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Advantage Home Equity

Using Home Equity to Your Advantage

What rate of return is the bank paying you for the equity in your home? Zip Zero Zilch! Use the equity to pay off high interest credit cards ...

Despite rising home equity, you might want to think twice about cash-out refinancing

Warning: Your home is not an ATM.

Pulling cash out of the equity in the home was a factor that led to the market crash in 2008.  Nevertheless, cash-out refinance loans are on the rise — again.

Using cash-out refinancing, homeowners pay off an existing mortgage by creating a new mortgage with a higher loan balance.  The homeowner keeps the difference between the old mortgage and the new one, and can pocket (or spend) the cash.

As an example, you can refinance a $300,000 loan with a $350,000 one, walking away with $50,000 cash minus closing costs.

The amount of money Americans are pulling out of equity is significant.

In the second quarter of 2017 alone, the nationwide total dollar volume of equity cashed out was $15 billion, up $1.2 billion from the first quarter of 2017, according to Freddie Mac’s most recent Quarterly Refinance Statistics report.

Source: https://www.washingtonpost.com/news/where-we-live/wp/2017/11/13/despite-rising-home-equity-you-might-want-to-think-twice-about-cash-out-refinancing/

What's in the Senate Republicans' tax bill

If the House and Senate each pass their own bills and have to reconcile the differences between them, the SALT deduction could be a huge sticking point.

Both bills, however, make one big exception: Business owners and partners who pay tax on their company's profits through their individual returns would still get to deduct their state and local taxes as a business expense .

Expand the child tax credit: The Senate GOP bill increases the child tax credit to $1,650 per child, up from $1,000 today, and slightly above the $1,600 proposed in the House bill.

Senate GOP tax writers would make the credit available for any children under 18, up from today's under-17 age limit.

But the $650 increase won't be available to the lowest income families if they don't end up owing federal income taxes. That's because unlike the first $1,000, the extra $650 wouldn't be refundable. When a credit is refundable, it means you still can get money from the government because of the credit, even when your federal income tax bill is zero.

Any advantage between joint and single home equity lines?

Me and my wife are thinking about it, but not sure if to go with joint or single? What are pros and cons?


TAGS: Mortgages, Home Loan, Bank, Banking, Finance.


It's an equity line. It HAS to be titled at least in the same manner as the house. If the house is a joint ownership then so WILL the loan. They will demand all owners pledge to the loan.