How To Tap Into Your Home Equity
By Frank Kelly
today's relatively low interest rates and climbing property
values, many consumers are considering taping into their home
equity to finance everything from home improvement projects
to debt consolidation.
home loans, also called home equity loans, are loans backed
by the borrower's equity in their property. Equity is the difference
between your home's appraised value and the balance on your
a homeowner takes out a secured home loan, they promise to repay
the lender and sign a contract that makes their home the collateral
for the loan. If the borrower does not repay the loan as agreed,
the lender has the right to foreclose on the home. Generally,
loans are repaid with a monthly payment over a fixed term.
interest rates and loan terms may vary widely depending on your
credit score, your home equity, and the amount of the loan,
it is important to compare several different lenders to ensure
you are getting the best loan for your situation.
are many advantages to secured home loans. Home equity loans
generally have lower interest rates than unsecured loans. In
addition, there are many different types of secured home loans
to fit your needs.
considering using your home as a security instrument to obtain
a loan, it is important to consider the amount you can afford
monthly. Although loans can be used for virtually anything,
if you are going to use the money to make large purchase, make
sure you are buying something that will outlast the life of
if you do not repay the loan as agreed, you may lose your home.
While it may be smart to tap into equity for home improvement
projects that will increase your property value, it may be foolish
to put your home on the line for that dream vacation.
Kelly is a freelance writer. Years ago he was an employee who
regularly used payday loans to get through the month. Then he
disocvered the better alternative of a home equity loan.
useful advice and information about home equity loans. Website
contains articles and advice about home equity loans. http://www.homeequityloans-cheap.com/