Home Equity Loans

Reduce Your Credit Card Payments by 50%

Wednesday, May 31, 2006

Guide to a Home Equity Loan

Guide to a Home Equity Loan
By: John Mussi

Considering renovating your home or need money for an
investment? Home equity loan are a great way to borrow large
sums of money that you may not otherwise qualify for through
other loan options. The reason for this is simple - your house
is the collateral against the loan.

Looking at this from the viewpoint of the lender, they consider
a home equity loan a safe loan. They believe you are more likely
to not miss payments since the ownership of your house is on the
line. If you were to default on the loan the lender has a
valuable asset, your home, to offset their loss.

What to consider when choosing a lender

Thoroughly research each lender you are considering for a home equity loan. Talk to your friends and colleagues about their
recommendations or what information they may have on the lenders
you are considering. Take nothing at face value rather make sure
that you get everything in writing.

Reduce Your Credit Card Payments by 50%

It is important to have a budget before you begin your research
into a lender. Be reasonable in what you can afford in a home
equity loan. You do not want to end up with a loan where the
monthly payments are crippling your cash flow. After careful
planning and review of your budget, consider purchasing
insurance for your home equity loan. This is a great option to
consider; in the event of unforeseen circumstances that prevent
you from making your monthly payments. A form of backup, whether
that is through the purchase of other assets or insurance, is
always a wise course of action. Discuss with your lender the
option of paying your insurance premiums monthly along with your
loan payments.

Ways you can use your home equity loan

House valuations have increased considerably over the past ten
years and homeowners are often unaware that they can use a home
equity loan as a way of raising finance for home improvements,
debt consolidation, purchasing a new car, or a well-earned
holiday. You can use a home equity loan for anything you would

Reduce Your Credit Card Payments by 50%

In addition, the use of a home equity loan can be a great source
to add value to your home through home improvements or invest in
another type of asset. Remember though as with all your
financial decisions to not take a home equity loan lightly. You
face serious consequences in the event of a default.

In summary, home equity loans come with a diverse array of
options to meet most any budget specifications. There are
closed, fixed rate home equity loans and flexible lines of
credit with adjustable rates. As with all loans the rates and
fees vary according to the type of loan you choose. Review your
situation thoroughly and choose the perfect home equity loan for
your lifestyle.

About the author:
John Mussi is the founder of Direct Online Loans who help
homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

Reduce Your Credit Card Payments by 50%

Wednesday, May 10, 2006

What is A Home Equity Loan?

Arm Loans; What is A Home Equity Loan?
By: Ben Anton

A home equity loan is a one-time lump sum credit a homeowner can
acquire by placing their residence as the guarantee for payment.
This type of credit is most appealing to consumers who may have
poor credit standing, but need a large amount of money. Aside
from these benefits, the borrower gains a lower interest rate
and the possibility of tax-deductible interest.

Why do lenders offer large amounts and charge lower interest
rates? Because lenders understand that most homeowner debtors
diligently pay their loans rather than risk losing their homes.
Besides, the borrower cannot tuck the house away or conceal it.

Reduce Your Credit Card Payments by 50%

The three biggest advantages a home equity loan offers are:

Large Loan Amount

The borrower can obtain as much as 85% appraised value of their
home, minus the unpaid mortgage payments owed on the first
mortgage. However, there are other factors as well that the
lender will assess, such as the borrowers' credit standing,
monthly income, or ability to pay and state of unsettled loans.
If the borrowers' credit record is spotty, the loan will
necessarily be smaller.

Low Fixed Interest Rate & Tax-deductible .

This type of loan has a lower interest rate, in comparison to
personal or credit cards loans. Additionally, a fixed interest
rate assures you that the payment remains constant right until
the end of the entire loan. This makes it easy to work the
monthly payments into your budget. Another advantage a borrower
can claim are tax deductions on the interest of the loan for as
much as $100,000.00. However, do not assume that the advertised
APR (annual percentage rate) is the real rate. Ask and shop

Reduce Your Credit Card Payments by 50%

Ease of Use

The one-time release of the entire loan will enable the borrower
to consolidate existing debts, pay for home improvements, or use
the amount for emergencies, or any big-ticket items.

The two real disadvantages are:

Home Foreclosure

If you default in paying the principal and interest fees for the
loan, you will lose your home. This is certainly not the ideal
type of loan for a couple who might use their retirement money
to bail themselves out of the difficulty, or first time
homeowners, who are inexperienced in handling finances. That is
why, when you negotiate with the lender, you should ask about
the penalties attached for late payments, as well as the
conditions in defaulting payments and have all your agreements

Long Term Repayment Period

The convenience of repaying the loan, which can vary from a 15
to 30 years period, is ultimately more expensive, because you
are taking longer to pay. Another negative possibility is, if
the real estate market bottoms out, you will be paying for a
house which is worth a lot less. This could spell disaster
especially if you are intent on selling the house. On the other
hand, you are required to pay the remaining loan balance if you
put the house up for sale.

Given what you now know about home equity loan , become a more
prudent borrower. Carefully consider why you need the loan and
if you can comfortably meet the monthly payments. Then educate
yourself on the options that will best serve your financial
needs and still leave you with your home.

About the author:
http://www.mortgagelendingsite.com/arm-loans.htm Ben Anton writes for Labworks Design, located in Portland, OR. Labworks, a national web design firm, specializes in media development, and search engine marketing.

Reduce Your Credit Card Payments by 50%

Tuesday, May 09, 2006

Home Loans With Bad Credit

Home Loans With Bad Credit
by: Connie Barker

A home is the one purchase that everyone usually hopes to make by midlife. The problem is of all the things you can buy in life it is also one of the largest commitments you can make. Many people who do embark upon purchasing their own home realize quickly however that credit can be a major factor. But can bad credit stop you from purchasing a home? The answer is no.

Reduce Your Credit Card Payments by 50%

There are a number of lenders out there who will step up to the plate when it comes to loaning you the money to buy a home. Searching for those lenders can be difficult since they are not usually out there on the open market but with a little bit of patience and time they can be found. The internet has made this a lot easier then it use to be and there are a lot more companies who take the time to do these types of loans so just be patient.

The first step to obtaining one of these loans, called "high risk loans", is to find the right company for you. There are many companies on the internet that will screen your information first and then call you if they can find a lender who is willing. One good internet company for finding high risk home loans is The Lending Tree. The Lending Tree takes your information and then farms it out to banks and loan companies to see who will be the right fit for your home loan. They will then contact you back by phone or e-mail and set you up with the right loan service. Many of the companies who offer this type of service work in this way.

So if your credit is bad, don't fear you can still qualify to buy that home of your dreams.

About the author:
Connie Barker is the owner of several financial websites including http://www.badcreditloandirect.com

Reduce Your Credit Card Payments by 50%