When to Apply for a 100 Home Equity Loan

A 100% home equity loan is a second mortgage that allows a homeowner to borrow up to 100% the value of his home. Like a mortgage, the terms can be as long as 30 years, and the interest is generally tax deductible. The interest rates are lower, which can also mean lower monthly payments.

Uses for 100% Home Equity Loans

  • Home Improvements
  • College Education
  • Debt Consolidation
  • Other Personal Expenses, such as Medical
  • Business Expenses
  • Large Purchases

The Best Time to Apply

While it is best to apply for a 100% home equity loan when a need is less dire, it is also a good solution when a homeowner needs to bridge the gap during tough times. The payments are typically fixed, along with a fixed interest rate. This loan option is perfect when a large, single advance of funds needs to be accessed.

Many banks allow borrowers to apply online and will vary with low closing costs, or even no closing costs. It is recommended to research several institutions before borrowing to ensure the lowest costs involved, as well as the ease of transaction.