answersLogoWhite

0


Best Answer

Before repaying the borrowed home equity, you should make a proper plan. Firstly, review final amount you have to pay before the end of your draw period. Planning should be done at least a year before the exact repayment date. Start accumulating the money to repay from different income sources you have. The home equity has a flexibility, you can pay off anytime in between your draw cycle, the home equity line of credit.

One more important thing to add is if you are not able to repay the amount in time then you should contact the Bank or NBFC to allow you to qualify for a change in your interest rate and terms that can give you some relaxation. If you have taken home loan from Banks like IDBI, Axis or NBFC like Bajaj Finserv then you can request them to reduce your interest rate. Who knows you will get some help.

User Avatar

Wiki User

7y ago
This answer is:
User Avatar
More answers
User Avatar

Wiki User

14y ago

You spend the equity in a home by borrowing money against it in the form of a mortgage. You repay by making your mortgage payments. If you don't pay the lender will take possession of the property.

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: How do you repay borrowed home equity?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is the best way to repay a home equity line of credit?

As fast as you possibly can.


What is the difference between a Home Equity Line of Credit and a Home Equity Loan?

The difference between a home equity loan and a line of credit is that a home equity loan is money that is borrowed against the equitable value of a home, whereas a line of credit is a loan that can used for anything and is not borrowed against the value of a home.


How would you use the word repay in a sentence?

If you borrow money, you should repay who you borrowed it from to avoid debts.


What is a certificate that promises to repay borrowed money called?

A Bond (:


What practice in large part caused the stock market crash sparking the Great Depression of the 1930?

people overspeculating on stocks, using borrowed money that they couldn't repay


What are equity loan mortgages used for?

Equity loan mortgages can be used for almost anything that the bank that is financing the loan has agreed they can be used for. The homeowner must make sure they know their home is at risk if they do not repay as they have agreed.


Should you use your home equity loan to pay off your car loan?

I would need more details but in general, the answer is no. If you don't pay your car loan, you lose the car. If you get a home equity loan and can't repay it, you lose the house - big difference.


Can you repay a reverse mortgage before your death?

Yes, there is no prepayment penalty on a reverse mortgage, you can repay part or all at any time that you want, as well as sell the home any time you want and keep any remaining equity.


What is a formal contract to repay borrowed money with interest at fixed intervals?

it is A for e2020 students!


What are the benefits of reverse mortgages for seniors?

The primary benefit of a reverse mortgage is using the equity built up within your home without ever having to repay it back.


How much of your home equity can be borrowed in a home equity loan?

Every lender has different requirements, but the standard is 80% of your total home value. A $100k home may have up to $80k in loans against it. Some lenders will go to 90% or in some rare cases 100%. There are usually rate or fee premiums for higher percentages.


A default in personal finance is called what?

Failure to repay borrowed money in a timely manner is called.