Equity Mortgage – Where to Find the Best Deals Everytime

You can get a home equity mortgage loan from almost any banking or mortgage institution. A broker, your local bank, big nationwide banks, credit unions, or investment firms like Etrade and others all sell home equity mortgages.

But which is the best one to use for a home equity mortgage loan?

This is the only time I would say not to use a mortgage broker or a smaller mortgage company and here’s why. A home equity second mortgage is not a broker’s forte. They want to make a certain amount on a loan and they get paid as a percentage of the loan amount.

Since a home equity mortgage loan is usually much smaller than a first mortgage, they have to charge much more than other big companies to make it worth their while. And with the credit crunch in full swing, a broker doesn’t have access anymore to the same home equity mortgage products that the big banks do.

You could still use a broker if you’re getting a home equity mortgage at the same time as a first mortgage. The broker makes the bulk of their commission off the first mortgage and it is just easier to get both loans at the same place.

Big banks are the only way to go for a home equity mortgage loan.

If you need a home equity mortgage loan then you have to look to the bigger banking institutions. Compare a home equity mortgage loan with companies like Countrywide, Citibank, Wells Fargo, etc. Then, call the bank where you have your checking accounts. If you have investment accounts, call them and see if they offer a home equity second mortgage as a product.

How do you compare a home equity mortgage loan?

Obviously, the rate and costs are important but you have to also uncover the fees for a home equity second mortgage.

The fees to watch out for are:

1. Prepayment fees. Ask if there is a fee to pay off and/or close your home equity mortgage before a certain time. These are also called cancellation fees.
2. Usage fees. Some companies charge when you don’t use your line of credit for a home equity mortgage.
3. Annual fees. Just like a credit card there may be an annual fee.

The home equity mortgage loan is sometimes just the loss leader to get in your pockets with something else. They may hold a super low rate over your head for a home equity mortgage loan to get you to transfer all your checking and savings accounts over to them.

One place you may not think of is a credit union. Check them out too. They may have better options for you not only for a home equity mortgage loan but for all your banking needs as well.

Don’t just go with the first company you contact for a home equity second mortgage. Compare many different ones to find out which home equity mortgage loan really fits your situation and keeps more money in your pocket.

Good Luck!

Author: Rob K. Blake
Published November 30, 2007