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Irish Negative Equity Mortgage - A New Beginning

A different way of looking at an Irish Negative Equity Mortgage from www.newbeginning.ie I posted this video because RTE take down their ...

How to get equity out of your home

In this article:

How to get equity out of your home? Here are the four most popular ways:

Cash-out refinance FHA 203(k) refinance for home improvements Home equity loan Home equity line of credit

Any of those could be perfect — or damaging. Read on to discover which suits you best.

Verify your new rate (Sep 12th, 2018) What is equity?

Equity is simply the amount by which the current market value of your home exceeds your mortgage balance today. If your property value is $200,000 and you owe $100,000, the difference between its worth and its value equals your home equity.

Your loan-to-value (LTV) ratio would be, in that case, 50 percent. because the $100,000 loan divided by the $200,000 value equals .5, or 50 percent.

If your mortgage balance exceeds the property value, as occurred in many places during the Great Recession, you are said to be “underwater” or have “negative equity.” Fortunately, that’s not the case for most of us.

Why it might not be a good idea to combine a mortgage that's almost paid off with a home-equity loan

Q : I have four and a half years left on my mortgage. I also have a home-equity loan. Would it be wise to combine the two into one loan?

A : While it sounds simpler to make one payment instead of two, getting a new loan would be just about the worst decision you could make.

At this point in the amortization cycle, every mortgage payment you make toward your primary home loan contains very little interest and is mostly big chunks of principal. So you’re paying it off virtually dollar for dollar. This means that a $1,000 mortgage payment is probably paying down what you owe on the loan by about $900. Early on in your loan, you paid mostly interest and very little principal, but now it’s the reverse.

It’s hard to imagine another loan product that would benefit you quite as much if the goal is to get your primary mortgage paid off as quickly as possible. Having said that, we don’t know how much is left on your home-equity loan or what interest rate you have on that loan. Say you have $20,000 still owing on your equity line and $50,000 left to pay on your home mortgage. In less than five years, your home mortgage will be paid off in full.

Can a new home equity loan amount be larger than your mortgage balance?

We currently have a home equity loan and a mortgage, but want to pay off credit card debt.


You should be able to technically do this as long as the new home equity loan + the 1st mortgage are not more than 85% of the home's total value. This is generally the cap.

So if you have a home that's worth $200,000: 85% of that is 170,000.