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Frequently Asked Questions
Q. What is an equity loan?
A. An equity loan is secured by the equity you have in your
homestead. Your "equity" is the value of your homestead minus any outstanding
debt already secured by your homestead.
Example:
$100,000 = Value of your homestead
$ 60,000 = Mortgage (loan to purchase home)
$ 40,000 = Equity in your homestead
Q. How could I use an equity loan?
A. You could use the money for any purchase. Such as
sending a child to college, paying medical expenses not covered by insurance, or
starting/expanding your own business. The equity you have in your homestead is
your money.
Q. Is there a limit on the amount a home owner can borrow?
A. Yes, all loans are limited to 80% of the
market value of the property in Texas. For example, if a home is worth $100,000
and the balance of the homeowners mortgage is $70,000 , the homeowner would be
able to borrow up to $10,000 under an equity loan. ($70,000 + $10,000 = $80,000
which is 80% of a $100,000 home.)
Q. What is an "interest only" loan?
A. This loan can cut some house payments almost in half!
You have a minimum payment per month. To pay it off you
just send what principal payment per month that you are comfortable with. Some
months are better than others as we all know.
Q. What is a reverse mortgage?
A. A reverse mortgage (RM) is a method for helping
house-rich, cash-poor unlock their equity and convert it into income without
having to sell their homes. Unlike an equity loan, which requires a borrower to
make monthly payments, a reverse mortgage borrower receives payments from a
lender.
Because borrowers do not make monthly payments, they cannot
default on a RM. Foreclosures are impossible by definition, they are strictly
prohibited.
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More Information, please
Lone Star Funding Partners, LLC
281 852-7836
Humble, TX 77346
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