Please help....

[sweet_caligirl]

What is the name of your state? ca...What kind of fees do you usually pay to do a home equity loan? If your credit isn't so good are the fees higher? The company I am inquiring with said they would be about 8-9,000. Our credit is pretty bad and our scores are in the low 500's. Any suggestions. Oh another thing the company that I have been working with offered me a 4.88 percent loan but really haven't given me any details and I just called ameriquest and they were very open with all the details but said the rate would be 8.67 and after 2 years we could refiance and get a better rate.

Thank you, Christina Van Vliet

 

[MortgageGuru]

They should have disclosed all of the loan information to you within three days of your application. That is referred to as RESPA, Real Estate Settlement Procedures Act. Demand these documents from the lender. I can tell you as a fact that there is no way that they will be doing a 4% loan for you with those credit scores. It's impossible. Also, you need to shop around for a new mortgage. You do not have to pay $9,000 to get a loan. Loan officers don't work for free but you shouldn't have to pay more for a loan than what you would for a car. That's insane.

 

[rainmand]

Are the fees for a Home Equity Loan or a First Mortgage ? I ask because you mentioned the second Lender is going to refinance you into a better loan in 2 years, and that strategy usually happens with a first mortgage, not a HELOC. Those fees are crazy for a HELOC, but they could be reasonable for a first mortgage. What is the total amount of money you're financing?

 

[BriantheBanker]

too much info

Here's a tip. When applying for a mortgage, describe your credit accurately but do not seem desperate.
If you call and say, "my credit is bad, I don't know if you can help me, you're my last resort..." you are inviting/encouraging someone to possibly over charge or take advantage of your situation. (I'M NOT SAYING YOU DID THIS)
Of course no one says, CHARGE ME THE MAX, but the LO's perception may dictate their quote to you.
With 500 ish credit, you need to refinance your complete mortgage. HELOC, second mortgage, etc... ALL SYMANTICS, terminology.
You are not a candidate for a second/HELOC.
Refinancing your mortgage will get you better terms.
$9,000 in fee's would (maybe) be appropriate if you were borrowing $250k+. I say maybe because I charge differently than others. I try not to speak for others.

check around. The mortgage market is getting dry; depending on how much equity you borrow, you should be able to get a good deal.

Good luck,

BriantheBanker