The Chronicle of the Horse
MagazineNewsHorse SportsHorse CareCOTH StoreVoicesThe Chronicle UntackedDirectoriesMarketplaceDates & Results
 
Results 1 to 7 of 7
  1. #1
    Join Date
    Feb. 3, 2012
    Posts
    4

    Default Taking out a loan

    How can I take out a $20,000 loan? Am I being unrealistic?

    I need approximately this amount to do some home and barn repairs. I called the bank that I have my mortgage with, and they told me I only have 2 options, to refinance and only get $5000 or take out a line of credit and get $10,000. This was based on what I still owe on my house. The line of credit seems like a no-go because it's a variable rate loan.
    Should I go to another bank and see what they'll give me (I have my checking and savings with another bank)? Should I put up my car and truck as collateral? Should I just accept I'll never get that much?
    I need help and advice



  2. #2
    Join Date
    Nov. 2, 2001
    Location
    In Jingle Town
    Posts
    35,184

    Default

    certainly, shop around.

    However if they want you to refinance and only give you 5k...how much of the purchase price do you still owe?
    Quote Originally Posted by Bristol Bay View Post
    Try setting your broomstick to fly at a lower altitude.
    GNU Terry Prachett



  3. #3
    Join Date
    Feb. 3, 2012
    Posts
    4

    Default

    I've only had the mortgage for 2 years. The house was valued at $140,000 at the time. The loan was for $133,000 and I still owe $102,000.

    Another issue:I'm afraid to get the house appraised again because the whole ground floor of the house is gutted (down to studs and sub-floor). My bf started on the project because I was just paying for supplies paycheck to paycheck. But we soon realized that we needed to fix a lot more and a lot sooner than expected. If the house didn't need to be done by the end of the summer, I'd be fine with fixing a little at a time.



  4. #4
    Join Date
    Dec. 31, 2000
    Location
    El Paso, TX
    Posts
    14,869

    Default

    Most home equity loans will loan up to 80% of the value of the home. That means if the house is worth 140k, you could have loans out equalling 112k approx. So that is where they are getting the 10k.

    Try a cash out refi. You should be able to get 20k over your payoff, as long as your home appraises for your payoff plus the 20k.

    Check with Lending tree or Quicken.
    Hillary Clinton - proven liar, cheat, traitor and defender of rapists! Anyone but Hillary 2016! https://www.facebook.com/AntiHillary2016



  5. #5
    Join Date
    Feb. 3, 2012
    Posts
    4

    Default

    Quote Originally Posted by jetsmom View Post
    Most home equity loans will loan up to 80% of the value of the home. That means if the house is worth 140k, you could have loans out equalling 112k approx. So that is where they are getting the 10k.

    Try a cash out refi. You should be able to get 20k over your payoff, as long as your home appraises for your payoff plus the 20k.

    Check with Lending tree or Quicken.
    I understand where they got the numbers from and that makes me afraid that those amounts are going to be the same bank to bank.
    I'll look into Lending Tree and Quicken....thanks!



  6. #6
    Join Date
    Aug. 17, 2004
    Location
    Rixeyville, VA
    Posts
    7,132

    Default

    Most commercial banks are going to have the same rules. Plus getting a decent appraisal if the bottom of the house is completely gutted is going to be very difficult.

    You might want to talk to Farm Credit. They do offer loans for farms, barns, etc.

    Why does the house have to be finished by the end of summer?
    Where Fjeral Norwegian Fjords Rule
    http://www.ironwood-farm.com



  7. #7
    Join Date
    Dec. 1, 2007
    Location
    Gettysburg, PA
    Posts
    2,673

    Default

    Quote Originally Posted by OTalter View Post
    How can I take out a $20,000 loan? Am I being unrealistic?

    The line of credit seems like a no-go because it's a variable rate loan.
    We have a variable rate line of credit. The good news is rates are at record lows, so that rate is really good. Also, word is they are not going to touch rates all this year. And they shouldn't shoot up at rocket speed. If they look like they are going up you can find a re-fi and roll it in. In a year, you will have more equity in the home and home values have been creeping up, so it should be doable. My friend is doing a no cost re-fi and our bank is doing ours now and it cost $250.

    Then you can look to other loans to give you the rest which may be easier at a smaller amount (like using the truck as collateral)
    Epona Farm
    Irish Draughts and Irish Draught Sport horses

    Join us on Facebook



Similar Threads

  1. Construction Loan for Farm?
    By Seasons in forum Around The Farm
    Replies: 18
    Last Post: Oct. 15, 2012, 01:28 PM
  2. Replies: 9
    Last Post: Jul. 3, 2010, 04:28 PM
  3. Does anyone here loan out bits????
    By Tobias in forum Hunter/Jumper
    Replies: 9
    Last Post: Jun. 22, 2010, 10:12 PM
  4. Replies: 63
    Last Post: Mar. 31, 2010, 09:41 AM
  5. Couldnt get a loan for our barn... now what
    By TXnGA in forum Around The Farm
    Replies: 51
    Last Post: Aug. 21, 2009, 09:52 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •