposedly with a variable interest rate 0.25 percent less than the prime rate. This individual then discover he’s being charged 7.5 percent, despite the prime rate standing at just 5.25 percent.

The bank then states the prime rate is now 8 percent, but cannot explain the discrepancy between the 5.25 percent and 8 percent prime rates. The question on this owner’s mind: what the heck is going on?

Know rates on Florida home equity loans

Many people confuse the Federal Reserve Board’s targeted federal funds rate with the prime rate. The Fed just raised the fed funds rate to 5.25 percent from 5 percent at the end of June.

But the prime rate is a publicized rate that, in recent history, has been 3 percent ABOVE the targeted fed funds. Typically, the two rates move in conjunction with one another through time. That puts the prime rate at 8.25 percent now, while the interest rate on this Florida home equity loan is at 8 percent.

Because fed funds is the interest rate that banks charge each other to borrow bank reserves, it’s roughly equivalent to your bank’s cost of funds; and a bank can’t afford to lend money at 0.25 percent less than its cost of funds. Therefore, it sounds as though the bank is correctly changing the interest rate on this home equity line of credit - 0.25 percent less than the prime rate.

In other rate news, buyers should be happy about this fact: Florida home loan rates have declined for the first time in weeks.

We’ve already talked about HOW to possibly use a Florida home equity loan. Now, we’ll discuss WHEN to apply for such a mortgage.

There is often conflicting advice regarding Florida home loans of this nature. You may hear that those with a high credit score, assuming they make timely payments for a few months, can easily take out a Florida equity loan, regardless of the home’s value in question. Another view, however, states that you need to wait for the house to appreciate 20 percent in value in order to take out the money.

A Florida home equity loan response

A home equity line of credit - or a Florida home equity loan - is a second mortgage, if there’s an outstanding first mortgage. Consequently, the first mortgage lender has a priority claim on the property if you don’t make the loan payments; the home equity lender’s claim on the property comes second.

To explain further: Your equity in the property is the difference between the property’s appraised value and the outstanding Florida mortgage loan balance(s) secured by the property. When buying a home, in general, your equity in the property is the down payment.

It is plaussible to borrow against that down payment with a home equity loan without the home appreciating in value. An on-time payment history and an excellent credit score helps to get the Florida home loan approved, along with an income sufficient to cover the payments.

Once the mortgage loan closes, any downward movement in your home’s value increases the risk position of the home equity lender. Because of that risk, the Florida home equity lender isn’t likely to let you tap 100 percent of the equity you have in your home, at least not at a competitive interest rate. Hence, the suggestion that you need to see some appreciation in the home’s value to take out a Florida home equity loan.

Overall: If you’re going to the closing of your first mortgage already anxious for the day when you can close on a second mortgage and take back your down payment, you may be in over yor head. It’s likely you’re either buying too much house or have chosen the wrong approach to financing that purchase with whatever Florida home loans you’ve agreed to.

We’ve discussed how a Florida home equity loan can be used on a second/vacation house - but is it also a good idea to consider this resource over a typical car loan? Depending on your needs and situation, it may be.

Who is best qualified for a Florida home equity loan?

For people who have a fair amount of discipline in how they manage their finances, a home equity loan or home equity line of credit (HELOC) can make perfect sense as a way to finance a car, new or used. If you’re struggling with large credit card balances or have problem credit, a home equity loan might not be right for you.

Not everyone can make use of the mortgage interest deduction when filing his or her income tax return, but if you’re using the deduction now on your first Florida home loan, odds are you’ll be able to use it on your home equity loan, too.

By being able to deduct the interest expense, you reduce the effective Florida home loan rate on the loan. Remember, the interest expense on a conventional auto loan isn’t tax-deductible. The national average for a three-year auto loan on a used car is 8.88 percent. If you’re in the 25-percent marginal federal income tax bracket the effective rate on the HELOC is about 6 percent. See the difference?

A HELOC is a variable-rate loan, and the interest rate is normally tied to the prime rate. Since the prime rate moves in lock step with changes in the targeted federal funds rate, and that rate has been rising steadily for more than two years, it takes a bit of courage to sign up for a HELOC to finance your car.

In contrast, a Florida home equity loan will have a fixed interest rate, and the loan payments are self-amortizing, meaning the payments are large enough to pay the interest expense and pay off the loan over the life of the loan. In the early years of a HELOC, its required loan payments are interest-only, and you have to have the financial discipline to make principal payments, too.

Keep in mind that a car is a depreciating asset. You don’t want to take 10 years to pay off the loan on a car that you’ll drive for five years. Therefore, regardless of which Florida home loan you choose, plan on paying off the used car over the time you expect to own it.

In your search for your vacation home, have you come across the ideal locale? Is the only issue now at stake how you’ll afford this property of your dreams? Where will you come up with the money for a down payment, right?

The right Florida home loan for this second house …

What about a Florida home equity loan? You can use the money you’ve invested in your principal residence to finance the purchase of a second, recreational property. Through this course of action, you can access cash equal to as much as 125 percent of your home’s appraised value. You’ll get a lower rate of interest because the loan is secured. Moreover, the interest you pay on the money may be tax deductible, as long as you meet certain conditions.

Nevertheless, buying a second home is not a decision you should rush into. As well as a down payment, you will have to service the additional debt you are taking on and pay other expenses. The total annual cost will include your monthly payments on the Florida home equity loan plus the mortgage, utilities and maintenance on the second property.

You can offset your costs by renting the property out when you are not using it, but you’ll likely lose your mortgage-interest deduction on both the home equity loan and the mortgage on the second home as a result. You’ll also have extra maintenance and other costs to contend with.

Think about the expenses involved with this purchase. You may have to give up a car or share the house with a family member or friend. But if you’re still interested, there’s always a Florida home loan that can be crafted to meet your needs.

Are you in the market for a Florida home equity loan? This can be a useful resource, but you need to be aware of what is required for it. For example, many interested aren’t sure if it’s possible to be approved for one before completing an addition on their home.

Dan Moore, Vice President of Product Management at LendingTree.com, has the answer …

Florida home equity loan information

If you have enough equity in your home to cover the Florida home loan you need, the state of your renovation project should not be a problem. You’re free to use the money from a Florida home equity loan for any purpose. Most lenders will lend you an amount equal to 100 percent of your home value - and some will even lend up to 125 percent if you have a good credit score.

If your renovation is only partially completed when you apply for the loan, however, this could cause difficulties in appraising the house to ascertain its value. This, in turn, could affect the amount of money you’re able to borrow. Some Florida home loan lenders offer home improvement loans that allow you to receive the money in stages during the renovation process, based on inspections. This could help solve your problem, although these loans may be hard to find.

Refinance your Florida home loan

Another option is to refinance your initial Florida home loan for a higher amount; then take a cash-out payment to fund your renovation project. If your credit score is lower, you may be able to get more cash to pay for your renovation by refinancing your first mortgage versus adding a home equity loan.

When considering this approach, you need to weigh the benefits of getting more cash out versus the change in your total monthly payments and interest rate on your refinance. This is usually worthwhile only if current mortgage rates are close to the rate you have now.

You may still be able to get a home improvement loan if you don’t have enough equity to borrow all the money you need via a Florida home equity loan. It depends on your credit score.

However, you may pay a higher interest rate. You may also be able to get enough funds to make up the difference through a personal loan or line of credit. These Florida home loans also carry a higher interest rate since they are not secured by your home, and the interest payments are not tax-deductible, like the interest on a home equity loan (consult a tax adviser about your particular situation). However, the set-up fees are usually lower.

Overall? Consider a Florida home equity loan. Don’t feel overwhelmed by all these details. Just apply through our site today and learn more.

You’ve lived in your home for about 10 years now, and the honeymoon phase of ownership is officially over. Your place needs major renovation. A new septic tank, possible foundation work, and other serious items. Due to the rising cost of living, you haven’t done the routine maintenance to the house that you probably should have. Your credit isn’t the best, so getting an equity loan to pay for the repairs is not looking promising. You’d consider selling the home, but in today’s housing market, you might end up having to drop the price drastically.

What can you do about this?

A great many people face this difficult situation, and if you’re one of them, you know exactly what the stress feels like. But, according to Ilyce Glink, a columnist for the Real Estate Matters Syndicate, you may have more options than you think as far as getting the work done without breaking the bank.

Here’s how you make it work:

1. Get a copy of your credit report through www.annualcreditreport.com, which gives you an assessment from each of the three credit reporting bureaus.
2. Along with your credit report, you’ll be asked whether you’d like your score, which costs $6.95. It is a good value, as you’ll gain access to what lenders are going to see.
3. Get input from top-rated mortgage lenders, such as a national company, a big local bank, and a mortgage broker you know and trust. This is the best way to find out what kind of rate you’d qualify for and how much you’d pay for a home equity line of credit.

This is important because most people don’t realize that almost no one is turned down for every kind of loan. Your credit score might not be the highest, but it is probably good enough to get a line of credit or a home equity loan at a respectable rate. This is key. If you can refinance your Florida home loan and take out some of the equity, you might be able to make some of the required repairs.

It’s also possible that the house and its problems aren’t worth salvaging, and that the land it sits on is your prime source of value at this point. To find out, consult a local real estate agent about what’s going on in your neighborhood in terms of teardowns. You might be able to sell the house for at least your mortgage balance.

Lastly, if you’re forced to sell and are going to be in a short-sale position (that is, the house is worth less than the mortgage balance in the remaining term), be aware that on the following April 15, you’ll get a tax bill for the difference between what you owe and what the bank settles for. The IRS treats such sales as “phantom income.” If you owe $50,000 on the property, for instance, but sell to the bank for $40,000, the IRS will treat the missing $10,000 as taxable income.

It sounds unfair, but it’s the law. You aren’t going to beat the IRS on this one. Or ever. Consider all of these options with your Florida home loan and make the best decision based on your circumstances. It’s not an easy process, but you can get through it.

A new book sheds light on the use of real estate as a way to help fund seniors’ retirement, according to today’s Sacramento Bee. For years, investors have looked at retirement funding as a three-legged stool.

• Pension(s)
• Social Security
• Whatever else you can save

But the traditional trio may no longer be enough for the increasing number of baby boomers in the U.S., thanks to uncertainties with corporate pensions and retirement funds. Investors need to bolster their savings plans with a fourth leg — the family home. This is the theme of Jim Keene and Gillette Edmunds in their work, “Retire on the House: Using Real Estate to Secure Your Retirement.”

“Millions of retirees are sitting on substantial amounts of home equity in their properties that they can use to help fund their retirement,” Keene said. “In fact, many new retirees have four times more money in their home equity as they do in their stocks.”

Keene is a certified financial planner based in Walnut Creek, Calif. With 25 years in the industry, he’s seen it all and believes there are a number of financial options that homeowners can use to augment their retirement funds. Among those options reverse mortgages, home equity lines of credit, moving to cheaper housing markets and implementing innovative methods of selling a home to family members.

Reverse mortgages, which are essentially loans that enable you to withdraw home equity in the form of a lump sum or credit line, have soared in popularity in recent years. They do not require selling the home or giving up the title, and do not have to be repaid until the home is sold or passed to an heir upon the owner’s death.

“In order to get a reverse mortgage, a number of requirements must be met, including the fact that the borrower must be at least 62 years old and that the borrowers must go through a mandatory loan counseling session,” said Keene, who cautions borrowers to understand the full extent of their cost.

Although reverse mortgages are not nearly as competitive as they should be, Keene expects that will change rapidly in the coming years. A simple home equity line of credit could be a viable and attractive alternative. It’s easier to understand and handle for many.

“If you choose this course of action, it allows you to draw on funds only when needed, giving you maximum flexibility. At the same time there are no loan origination fees and you can make interest-only payments,” he said.

There’s also the option of leaving where you live and relocating to a place where you get more house for the money. Many people in the San Francisco Bay Area have moved to places like Sacramento, Reno and Las Vegas for this reason, and locally, many people priced out of the South Florida housing market are heading to the northern part of the state… and beyond.

Another option growing in popularity is what Keene calls an “interfamily sale and leaseback.”

Under such arrangements, family members purchase their parents’ home and pay the parents either a lump sum or installment payments, which can be used for future expenses, such as health care. It also eliminates real estate commissions and can have helpful tax benefits. Such arrangements can be very valuable in cases where the parents want to stay in their house while the next generation wants to keep the home in the family.

In addition to keeping the home in the family, the sale-leaseback maximizes the equity available for use by the retired parents. There is certainly a lot to think about for Florida real estate owners in the coming years, especially the state’s millions of retirees. If you’ve got questions about maximizing your capital (specifically your Florida home equity), it might benefit you to check this book out.