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Can I still get a home equity loan with bad credit?

Submitted by on Wed, 11/24/2010 - 16:04
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I own my own home but am still paying off my mortgage. My son needs more money for his studies and we???ve tapped out on student loans and my credit cards have all maxed out. I was wondering what I could do and thought that a home equity loan with bad credit might be an option. I don???t know if it???s a good idea though. Please advise.


If you really have equity, and a lot of it, you should be able to get a loan. I think your son getting a part time job to chip in would help if he is not already. Like someone said today, Jean Chatsky I believe, there is always funding for education but there is no funding for retirement. Be careful and consult an expert financial planner.


Submitted by Frogpatch on Wed, 11/24/2010 - 16:19

Frogpatch

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Figure out how much you can afford to borrow. The best way to do this is with a home equity amortization calculator. You can also use a book containing amortization values. Determine a potential home equity loan amount, interest rate and term in months.

Keep in mind that home equity loan interest rates tend to run between 8 and 15%, and tend to be higher for people with bad credit. Also, you can usually only borrow 80% of your home's equity. Then, check the monthly payments that will be required to pay off the home equity loan, either in the online calculator or in the book's tables.


Submitted by paulcahill80 on Thu, 11/25/2010 - 09:43

paulcahill80

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