Free Debt Management & Bankruptcy Articles

Professional Authors - Professional Articles



Debt Management Tips - Understanding Home Equity Loans


Home equity loans are loans that you can take out using the equity of your house as collateral. You can ask an appraiser to make an estimate on the value of your house and compare the numbers to your mortgage. If there is more value to the house than you owe to the bank for your mortgage, you have the possibility of getting a home equity loan. It is a way of taking the value of your house and making that value available to you.

There are different reasons for why anyone would take out a second mortgage on their house. It could be that your house needs some big construction adjustments or repairs, you may have received a medical bill which is not covered by insurance or your child is starting college in the fall and your savings didn’t count on medical school. These are of course very good reasons to liquidate your money, but you still need to think of the consequences. Make sure you know what you can afford on monthly payments and don’t take out more than you absolutely need to, otherwise your medical bills may be paid for or your child may become the best doctor ever, but if your house goes into foreclosure it is too late to think about if it was really worth it.

Luckily the providers of home equity loans don’t tend to dive into the deep end. They don’t give out the loans to just anybody who has value in their house. Often they require an excellent credit history and they only go for reasonable loans compared to the value and tune their interest rates on that information combined with the type of loan you are applying for.

There are two different kinds of home equity loans. The closed end home equity loan is the kind that has an actual ending date in the contract. By this date the entire loan including interest has to be paid off. The monthly payments are calculated in an order that will make sure the loan is paid off when the contract ends. The open end home equity loan doesn’t really have an actual ending date in the contract. The monthly payments are interest only and the total amount of the loan will be paid off once the house is being sold in the future.

Even though the payments for an open end loan are generally lower, because of the interest only calculations, it is probably a wiser decision to go for the closed end loan. That way you know exactly when you have paid off your loan and when the time has come to sell your house, for whatever reasons, you pay the equity in your house to yourself and maybe have a nice retirement.



Comments
Post has no comments.
Post a Comment




Captcha Image






BLOG TAG CLOUD
debt traps loan harassment help debt settlement secured loan budget sheet control spending more income legal action younger children borrowing house loan careful handling gambling debts candidate installment plans credit card companies payment frequency saving original creditor full details debit card finances extra payments savings great budget get out of debt debt relief agency school jobs lending company injury telephone bills unreasonable expectations unemployed cable bill repay monthly bill paying out debt professional job loss understanding home equity children saving overbearing bills spending need money account fees honesty credit card company paycheck bankruptcy paying bills purchase protection child support debt interest rate government assistance second job financial security hospital down payment credit rating stop harassment bank accounts comfortable living own money credit accounts short sale borrow money building debts debt management advice unexpected expenses become free liability credit companies tracking money emergency savings account debt consolidation loans salary credit scores budget lending companies doctors account interest credit repair medical bill check card past bad debt managing debt live within means car loan making payments family assistance save money credit history management advice illness expenses loss of income extra money management program mortgage payments spend money prioritizing credit reports unsecured loan good debt deals in writing bad debt low interest monthly budget introductory offers invest money total balance debt collector help bank pay off debt handling money restrict spending monthly payments your rights insurances worksheet live your life credit checks whole family credit bureaus home debts payment behavior home equity loans hobbies credit card debt debt free good credit rating debt payment period implement a budget asset info classify bills charitable organisation good credit budgeting management tips child support debt management debt collectors utility payments education checks part time job monthly payment cash card credit company credit card help debt programs borrower credit line debt company home equity software creditors budget categories repay loans order report seperate accounts taking responsibility gambling problem repayment plans children budget checking account loan amount chapter 7 credit score pay off bill child spending discounts overspending rent payments good budget lose your job credit card high interest rate overcharging negotiate piling debts court appearance bad debt management investing loan cash interest rates receipt visualization modified payment plan credit card traps debt relief interest debt problems internet installment plan personal finances money debt solution debt management mistakes paycheck info initial research interest payments loans loan companies understanding debt management tips debt financial education purchases regain control bad financial decisions loan agents saving money new job learning experience deb consolidation debt collection agency credit report common debt budget ideas allowance assets groceries phone calls domestic support back support cancer specific budget categories insurance teaching children finance Chapter 13 debts debt consolidation medical debt social services medical bills fly-by-night security good credit record common debt traps reduce debts bills ongoing bills credit cards tax info buying a house filing bankruptcy Consolidation Company savings account account charges mortgages trusted friends losing your job rebuild good credit help with debt household items take control of debt family budget income personal finance credit payday loan ill health great budget ideas consumer lawyer credit limit sickness negotiation payday loan companies debt consolidation losing a job flat broke less money



Copyright 2016 - Free Info Site Enterprises
Privacy Policy  |  Copyright Policy  |  Website Use Policy  |  Non Endorsement Policy  |  Contact Us  

Finance Blogs
best blogs