Home Equity Loan,Energy Efficien Home And Healthy Living

Before you can price your home or determine how much collateral or equity it represents in order to get a home loan, it's necessary to figure out its market value. With the help of a trained and experienced real estate professional, you can ascertain the value of your home within a matter of days.

Two methods are generally used, and both involve written estimates. Depending upon whether you use the appraisal method or the comparative market approach, you'll engage the services of a licensed appraiser or real estate agent.

Appraisals and Appraisers
Appraisers are required to complete stringent coursework and pass a difficult exam before they're awarded a license. In most jurisdictions, they must then enter into an apprenticeship or internship that may last up to two years, before they're considered fully independent, credentialed appraisers. At that point, they're qualified to give estimates for first or second mortgages.

When you hire one to do an appraisal, he will charge a fee-ranging from $200 to $400 in most cases-for a thoroughly detailed and comprehensive written and certified estimate of how much your house is worth. The results are based on dozens of criteria, including lot size, location, square footage, amenities, and quality of construction.

Comparative Market Analysis
Usually referred to by realtors as "comps," the comparative market analysis-or CMA-is a less formal estimate of value, based primarily on recent home sales data in your neighborhood. The CMA can be done free of charge, and is usually an excellent way to ascertain current market value.

Most brokers or listing agents will perform a CMA as a professional courtesy, and can generally produce results within a matter of days, if not hours, thanks to their access to real estate database information.

Most lenders require a recent appraisal as part of the loan application process for a home mortgage or home equity loan, charging the cost of the appraisal to the homeowner. As a result, most consumers forego an official appraisal in lieu of a CMA. This gives a relatively accurate picture of what the property is worth, before spending any money.

A wise man once said, "Leave no stone unturned." While said wise man was probably speaking in general terms, his words of wisdom also apply to saving money on home equity loans. By following these four tips, you can conduct a thorough, disciplined search for a home equity loan and save yourself some serious cash in the process.

1.Who's on first? One thing is for certain: lenders can never finance too many loans. Start your search by contacting the lender who holds your first mortgage. Tell them that you're shopping for a home equity loan and that you'd like to know the best rate that they can offer you, and stay with them if the price is right. You'll be surprised at how far they'll stretch to keep your business with them.

2.Go for broker. Mortgage brokers sometimes get a bad rap; but the ones who are reputable and experienced can really help you. Because they have access to a wide range of lenders, they can quickly do your comparison-shopping for you.

3.The more, the merrier. If you don't choose a broker, make sure that you check out numerous lenders. Screen as many as possible, checking on rates and closing costs. The Internet is particularly helpful in this arena, allowing you to shop many lenders in a short period of time.

4.Show me the home equity loan rate. Your first question when shopping for a home equity loan is, "What's the rate?" But don't stop there. Make sure that you ask about all the closing costs-especially fees-that are involved with a home equity loan or home equity line of credit (HELOC). These can vary greatly from lender to lender.

By doing your research, you'll have indisputable proof that the wise man who leaves no stone unturned will find a honey of a home equity loan. The wise man, of course, will be you.

Traditional bridge loans are appropriately named, because they are designed to help people bridge the financial gap between one home and another. For example, if you buy a new home before selling your old one, you can borrow money with a bridge loan to help cover such things as dual mortgage payments, the down payment on your new home, closing costs, moving expenses, and broker fees.

What's the catch? Interest rates and repayment installments on bridge loans aren't cheap, and can hit you deep in your pocket, just when you're trying to conserve money. One less costly alternative to borrowing a typical bridge loan is to use a home equity loan instead.Tips for using home equity loans as a bridge

There's one major rule you should heed if you're thinking of taking this path: apply for your home equity loan BEFORE you put your house on the market. Most lenders won't let you take out a home equity loan if your property is listed on the MLS (Multiple Listing Service), so this strategy requires some proactive movement on your part. There are banks that will grant you a home equity loan after your house is listed, but they are few and far between.

Therefore, schedule your home equity loan closing before you list your property for sale. As soon as the home equity loan goes through, you can sock away the cash, and put your house on the market. Choose a loan that allows you to make monthly payments of interest only-and not principal-to improve your temporary cash flow situation.

If your house sells within a month or two, you may need to make only one small payment before it closes. At closing you'll pay off the home equity loan and be done with it. Essentially, you will have crossed the bridge before you even got to it.