Home Equity Loans Frequently Asked Questions

What Is A Home Equity Loan?

A home equity loan is a type of loan that allows a homeowner to borrow against the available equity they've built up in their home. For example, if your home is worth $200,000 and after paying your mortgage for a number of years you only owe $50,000, then you have $150,000 in equity in your home.

What Is A Home Equity Line Of Credit (HELOC)?

A HELOC is a revolving credit account, which means it operates a lot like a credit card. You can borrow money as you need it, up to a certain fixed limit. The amount that you borrow is subtracted from the fixed credit limit, and the remainder is still available to borrow during the draw period. Once the sum used is repaid, you can borrow it again. With a HELOC, you have access to cash as you need it. HELOCs also feature adjustable interest rates and flexible payment plans, much like credit cards. However, the number of years available to access the credit line is limited; afterwards, the loan's principal and interest must be repaid in monthly installments.

Why Tap into Your Home's Available Equity?

Because your house is used as collateral for a home equity loan, lenders generally charge lower interest rates than on unsecured loans. You can use the money for any purpose, from home improvements to college tuition to business expansion to real estate investment. You can use your loan to consolidate higher-priced debt, allowing you to avoid paying high interest rates on things like personal loans and credit cards. Interest payments on home loans are usually tax deductible (but a tax advisor should be consulted for individual situations), allowing you to save even more.

Is There A Home Equity Loan For People With Bad Credit?

At Countrywide Bank’s Full Spectrum Lending Division, we're eager to offer you the home equity loan to suit your individual needs. If you have a less than perfect credit history, there's no reason to be discouraged. You may have mortgage options you were not aware of. Even if you think your credit is less than perfect, you might qualify for a prime loan.

Even people who have been told by other lenders that they have bad credit may still have viable home loan options from Countrywide. So, don't let another lender's lack of flexibility or inability to offer a full spectrum of loan options rob you of hope. Our Loan Consultants are eager to help you get ahead with the right loan to help improve your financial situation. Call today at 1-800-909-8217.

Are There Refinance Home Equity Loan Options Available To Me?

Countrywide offers a wide range of refinancing options. If you have a home equity loan or HELOC, there are a number of reasons you may want to refinance. If you have an adjustable rate HELOC, you might be able to lock in a lower fixed rate. Call us now at 1-800-909-8217 to find out more!