AmeriSave Home Equity Loans 2023- A Comprehensive Guide

Owning a home is one of the biggest financial decisions most people make in their lives. Your home is likely your biggest asset and largest investment. While home values generally increase over time, owning a home also comes with expenses like property taxes, insurance, maintenance, and repairs that must be budgeted for.

One way homeowners can tap into their home equity for large expenses, investments or other needs is with a home equity loan from AmeriSave Mortgage Corporation. AmeriSave offers home equity loans and lines of credit at competitive rates nationwide.

What is a Home Equity Loan?

A home equity loan is a type of second mortgage that allows you to borrow against the equity you’ve built up in your home. Equity is defined as the current market value of your home minus what you still owe on your mortgage.

For example, if your home is worth $300,000 and you owe $180,000 on your mortgage, you have $120,000 in equity ($300,000 – $180,000 = $120,000). With a home equity loan from AmeriSave, you can leverage your equity to get approved for a fixed-rate loan up to 85% of your home’s value minus what you owe.

Home equity loans are usually taken out to finance large expenses like home improvements, medical bills, college tuition, debt consolidation, or major purchases. The terms are fixed, meaning you lock in an interest rate and fixed monthly payment for the life of the loan (often 10-30 years).

Benefits of an AmeriSave Home Equity Loan

AmeriSave offers competitive home equity loan rates and terms to qualified borrowers nationwide. Here are some of the benefits AmeriSave home equity loans offer:

  • Low fixed rates– Enjoy lower interest rates than other financing options like personal loans or credit cards. AmeriSave offers fixed rates as low as 3.25% APR for home equity loans.
  • Pay off high-interest debt– Consolidate and pay off credit card, auto, or student loan debt with a lower fixed rate through a cash-out refinance. This can reduce your monthly payments and total interest costs.
  • Tax deductible interest– The interest on home equity loans up to $750,000 is usually tax deductible. Consult a tax professional to understand how this tax benefit may apply to your situation.
  • Accessible funds– Receive a lump sum at closing to use for any purpose. AmeriSave deposits funds directly into your bank account.
  • Competitive terms– AmeriSave offers loan terms of 10-30 years. Choose a term that aligns with your budget and financial goals.
  • No home appraisal required– For loan amounts under $250,000, AmeriSave does not require a home appraisal saving you time and money.

How Much Can I Borrow?

The amount you can borrow with a home equity loan depends on how much equity you currently have, as well as your income, credit score, and debt-to-income ratio.

As a general guideline, you may be able to borrow up to 85% of your home’s value minus what you owe on your mortgage. For example:

  • Home Value: $300,000
  • Mortgage Balance: $180,000
  • Remaining Equity: $120,000
  • 85% of Remaining Equity: $102,000

So in this example, you may be approved to borrow up to $102,000 with an AmeriSave home equity loan. The actual amount will vary based on your specific financial situation.

AmeriSave also offers home equity lines of credit up to $500,000 for qualified borrowers who want a revolving credit line and more flexible repayment options.

AmeriSave Home Equity Loan Requirements

AmeriSave wants to help creditworthy homeowners access their equity. Here are some of the basic eligibility requirements for their home equity loans:

  • Credit score– AmeriSave requires a minimum credit score of 620 for the best rates on home equity loans and lines of credit. The higher your score, the lower your interest rate.
  • Loan-to-Value (LTV) Ratio– Your loan amount is limited based on the value of your home. AmeriSave offers loans up to 85% LTV for the most competitive rates.
  • Debt-to-Income Ratio– Your total monthly debt payments, including the new home equity loan payment, must not exceed 45% of your gross monthly income.
  • Home Value– Your home must appraise for the loan amount being requested. Jumbo loans over $647,200 have different requirements.
  • Homeownership– You must have at least 15-20% equity already built up in your home to qualify for a home equity loan.
  • Employment– Steady income and employment history are required. Self-employed borrowers can provide alternate documentation.
  • Property Type– Primary residences and second homes are eligible. Rental properties do not qualify.

Always check your actual rate quote from AmeriSave for personalized rate and loan amount options. Their borrower education team is also available to guide you through the process.

How to Apply for an AmeriSave Home Equity Loan

Getting started with AmeriSave is quick and easy. You can complete the application entirely online or over the phone with one of their mortgage loan officers.

To apply online:

  1. Go to the website and click “Apply Now”.
  2. Choose “Home Equity Loan” then enter your desired loan amount and zip code.
  3. Provide contact information on the secure form and submit it.
  4. You will be contacted by a dedicated loan officer to continue the application.

To apply by phone:

  1. Call (866) 970-7283 to speak with a mortgage loan officer.
  2. They will guide you through the application questions over the phone.
  3. Discuss your financial goals and situation to determine the right loan products and amounts.
  4. Get connected to a loan officer for personalized service through approval.

The entire application process takes around 10-15 minutes. AmeriSave will then order appraisals and verifications to approve your new home equity loan.

Loan Disbursement and Repayment

Once approved, AmeriSave can fund your home equity loan in as fast as 1 week. At closing, the lump-sum payment is wired directly to your bank account. You can use the funds immediately for any purpose.

Repayment on a fixed-rate home equity loan works just like a mortgage. Your monthly payments stay the same over the loan term as you pay down the principal and interest. AmeriSave offers automatic ACH withdrawals from your checking account to simplify repayment.

You can also choose to make additional principal payments at any time without penalty. This allows you to pay off your home equity loan faster and reduce interest costs over time. Their online portal provides free real-time updates on your loan balance, next payment due date, interest savings, and much more.

Is a Home Equity Loan Right for You?

While home equity loans offer homeowners financial flexibility, they also come with risks:

  • Your home is used as collateral – Failure to repay the loan may result in foreclosure.
  • Second liens increase the loan-to-value ratio on your home.
  • Your monthly mortgage payments increase. Make sure it fits your budget.
  • Closing costs range from 2% to 5% of the total loan amount.

A home equity loan makes sense if you need a large lump sum of cash and have sufficient equity and income to qualify at competitive rates. Use their online calculators to estimate costs and see if it’s financially advantageous for your situation.

Compare Home Equity Lenders

While AmeriSave offers excellent rates and customer service, it’s wise to compare offers from multiple lenders when applying for a home equity loan or HELOC. Some other top national lenders to consider include:

  • Wells Fargo – Offers home equity loans and HELOCs with no closing costs.
  • Lightstream – Unsecured home improvement loans with fixed rates as low as 3.99% Annual Percentage Rate (APR).
  • Discover – Competitive variable APRs as low as 3.24% on their home equity loans.
  • PenFed – Top-ranked lender with home equity loans/HELOCs and 100% financing options.

Each lender has unique qualifying requirements, rates, and terms for home equity products. Getting multiple quotes helps ensure you find the most favorable loan for your particular financial situation.

AmeriSave – A Top Choice for Home Equity Financing

As one of the largest privately held mortgage lenders in the nation, AmeriSave provides an easy home equity loan process with exceptional customer service and competitive rates. They have a consistent A+ rating with the Better Business Bureau and a 5-star reputation.

If you’re considering a home equity loan or line of credit, AmeriSave is a top choice to trust for the best loan experience. Their lending experts make it simple to access your home’s hard-earned equity.

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