What is the best way to finance a backyard cottage? Here is advice from Joseph Lancaster at Verity Credit Union.
Construction loans are very hard to come by these days so the easiest option for someone looking to finance a cottage is to get a home equity loan (aka second mortgage) on their current residence. At Verity Credit Union, we currently pay the closing cost for all home equity loans (not including appraisals if deemed necessary) and have very competitive rates.
HELOC’s (Home Equity Line Of Credit) are great options for people building cottages because they work like credit cards: you have a credit limit (say $100,000) and a balance that your payment is based on (minimum payment is interest only). Our HELOC’s range from 5.5% to 6.5% APR depending on the Combined Loan to Value ratio (CLTV) of the home. Apply soon, as Verity currently has an Intro Rate Special on HELOC’s: 4.49% APR through June 30, 2010 (reverts to qualified rate on July 1, 2010).
We also have two fixed rate home equity loan products: a 15 year fixed loan and a 30/15 fixed loan, which is amortized over 30 years to keep the payment down, with a balloon payment due after 15 years. These fixed rate products start at 6.24% APR and with 3 possible discounts of 25 basis points each your rate could be as low as 5.49% APR. The rates of our fixed rate products are based on CLTV and credit score and have no annual fee.
For more information please contact me, Joe Lancaster, at 206-315-6718 or JosephL@veritycu.com.
No comments:
Post a Comment
have a question