Home Equity

An Introduction to Home Equity Loans

Whether you need money for medical bills, college, or home repairs, a home equity loan might be the right choice for you. A home equity loan is a loan in which the borrower uses the equity in his or her home as collateral. There are two types of home equity loans; closed-end home equity loans, and open-end home equity loans.

The closed end home equtiy loan is like a traditional loan, and is commonly called a "second mortgage". With the closed end home equity loan, the borrower recieves the full loan amount at the time of the loan's closing. The loan is then to be paid back by the borrower in monthly payments. The monthly payments are fixed, and the loan has to be paid in full during a specific period of time, usually 10-15 years.

An open end home equity loan is a lot more flexible compared to a closed end home equity loan. But instead of getting a lump-sum amount like the closed end loan, the borrower gets a line of credit. With an open end home equity loan, the borrower can choose how much money to borrow against the home's equity. The borrower can also choose when to borrow the money. Open end home equity loans usually have a variable interest rate.

When shopping around for a home equity loan, be very carefull of the scams that exist. Some lenders try to take advantage of borrowers with bad credit or little income. They may lend you a loan that you can't possiblly afford. It is important to pick a reputable lender by doing your research. Just because a lender has the lowest closing costs does not make that lender the best choice.

For more information about Home Equity Loans, visit http://www.equityloanadvice.com

Home Equity News:

Bing: home equity site:msnbc.msn.com
Search results

Home equity loans drying up for some - Business - Personal finance ...
Like many homeowners during the housing boom, Lynnette Madden and her husband decided to open a home equity line of credit about a year and a half ago as ...
Americans' home equity near a record low - Business - Real estate ...
WASHINGTON ? Falling U.S. home prices have shrunk equity so much that the proportion of their homes that Americans actually own is near its lowest point ...
Home equity lines have dried up across U.S. - Business - Personal ...
Home equity lines have dried up across U.S. As home prices collapse, banks cut off credit, further souring the economy Below:
Late payments for home equity loans rise - Business - Real estate ...
WASHINGTON ? Late payments on home equity loans climbed to a 1½-year high in the opening quarter of this year, while delinquencies on credit card bills ...
Retirees no longer count on home equity - Business - Personal ...
Many Americans have recently found themselves changing retirement plans after losing a substantial amount of home equity as the housing market and the ...
Equity in Americans? homes falls to historic low - Business ...
NEW YORK ? The equity Americans have in their most important asset ? their homes ? has dropped to its lowest level since the end of World War II ...
Students get creative to pay off loans - Business - Personal ...
Lines of credit typically work like a credit card, with a limit and a revolving balance: the average home-equity line of credit currently has an interest rate ...
Use of home equity hits a four-year low - Business - Real estate ...
Use of home equity hits a four-year low Freddie Mac report cites falling residence values, stricter lending standards Below:
Ford, Toyota are pinning their hopes on China - Business - Autos ...
NEW YORK ? Ford Motor Co. plans to build a new assembly plant in China ... $30K home equity loan FICO: 5.75%
Cities sue, invest to stop foreclosures - Business - Real estate ...
These stem from lost tax revenue and jobs as well as slower consumer spending that come with home equity declines, and don?t even include the financial toll ...

Newsfeed display by CaRP