What is a good LTV% For Home Equity Loan?

Lenders who do HELOC's will typically go up to 80% to 85% loan to value.. Which would get you between $34K to 39K. The local credit union is a good source for this type of loan. Interest rates for HELOC's are typically higher then on a first lien position loan, so be prepared. They are also most always adjustable rates... you could also consider a "Cash Out" refinance.. This would get you the cash you need, and you can recast your complete loan over 30 years into a fixed rate mortgage. The benefit of a HELOC is that as you pay down your balance, you open up your credit line for future use, and you don't have to re apply every time you need to tap into it.. if you do decide to go the cash out refinance route.. then my best advice is to contact a LOCAL mortgage broker, not the local "Big" bank or credit union, and certainly not one of those 50 states internet lenders, and have them run you several loan scenarios for comparison...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

That is pretty good. Really anything below 80% loan to value is good so you eliminate Mortgage Insurance.

Yes that is very good. As mentioned before most banks or credit unions required your CLTV (combined loan to value - your first and home equity loan) to be 80% or below for the best rate. You should contact a local mortgage professional in your area and talk to them about the pros and cons of refinancing or getting a home equity loan. Good luck.

It sounds like David at Wells Fargo is pointing you in a good direction. Talk to a local lender. You'll probably find a local community bank or credit union will give you the best terms on a home equity line/loan. You'll find most will cap your total loans to be 75% of your value, meaning you should be able to get about $29500 without a problem, assuming your credit is good. I've seen some going as high as 85-90% on the home equity loans. I guess the question is,"how much do you really need?" A good, local mortgage person can get you squared away, I'm sure.

Before you run down to the Credit Union, you need to know about one of their best kept "Ugly" secrets. Most credit unions have a clause in their loan agreements commonly referred to as a Cross collateralization clause. The simple explanation is that they retain a security interest in the property you pledged as collateral essentially forever. You take out a HELOC, and the noted and deed of trust can indicate that even though you pay the balance to zero, they have the right to keep the security interest as long as you have any liability to them. Same goes with an auto loan. There are actual court cases where a credit union repo'd an automobile that was current because the borrower had missed payments on the CU issued credit card. Do you really want to be in a position where they can foreclose on your house, even if you owe them nothing on it? Generally, I like Credit Unions, but this is deceitful. Now you didn't say how big or what the purchase is, that you are planning, and this is an important piece of the information to properly guide you. Although I don't lend in OR, I'd be happy to discuss this in better detail with you so you can make the right decision. Give me a call if you are interested. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com