If You Are Searching For A Loan To Cover The Current Mortgage Owed, You May Want To Consider A Fewoptions Before You Settle On Any One Option. The Bank Lenders Will Often Repossess Or Foreclosecontracts If The Borrower Cannot Pay For The Mortgage Loan. Thus, If You Are Searching For Equityloans To Refinance Your Home, You May Want To Consider Selling Your Home To Make Profit And Thenpurchasing A Foreclosed Home. This Is Often Wiser Than Taking Out A Second Loan, Since The Foreclosed Homes Are Often Sold At Afraction Of The Market Price. Otherwise, If You Are Searching For A Equity Loan, You May Want Toconsider Many Details Before Applying For The Loan. For Instance, If You Are Applying For Equity Loans, The Lender Will Factor The Amount Of Incomegenerated In The Home And Multiply It By 3 For A Single Borrower. However, If You Are Married Orapplying Jointly For An Equity Loan, Then The Lender Will Factor In The Repayments Based On The Firstapplicants Salary Times 3 The Greater Amount And The Joint Salary Times One Times The Second Salary,and Then Estimated 2 Of The Combined Salary. In Other Words, The Lender Will Combine Both Payments, Rolling It Into One Monthly Installment Andthe Estimated Amount Is What You Will Repay. Since You Are Taking Out An Equity Loan, Then Thelender Will Consider The Equity Of Your Home When Subtracting The Current Balance Owed On Theproperty.Last, We Can Look At An Example To Help You Appreciate Loan Amounts: Joint: Buyer One 30, 000 Per YearBuyer Two: 20,000 Per YearEquity Vs. Balance Vs. Loan:We Have In Mathematical Calculations: 30,000 X 3 20,000 110,000. Therefore, The Borrowercould Take Out An Equity Loan Up To 110, 000, But This Is Not Included The Cuts On The Equity Vs. Theamount Owed.
