Home Equity

Meet your Financial Needs with a Home Equity Loan

You are a home owner. You have already mortgaged your house and unfortunately you have again fallen in financial need. You want a low rate secured loan, as you can't afford to pay heavy installments against the loan. You need not take any kind of stress as you can avail the benefits of a home equity loan.

It allows you to borrow money, using you home's equity as collateral. Home equity is also called as second mortgage because in this case you mortgage the equity of your house for the second time. For instance, if your unpaid mortgage balance is, say 75% of the value of your house, you can take a home equity loan on the remaining 25% of the value of your house. This value that is not covered by the mortgage amount is known as home equity.

The rates of interest on a home equity loan are much lower than the rates on unsecured loans. The monthly installments are also small and the repayment period is long. So you can use it to pay off all your outstanding debts in full and convert them into a single low rate home equity loan.

A home equity loan can be used for a number of purposes. It can be used for the renovation of your home. It can be used as a business loan. Lenders are reluctant to provide business loans, as the rate of failure of entrepreneurs is very high. A home equity loan being a secured loan reduces the risk for lenders so that they can offer such loans for business purposes. Home equity loans are also suitable for people having a bad credit history. Even if you have a poor credit background you can avail a home equity loan that will help you avoid paying a high rate of interest.

A home equity line of credit is another type of home equity loans. It works more like a credit card because it has a revolving balance. It allows you to borrow up to a certain amount for the life of the loan -- a time limit set by the lender. During that time, you can withdraw money, as you need it. As you pay off the principal, you can use the credit again, like a credit card.

Author: The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Chance4finance as a finance specialist. For more information please visit: http://www.chance4finance.co.uk

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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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