Home Equity Loan
Can someone simplify a home equity loan for me?
Lets say I buy a house for $150,000, and its appraised value is $200,000. I've owned the home for a year. Is this enough equity to get a home equity loan?
Public Comments
- I think so, but not a $50k loan, because the bank will only do a certain percentage of the loan to value. Is a home equity loan such a good idea in this day & age, tho?
- It depends on how much equity you have in the house. If you have 20% equity in your home you can apply for a home equity loan using the 20% you actually own as a security for the loan. http://www.canadabanks.net/default.aspx?article=Equity+Loans+–+Home+Equity+Loans
