Home Equity Loans

Understanding Home Equity Loans

If you're a homeowner then I am willing to bet that you have heard about home equity loans. These loans are secured using the equity in your home. Equity is determined by examining how much you've paid so far on your mortgage and what the value of your home is. The amount of money you're allowed to borrow will depend on how much equity you have. Most lenders will allow you to borrow up to 75 percent of your current equity. This is often the only way many people can access the large sums of money they need.

There are numerous reasons why you might want or need a home equity loan. For example, some people might use a loan such as this to pay college costs, buy a new vehicle or make home improvements. Still others decide to consolidate their debt with the money they borrow. Debt consolidation via an equity loan is a popular method for homeowners to improve their credit. This simply means you add up all your debt then use your loan to pay it all off. This leaves you with only one payment rather than multiple payments to different creditors. Speaking of credit, you might be wondering if you can get approved for one of these loans if you have bad credit. Often, you can, because your home acts as collateral. Some lenders even specialize in granting loans to people with bad credit.

One alternative to an equity loan (which has a fixed term and interest rate) is a HELOC, or home equity line of credit. A home equity line of credit is similar to a regular credit card. The difference is that your home is used to secure the line of credit. If you're going to be buying various things or using the money in various places, a HELOC might be a good alternative to an equity loan. Your lender can help you decide which method is best for you.

There are all kinds of lenders out there offering home equity loans with all kinds of different terms. Banks, credit unions, mortgage lenders, even online companies are actively advertising their loans. It helps to compare rates and contact several lenders to ensure you get the best rate possible on your loan. Just make sure that you can afford the monthly payments, because your house will be on the line. To find out more about this subject, follow the links on this page for more information.

Home Equity Loan News:

Colorado Springs Business Journal - Commentary: Here's an idea: Let's flood the economy with liquidity
August 20, 2010 -- You're a well-paid professional with a stable job. You have deep roots in your community. Three years ago, you bought your dream house. It's a...

Pending home sales rise 5.2 percent in July - AP - msnbc.com
the latest reading was 19 percent below the same month last year and home sales are at the lowest level in more than . The average rate for a 30-year fixed loan was 4.32 percent this week, down from 4.36 percent ...

Sentinel, The; Stoke-on-Trent (UK) - There's help at hand for first time buyers
August 19, 2010 -- Buying a home for the first time can be expensive, so you need to make sure you have an idea of the different costs and find out ways you could...

Manufacturing Close - Up - Ohio's Hardest Hit Fund Appoints Loan Value Group as an Alternative
August 20, 2010 -- Loan Value Group announced that its Responsible Homeowner Reward program has been included as an alternative resource in Ohio's Hardest Hit Fund...

Pending home sales up by 5.2% in July - Detroit Free Press
the latest reading was 19% below the same month last year and home sales are at the lowest level in more than a decade . The average rate for a 30-year fixed loan was 4.32% this week, down from 4.36% last week,..

How to Apply for a Home Equity Loan | home insurance loan
Before applying for any loan, it's important to plan ahead in order to enhance your chances of fast approval at the best possible interest...

PR Newswire - HUD Shares Plans for New Reverse Mortgage Option
August 27, 2010 -- Lower Upfront Costs to Be Key Feature of New Version of FHA Home Equity Conversion Mortgage WASHINGTON, Aug. 27...

Real Estate Weekly - CBRE has Lowe's down on recap deal
August 18, 2010 -- Enoch Lawrence, senior vice president, and Rayna Karaivanov, senior analyst, of CBRE's Capital Markets Debt & Equity Finance group in New...

Pagones: 5-year plan best way to fix Fishkill deficit - Poughkeepsie Journal

Pagones: 5-year plan best way to fix Fishkill deficit
Poughkeepsie Journal
Pagones compared borrowing the money to taking out a home equity loan. "If I want my kitchen done, or finish my basement, put on siding, instead of doing .

and more »

Home loan refinancing is booming as rates fall, wary homeowners stay put - Cleveland Plain Dealer
If your loan is above 80 percent of your home's value, see whether you can use a home equity line or other money to pay down the principal to get it below 80 percent loan-to-value. EUR¢ Look at adjustable-rate loans,..

Home purchases up in July, but below 2009 levels - TheDay.com (blog)

Home purchases up in July, but below 2009 levels
TheDay.com (blog)
The average rate for a 30-year fixed loan was 4.32 percent this week, down from 4.36 percent last week, mortgage buyer Freddie Mac said. .

and more »

Reverse mortgages: badly judged or just misunderstood? - Money Management

Reverse mortgages: badly judged or just misunderstood?
Money Management
In 2007, the MFAA developed a code of practice for equity release loan writers to ensure consumers make fully informed decisions. The process was designed .

When Should You Seek a Home Equity Loan? | FactHippo.com
Home equity loans are useful when the homeowner needs substantial funds to undertake projects like home renovation or improvements, financing...

Home Is Where the Tax Exemption Is - Pittsburgh Post-Gazette
The creditor is entitled to whatever value the home has over that amount that is not already owed on a mortgage or other secured debt like a home equity loan. But the debtor's homestead exemption plus the mortgage ...

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