Phil Strong answers the query “Paying off the mortgage vs Line Of Credit?” Get more details at: philstrong.com
Posts Tagged ‘Home Equity Loans’
Paying off the mortgage vs Line Of Credit
Friday, January 22nd, 2010Home Equity Loans & Second Mortgages
Tuesday, January 19th, 2010Nationwide Mortgage Loans is a premiere Home Equity Lender that specializes in cash out refinancing opportunities for all types of borrowers. Home equity loan options have changed dramatically in the last few years. Gone are the days of no equity 125% loans using statistical appraisals….
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Home Equity Loans UK
Saturday, December 19th, 2009If you want cash to cover some immediate personal expenses then one of the inexpensive ways is to take a secured home equity loan. Home equity refers to the difference between the actual market value of your house and the amount you owe to your bankers. The amount of money advanced in a home equity loan is a little less than the exact amount determined as home equity.
A home equity loan should not be taken lightly as one may need quite some time to repay the loan. It is not hassle free either as compared to other kind of loans. Once the application reaches the lender containing details of your property it is processed and bonafide officers of the bank perform the due diligence for valuation of a property. Once an exact value of your property is determined it is matched with your requirements. If the value of the property and the loan amount requested match then the loan is approved and the money disbursed to the customer. The loan amount disbursed is slightly lower than the value of the property keeping in mind any unexpected depreciation in the value of your property.
Homeowners usually go for these kinds of loans when they need money for home improvement purposes or to make fresh investments in buying land or property. Home equity loans can be fixed rate or adjustable rate loans depending upon the choice of the borrower. The interest paid on these loans is tax deductible unlike other consumer durable loans where the interest is not tax deductible.
Some lenders offer these home equity loans as a revolving line of credit to the customer where interest is charged only on the amount of money that is used by the borrower. The option to generate money though a home equity loan or a home equity line of credit should be exercised with great care as any default would lead to forfeiture of your residential property by the lending institution.
Roselynn has a Masters Degree in English from Cambridge University and has a passion for writing in different fields. She is currently working with UK Loan Central.
Visit: http://www.ukloancentral.co.uk/
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Home Equity Loans Online
Monday, December 14th, 2009One of the best things about purchasing a home equity loan online is the wide selection and range of offers you will find. There are a variety of home equity loan terms, programs, and interest rates to choose from when you take out your home equity line of credit online.
If you look around, you will find many good home equity loan deals. Some companies offer low or no closing costs for your home equity loan. Unlike your first mortgage, you don’t need to get slapped with a bunch of surprise fees. This process will be so much simpler than the first time around, so if you run into a home equity loan with no closing costs and a low interest rate, go for it!
You can lower your monthly payments on your mortgage and your home equity loan by consolidating the two. With so many low interest rates available, now is a great time to do it. You may end up with an interest rate for both loans that is the same or less than the one you’re paying for your mortgage right now.
If you decide to take out a home equity loan, go all the way. Take as much as you qualify for. The more you take out, the lower your interest rate will be. If that amount is more than you need for your current focus, then use the extra money to make home improvements or pay off your debt completely.
A word of caution when you choose to shop online for your home equity loan: be careful of whom you give your personal information to in the process. Look for third party accreditation and check out their business record. Internet identity theft is very common, so protect yourself.
Ken Charnly is a personal finance publisher whose website Online Loans is dedicated to quality information on online loans. For quality information and for all your online loan needs visit and Apply for Loans Online
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Home Equity Loan Closing Cost Appeal
Friday, December 4th, 2009A home equity loan closing cost appeal usually carry a lower initial interest rate than a home equity loan, but its rate fluctuates according to the prime rate, so there is always more of an interest rate risk. Unlike a HEL, where your monthly payment is a set amount, a HELOC enables you to borrow funds as needed and repay as little as interest only each month.
When deciding between a Home Equity Loan against a Home Equity Line of Credit, first we need to determine what the money is being used for and how much money are we going to need. Generally, a HELOC (Home Equity Line of Credit) is a better choice for ongoing cash needs, such as college tuition payments or medical bills.
Home equity loan allows you to draw money whenever you need money, capped at a fixed limit. There is generally a minimum payment due each month, with the option to pay off as much of the line as you want. The two most popular types of home equity loans are called “open” and “closed.” The “open” loan or a line of credit sometimes called a HELOC.
In this loan usually the interest rate is variable tied to the prime rate and the term of the loan can range from five to thirty years. Because the rate is variable the payment amount is as well which might be problematic. Lenders often offer a special starting rate as an added enticement. The other type of loan is a “closed” loan where the amount is a fixed amount for a fixed period at a fixed rate with set payments so at the end of the term the loan is paid off much like a regular installment loan.
The rates and term of the loan are usually fixed but because the extra money is unsecured the rates are generally higher than a regular first or second mortgage rate but still lower than credit card rates. With a home equity loan, there are also closing costs that you need to take into account. This refers to the money paid at closing to the lender. It may include one or more of the following fees: a loan origination fee, points, appraisal fee, title search and insurance, survey, taxes, credit report charge and other costs assessed at conclusion.
One of the variations which have broad appeal is the 125 home equity loan so selected because the borrowers can get up to 125 % of the current combined loan to value (CLTV). This type of loan is mainly appealing to first time home buyers who may need to spend extra money on furniture, home improvements, landscaping, etc.
The extra money can be used for debt consolidation, medical expenses, or college tuition as well .There is such a wide variety of loans you can get using the equity in your home as collateral that it can be confusing. But if you do a little research you can find one that is just right for you and your needs.
Daryl Stewart is an expert in finance planning. He has done his master in finance. He is currently working as senior financial adviser for home equity loans, guaranteed personal loans and term life insurance. To find home equity loans, guaranteed personal loans and term life insurance and more you need to visit-http://www.homeequity-loanz.com/
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Home equity loan for improvements
Thursday, December 3rd, 2009A home equity line of credit is a loan you take out against the amount of your mortgage that you have paid off. Home equity lines of credit are relatively easy to get, have low rates, and their interest is deductible. The down side is that if you can’t make your payment, you lose your house.
Your creditor or bank will calculate your equity by subtracting the amount of your mortgage from the current value of the house. This leaves the amount you’ve paid. Take 80 percent of that and you have the loan you will probably be offered by most banks.
If you own a home that is valued at $250,000 and your unpaid mortgage is $150,000, you have $100,000 equity in your home. 80 percent of $100,000 is $80,000 and that’s how much you can usually borrow.
Whether or not you get this home equity line of credit has nothing to do with your income, investments, stock, your liquid capital, how much cash you have in your savings account, credit cards, or credit reference. It has nothing to do with the financial state of your family, your husband or wife, or where you work.
Unfortunately, if you fall into debt or one of your children falls ill and you have no extended family to rely on for finance, you could lose your home. A home equity line of credit is essentially a second mortgage and two mortgages means that you’ve essentially put up your house as collateral.
It is not a good idea to stake your residence and family’s funds on a non-essential purchase like a vacation home or adding on an extra family room or bathroom for when your mother or father come visit. There’s no point in making the homestead more homey if you have nothing more than hope that you will be able to maintain the payments. It’s an extra immediate payment every month that may bleed your assets dry.
If you are sure that your budget can handle it, then build the extra bedroom or bath. Extra rooms raise the value of your estate as well as increase your general household environment. It may be a better idea to keep your home equity line of credit as a last resort safety net instead of gambling on a future that is uncertain.
Ken Charnly is a personal finance publisher whose website Online Loans is dedicated to quality information on online loans. For quality information and for all your online loan needs visit and Apply for Loans Online
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All the Funds You Need With Equity Lines of Credit
Tuesday, November 24th, 2009An excellent source for revolving funds are home equity lines of credit. With these financial products you can obtain all the funds you need at a competitive rate without worrying whether you can afford fixed monthly payments. Besides, just like home equity loans, home equity lines of credit have many benefits over personal unsecured loans that turn them into a much better option.
In order to decide whether home equity lines of credit are the right financial product for you, you need to understand how they work. But first, you should also be familiar with personal unsecured loans and home equity loans so you can knowingly compare what each of these products have to offer.
Personal Unsecured Loans
Personal unsecured loans are not easy to qualify for, they require a good credit history mainly due to their unsecured nature. The only guarantee of repayment that the lender has is your credit worthiness. There are however, some lenders that might approve you for an unsecured personal loan even with bad credit or no credit at all.
Nevertheless, if approved for an unsecured personal loan, the interest rate will depend on your credit score. Unsecured loans carry higher interest rates than secured loans and if your credit score is less than perfect, then you will have to face even higher rates making these loans a really expensive financial product.
Personal Unsecured Loan Amounts
For the same reasons, personal unsecured loans offer only small loan amounts. The risk involved in these transactions makes the lenders try to endanger the least amount of money possible. Thus, these loans come only in small amounts that rarely exceed amounts of $10,000 or $20,000.
Moreover, when loan amounts are that high, the interest rate charged tends to be even higher. Besides, the loan repayment program is limited which implies you will have to repay the loan in short periods of time. Unfortunately, this means that the amount of the monthly payments will be high enough to put in jeopardy the loan affordability.
Home Equity Loans & Lines Of Credit
Home equity loans on the other hand, carry lower interest rates due to their unsecured nature. Given that home equity lines of credit share this nature, they also carry lower rates. However, the interest rate charged by lines of credit is slightly higher than that of home equity loans and the rate is also variable while on home equity loans it can be either fixed or variable.
The amount you can obtain from home equity loans and lines of credit is significantly higher. You can request any loan amount up to the remaining equity on your home though, unless you have perfect credit you will not be able to obtain 100% financing on your equity’s value. As a plus, home equity lines of credit offer revolving funds. Thus, if you repay a portion of the money you requested you can withdraw it again whenever you need it. That’s why Home equity lines of credit are a perfect solution for those seeking flexibility and cheap financing at the same time.
Melissa Kellett is an expert loan consultant who has worked for twenty years in the financial industry and helps people to repair their credit and get approved for home loans, unsecured personal loans, student loans, consolidation loans, car loans and many other types of loans and financial products. If you want to learn more about <a href="http://www.speedybadcreditloans.com/bad-credit-personal-loans.html” rel=”nofollow”><a href="http://www.speedybadcreditloans.com/guaranteed-online-personal-loans.html” rel=”nofollow”>Personal Loans for Bad Credit People and <a href="http://www.speedybadcreditloans.com/guaranteed-online-personal-loans.html” rel=”nofollow”>Personal Loans you can visit her site http://www.speedybadcreditloans.com/
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All the Funds You Need With Equity Lines of Credit
Tuesday, November 24th, 2009An excellent source for revolving funds are home equity lines of credit. With these financial products you can obtain all the funds you need at a competitive rate without worrying whether you can afford fixed monthly payments. Besides, just like home equity loans, home equity lines of credit have many benefits over personal unsecured loans that turn them into a much better option.
In order to decide whether home equity lines of credit are the right financial product for you, you need to understand how they work. But first, you should also be familiar with personal unsecured loans and home equity loans so you can knowingly compare what each of these products have to offer.
Personal Unsecured Loans
Personal unsecured loans are not easy to qualify for, they require a good credit history mainly due to their unsecured nature. The only guarantee of repayment that the lender has is your credit worthiness. There are however, some lenders that might approve you for an unsecured personal loan even with bad credit or no credit at all.
Nevertheless, if approved for an unsecured personal loan, the interest rate will depend on your credit score. Unsecured loans carry higher interest rates than secured loans and if your credit score is less than perfect, then you will have to face even higher rates making these loans a really expensive financial product.
Personal Unsecured Loan Amounts
For the same reasons, personal unsecured loans offer only small loan amounts. The risk involved in these transactions makes the lenders try to endanger the least amount of money possible. Thus, these loans come only in small amounts that rarely exceed amounts of $10,000 or $20,000.
Moreover, when loan amounts are that high, the interest rate charged tends to be even higher. Besides, the loan repayment program is limited which implies you will have to repay the loan in short periods of time. Unfortunately, this means that the amount of the monthly payments will be high enough to put in jeopardy the loan affordability.
Home Equity Loans & Lines Of Credit
Home equity loans on the other hand, carry lower interest rates due to their unsecured nature. Given that home equity lines of credit share this nature, they also carry lower rates. However, the interest rate charged by lines of credit is slightly higher than that of home equity loans and the rate is also variable while on home equity loans it can be either fixed or variable.
The amount you can obtain from home equity loans and lines of credit is significantly higher. You can request any loan amount up to the remaining equity on your home though, unless you have perfect credit you will not be able to obtain 100% financing on your equity’s value. As a plus, home equity lines of credit offer revolving funds. Thus, if you repay a portion of the money you requested you can withdraw it again whenever you need it. That’s why Home equity lines of credit are a perfect solution for those seeking flexibility and cheap financing at the same time.
Melissa Kellett is an expert loan consultant who has worked for twenty years in the financial industry and helps people to repair their credit and get approved for home loans, unsecured personal loans, student loans, consolidation loans, car loans and many other types of loans and financial products. If you want to learn more about <a href="http://www.speedybadcreditloans.com/bad-credit-personal-loans.html” rel=”nofollow”><a href="http://www.speedybadcreditloans.com/guaranteed-online-personal-loans.html” rel=”nofollow”>Personal Loans for Bad Credit People and <a href="http://www.speedybadcreditloans.com/guaranteed-online-personal-loans.html” rel=”nofollow”>Personal Loans you can visit her site http://www.speedybadcreditloans.com/
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Home Equity Loans and Equity Lines of Credit?
Monday, November 23rd, 2009Many of us today are turning to equity lines of credit or equity loans to help meet our family’s financial needs! Over the last few years here in the U.S. property values have risen dramatically! In some area’s they have actually gone through the roof! At the same time living costs have also risen, without the same raise in our salaries? So many of us are looking towards home equity lines of credit type loans to help us through these tuff and difficult times.
We first need to educate ourselves about home equity loans? Let’s start with the extra value that your home currently has? Its called equity: Equity is the value of your home minus the remaining mortgage balance that is outstanding. While you live, eat and sleep in your home worrying about debts or wishing you could refurnish the living room you may be sitting on the cash that will grant you your wishes.
Is a Home Equity Loan/Line of Credit right for you?
Unlike a typical loan which deposits a set amount of money in your account and begins charging you interest and payments at a fixed rate until repaid, a line of credit acts as a revolving credit (like your credit card). You do not need to pay interest on the full amount you have access to—you only pay for what you have used. Also, like a credit card, when the debt is repaid you still have access to the credit.
Using an equity line of credit (also known as a Home Equity Line of Credit or HELOC) gives you greater flexibility with the least cost. Not only can you access the credit only as you need it, but you’re monthly payments will reflect only the balanced used. The less used the lower your payment. Some lines of credit have only the interest as the minimum payment, which can be helpful, when finances are tight.
An equity line of credit is great when you don’t have a large fixed amount to spend in one place that will take many years to repay and you want access to the credit without asking for a new loan when you have paid it back.
Can I Use My Home Equity Loan/Line Of Credit, Whatever Reason I Want?
While you can no doubt find numerous uses for your line of credit, here are samples of the more common reasons for obtaining an equity line of credit.
Consolidate Debts
Using your home equity loans to consolidate other debts can not only eliminate the stress of multiple bills but can also give you a more favorable interest rate or tax benefit. For example: monthly credit cards bills, especially the cards with high interest payments! You might even think about paying off your vehicle, but of course only if your interest on your vehicle is higher then the one on your home equity loan?
Second Mortgage
Use your line of credit to pay off the existing mortgage for better interest rates. Pay-off the high interest rate loan you currently have on your home or rental property? This could be a tax write-off if you use it to pay-off your 2nd loan on your rental property? First discuss this with your accountant to be sure?
Upgrades to your home?
Maybe you would like to add a 2nd or 3rd bedroom or bathroom to your home? Maybe even a 2nd story? Enlarge the garage? These would all be good uses of a home equity loan! Which would bring additional valve to your home!
When Should You NOT Use a Home Equity Loan/Line of Credit?
Before succumbing to what seems like ‘easy money’ it is important to evaluate the additional risk.
Some debts – like student loans have features that you may not be entitled to if you switch them to an equity line of credit.
Items like cars and vacations may seem like a good idea to buy with your home equity line of credit, but they’re not! Anything where you are paying a higher interest would not be a good choice!
Please don’t go to the casinos with this money! It’s not worth it…
Second mortgage (or refinancing) may or may not be a good idea depending on interest rates and your repayment terms. While lines of credit take advantage of current low interest rates you may find that your regular loans protect you better from fluctuating rates if you will not be paying the loan down in the next few years.
Using your finances wisely can give you great relief and freedom. Before taking on any financial obligations it is important to understand the risks as well as the benefits.
Home equity loans come in adjustable or fix rate. Always ask your lender the terms of each loan, and the cost of each loan? Knowing this ahead of time will save you many years of grief! Generally, home equity loans can be for 10years, 15 years, it all depends on your lender? Just make sure you have done your homework and made an intelligent decision before moving forward!
If you would like to read more valuable articles & information concerning Home Equity Loans and Bargains click over to clifton waldrep’s site at http://www.homeequityloansbargains.com/
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