Tips & FAQs Loan Programs Credit Bankruptcy
Learn more about debt consolidation and potential tax advantages, and get answers to Frequently Asked Questions.
Q: What is a home equity loan?
A: A home equity loan is a form of credit in which your home serves as collateral. A home equity loan has a fixed interest rate and term.
Q: What is a home equity line of credit?
A: A home equity line of credit is a form of revolving credit in which your home serves as collateral. Home equity lines of credit feature a fixed interest rate with ready access to your available credit.
Q: Is the interest tax deductible?
A: In most cases the interest on a home equity loan or line of credit of up to $100,000, and a maximum loan-to-value ratio of 100%, is tax deductible. Consult your tax advisor about your specific situation. IRS Publication #936 "Home Mortgage Interest Deduction" has more information.
Q: How much can I borrow?
A: An important factor in determining your credit limit is the available equity in your home. Equity is determined by taking a percentage (for example 80%, 90% or 100%) of your home's appraised or fair market value, and subtracting the balances of any outstanding mortgages on the property. We make home equity loans up to $100,000 and more. All loans are subject to credit approval.
Q: What are the terms?
A: TwinCity Lending has a range of terms to meet your specific needs.
Q: Must I occupy the residence I'm using as collateral?
A: You do not have to occupy the residence you are using as collateral unless you are requesting a home equity loan or line of credit accessing over 80% of your available equity.
Q: How do I apply?
A: You can fast track your loan by applying over the phone. Contact TwinCity Lending at 651-303-4236 or 612-338-2810 and speak directly to a loan officer. Once the application is completed, we will schedule a time to meet you at your home and pick up any additional documentation. After your representative picks up the documentation, a residential appraisal can be ordered to verify the actual value of the property. If approved, we will schedule an appointment to close the loan at a convenient location for you.
Q: What information will I need to provide when I apply?
A: To start the application process, you will need to provide the following documentation. Other information may be needed depending upon the circumstances.
- Applicant(s) residence and work history (2 most recent pay stubs, last 2 years' W2s)
- The last copy of your mortgage statement
- Estimated value of your home
- Contact information for your homeowner's insurance
- Account names and balances for any debts you want to consolidate
For further assistance contact a TwinCity Lending representative at 651-303-4236 or 612-338-2810.
Equal Housing Lender
1. Consult your tax advisor regarding the deductibility of interest.
2. All loans subject to credit approval.
Tips & FAQs Loan Programs Credit Bankruptcy
Fixed Rate Mortgages
The most common type of mortgage program where your monthly payments for interest and principal never change.
Adjustable Rate Mortgages (ARM)
These loans begin with an interest rate that is lower than a comparable fixed rate mortgage, but the rate changes at specified intervals.
Standard ARMS and the Differences
Choosing an ARM with an index that reacts quickly lets you take full advantage of falling interest rates.
Introductory Rate ARM's
Most ARM's have a low introductory rate, which is good anywhere from 1 month to as long as 10 years.
Reverse Mortgages
A Special type of loan made to older homeowners (typically 62 +) to enable them to convert the equity in their home to cash to finance other needs.
Home Equity Second Mortgage
This traditional home equity loan can help you consolidate your bills, make home improvements, take a vacation, and much more. It's fast, easy and affordable.
No Equity Second Mortgage
Get the benefits of a home equity loan, even if you have little or no equity established. Borrow up to 115% of the value of your home. The interest you pay may even be tax deductible!
London Inter Bank Offered Rate (LIBOR)
LIBOR is the rate on dollar-denominated deposits, also known as Eurodollars, traded between banks in London.
Balloon Mortgages
Short term mortgages that have some features of a fixed rate mortgage.
Interest Rate Buydowns
The buyer would pay points above current market points in order to pay a below market interest rate during the first two years of the loan. At the end of the two years they would then pay the old market rate for the remaining term.
Cost of Funds Index (COFI)
The ratio of the dollar amount paid in interest during the month to the average dollar amount of the funds for that month constitutes the weighted average cost of funds ratio for that month.
Graduated Payment Mortgage (GPM)
With a GPM the payments are usually fixed for one year at a time.
Choosing The Best Program
The right type of mortgage for you depends on many different factors
Refinance Bill Consolidation
Reduce your monthly payments and consolidate your bills with a refinance bill consolidation loan. Fixed and adjustable rates are available in terms from 5 to 30 years to meet your needs and your budget. Apply now or learn more about how refinancing your home can help you reach your goals.
Tips & FAQs Loan Programs Credit Bankruptcy
How to Improve Your Credit
If you have had credit problems, be prepared to discuss them honestly with a mortgage professional. Responsible mortgage professionals know there can be legitimate reasons for credit problems, such as unemployment, illness or other financial difficulties.
ABC's of Mortgage Credit
Mortgage companies often grade your loan based on certain credit-related items such as payment history, amount of debt payments, and your credit score.
Credit Guide Scoring
Credit scoring is a statistical method that lenders use to quickly and objectively assess the credit risk of a loan applicant.
Credit Reporting Agencies
Credit Reporting Agencies collect information about you and your credit history from public records, your creditors and other reliable sources.
How to Correct Errors
You have the right, under the Fair Credit Reporting Act, to dispute the completeness and accuracy of information in your credit file.
Credit Profiles
Your credit profile details your credit history as it has been reported to the credit reporting agencies by lenders who have extended credit to you.
Credit Questions & Answers
Your Twin City Lending loan officer will advise you on what to do about bad credit standing, help you remedy the situation and work towards getting you approved. Call 651-303-4236 or 612-338-2810 now and speak to a representative.
Tips & FAQs Loan Programs Credit Bankruptcy
Alternatives to Filing Bankruptcy
There is just no easy way to get out of debt and bankruptcy is not always the answer.
How to Avoid Foreclosure
When you miss your mortgage payments, foreclosure may occur. This is the legal means that your mortgage company can use to repossess (take over) your home.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is a liquidation proceeding. The debtor turns over all non-exempt property to the bankruptcy trustee, who then converts it to cash for distribution to the creditors.
Bankruptcy and My Bills
The underlying policy of bankruptcy law is that the honest debtor who is in debt beyond his/her ability to repay the debt should be given a fresh start through the discharge of debts in a bankruptcy proceeding.
Bankruptcy and Bill Collectors
One of the major benefits of filing for protection under Chapter 7 is that many creditor actions are stayed. This means that debt collection efforts and foreclosure is halted.
Your Property and Assets
Once the bankruptcy is filed, all the property of the debtor at the time of the filing and certain other property to be received in the future, becomes the property of the bankruptcy estate.
Your House and Car
Depending upon which exemption scheme is selected and your circumstances, you may exempt up to $100,000 in equity.
Bankruptcy Questions & Answers
I am a co-signer for a debt, how does bankruptcy affect my obligation?
If the debt is a dischargeable debt then you will not have to pay it. However, the cosigner will become primarily responsible for the debt.
