Getting a Home Equity Loan with Bad Credit in Texas
Up until 1998, home equity loans were illegal in the state of Texas. Fortunately, the law that prevented homeowners in Texas from borrowing from their equity has been amended. Anyone who owns their own home can now draw out the extra equity that they have built up–this includes homeowners with bad credit.
Getting Approved for a Bad Credit Home Equity Loan
Bad credit home equity loans are one of the easiest loans to get approved for. These types of loans are secured by your home, which means you are the one Debt Relief Texas accepting most of the risk. If you default on the payments, you lose your home. No matter how bad your credit is you should be able to get approved for a Texas home equity loan. All you need to do is prove to the lender that you can afford the monthly loan payments.
How Bad Credit Affects Home Equity Loan Rates
Even though getting a home equity loan with bad credit in Texas is easy, there will be a price to pay. This price is mainly in the form of interest. Having bad credit means that you will pay a higher rate than the average borrower. For example, the current rate on Texas home equity loans averages 8.16 percent. If you have recently filed bankruptcy or if you have more than a few blemishes on your credit, you can expect to pay a double-digit rate.
Comparing Home Equity Loan Lenders
A home equity loan can be one of the best ways to get money for debt consolidation, college tuition, medical bills, home improvements, and other big-ticket expenses. At the same time, you don’t want to waste the equity that has built in your home. When getting a bad credit home equity loan in Texas, it is imperative that you take time to shop around and compare lenders. Rates, terms, and lending fees can vary significantly. Be a smart shopper and make sure that you get the best deal possible.