? about home equity loans

[minnieandme]

I bought my house last year and know that whatever equity I have established in 13 months is not a lot-maybe $1,000 or so. I've been getting offers to open a line a credit up to $65,000. How can someone want to offer me a HELOC when I don't have much equity?

 

[pixiemomma]

They are offering you a loan based on what your home is worth, not what you paid for it.

 

[AllyandJack]

The key words in the offer are "up to". They'll give you "up to" $65,000 depending on the results of an appraisal.

Equity also has to do with how much you put down initially. If you put 5% down, you would have 5% equity unless you overpaid or the market tanked since you made the purchase.

You'll get about 5 of those a week....for the rest of your life.

 

[bsnyder]

I bought my house last year and know that whatever equity I have established in 13 months is not a lot-maybe $1,000 or so. I've been getting offers to open a line a credit up to $65,000. How can someone want to offer me a HELOC when I don't have much equity?

Read the fine print. I'm sure it states something along the lines that the amount that will end up being approved (up to $65,000) will be some percentage of the true equity in your home, as determined by a qualified appraisal.

 

[Brianne]

And most of those offers are nothing more than junk mail due to the mortgage company selling/releasing your info. If you're wanting to get a HELOC, stick with either your mortgage company or a reputable bank rather than responding to the mailers, IMHO.

I easily get one or two of those mailers per day. My shredder gets a lot of use!

 

[pixiemomma]

You'll get about 5 of those a week....for the rest of your life.

Sadly, this is true.