Quote:
Originally Posted by WiredGuy
He means 50k in equity. If the house is worth $350k and the mortgage still has $300k left to be paid, then the house has $50k in equity.
WG
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let me clarify... they can borrow up to 50% of their equity...
however, i think the company will only loan up to $50k, so may house value would be $100k..
and yes, its almost as bad as a payday loan, but payday loans are typically 20% per month i think..
this company lends to higher risk people that dont have the credit to get conventional loans or lines of credit..
i am still learning all the details, but so far they seem to have a very low default rate and their clients seem to borrow only what they can pay back..