There are home equity loans for people with poor credit. If you own a home and have been paying down the mortgage you, most likely, have equity. The balance between what you owe and the current market value of your home is your equity. For example, if your home is valued at $ 100,000 and you now owe $ 80,000, then you have $ 20,000 in equity. This would satisfy most lenders' requirements of at least 20% equity for home equity loans for people with bad credit.
If you don't know what your homes' market value is, many online lenders have home value calculators on their websites. If there is one available, you can use it to get an instant estimate of what your homes' market value is.
Once you know the market value of your home, a home equity loan calculator can help you figure out the percentage of equity you have. An equity loan calculator can also help figure out interest rates and monthly payments on home equity loans for people with poor credit. By entering different repayment terms like 10, 15 or 20 years into the calculator, you can see how it will affect your monthly payments.
The longer the repayment term is, the lower your interest rates and monthly payments will be. Home equity loans for people with poor credit can often be as competitive as their good credit counterparts. This is due to a drastic increase in lender competitors who are now offering lower interest rates and loan terms.
Searching for Loans
There are many places to find home equity loans for people with poor credit. You can search through many lenders online. With many lenders offering borrower incentives such as no closing costs, low fees, low interest rates and flexible repayment terms, you can see up front which ones are right for you.
There are also many lenders who specialize in lending to people with poor credit. These lenders will often have higher interest rates. Being that your loan will be secured with your house, you can apply to a variety of lenders to see what offers will best suit your needs and budget. Knowing your credit score can help by eliminating lenders who have credit score requirements that you don't meet.
If you don't know your credit score, you can get one online from any of the major credit bureaus. Many offer you a free look at your credit score when you subscribe to a free 30-day trial to their credit monitoring services. Another option for home equity loans of this nature is their mortgage brokers.
Often, a mortgage broker can get you interest rates comparable to that of your mortgage. If you have a good history with them, and you are using your house to secure the loan they are sometimes better able to approve you for a home equity loan. The equity in a home can be the deciding factor in acquiring home equity loans for people with poor credit.