01.12.07
Posted in Mortgage Loans, home equity credit at 12:45 am by mark
Home equity loans and lines of credit are commonly used for debt consolidation, educational expenses, unplanned emergencies, home improvements, vehicle purchases, and other gifts and purchases.
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Line of Credit |
Fixed Loans |
125% Loan |
| Key Benefit |
Lowest monthly payments of all loans |
Fixed rate and payments |
Borrow up to 125% of the property value |
| Payment Amount |
Interest only (Minimum $100) |
Options available to base payments on 15 or 30 year payback |
Based on 15 year payback |
| Interest Rate |
Fixed Margin, varies with the Prime Rate |
Fixed Rate |
Fixed Rate |
| Loan Amount |
$20,000 to $250,000 |
$15,000 to $250,000 |
up to $75,000 (cash out up to $30,000 and pay off current debts up to $45,000)
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| Potential Customer |
Bill and Judy have kids heading to college and would like to make improvements to their home. They will need cash on many occasions for both needs, but are not sure when or how much. |
Tom and Kelly want to make some home improvements and pay off some high interest credit cards. They know how much they will need and do not want an adjustable rate loan. |
John and Mary are looking to pay off some high interest loans and credit cards and lower their monthly payment, but have little equity in their home. |
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Guaranteed lowest cost Home Equity Loans  |
Low-Rate Mortgage & Home Equity Loans  |
125% Home Loans - Lower Rates at E-Loan  |
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09.26.06
Posted in home equity credit at 3:19 am by mark
Improving Your Poor Credit With A Home Equity Loan
by L. Sampson
If you have quite a few debts, and if you find that this affects your credit score, you can help improve your poor credit by taking advantage of a home equity loan. One of the things about poor credit home equity loans is that even with bad credit you can still get one. The reason is that no matter your credit, your home is still worth something. Your home’s worth is independent of your credit history. With your home as collateral for a home equity loan, you can get a debt consolidation loan that can help you improve your poor credit score.
How debt consolidation helps poor credit
Debt consolidation is a method by which your smaller loans are paid off by a larger loan. This helps people with bad credit because it simplifies their bills, and makes them easier to pay. Usually, debt consolidation results in a monthly payment that is lower than the sum of the previous payments. The same is true of the interest rate. Instead of paying interest several times on various loans, it is only paid once, on one loan, and the rate is usually lower. This means that it is easier to pay the bills, and that a person has fewer late payments, incomplete payments, and fewer maxed out credit card accounts. All of this can help boost a credit score.
Where a poor credit home equity loan comes in
You can use the equity in your home to consolidate your debts. In many cases, a loan large enough to pay off all of the smaller debts is unattainable without some sort of collateral. Even if you have bad credit, if you own a house you have collateral. You can use the ownership you have in your home to secure a larger loan to pay off all of your smaller loans. And on top of that, the interest payments you make are usually tax-deductible. By getting a loan consolidation using the equity in your home, you are waging war on your poor credit. However, you should realize that your interest rate will be higher if you have bad credit. But you can refinance to a lower interest rate in a couple of years when your credit improves. If you can spend less, and make your payments on time, you will find that your home equity loan really has helped you overcome your poor credit.
About the Author
Visit Home Equity Wise to find information about improving your credit with a Debt Consolidation Home Equity Loan.
Home Equity Line Of Credit - How To Benefit The Most From A Home Equity Line Of Credit
by Carrie Reeder
The options for tapping into your home equity are numerous. Some homeowners choose to refinance, while others take advantage of home equity loans. A home equity line of credit is a great option for homeowners who want access to their home’s equity over a length of time. There are benefits to a home equity line of credit. However, to avoid the pitfalls of these types of loan, consider the following.
What are Home Equity Lines of Credit?
Home equity lines of credit are revolving credit accounts that are protected by your home. The term revolving credit is often associated with high interest credit cards. However, lines of credit differ from credit cards. For starters, lines of credit are easier to qualify for. The interest rates are significantly lower than most credit cards, and home equity lines of credit are tax deductible.
Common Uses of a Home Equity Loan
Home equity loans are often obtained for large expenses. These are best used for financing home improvement projects, debt consolidation, paying for a child’s college expenses, etc. Additionally, some homeowners obtain home equity lines of credit as a means of having a cash reserve in the event of an emergency.
Pros and Cons of Home Equity Line of Credit
While this home equity option is useful, there are advantages and disadvantages. The benefits surround the ability to payoff high interest credit card debts and other consumer loans.
If using a line of credit for debt consolidation, homeowners will simplify their lives by having a single debt payment, as opposed to several. Furthermore, because of lower rates, homeowners are able to repay a home equity line of credit much sooner.
The disadvantage of home equity lines of credit is that your home serves as collateral for the loan. If for any reason you are unable to repay the loan, the lender may claim your property. This results in losing your home and equity. To avoid foreclosure, borrow a modest amount of money. Also, repay the funds promptly. The problems lies when people think of home equity lines of credit as free money, and begin borrowing and spending frivolously.
About the Author
Go to www.abcloanguide.com/homeequityloan.shtml for Home Equity Line of Credit Information. ABC Loan Guide’s lenders are reputable and offer competitive rates.
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