Self Employed Equity Loans

If you are self-employed, you will go through slightly different process when filling out an application for an equity loan than most borrowers. Lenders often require that the self-employed supply at least three years of tax returns. Therefore, if you are self-employed seeking home equity loans, you may want to know that your broker is experienced in various types of loans, including self-employed loans where no proof of income may be required.

As a rule self-employed borrowers must be self-employed for two years or more to receive a loan. Today, lenders are making it easy for the self-employed, since scores of individuals today are self-employed. Many lenders will offer competitive rates to the self-employed to help them get ahead of the game. You may be required by a few lenders for home equity loans to prove with audited accounts showing three years of self employment history. If you do not have this proof, the lender may require a letter of confirmation from your accountant.

Lenders are tighter on this kind of loan because of all the controversy in the market.

If you are searching for a home equity loan and are running a small business, make sure you supply the facts to the loan officer where you intend to get the loan. The loan officer will review the details and search out the market for loans available to the self-employed. Few lenders will offer self-employed personal loans in connection with mortgage loans.

Equity Loan Comparison

When considering equity loans, borrowers are wise to weigh out the difference in interest rates for refinancing, equity loans, and credit lines. Loans are often based on fixed rate, adjustable rates, prime rates, and so forth. If the equity has dropped below market value, then refinancing the home may be a better option than home equity loans or credit lines.

Refinancing is a source of releasing “further money,” so that the borrower has extra cash to spend. Furthermore, the refinancing presents a scapegoat for recovering the equity on the home value. In other words, if the market value dropped, refinancing is your ticket to increase the equity on your home. Thus, if you want to remodel your home, roll your bills into one, payoff tuition, or else make new purchases, then the home equity loans are most likely choice.

On the other hand, if you feel that you will need extra cash over the next ten years, then you may want to consider the lines of credit offered. The lines of credits are prime rate loans with stipulations, but for the most part, if you need money it is available. Most lenders provide their own types of checks to the borrower when taking out credit lines.

Thus, it depends on your needs, but reviewing your different options can help you decide. If you need to rebuild the equity on your home, then refinancing is the better option; while, if you are considering debt consolidation, then home equity loans are your best bet. On the other hand, if you need on going cash, then credit lines are the best choice.

Finally, reviewing each option is the best solution for finding the right loans; no matter what option you choose, you should spend some time reviewing your different options to ensure you are getting the best possible rates from a reputable company.

Home Equity Loans

Homeowners who consider equity loans may end up losing over time. If the borrower is getting the loan, he may be paying more than what he was paying in the first place, which is why it is crucial to check the equity on your home before considering a mortgage equity loan.

The equity is the value of your home subtracting the amount owed, plus the increase of market value. If your home was purchased at the price of $200,000 a few years ago, the property value may be worth twice theamount now.

Many homeowners will take out loans to improve their home, believing that modernizing the home will increase the value, but these people fail to realize that the market equity rates are factored into the value of the home.

Home improvement is always good, but if it is not needed, an extra loan can put you deeper in debt. Even if you take out a personal loan to build equity in your home, you are paying back the loan plus interest rates for material that you probably could have saved to purchase in the first place.

Thus, home equity loans are additional loans taking out on a home. The homeowner will re-apply for a mortgage loan and agree to pay costs, fees, interest and capital toward the loan. Therefore, to avoid loss, the homeowner would be wise to sit down and consider why he needs the loan in the first place.

If the loan is to reduce debt, then he will need to find a loan that will offer lower capital, lower interest rates, and cost and fees combined into the payments. Finally, if you are searching for equity loans, you may want to consider the loans that offer money back after you have repaid your mortgage for more than six months.