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Home Equity Loan Information - What Is A Home Equity Line Of Credit?
from: Carrie ReederDid you know that if you have a home that you’ve been paying on for years, you may have a lot of usable money right under your nose? What’s more, a home equity loan just may be the perfect way to get your hands on that money!
Here’s how it works. Let’s imagine that your home mortgage is for $250,000, but after years of paying on that note, you only owe the mortgage company $100,000. In this instance, you would have $150,000 in equity in your home. A home equity loan is a specific type of loan that will allow you to borrow against that equity.
Why would you want to do this? The number one reason that people take out home equity loans is as a means to consolidate their debt. Because a home equity loan is a secured loan, the interest rates are considerably lower than that of credit credits or personal loans. And so if a person had $10,000 in credit card debt, they could reduce the total amount of owed—as well as their monthly payments—by taking out a home equity loan and using the cash to pay off their credit card debt.
Another great reason for taking out a home equity loan is to make improvements on your home. Have you been thinking about adding a swimming pool to your backyard? A greenhouse to your yard? A new bedroom or bathroom addition? A home equity loan is a great way to finance those types of projects.
Your first step should be to talk to your current mortgage company about your options, but don’t stop there. You will quickly find that there are plenty of companies who are willing to lend you money against your house, and so you should shop around for the best deal.
And that brings us to our final point. A home equity loan is secured by your home. What that means is that if you don’t make the payments on time, the lender will have the right to take your home and sell it in order to collect on the debt. Make sure that you are in a position to pay back any amount you borrow against your home!
To view our recommended sources for home equity loans, visit: Recommended Home Equity Lenders Online.
About the Author
Carrie Reeder is the owner of ABC Loan Guide, an
informational website with articles and the latest news about various types of loans.
California Home Mortgage Refinance Loan News
Don't miss the refinance window (The Capital)
CHICAGO - Lured by low mortgage rates, many homeowners have been rushing to refinance. Interest is gaining for good reason: Eligible borrowers can lock in rates that haven't been this attractive in decades.
Read more...Mortgage crisis spurs tougher rules (Bedford Times-Mail)
INDIANAPOLIS — Becoming a mortgage broker in Indiana used to be easy. Too easy. There were no background checks to weed out people convicted of financial crimes, no tests to see whether brokers actually took required classes and understood the complex mortgage world.
Read more...Statehouse to tackle foreclosures (The Indianapolis Star)
State lawmakers plan to begin hearings when they convene this week.
Read more...U.S. commercial property in a downward spiral (International Herald Tribune)
With job cuts rampant and businesses retrenching, more empty office space is expected from New York to Chicago to Los Angeles in the coming year.
Read more...Mortgage crisis spurs tougher rules for brokers (AP via Yahoo! News)
Becoming a mortgage broker in Indiana used to be easy. Too easy.
Read more...General Assembly to tackle foreclosure problem (The Star Press)
INDIANAPOLIS -- For-sale signs. Plummeting values. Sheriff's auctions. Abandoned homes.
Read more...Americans drowning in debt (Toronto Star)
Diane Shackle found it gut-wrenching to walk away from a mortgage she took out in times that were better for both her and the U.S. economy.
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