Home Equity Loans or Loanes We like to mention here a few things for you to think about when dealing with Home Equity Loans / Loanes. By the way: the word "loanes" is used here because a lot of people use it or misspell it when they mean the word "loans", so we'll leave it here and there in the text on this page. There's your right to cancel the loan within three days. If you're using your home as security for a home equity loan (or for a second mortgage loan or a line of credit), federal law gives you 3 business days after signing the loan papers to cancel the deal --for any reason-- without penalty. You must cancel in writing. The lender must return any money you have paid to date. Another issue we mention here is: Avoiding home equity scams You could lose your home and your money if you borrow from unscrupulous lenders who offer you a high-cost loan based on the equity you have in your home. Certain lenders target homeowners who are elderly or who have low incomes or credit problems—and then try to take advantage of them by using deceptive practices. That's why all homeowners should be aware of or on the lookout for: Equity Stripping: The lender gives you a loan, based on the equity in your home, not on your ability to repay based on your income. If you can’t make the payments, you could end up losing your home. Loan Flipping: The lender encourages you to repeatedly refinance the loan and often, to borrow more money. Each time you refinance, you pay additional fees and interest points. That only serves to increase your debt. Credit Insurance Packing: The lender adds credit insurance to your loan, which you may not need. Bait and Switch: The lender offers one set of loan terms when you apply, then pressures you to accept higher charges when you sign to complete the transaction. Deceptive Loan Servicing: The lender doesn’t provide you with accurate or complete account statements and payoff figures. That makes it almost impossible for you to determine how much you have paid or how much you owe. You may pay more than you owe. Top of this Home Equity Loanes page.   Some of these practices violate federal credit laws dealing with disclosures about loan terms, discrimination based on age, gender, marital status, race, or national origin, and debt collection. These above mentioned thoughts are not ment to scare you of, but if you’re thinking about using your home as collateral for a loan, be careful. Unless you can make the loan payments out of current income, you could lose your home as well as the equity you’ve already built up. Some additional tips to remember (also published by the Federal trade Commission): The lure of extra money or the chance to reduce monthly credit payments can be very costly in the long run. High interest rates and other credit costs could get you in over your head. Credit insurance may not be a good deal from a lender. If you want the added security of credit insurance, shop around. Don’t sign a loan agreement if the terms are not what you were given when you applied. Ask for an explanation of any dollar amount, term, or condition that you don’t understand. Federal law is very clear about what credit and loan term information must be provided in writing when you apply for a loan and before you sign any agreement. In addition, shop around for the best loan terms and interest rates. Contact lending institutions, such as banks and credit unions, and consult a legal or financial advisor, or someone you can trust before you make any loan decisions. Or contact your local Fair Housing Office, legal aid, or senior services organization for information and help. Top of this Home Equity Loanes page.   What ever you want, make sure to get the information you need about home equity loanes. Here's more on Home Equity - Borrowing Info - Loans or people might also use Home Equity Info Loans / Lanes. For information about a line of credit follow this link.     Top of this Loanes/Loans Home Equity page.