Do You Qualify for a Home Equity Loan? : Income

Do You Qualify for a Home Equity Loan?
By : Carrie Reeder

Income

Even though the equity that has built up in your home belongs to you, lenders will still want to make sure that you can pay back any amount that you borrow.

To determine your ability to repay, lenders will assess your monthly income and your total debt-to-income ratio.

(Debt-to-income ratio is a term used to describe how much of your monthly income goes towards paying your mortgage, credit card debt, loan installments, and other financial obligations, including the home equity loan for which you are applying.)

Most lenders will want to make sure that your total debt does not exceed 38 percent of your monthly income.

ABC Loan Guide can help you find a company that provides a Free Credit Report and Score Online as well as a No Equity Home Equity Loan.

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