If you are a first time borrower of a home equity loan it is imperative that you have a checklist of essential questions that you need to ask each and every lender. The answers to these questions will provide a valuable reference to base your comparisons on. What’s the interest rate? Knowing this is crucial. The interest rate will determine<!–the monthly payment you will need to make. You also need to know if the interest rate is of a fixed or adjustable nature. Fixed rate implies that the monthly payments will remain constant, while an adjustable rate implies that rates will fluctuate depending on market conditions.

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In adjustable rate, when will rates change? If your interest rate on the home equity loan is of the adjustable variety, you need to know three things: when the rate is going to change (that is under what conditions), how frequently will the rate change and what’s the average–>percentage by which the adjustable rate will change. What is the Annual Percentage Rate or APR? The APR on the home equity loan will determine the yearly payment you will need to make towards this.The higher the payment in terms of points, the lower is the interest rate.

In a nutshell, you need to put your house up for sale and include the home equity loan amount as part of sale price for house- Say you owe 100000 on your current home and have a 30000 H.E.loan. The minimum that you could afford to get for your house is 130,000. Now a reputable real estate agent will be able to advise you on what your home is WORTH. The worth may be more or less than what you need to get out of it. The housing market is in a decline right now and even if your house is worth more than 130,00 (if that was what you needed) you may not get anytakers at that price. An agent will help you figure out what amount and where you can get financing for a new home. I recntly went thru this myself. I could get what I wanted for my home but not find another home equal or better than mine for a comparible price where I wanted to move to. I decided not to take the job I had been offered because I simply could not afford it. I think if you are very determined to do this though that it is possible. The biggest thing you could do is find a fabulous real estate agent who is willing to spend the time working with you to point out all the great features . Many real estate companies offer online adverstising and I highly encourage you to do this as- it is free or very cheap and many, many more people will see your house. If you do this make sure you take really good, clear pictures and include LOTS of them. You can even do a video tour to post online at some agencies. Some agents want to take the pictures and they usaully do not do as much or as well as you would. I have a friend who is an agent in KY and she said it is because they just don’t have time to take and post a whole lot of pictures. This is a lame excuse. It does not take long to post pics if you know what you are doing. Make sure your agent is internet savy. Those that are will usually brag about it. Staging your house may be something worthwhile too. You know- have a professional stager come in and tell you what to remove and soemtimes rearrrange, add etc. This can help you sell your house much faster and for more. People looking for a home have a hard time piucturing their stuff in your house when all of your stuff is still present. One other tip- please DO NOT GET AN ADJUSTABLE RATE MORTAGE!!!! So many people are losing their homes due to increases in interest . I assume you know this but I had to say it. Good luck to you. I applaud you for trying to do this to make things better for your kid.