Get the facts and become educated about the home equity loan process by reading this informative online guide from LowerMyBills. You also may download a copy the guide in .pdf format.
Details: Understanding the basics of home equity is the first step to choosing the right loan for your needs.
Home Equity Loans are often referred to as second mortgages because they are secured by the equity that you have in your property. Your first (original) mortgage probably has a term of 30 years, while Home Equity Loans usually have a term of five to 15 years. Common uses for Home Equity Loans include debt consolidation, home improvements, and paying for tuition.
Because it is a secured loan with the property as collateral, a Home Equity Loan generally has lower interest rates and tax advantages that aren't available with a credit card. For the same reason, Home Equity Loans can be risky, because defaulting on payments puts the property at risk of foreclosure. Homeowners must also be prepared to pay the balance of the loan or line of credit when they sell their home.
URL: www.homeequitylendinginfo.com
Category: Loans
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