Iowa Home Equity Loans – Using a Home Equity Loan to Consolidate Debt

Tip! The home equity line of credit, or HELOC, is like a bank account where you continue to write checks sponsored by the equity of your home. A HELOC does not have a fixed period of time wherein it will be paid off, because you can continue to borrow against it, just like to a credit card.

Debt can be a huge burden on our lives and our finances. If you have found yourself caught up in the vicious circle of high interest credit card debt, an Iowa home equity loan may be just what you need to get a fresh start.

Low Interest

The biggest benefit to getting an Iowa home equity loan to pay off debts involves interest. The interest rate you pay on credit cards is usually high and often times, downright unreasonable. This is why it is so hard to dig yourself out of a hole. With a home equity loan, you can dump your high interest and trade it in for a much better rate. You can also deduct the interest payments that you make on a home equity loan—something you can't do with credit card interest. Currently, rates on Iowa home equity loans average 7.66 percent.

Pay Your Debts Off Faster

A low interest Iowa home equity loan will allow you to pay your debts off faster. It will also prove to be much more convenient, because you can consolidate all of your monthly bills into one low monthly payment. With a home equity loan, you could easily save yourself thousands of dollars over a period of a few years.

The Risk Factor

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.

There is a small amount of risk associated with using home equity loans to consolidate debt. You will be trading in unsecured debt for secured debt. This means that if you miss the payment, you will have more than bad credit, you could lose your home. Before taking out an Iowa home equity loan, you should be very confident in your ability to make the loan payments.

Visit Iowa Lending Center for a list of Recommended Iowa Home Equity Loan Lenders, whether you are looking for home purchase, refinance or a home equity loan.

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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