Applying for a home equity loan requires much of the same paperwork -- and fees -- as a first mortgage.
Applying for a home equity loan isn't as time-consuming and detailed as applying for a mortgage, but it still requires some work and fees. In this chapter, we'll tell you what you need to show the bank when you apply for a loan, and we'll detail the fees and closing costs you can expect to pay. Finally, we give you some reasons to refinance that home equity loan.
What you can expect to learn from this chapter:
- What lenders look for
Like applying for a mortgage, lenders look at your credit report and your income. But for a home equity loan, they also look at the LTV ratio.
- The cost of a home equity loan
You pay twice for a home equity loan: first you pay fees and closing costs, then you pay interest. Here's a look at what fees are in store.
- Refinancing a home equity loan
Here are five good reasons to refinance an existing home equity loan.