Home Equity and Second Mortgage Loan Options for Cash or Debt Refinancing

Tip! If you are considering getting a home equity loan, you can either get a fixed rate loan or a home equity line of credit. Lenders usually base the rates on their home equity loans on their Prime Interest Rate, the interest rate they charge their most qualified clients or borrowers.

If you are a consumer who owns a home, then you might be tired of getting mortgage solicitations to refinance your mortgage. Most likely, you are a savvy homeowner who locked into a 30-year mortgage a few years at 5% with a fixed interest rate loan. You may be wondering why these mortgage lenders and brokers think you would be interested in refinancing your 5% loan with a 6.5% mortgage rate. Mortgage companies are blasting direct mail campaigns that are targeting many homeowners in Southern California. You may not need to refinance your 1st mortgage, but chances are, you will want to access cash in the coming months. A fixed rate second mortgage or variable home equity credit line can get you cash, and a tax deduction without requiring you to refinance you low interest mortgage.

Second mortgage are effective financing vehicles for funding home construction, purchasing a second home or refinancing variable rate credit card debt. Home equity lines of credit are convenient, for people with changing plans. HELOC's can improve cash flow because only the interest is due on the portion of the line that you actually accessed. This offers a financing arsenal for borrowers needing cash on a whim for investing, and purchasing rental properties. A homeowner armed with a home equity line of credit protects their family with a safety net of cash reserves in case a emergency or tragedy arises.

Tip! Some lenders of home equity loans offer low introductory rates that might look like a great deal but these deals usually revert automatically to higher home equity loan interest rates.

I recommend to all of my clients to establish a home equity credit line whether they think they need it or not. If they never use the credit line, then it never costs them a penny. There are no crystal balls in the world, so you have to plan for both opportunities, and financial hardships. Get a second mortgage or line of credit, while your credit scores are high. Why wait until you are late on a bill and your credit scores are low. Take the small window of opportunity, and get your finance vehicles tuned up, because when you wake up tomorrow the opportunity may have already passed.

Lynda Nelms is an accomplished writer, who has a a popular column published called "Ask Lynda." She offers consumers a mortgage refinancing tips with a fresh perspective. Lynda continues to originate mortgage loans for BD Nationwide

Tip! Don't just settle for low home equity loan interest rates when comparing home equity lenders. Lenders that offer low interest rates tend to have stiffer terms.

Mortgage, who is located in San Diego, California. You can read more of her "Ask Lynda?" articles at BD Nationwide Mortgage Online: Get a free home loan quote or just learn more about Second Mortgage and Home Equity Loans. Check both prime and non-prime home equity loan rates online. For a complete look at no equity second mortgages, please go to 125 second mortgage loans online.

Home Equity News:

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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 ...

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