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Texas Home Equity Loan
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Borrowers in Texas have a good news that the loan rates have become very attractive due to competition between the lenders. One can borrow relatively large sums at lower interest rates Out of the many loans available the texas home equity loans against homes is very attractive. With the property prices rising one can be surprised as to how much equity one has in home and one can start enjoying the money without having to worry about selling the house.
Home equity loans are home mortgages which enables a homeowner to convert equity on home into cash . Equity means the difference between the market value of home to all debts against it. As an example if market value of your home is $50000 and you have a loan of say $10000 then the equity is $40000.
The amount of loan that one can get is different with different lending firms. Some give 75% of equity , others to the full value and some even 125% of the value.The greatest advantage of this type of loan is that you don't have to take expansive loans like credit cards and other unsecured texas home equity loans and get things that you want by using the capital tied up in your home. There are other advantages that are listed as follows :
1.Home equity loans carry much lower rate of interests as compared to other type of loans .This obviously means lesser emi and lesser overall cost.
2.They are offered as a longer period loan and hence emis can be much lower. Thus making the repayments very easy.
3.The amount to be borrowed is more in these loans depending upon the level of equity of the home.
4.These are easier to get as they are considered to be secure to the lender. Even if the credit history of an individual is not flawless he can still get this loan
5.You can get the cash when it is needed without going in for the sale of your house.
Texas Real Estate Law: Before 1997 texas home equity loans were not allowed in Texas.Law was amended to permit home equity loans but it was made to include the strongest consumer protections in the nation .Some of the points raised are as follows :
1.Only one loan is allowed against a home at one time .
2.Total of all mortgage debt cannot exceed 80% of the value of house.
3.Regardless of how fast a loan is paid back , only one such loan is allowed per year.
4.Not everyone can take this loan .The individual must be licensed and certain safeguards are required to be provided by him .
5.The loan can be given for the repayment to another lender .
6.The security is to be of only home and other securities are not allowed to be given.
7. The closing of loan can only be done in a specified place and manner. It can not be closed before 12 days of applying for the loan. The lender is required to give the full details of his charges one day before the closing.
8.The payments have to be given after 3 days of the closing and in-between the borrower can withdraw the closing.
9.The borrower is protected in all respects as the procedure about the foreclosure of the house has to be done through a court and the lender cannot sue the borrower for matters regarding this loan .
But all said and done this is a very risky type of loan as far as your home is concerned. In case of a default of payments the lender does not have any right on the home of the defaulter in texas home equity loans , except in very rare cases. In most cases their home is a very valuable asset. If you are behind payments for a loan then you can be sued but you cant loose your home . But in this type of loan there is always a risk that the lender may offer to foreclose.
Hence precautions are a must at the time of seeking a loan . Some of them are:
1.Read documents carefully before signing and try to understand every postulate thoroughly.
2.Donot sign if you donot understand something or if it carries some blanks
3.It is always good to hire a real estate attorney to check papers and advise you before signing as the Texas laws are quite complex.
Read your loan documents carefully before closing to be sure they are correct and that you understand them. Never sign a loan document if you have questions about the meaning of its provisions or if it contains blanks. Texas real estate law can be quite complex, so you may wish to have a texas home equity loans real estate attorney review the documents to ensure that they are correctly drafted and to answer any questions you might have.
Other Resources: Office of the Consumer Credit Commissioner (OCCC) are the regulatory authority for credits in Texas . This has published many papers regarding the interests of the loan takers and it is beneficial to take their help in these matters.
Online shopping for Loans: All types of information is available on net these days .On visiting the sites of different firms one can come to know the loans offered by them. After choosing one that suits either they can be approached or online forms can be filled and the process started right from your home. Many deals are offered and they can be very easily compared. Like this you can know the offers from various firms , in general there are different schemes offered by them . It is quite possible that the best scheme suited for you may be present with one and completely absent with other. Hence it becomes a personal approach of rejecting and choosing when one goes and searches on line.
Conclusion: It goes without saying that texas home equity loans is a very useful but dangerous loan .If taken with all sorts of precautions and home work on net, this can be very useful .Seeking information on net can be very time saving and even money saving and one can find lenders who have suitable interest rates , suitable repayment periods and those can cater to your financial needs.
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