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Home Equity Loans with No Closing Costs
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Home Equity Loans
Home equity loans allow borrowers to take out a loan using their home’s equity as credit. The home’s current market value and the total amount left to pay on your mortgage are used to calculate how much you can borrow. This loan has a fixed timeline to be repaid.
There are two types of home equity loans. The first is a home equity line of credit, or “HELOC” loan. The second is a fixed rate equity loan. It is important to note that cash-out refinancing is not the same as a HELOC loan.
Home Equity Loans with No Closing Costs
In general, closing costs are included in calculating your home’s equity. They can include:
- Application fees
- Property appraisal costs
- Title fees
- Lawyer fees
- Property insurance
- Filing fees
Closing costs can be a not-insubstantial portion of your home equity loan, often several thousand dollars.
Benefits of No Closing Costs Loans
Excel Federal Credit Union offers no closing costs home equity loans to our borrowers. As long as you keep your account current and open for a set amount of time, we will happily waive your closing cost fees – often saving you thousands of dollars. Your loan officer can talk you through how to qualify for your no closing cost loan.
Which Loan is Right for You?
A HELOC loan is a variable interest rate loan, which means the amount you pay each month can change. Home equity loan rates are calculated based on the financial index, which varies over time, and a fixed margin, which will stay the same over the course of your loan. HELOC loans offer a home equity line of credit with a closed end date.
Fixed-rate home equity loans, on the other hand, are paid out as one lump sum. They have a fixed interest rate that is locked in over the course of your loan. These fixed monthly payments are often preferred by borrowers for ease of mind when paying bills each month. However, if the financial index dips during the course of your loan, you might end up missing out on a lower variable rate. A fixed-rate loan will also have smaller payments the longer the loan term but it will cost more as you pay interest over time.
In order to qualify for a fixed rate equity loan, you usually have to borrow a minimum amount of money. You also have to qualify by having an adequate credit score and good loan history.
Let Excel FCU Help You
Interested in taking out a home equity loan? We offer some of the best home equity loans out there. Reach out today, and an Excel FCU expert will walk you through the process.
Can You Get A HELOC Without Proof Of Income?
It is often possible to qualify for home equity loans without proof of income. This is determined on a case-by-case basis, depending on the equity of your home, credit score, and other factors. It may also affect your home equity loan rate.
What Debt-To-Income Ratio Is Needed For A HELOC?
There is no firm debt-to-income ratio required to qualify for a home equity loan. Lenders generally look for borrowers with a debt-to-income ratio that is lower than 40%. However, this is determined on a case-by-case basis and can vary. Reach out to Excel Federal Credit Union today to learn if you qualify for a home equity loan.
Why Take Out A Home Equity Loan?
There are as many reasons to take out a home equity loan as there are borrowers. Some common reasons include:
- Debt consolidation
- Education expenses
- Home remodeling and home improvements
- Moving costs
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Found a loan that looks right for you? Let’s get started!