Home Equity Loan These pages are all about Home Equity Loan and Lines of Credit information hopefully bringing you a solution that can help you with your loan. A Home Equity Loan - or Second Mortgage - work similar to a standard mortgage. You borrow a one-time sum upfront and then pay it off over a set amount of time, usually with a fixed interest rate and the same payments each month. A Line of Credit - or a "HELOC" - works similar to a credit card, and is typically reserved for consumers with very good credit. You are approved for a maximum loan amount and a certain time period (i.e. 5-10 years.) You are then allowed to borrow at will against this loan amount, although the loan must be paid in full at the end of the time period. Line of Credit rates are usually variable and might be lower than a Home Equity Loan. A Home Equity Loan or a Line of Credit can be used for: Consolidate debt Home improvements Education expenses New car Business expenses Real estate purchase Medical expenses Vacation Remember, like a first mortgage, Home Equity Loans - or Second Mortgage - and Lines of Credit require you to use your home as collateral for the loan. As a result, the interest rates are often low and may be tax-deductible. However, this may put your home at risk if you are late or cannot make your monthly payments.   Top of this your house equity loan page. A line of credit vs. a second mortgage. If you are thinking about a home equity line of credit, you might also want to consider a second mortgage loan. A second mortgage provides you with a fixed amount of money repayable over a fixed period. In most cases the payment schedule calls for equal payments that will pay off the entire loan within the set amount of time. You might consider a second mortgage instead of a line of credit(also called: home equity line of credit) if, for example, you need a set amount for a specific purpose, such as home improvements. In deciding which type of loan best suits your needs, consider the costs under the two alternatives. Look at both the APR (=annual percentage rate) and other charges. Do not, however, simply compare the APRs, because the APRs on the two types of loans are figured differently: The APR for a second mortgage loan takes into account the interest rate charged plus points and other finance charges. The APR for a home equity line of credit is based on the periodic interest rate alone. It does not include points or other charges. Top of this Home Equity Loan page.   Analize Debt, when circomstances change. Get information about Line of credit from your home equity. If you want information on debt consolidation then follow this Consolidation of Debts info page.

 

 

 

Other Home Equity Issues besides a loan