Home Equity Loan Rates Omaha
Home equity loan rates in Omaha are comparable with
nationwide rates. Home equity loans are used less than they
were a decade ago as a purchase money mortgage option. It was popular
to stack a second mortgage on top of a conventional first mortgage to
avoid paying mortgage insurance. The home equity loan rate would be a
little higher than the first mortgage rate, but collectively would end
up being less after the avoidance of PMI, private mortgage insurance,
was considered. At one time it was possible to use a home equity loan
to get 100% financing. That option is no longer available. Rarely will
a conventional loan allow less than 5% down counting both the first and
second mortgage. Now the rate on a first mortgage is based on the
cumulative loan to value ratio. Lenders want to see that borrowers have
a financial stake in the home.
Where a home equity loan is useful as a funding source is in the
purchase of investment real estate. The investor obtains a home equity
loan on his/her present house and uses the proceeds to buy or repair
the investment real estate. Visit our
Mortgage Services page for more information on mortgages and how a
home equity loan can work for you.
Discount commissions for sellers.
Cash rebates for buyers.