Home Equity Loan RepaymentEquity Loans Repayment
There are two ways to reimburse the loan: When you want to stay in the real estate without the strain of a hypothec and the help to buy loan, you have to deal with the repayment of the loan. You may have already done this because you have already accumulated enough funds to reimburse the Help to Buy loan.
As an alternative, you may have renegotiated a loan to repay the loan and place your entire borrowings under the roof of a single loan. During the payoff procedure, the real estate is valuated and the payoff amount for the loan is equal to the same percent of the value you took.
If, for example, you had bought a home for 200,000 and received a 20% Help to Buy loan, you would have lent 40,000. Now if the value of the real estate is estimated at 220,000 you will pay back 20% of what is 44,000. You may be charged extra charges for the return procedure to the Help to Buy agents and your lawyer.
Should you choose to take out a new loan at the same date, your lawyer will probably levy an extra commission for this use. Truly the only option is the sale of the real estate to pay back the help to buy loan. Under certain conditions, the Help to Buy Agency requires proof that you have not under-sold the real estate.
Should you choose not to be able to pay back the equity loan, consider the interest on the loan after 5 years.