If your mortgage is paid off shouldn't it be easier to get an equity loan?
The absence of a mortgage does not affect your "qualifications" for a HELOC. Rather, when calculating the amount of the new loan, or the equity available to lend, rather than subtracting the usual balance of an existing mortgage, here, you will qualify for a higher amount. Remember that HELOC's follow the Prime index and lately, it has been climbing ridiculously. The primary difference between a HELOC and an amortized loan is the repayment calculation. In this climate, I would gauge need with payment amount cautiously.
You would think so but lending criteria is driven by other considerations in addition to collateral.......the borrower's overall debt to income ratio (i.e. cash flow available to pay the debt) and the borrower's credit history are strong factors in loan decisions.
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