Home Equity Loans Company ? 7 Key Questions to Help You Choose One

Choosing the right home equity loan can be tricky; you have to consider interest rates and repayment schedules, among others. Choosing the right lender, however, does not have to be a difficult task. If you ask the right questions, you can pick the best lender for your needs. The following is a list of seven essential questions that you should ask any potential lender.

1. What are the terms? This will include interest rates and the length of the loan. Some lenders may require you to carry private mortgage insurance or to pay your mortgage through ACH deposit. Get the terms in writing, so that you can compare them with other lenders.

2. How about my credit? Your credit score may play a huge factor in deciding which lender to go through. If you have bad or no credit, many lenders may not be able to help you. So you will want to find a lender that offers sub-prime loans for borrowers of your credit status. Bad credit does not necessarily disqualify you for a loan, but it will make the process a bit more difficult.

3. What is their reputation? The lender will delve into your personal and financial history, so why shouldn't you do the same? If the company is public, you should have no trouble finding financial and news information. Look for recent mergers or restructurings that could indicate a potential problem. Be weary of lenders that are not publicly traded. Many lenders use the same underwriters, so do your homework beforehand.

4. How much will the loan cost me? Closing costs can be a major concern for most homeowners. You probably need the home equity loan because you are short on funds or in debt, so coming up with a few thousand dollars for closing costs can be all but impossible for many borrowers. Your lender should be able to provide you with a good faith estimate (GFE) that will outline the fees that you will be responsible for.

5. How long is the process? A typical home equity loan, should not take more than a month on average. Ask your lender how long the process will take from the initial application to receipt of the funds. This can be particularly critical if you are needed to do repairs on your home, such as purchasing a new water heater.

6. Is the staff knowledgeable? Never underestimate the power of a good customer service representative. Ask the loan officer and others in the office the various questions that you have. They should be knowledgeable on the loan process, and be able to guide you through the process.

7. Early payment penalty? If you won the lottery or got a big raise, would you be able to pay your loan off early? Many people forget to ask this question when choosing a lender, but it can save you thousands of dollars. So, make sure that if you choose to sell your home before it is paid off, you will be covered.

Use your common sense when choosing a home equity loan bank. Research the company just as you would with any major purchase. Don't be afraid to ask questions, and to try another lender if you don't get the answers that you desire. It is your home and your money on the line, so do your homework!

John Ross is a freelance author who writes articles about financial loans including: home equity loans company, online home equity loans, and fixed rate home equity loans. The Loanchbox is a user friendly website designed to inform beginners about home equity loans.

In The News:

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Baltimore Sun
Average Mortgage Rate Hits 5%, Lowest in Decades
New York Times, United States - 11 hours ago
Of course, buying a home is a more lengthy process than simply calling up a mortgage broker to refinance, and activity typically slows during the holiday ...
Long-Term Mortgage Rate Falls Again Wall Street Journal
Banks' mortgage rates fall below 5% Boston Globe
Homeowners with good credit scores are poised to capitalize on ... Baltimore Sun
AHN - Scripps Newsall 62 news articles

Washington Times
Refinancing suddenly booms
Honolulu Advertiser, HI - Jan 8, 2009
By Andrew Gomes Historically low interest rates recently have sparked a mortgage refinance boom in Hawai'i that is helping homeowners and lenders during ...
Low Mortgage Rates Bring Refinancing Boom MSNBC
Is It Time To Refinance Your Mortgage? Forbes
Rates lowest since '71; time to refinance? Modesto Bee
Reuters India - Washington Timesall 25 news articles

WJBF-TV
US Banks Offer Mortgages Below 5% After Fed Action
Bloomberg - 20 hours ago
The Mortgage Bankers Association’s index of applications to purchase a home or refinance a loan dropped to 1143.8 for the week ending Jan. ...
Mortgage rates fall to record low again Forbes
Bold government action can solve housing crisis North Texas e-News
Freddie Mac: Benchmark mortgage rate continues to new low MarketWatch
American Banker - Connecticut Postall 605 news articles

Lenders Backlogged By Refinancing Rush
Washington Post, United States - 9 minutes ago
Mortgage rates immediately plummeted well below 6 percent, breaking a psychological barrier. Refinance applications have soared each week since, ...

Boston Globe
Fed’s Rosengren Calls for ‘Concerted’ Fiscal, Monetary Policies
Bloomberg - 6 hours ago
... to purchase or refinance homes,” Rosengren said. The average rate on a 30-year fixed-rate mortgage dropped for a 10th week to 5.01 percent yesterday, ...
Rosengren sees path to recovery Boston Globe
Fed's Rosengren says recession more severe than thought Reuters
all 52 news articles

Mortgage applications down in latest survey
Forbes, NY - Jan 7, 2009
About 79.8 percent of applications came from borrowers seeking to refinance home loans at lower rates, down from 92.9 percent in the prior week, ...
REFILE-UPDATE 1-US mortgage demand dipped before Fed move-MBA Reuters
Fewer apply for home loans; credit line delinquencies increase Los Angeles Times
Week-to-week mortgage applications down 8.2% MarketWatch
KVOA.com - Originator Timesall 63 news articles

Boston Globe
Congressional Press Release on Mortgage Deal
Wall Street Journal - 11 hours ago
"Despite efforts by Congress to address this issue, not enough lenders have come to the table to help borrowers with bad mortgages refinance into new, ...
Citigroup reaches agreement with key senators on mortgage ... Minneapolis Star Tribune
Citigroup agrees to allow judges to help modify some mortgages IdahoStatesman.com
all 563 news articles

Waco banks seeing a boom in mortgage refinance applications
Waco Tribune Herald, TX - Jan 2, 2009
By Mike Copeland With mortgage rates hitting record lows, Mary Jo Teakell is seeing a growing backlog of refinance applications. “We’re quite busy right now ...
Borrowers seeking to refinance may face challenges WTOP
Mortgage refinancing skyrockets Cincinnati.com
As mortgage rates slide, refinancing applications take off Dallas Morning News
all 15 news articles

The very good reasons to refinance
Boston Globe, United States - 16 hours ago
When I wrote about the hidden cost of the additional years of mortgage payments, several people wrote in with very good reasons to refinance anyway. ...

Cardoza submits plan to refinance mortgages
Merced Sun-Star, CA - Jan 8, 2009
One homeowner, she said, has been trying to refinance his mortgage because he pays $3000 a month. The loan company refused to negotiate, she said. ...
Cardoza sponsors bill to reduce mortgage payments, stabilize ... Central Valley Business Times
Congressman Cardoza Introduces Housing Legislation ABC30.com
Congressman sees support for home refinancing bill Central Valley Business Times
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