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my credit is bad and a loan would really help. i would like to pay off somethings and consolidate the rest, what can i do? Why can’t the equity in my home speak for itself, i’ve never refinanced?

3 Responses to “I purchased my home in 1998 and would like to get a home equity line of credit for debt and repairs?”

1. James B on June 18th, 2009 6:51 pm

   A couple of years ago, the equity in your home would’ve been good enough, but not today. Since no investors want to go near real estate these days, and with homes falling in value daily, the “equity” in a home is relatively unknown. There are millions of people bailing on their mortgages and the lenders are stuck with the houses. They don’t want to own houses.
   I sold my house last fall. I had it on the market for about 7 months. I was still able to afford it, but I was sick of feeling “house poor” as I wasn’t really able to save money, and wasn’t able to put enough money aside for future repairs (which is essential if you own a home because things will always go wrong). Selling it was the best thing I’ve ever done. I’m renting a house of similar size in a nice neighborhood, and it’s costing me $1000 less each month than the house I owned! And I bought my house before the bubble.
   Today, frankly, your options are limited. An equity loan might be a good deal if you can get it and the interest rate is less than you’re already paying. However, if you’re already in debt, I can’t imagine that an equity loan would help your situation. Worse, if you’re not able to pay that loan, you can lose the house, and since you bought it in 1998, you should have a lot of equity in it. Have you considered selling it? I know that the market is not great, but in my area, I’ve noticed houses selling in about a month. And not owning a house has been a tremendous relief for me. If the roof leaks, I don’t have to worry about paying for it! Also, it’s better to be in control than have the bank in control. Home ownership is WAY overrated. The mortgage interest these days alone is more than rent, and then there’s insurance and taxes on top of that. It’s a really bad deal.

2. the_cinema_lover on June 21st, 2009 8:44 am

   If you have bad credit already why would you get ANOTHER loan? Doesn’t sound like that smart of a move to me. You don’t pile debt upon debt to get out of debt, do you? Oh, and the guy above me gave you an awesome answer. Kudos to him.

3. Steve D on June 23rd, 2009 10:28 pm

   This webpage lists some services that will get free quotes for you from several lenders, including ones that are willing to work with bad credit borrowers. I hope this helps:

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