no equity loan
Beware of junk fees on home equity loan
DEAR BOB: After reading your recent list of "nonsense" mortgage junk or garbage fees some lenders try to impose, when I recently applied online for a home equity loan I realized I was about to become a victim of a major lender. The lender wants to charge me a loan origination fee, appraisal fee, credit report fee, processing fee, underwriting fee, flood certification, funding fee, $100 escrow settlement fee, $150 title fee, $15 courier fee, $15 wire fee, $75 recording fee, $80 intangible tax and $235 mortgage tax. What is your evaluation of these charges for a home equity loan? --Marydelle P.
DEAR MARYDELLE: Most of those are unnecessary junk fees you should not pay.
Purchase Bob Bruss reports online.
Virtually every local bank and credit union will eagerly make you a home equity loan or home equity credit line (HELOC) without any junk fees if you have a FICO (Fair Isaac and Co.) score around 700 or higher.
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Equitable solution
Her finances were skidding out of control until she shifted into reverse. The Northwest Side woman found a solution in a home loan that pays her a reverse mortgage on the modest home she bought in 1986. Tapping her homes equity, the loan provided Jackie Thomas money to pay off debts and will continue to provide money monthly. She is not required to pay anything toward the loan as long as she lives in the house. She or her heirs will repay the loan after the house is sold. The 81-year-old is among a growing number of older homeowners who have embraced reverse mortgages. Since January, the number of reverse mortgages nationwide has increased 77 percent from the 27,186 loans issued during the same period last year. In the 2005 federal fiscal year (October 2004 to September 2005), the Federal Housing Administration endorsed 43,131 reverse mortgages.