I need more info on how HELOC loans work
I want to know how HELOC loans work? Do you need an appraisal to get the current value of your home? We bought our home for close to $400k. Mortgage is currently at $337k and appraisal is $370k. How much can we pull out given this situation? We are buying our retirement home and plan to rent out this current one. by leslie655 from Tempe, Arizona. Mar 3rd 2022
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
Many home equity loans will use any recent existing appraisal, or do an online only value check. Sometimes you'll need a new full regular appraisal. Only the lender after application can tell you exactly which version will be needed in your case. Most stand alone 2nd mortgages (HELOC) will allow you to go to 90% of the homes appraised value, so it would appear you probably can't get anything if the value is $380k. But call a local mortgage broker to find out exactly, as it would be pretty strange in todays market to have bought it for $400k, and it is only worth $370k. I lend in WI MN IA ND SD. Find me at WiMortgageBroker.com - Cambria Mortgage, NMLS 274132
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