If
a borrower can take out a loan and retain 30 % of the equity
in their home (borrow 70% or less of their home's value) there
is usually no extra fee associated with this type of loan. However,
when borrowing between 70% - 80% of the value of their home
there will usually be an extra charge.
Most companies will allow you to take out up to 80% of the value
of your home if you have good to excellent credit. If you wish
to borrow more than 80% there will be restrictions placed on
such a loan and oftentimes the interest rate will be higher
than those under 80%. If you have poor to fair credit oftentimes
lenders will restrict the percentage of the value of your home
that you can borrow.
