A Home Equity Line of Credit (HELOC) is basically a line of credit that you borrow against the value your home has built up over the years. The facility is usually open ended, meaning that you can withdraw the money as you need it within a specific time span or period. An individual is typically allowed to borrow any amount up to a given credit line at any time within fifteen years subject to the terms of agreement and the state of the account. It is important to mention though that you only pay interest on the amount that has been advanced.
Generally, manufactured homeowners usually have an uphill task when applying for cash out equity loans because of the unique nature of the units. Because of this, the rates offered may not be as friendly and one is therefore advised to do some online shopping so as to compare notes and get the most favorable rates. However, interest rates for home loans tend to be a bit higher with manufactured homes than with a traditional unit. This is mainly because most banks that do the underwriting consider manufactured homes to be a more significant risk.
In most instances, one is allowed to borrow anything between 70 to 90 percent of the appraised value of the home, less the amount that’s owed on the mortgage. Depending on your personal state, the interest payments may be tax deductible and you are therefore advised to consult your tax advisor and appreciate your status. When compared against auto loan and credit card payments, a HELOC loan may help you significantly save on taxes as you pay the required interest.
Depending on the lender you have engaged, there are usually no closing costs for home equity line of credit. However, most lenders will charge you an origination fee as well as an annual fee. It is important to discuss all the hidden payments with your lender so that you get an overall view of how much the facility is going to cost you in the long run.
It is also important to discuss with your lender the available payment options during the drawing period. generally, there are several payment options which one can opt for, some lenders will charge a percentage of the outstanding balance which includes interest and principal while others will charge you interest only on the outstanding balance. However, most lenders will expect you to pay the interest and principal on the outstanding balance during the repayment period.
When looking for a HELOC facility, some of the key factors that one has to take into consideration include the interest rate that you will be charged, the available home equity credit line that the lender is willing or ready to offer, the charges being levied by the lender in question as well as the potential tax deductible interest. The charges levied can be quite significant and one should therefore read the fine print and get to know all the charges being levied by the lender.
Here are some of the leading manufactured home equity line of credit lenders and underwriters in the market. They include but are not limited to the following:
1) Spectrum Funding LLC
Mailing Address: 6818 S La Cienega Blvd, Inglewood, CA 90302
Phone Numbers: 1-800-996-0188
Web URL: http://is.gd/AHqLbR
Other Programs: apart from mobile home equity loans, the company does also offer its clients car equity loans, title loans as well as general loans for homes. the loans on offer range between $2,500 and $ 50000 with the most common loans being in the $ 5000 to $ 10000 range.
2) JP Morgan Chase and Co
Mailing Address: 270 Park Ave New York, NY 10017-2014
Phone Numbers: 1-866-776-5167
Web URL: http://is.gd/e3emC8
Other Programs: the bank does offer lots of other loans and facilities such as Auto loans, mortgage, home equity, student loans and a wide range of other commercial, business and merchant banking services to an ever expanding client base. Another popular product that the bank does offer is the Chase Fixed Rate Lock option , this allows you to lock in a specific amount of your HELOC at a fixed rate for up to a maximum of twenty years.
3) Nationwide Bank
Mailing Address: One Nationwide Plaza, Columbus, Ohio 43215-2220
Phone Numbers: 1-844-761-2967
Web URL: http://is.gd/ERY1KB
Other Programs: with closing costs typically being less than $ 750 unless the property is located in Florida, New York, South Carolina and Maryland. The bank does also offer auto loans, mortgage and other business loans as well.
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