Buying or Selling a Home/home buying

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Expert: - 7/28/2010


Question
I would like to know if you personally think that it is better to do a home equity loan or take out a mortgage loan. Some people think that it is not good and some people say that it is. Is it true that home equity loans are cheaper and the interest rates are lower? And that you don't have to buy home insurance? Or is it not true? And is it true that a mortgage is better because all the insurance and escrow are included in the payment? But wouldn't it take longer because it is a longer term and the payment amount seems less because it is spread out over a 30 year term?  I would like your expertise in this area. P.S. The home equity loan would be for $45k and the term is 20 years, but we would try paying it off in less than 6 years. ( We have a piece of land that we are trying to sell and we would give it all in this new debt.) We paid our house in 10 years and it was for 30 years. Please advise asap so that we can either proceed or stop.

Answer
Hi Ester...keep in mind you can pay off a loan any time (unless called out that there is a predetermined pre-pay) sooner if you so choose...

due to the small amount of money $45,000 it may be easier to obtain the equity line...in fact if you can get an equity line... it could be for more but you only use say $45,000 this gives you options...

Best I can say is run your numbers in all directions.. your lender can do this for you... and see which you thinks matches what you are trying to do..and works best for you... consider all ... interest, points, term, and ability to pay off...

good luck

PS... land is difficult to sell... do not count on this as your way out of debt... make sure you can pay it each month until satisfied

Buying or Selling a Home

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Connie Wildasinn-Broker,GRI,RealtorŪ

Expertise

Broker,GRI,RealtorŪ, Investor since 1979. Buying or Selling Residential and Income/Investment Properties, How to understand the process, how to negotiate through the transaction, What to Look for - But more importantly 'What to lookout for!', How to tell if the time is right - or hold on and wait. Why not to listen to your friends and even your family members, Who really has your best interest at heart?. Understand why any market is a good market and how to spot a good investment for you! If you are looking in California.. check out my website www.MetroCalBrokers.com and if you need assistance in a neighborhood I don't service, I will locate a local agent to that area who actually knows their profession and can assist you in your needs!

Experience

4th generation Realtor in the real estate business, I have helped for over 2 decades clients buy and sell, I am the owner of a local brokerage in the Los Angeles /Long Beach area, and have been a top producing agent in the area since I became licensed. Working through a deal is different to every client, no two people or deals are exactly the same. Knowing how to bring professional advise to the table with clear and concise understanding of real estate world. I can help you handle your buying, selling and investing, managing a 1031 Exchange, working with Equity Sales, Probate, Pre-Foreclosure Regular and Short Sales there is little that I have not seen come across my desk over the decades!

Organizations
NAR, CAR, WCR, ABR, e-Pro, GRI, BKBIA, CHNA,SSG

Publications
Broker Agent Magazine Long Beach Business Journal Long Beach Press Telegram Signal Hill Tribune Grunion Gazette All Experts Zillow - Lead Agent - Advise Expert Truila - Advise Expert

Education/Credentials
Broker-owner, RealtorŪ, GRI,e-Pro, SSG-Short Sale Certified

Awards and Honors
Managing Broker for MetroCal Brokers. We merged my old brokerage with MetroCal this year, and we look forward to expansion and growth moving forward. We currently employ 30 Realtors and growing. 15 years running top selling agent in Long Beach, South Bay area California. Top Producer 5 years straight Re/Max, C21, Realtyworld.

Past/Present Clients
upon request = or check out our website www.MetroCalBrokers.com and check the Testimonials section!

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