california equity home loans

With California's bankruptcy laws, it is easier to keep your home after filing than in many other states. Homeowners have also benefited from 103% rise in property values from 2000 to 2005. After a bankruptcy, your available home equity can help you rebuild your credit standing and secure a low interest short term loan.

How To Use A Home Equity Loan

A home equity loan can act much like a credit card but with your home as collateral. The lender issues you a line of credit with checks and a credit card, which you use to make purchases. Each month you receive a statement with your balance, the interest charge, and minimum payment due.

By paying the balance on time for at least six months, you can qualify for an unsecured credit card with many major lenders. In a year or two, you can be eligible for almost any sub prime loan. With two years of growing your savings, maintaining low debt levels, and paying bills on time, you can have a good credit score.

Lenders also make available second mortgages to those with recent bankruptcies. Subprime mortgages give you a sum of money, you gave five to ten years of the floating interest rates.

Where To Apply For A Home Equity Loan

Any lender doing business in California must be licensed by the state. This protects you in part from fraudulent and predator lenders. The majority of national and many local companies are licensed and provide favorable terms for those with poor credit.

However, you can save yourself hundreds, even thousands of dollars your home equity loan by doing some comparison shopping. Go online to ask for loan quotes based on your credit score and history. In a short time, you can compare rates, fees, and terms to find the most favorable loan for you.

Remember too that your credit score can be in prime standing in as little as two years. So make sure you have a refinancing option with your equity loan. This may mean that the lender automatically refinances your loan at prime rates on a specific date or that you don't have any early payment fees if you refinance with a different lender.

Visit California Lending Hub to see our Recommended After Bankruptcy Home Equity Lenders Who Service All Areas of California, whether you are looking for home purchase, refinance or a home equity loan.

california equity home loans

Home equity loans are regulated in California to limit fees and caps.
No matter where your financial company is based, they will have to
follow these regulations if you are living in California. By expanding your
search to national financing companies, you can find competitive rates
and terms that still follow California law.

Providing Full Home Equity Disclosure

Many of the basic ideas of the federal "Truth In Lending Act" are based
off of California financing law. By using lenders who follow California
financing laws, you can protect yourself from predatory lending.

For example, one such California principle is the idea of full
disclosure, listing out interest rate, fees, and terms before signing a loan
contract. In California, lenders must offer contract copies before
application and before using the credit.

It is a good idea to look over the fees and terms to be sure they are
fair and meet your needs. For example, if you find a prepayment penalty,
then you may want to negotiate a waiver or find a different lender.

Placing Caps on Home Equity Loan Fees and Terms

California laws also place caps on fees and terms, particularly with
sub prime loans. For example, interest cannot be charged on a loan until
one day after closing. There are also limits on late fees and early
payment.

Large financial companies have been prosecuted in California for
failing to meet regulations. So even with the biggest names, look over the
terms to be sure they are not overcharging you.

Shopping Outside of California for Best Home Equity Loan

Even with local laws, you can still search outside of California for
low rates. By expanding your search online, you can find competitive
rates and terms than still meet California law.

Start with a broker site that will link you to several lenders. By
providing your address, financial companies will be aware of the unique
laws related to your loan quote.

Be A Smart California Home Equity Loan Shopper

Your California address won't protect you from unscrupulous lenders. Be
sure that you practice good credit habits by reading and understanding
all your loan terms. Also, compare rates and fees with other lenders to
be sure they are inline with the market.

Here are our Recommended Home Equity Loan Companies Online.

Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.

california equity home loans