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Showing posts with the label Equity Loan

Your Credit Rating Can Affect Your Eligibility For A Home Equity Loan

As a​ homeowner,​ there will always come a​ time when your property needs some significant work. This could be a​ few years after the​ house was built or​ as​ soon as​ you​ buy the​ property from a​ previous owner. Your main concern is​ bound to​ be how you​ are going to​ finance the​ work.

There are options available to​ finance your home repairs that mean you​ won’t have to​ make too many sacrifices in​ your lifestyle and personal expenses. you​ could look at​ taking out a​ mortgage if​ you​ own your home outright,​ or​ if​ you​ already have mortgage arrangement,​ you​ could look into a​ home equity loan.

If you​ decide to​ take out a​ mortgage,​ you​ can choose between a​ fixed or​ variable interest rate. the​ first is​ less risky as​ the​ interest rate will remain the​ same for the​ entire life of​ the​ loan. However,​ if​ interest rates are particularly high when you​ take out your mortgage and are likely to​ decrease,​ you​ might want to​ consider a​ flexible rate,​ which w…

Working With Your Homes Equity

Working With Your Home's Equity
It is​ essential for any homeowner to​ understand how their home equity falls into place in​ their financial situation .​
Simply put,​ home equity is​ how much of​ the​ house that you​ own .​
Specifically,​ it​ is​ the​ estimated value of​ the​ house after the​ outstanding mortgage is​ removed from the​ equation .​
This is​ all well and good,​ but you​ are probably wondering how this can actually help you​ .​
Well,​ it​ can,​ and you​ should be ready to​ make the​ most of​ any option that comes your way.
Knowing your home equity and understanding how it​ plays into your life is​ important because it​ acts as​ a​ secret safety net for your well being .​
If you​ are in​ a​ terrible position and fall into a​ significant amount of​ debt,​ you​ may feel that there is​ no way out .​
If things continue to​ get worse you​ can easily default on​ your mortgage and lose everything that you​ worked so hard to​ get .​
How is​ it​ your safety net though?
It acts as​…

Why Get A Home Equity Loan

Why Get a​ Home Equity Loan?
If you're a​ homeowner,​ chances are that you've been deluged with offers from finance companies to​ lend you​ money based on​ the​ equity you​ have invested in​ your home .​
a​ home equity loan is​ a​ loan extended to​ you​ that is​ secured by your home .​
The amount of​ the​ loan is​ based on​ how much 'equity' you​ have invested in​ your home .​
The basic explanation of​ 'equity' is​ 'the difference between your home's value and how much you​ still owe on​ the​ mortgage'.
In other words,​ if​ you​ bought your home for $125,​000 and put $20,​000 down on​ it,​ financing $105,​000,​ then your equity in​ your home on​ the​ day that you​ close the​ deal is​ $20,​000 .​
Now imagine several years pass .​
You've paid off $15,​000 toward your mortgage - but at​ the​ same time,​ the​ value of​ your house has increased to​ $175,​000 .​
Your equity in​ your home is​ now $85,​000: $175,​000 (your home's current value) - $90,…

Why A Home Equity Loan Could Be Your Answer To Debt Consolidation

For most people getting a​ home equity loan means taking risks and dealing with unscrupulous lenders. However once you’re past all that you​ will realize that a​ home equity loan can actually be quite a​ blessing. the​ home equity loan can help you​ pay off debts as​ well as​ have some extra cash at​ hand!

Consolidation is​ now a​ possibility

With rising default rates and delinquencies,​ most people today are finding it​ increasingly difficult to​ manage their finances. From existing loans to​ credit cards to​ even medical expenses – the​ average cost of​ living seems to​ have skyrocketed in​ all quarters. That’s where a​ home equity loan can come to​ the​ rescue. Every month the​ prospect of​ having to​ pay multiple bills of​ varying amounts can be a​ huge difficulty. Not only is​ it​ difficult to​ keep track of​ all these bills and expenses,​ the​ cumulative costs can work out to​ be very high. With a​ home equity loan you​ can pay just a​ single bill every month. This will help you​ …

While Opting For Home Equity Loans One Must Be Aware Of Scams

While Opting For Home Equity Loans,​ One Must Be Aware Of Scams
A home equity loan is​ based on​ the​ equity of​ the​ home,​ and will also be calculated accordingly by the​ lending institutions to​ the​ borrowers .​
There are various types of​ home equity loans,​ and they must be chosen according to​ the​ capability of​ the​ debtor to​ repay the​ bank .​
Since the​ home is​ the​ biggest asset anyone can own,​ the​ individuals will naturally have to​ think twice before approaching any bank.
Sometimes the​ home equity loans offered will have extra charges,​ and the​ borrower must not blindly agree to​ the​ terms of​ the​ lender .​
a​ lot of​ financial advice must be sought by the​ borrower before taking the​ plunge,​ as​ sometimes there may be hidden costs that he will be unaware of .​
While signing the​ papers with the​ lender,​ the​ borrower must be aware of​ what he is​ doing.
At all the​ points during the​ process of​ applying for the​ home equity loans,​ the​ borrower should be very h…

Which Type Of Home Equity Loan Is Right For You

Which Type Of Home Equity Loan is​ Right For You?
Choosing a​ home equity loan that is​ right for you​ takes lots of​ thought .​
the​ first thing you​ should know is​ that you​ are putting your house down as​ collateral and if​ you​ are unable to​ repay your loan,​ the​ bank can sell your home to​ recoup it​ losses .​
Before you​ decide what type of​ loan to​ take out,​ make sure you​ are comfortable with the​ idea of​ placing your home down as​ collateral.
There are two main categories of​ home equity debt; they are home equity loans and a​ home equity line of​ credit,​ sometimes called Heloc .​
It should be noted that these two loan products both use your home as​ collateral .​
However,​ a​ home equity loan is​ much similar to​ your primary mortgage,​ in​ that it​ is​ a​ fixed interest loan .​
the​ interest rate for the​ life of​ the​ loan will stay the​ same,​ whether you​ repay your loan in​ 5 years,​ 10,​ years or​ 30 years.
A home equity line of​ credit has a​ different kind o…

What You Need To Know About Home Equity Loans

What you​ Need to​ Know About Home Equity Loans
A home equity loan is​ a​ popular and attractive source of​ borrowing for thousands of​ people .​
Part of​ the​ reason people think first of​ a​ home equity loan when they need a​ substantial sum of​ money is​ that home equity loans are marketed extensively,​ with advertisement in​ every medium.
Lenders love home equity loans because they are highly risk free .​
Therefore,​ a​ home equity loan is​ easy to​ get and offers one of​ the​ best interest rate of​ any type of​ high end loan .​
A home equity loan is​ attractive for consumers,​ not only because of​ the​ low interest rate but because that interest can be deducted from income taxes .​
The outlook isnt completely rosy for consumers who are considering a​ home equity loan,​ however.
With any home equity loan you​ can borrow only up to​ 80 percent of​ the​ equity youve accrued in​ your home at​ the​ time of​ your loan application .​
If,​ for example,​ your homes current market value were …

What Are The Advantages Of A Home Equity Line Of Credit Heloc

What Are the​ Advantages Of a​ Home Equity Line Of Credit (heloc)
Getting a​ home equity line of​ credit is​ a​ great way to​ get access to​ the​ equity in​ your home .​
In fact,​ it​ may be the​ best way to​ use that equity - unless you​ know you​ have need of​ all of​ the​ money that is​ available .​
Here are some of​ the​ advantages that you​ can have with a​ home equity line of​ credit mortgage .​
First Advantage - Get the​ Money as​ you​ Need It
With any other kind of​ loan,​ you​ will get a​ lump sum .​
Your interest rates and payments are set .​
There are no options .​
With a​ HELOC,​ however,​ you​ are given a​ line of​ credit and a​ credit card or​ checking account that gives you​ access to​ the​ funds .​
You do not have to​ use all of​ it,​ if​ you​ don't want to​ .​
This is​ especially good if​ you​ know that you​ need some money,​ but really are not sure just how much .​
This kind of​ flexibility is​ great,​ because you​ are given a​ draw period in​ which you​ can get mo…

Wells Fargo Home Equity Lines Of Credit Explained

Wells Fargo Home Equity Lines Of Credit Explained
Think you​ already know what this subject is​ all about? Chances are that you​ dont,​ but by the​ end of​ this article you​ will! Wells Fargo offers a​ revolving credit line for homeowners called Home Equity Lines of​ Credit,​ or​ HELOCs .​
This line of​ credit is​ an​ open-ended,​ revolving loan that allows future advances up to​ the​ approved credit limit .​
You can use the​ money for home improvements,​ debt consolidation,​ medical expenses,​ investment opportunities,​ starting a​ business,​ education,​ a​ new car or​ boat,​ or​ any other major expense .​
Since Wells Fargo's Home Equity Lines of​ Credit are revolving loans,​ you​ can use only the​ money you​ need when you​ need it,​ much like credit cards .​
This credit is​ available at​ any time during your draw period with convenient access through your Wells Fargo credit card,​ checking account,​ ATM,​ online banking,​ or​ local bank .​
The draw period of​ a​ Home Equity Line …

Using Your Homes Equity To Consolidate Debt Home Equity Loans For Debt Consolidation

Before you​ take out a​ second mortgage or​ a​ home equity loan to​ consolidate your debt. Consider these points before you​ refinance or​ take out a​ home equity loan to​ pay off debt:

1. Are the​ credit cards you​ are refinancing low interest? - if​ they are,​ you​ might want to​ consider waiting and paying off the​ credit card debt separately. Mortgage debt is​ stretched out over many more years than some credit card payments would be. you​ could end up paying more over time for your credit card debt than if​ you​ moved it​ to​ your mortgage loan. if​ your credit cards interest rate is​ reasonable or​ low,​ consider keeping the​ debt on​ your credit card until it​ is​ payed off.

2. if​ you​ refinance your credit card debt into your mortgage loan,​ it​ can become tax deductible. - if​ you​ refinance high interest debt into your mortgage loan,​ the​ savings to​ you​ could come in​ the​ form of​ tax deductions. Calculate the​ numbers considering your tax savings and see if​ that tips th…

Using Your Home Equity To Secure A Fast Loan

Using Your Home Equity to​ Secure a​ Fast Loan
If you​ own a​ home with equity,​ then you​ are a​ prime candidate for a​ fast loan .​
Those with equity can easily secure loans for large amounts of​ money,​ because lenders are assured that borrowers have the​ means to​ pay the​ loan back.
Not only does a​ home equity almost always guarantee the​ approval of​ a​ loan,​ but also it​ expedites the​ process .​
But aside from these things,​ there are other advantages to​ applying for a​ loan with home equity .​
Firstly,​ you​ may be able to​ deduct any interest accrued from it​ from your final tax returns .​
And secondly,​ any interest rates will likely be more modest than the​ rates of​ other borrowers without equity.
Many fast loan providers will accept your application online .​
They are dedicated to​ providing quick,​ simple and hassle-free service .​
And because applicants with home equity are such reliable borrowers,​ funds can be released the​ very day the​ loan is​ requested! Just be c…

Using The Equity In Your Home To Consolidate Debt 3 Things To Know

Using the​ Equity in​ Your Home to​ Consolidate Debt - 3 Things to​ Know
Using the​ equity in​ your home can be a​ great way to​ consolidate your debts and get control of​ your finances .​
By shifting your debts from several high interest credit cards to​ one low interest loan,​ you​ can save a​ lot of​ money and lower the​ amount of​ money you​ are spending to​ pay off your debt each month .​
Having only one payment to​ worry about each month is​ also a​ great benefit of​ consolidating with a​ home equity loan .​
While consolidating can be a​ wonderful idea,​ there are three important things that you​ should know before you​ take out a​ home equity loan.
You could end up paying more in​ interest over the​ life of​ the​ loan.
While the​ interest rate on​ a​ home equity loan is​ much lower than the​ interest rate on​ a​ credit card,​ if​ you​ take a​ long time,​ such as​ 30 years,​ to​ pay off your home equity loan that little bit of​ interest can add up to​ quite a​ lot over all of​ thos…

Using Home Equity To Get Out Of Bankruptcy

Using Home Equity to​ Get Out Of Bankruptcy
The type of​ debt a​ person has may influence their decision on​ the​ type of​ bankruptcy they file,​ especially if​ it​ means they will be able to​ maintain some of​ their possessions .​
Looking at​ the​ difference between secured and unsecured debt,​ it​ can be defined as​ with secured debt,​ if​ the​ payments are not made the​ person holding the​ note and reclaim the​ merchandise .​
Take heed and gain respectable debt reduction advice to​ keep yourself out of​ heavy debt.
Typically,​ secured debt involves a​ home mortgage or​ a​ car loan .​
In many cases of​ default,​ the​ car is​ repossessed and the​ house goes through foreclosure .​
Typically,​ merchandise taken through a​ loan default is​ auctioned and the​ debtor is​ liable for any remaining balance plus the​ cost of​ recovery and sale .​
In situations where a​ debtor is​ behind in​ payments and wants to​ keep their car and their house,​ a​ Chapter 13 may offer the​ relief they need.
The…

Using Home Equity To Consolidate Your Debts Consider Your Repayment Period Carefully

Using Home Equity to​ Consolidate Your Debts – Consider Your Repayment Period Carefully
You have been overspending without realizing it​ and soon run into a​ cycle of​ debts .​
You know you​ have to​ do something about it​ and get out of​ this mess .​
Upon advice from friends and research online,​ you​ decided to​ use your home equity to​ consolidate your debts.
Before you​ sign on​ the​ dotted line to​ consolidate your debt,​ consider your repayment period carefully first .​
Because your loan overall interest payment is​ determined both by the​ interest rate and repayment period .​
Although you​ enjoy a​ lower interest rate on​ your equity loan,​ you​ still might be paying more interest because of​ longer repayment period.
Take for example: you​ have credit card debts of​ $10,​000 and need to​ take up a​ $10,​000 home equity loan.
For simplicity,​ we’ll use 10% loan interest rate.
For a​ 5 years loan,​ you​ will need to​ pay $212.47 monthly and incurred a​ total interest payment of​ $2748…

Using Home Equity To Buy A Car

Home equity loans are a​ great way to​ borrow,​ and although many homeowners use them for home improvement projects,​ they can also be used for other purchases,​ like car buying. Equity grows as​ the​ value of​ your property rises,​ and many consumers take advantage of​ the​ gains in​ the​ real estate market without having to​ actually sell their house,​ by using convenient home equity loans.

Whereas a​ home equity line of​ credit operates much like a​ credit card,​ an​ equity loan is​ more like a​ typical bank or​ credit union loan – the​ kind of​ loan consumers prefer when looking for a​ longer repayment schedule and more competitive rates. if​ you​ want to​ borrow a​ set amount of​ money with a​ fixed interest rate over a​ period of​ a​ few years,​ the​ home equity option is​ an​ appropriate choice. For example,​ rather than borrow money from a​ car dealership – at​ a​ high rate of​ interest and with relatively unfavorable terms – you​ might be better off borrowing against the​ equ…

Understanding Home Equity Loans

Understanding Home Equity Loans
Almost any given day of​ the​ week there’s a​ good chance you’ll see at​ least one advertisement for a​ home equity loan on​ television .​
They are certainly growing in​ popularity .​
How do they work; however,​ and are there any benefits in​ them for you?
Basically a​ home equity loan allows you​ to​ borrow money using your home as​ collateral as​ long as​ you​ have paid down the​ original home loan so that you​ now have equity built up in​ the​ home .​
Let’s say you​ originally bought the​ home for $100,​000 and have paid that loan down to​ $75,​000 .​
The home has also appreciated in​ value and is​ now worth $125,​000 .​
You could potentially take out a​ home equity loan for $50,​000 .​
There are definitely some advantages to​ home equity loans .​
One of​ the​ most important is​ that you​ can usually obtain a​ lower interest rate on​ a​ home equity loan than many other types of​ loans .​
In addition,​ even if​ you​ have problems with your credit,​ you…

Understanding Countrywide Home Equity Loan

Understanding Countrywide Home Equity Loan
Brief history
Countrywide is​ a​ diversified financial services company with mortgage banking at​ its core,​ founded in​ 1969 by two New Yorkers,​ Angelo Mozilo and David Loeb when they started the​ Countrywide Credit Industries .​
Expansion began in​ 1979,​ and by the​ next year,​ Countrywide had 40 offices in​ downtown Los Angeles,​ and in​ 1981,​ Countrywide Securities Corporation,​ a​ broker-dealer subsidiary that would sell securities backed by loans made was formed.
Countrywide hit the​ $1 billion mark in​ loan servicing in​ 1984 .​
In 1985,​ Forbes Magazine listed Countrywide as​ one of​ the​ 200 Best Small Companies,​ and in​ 1987,​ Fortune Magazine's Top 100 Stocks of​ the​ Year ranked the​ company at​ 37th .​
During this period,​ Countrywide moved its headquarters to​ Pasadena,​ California.
In 1992,​ Countrywide launched House America,​ a​ formal affordable lending program,​ intended to​ reach out to​ minority communities,​ and low …

Understanding Bad Credit Home Equity Loans

Understanding Bad Credit Home Equity Loans
In today’s market,​ it​ is​ fairly easy to​ obtain a​ bad credit loan even though the​ rates of​ such loans are high as​ compared to​ the​ conventional loans .​
Lenders would be more than happy to​ grant you​ a​ home equity loan in​ such a​ case because the​ loan amount will be secured by your home and if​ you​ default in​ repaying,​ your property will be foreclosed.
Since the​ process is​ not very difficult,​ you​ can shop around and compare the​ credit offers to​ get the​ best deal .​
Because of​ the​ increasing competition among the​ home equity loan providers,​ you​ can easily find good deals if​ you​ conduct some research .​
You can get quotes on​ the​ Internet and compare .​
But before you​ decide on​ a​ lender make sure that you​ check with the​ Better Business Bureau to​ ensure that there are no complaints lodged.
There are several lenders in​ the​ market who try to​ take advantage of​ consumers who do not have good credit and proper kno…

Types Of Home Equity Loans

Types of​ Home Equity Loans
Home equity loans are a​ way of​ using the​ money that you've invested in​ your mortgage by borrowing against it .​
Essentially,​ a​ home equity loan is​ a​ 'second mortgage' - a​ loan secured by your property .​
If you​ don't make good on​ your payments,​ the​ lending company or​ bank can force the​ sale of​ your house to​ recover their money.
There are two major types of​ home equity loans - home equity loans and home equity lines of​ credit,​ also called HELOCs .​
Most lenders that offer home equity loans offer both kinds .​
a​ home equity loan for $10,​000 and a​ home equity line of​ credit for $10,​000 are two completely different animals though they have a​ lot of​ similar features.
Home Equity Loan
If you​ apply for and are granted a​ home equity loan for $10,​000 at​ 7% APR for 15 years,​ you​ will receive a​ check or​ a​ deposit to​ your bank account of​ $10,​000 .​
That is​ the​ full amount of​ the​ loan that you​ can ever draw on​ tha…

Tips On How To Get A Home Equity Loan

Tips on​ How to​ Get a​ Home Equity Loan
There comes a​ time in​ many people's life when we crave for more financial stability and wealth,​ but a​ limited fund prevents us from securing what we so earnestly desire .​
But if​ you​ are lucky enough to​ own a​ home already,​ this asset can provide you​ the​ means for furthering your dreams through the​ home equity loan.
You might have heard of​ people taking out home equity loans for various reasons such as​ for making home improvements or​ paying for medical bills or​ children’s college fees .​
Home equity loans are also widely used for the​ purposes of​ debt consolidation.
Your home is​ the​ most valuable asset out of​ all that you​ possess .​
You can borrow money against your home on​ the​ basis of​ the​ value or​ equity of​ your house .​
But what does the​ term Home Equity actually refer to? in​ the​ United States,​ residential properties are most commonly bought through a​ mortgage .​
The mortgage amount can be paid over quite a​ l…