Friday, November 30, 2007

Cheap Equity Loans

Since the slump in house prices during the early-to-mid 1990s, millions of UK homeowners have seen the value of their property rise by considerable amounts. This has made many a UK homeowner equity rich and, on paper, very wealthy. But, with all the equity tied up in their home the reality of the situation is often very different as homeowners struggle to find the money to make ends meet or to pay off other loans. If this is you then don't despair…equity loans are the answer to just this problem!

Releasing equity

Equity loans are loans secured on the value of your home minus loans already secured on your home, the most significant of these pre-existing loans secured on your home being mortgage loans. The difference between the value of your property and loans secured on your home is known as equity. Equity loans are loans secured only on the free equity value of your home. A wide selection of equity loans are available from loans companies, and the low loans rates associated with equity borrowing makes loans based on equity one of the cheapest ways to borrow money in the UK.

Loans based on equity release are very flexible in repayment duration. For instance, loans drawn from equity with a repayment duration to match the length of your remaining mortgage loans are just as readily available from equity lenders as short loans of 36 to 48 months in duration. Do take into account though that short duration loans require higher monthly repayments to equity lenders.

Equity heaven

Releasing equity tied up in your home through equity loans improves personal cash flow and really takes the pressure off servicing other loans that you've acquired. But, equity borrowing offers so much more than just paying outstanding bills and loans. With loans based on equity in your home you can move forward with your life. Maybe you'd like to use the equity-released money to buy a new conservatory? Perhaps you'd like a second honeymoon or to take regular exotic holidays using the equity? If you're looking to profit from the equity released then you can always re-invest the equity as loans to buy property to let or renovate. When you think about it, there really is no limit to what loans secured on equity in your home can do for you.

One word of caution though. Before taking out loans secured on equity in your home, do consider how you will meet the monthly repayments. You don't want to get yourself into a position where you have to sell your home to service your loans secured on equity.


Article Source: http://www.articledashboard.com


Matthew Bourne has been working in the loans, mortgage and life insurance industry for over 10yrs and is currently working for 1Track Cheap Loans


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Wednesday, November 28, 2007

Bad Credit Home Equity Loans - Tips On Obtaining A Home Equity Loan Even if You Have Bad Credit

Consider this scenario: You have an urgent, large expense to meet. You want to consider a home equity loan but a bad credit situation is giving you pause. Don't let bad credit worry you! You can now get a bad credit home equity loan to improve your credit and meet your expense. There are lenders who specialize in bad credit home equity loans.

It is important to understand what home equity is and what a home equity loan could mean if things don't go as planned. The difference between the market value of your home and the credit you owe on it comprises your home equity share. The loan that is given against this equity as collateral, which could vary from 75% to 125% of equity value, is called home equity loan. If you are unable to meet the terms of repayment for the loan, you could potentially lose your home. So, think through your current credit situation and future repayment capability before deciding.

Once you have decided to take a home equity loan, the first thing to do is to get information about the prevailing market rates and options so that you can make an informed decision on which lender to go with. Lenders typically look at the last three years of your credit history. First get your credit rating and if possible, improve it before you apply for a home equity loan. This will give you better interest rates and repayment terms and also get you greater loan amount. Even if you have to rely on the home loan to improve your bad credit, there is no need to panic. It may only mean you have to look harder and pay higher interest rates.

Talk to your existing banker or lender about your decision to go for a home equity loan and get their feedback and the rates they are willing to offer. This could be a starting point for your comparative study of various lender quotes. It is necessary for you to study the market before signing a loan deal because in the long run, it could save you thousands of dollars by way of interest. These days it is simple to sit and analyze the available options, as everything you would want to know is available over the Internet. If you have very poor credit ratings (FICO score below 500), then more research is required as many lenders do not transact below a standard credit level; in such a case going online is your best bet to get a list of lenders willing to deal with you. Just spending a few hours online could help you to nail the best provider.

You will have a choice of going for variable or fixed interest rates. Fixed rate, as the name suggests, is fixed throughout the loan term whereas variable starts with a lower rate but could fluctuate very often through the term, basis market conditions. It is always a better idea to go for fixed rates unless you have any other pressing reason. If you have compiled and analyzed all the quotes at your disposal, have made sure that you can stick to the repayment terms in the future and then have signed your bad credit home equity loan deal, rest assured - you are on velvet!

Quickly and easily obtain an instant online home equity loan by visiting http://www.instantonlinehomeequityloans.com/ a popular home equity loan website that specializes in providing bad credit home equity loans for people needing to access their home equity line of credit.

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Online Home Equity Loans - The Advantage Of Applying For An Online Home Equity Loan

Let your home give you a helping hand during your time of need! Do you need money for your child's education, do you need to remodel your home or do you need debt consolidation? Whatever your need, you can rely on online home equity loans to share your responsibility.

Points to ponder:

As per the adage 'look before you leap', look for facts and figures and then leap into securing a home equity loan. There are consultants available online and offline who can give you quotes about what the various providers in the market have to offer. Many loan consultants offer a certain number of free quotes online, for your analysis. Compare and use these quotes to decide who can give you the best deal. Points that will be taken into account are the loan amount you need, the equity available on your home, the repayment period you are looking at, whether you want to go for fixed or variable interest rates or not, your credit history and your current income. There are also special options like interest only home equity loans that let you pay the interest alone every month for the first few years and then start paying towards the principal loan.

Advantage of going for online home equity loans:

Online home equity loans have a number of advantages. The very obvious advantage is that you can get your loan without wasting time and money, from the comfort of your home. You also have the benefit of being able to analyze many options before zeroing in on the one that suits you. The processes being followed in banks could be very frustrating starting with the number of questions they ask. Added to this, the banks' loan consultants often get paid by the banks themselves, to get them better interest rates from the customers.

Online home loan sites offer loan advice using 'loan calculators'. Though this calculator, the customer is asked to enter values for some parameters pertaining to the desired loan amount and property value. The loan calculator now gives a list of suitable loan options from which the customer can have his pick. This feature enables him to get customized/individualized options. He will also have the facility to talk or chat online with a loan consultant anytime, any day. There are tools that allow the customer to analyze his position regarding his credit status, the maximum loan amount he may get etc. The sites also have comparative figures and charts, tips and articles for the various loan types and options, to aid him in his decision making process.

When you go online for your loans, your portfolio is automatically maintained online. So, the hassle of tracking your loan repayment is greatly reduced, saving much of your valuable time. You also have the comfort of looking up your current status at the click of a button. You can choose to have email alerts for critical events like payment deadlines. Any new updates in the loan market scene are also easily available to you. With all these advantages waiting to be used, why should you delay? Apply for your online home equity loan today and get the best out of your home!

Quickly and easily obtain an instant online home equity loan by visiting http://www.instantonlinehomeequityloans.com/ a popular home equity loan website that specializes in providing low interest home equity loans for people needing to access their home equity line of credit.

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Bad Credit Home Equity Loans

Bad credit home equity loans are special home equity loans available to people with a low credit score. If you have been eyeing a new home or wish to take a new loan to pay off high interest debts, then they are something you should consider applying for. Fixing Of Interest Rates

Your credit score or FICO score is used to determine the interest rate you will have to pay. You gain FICO points depending on your ability to repay loans, your salary and assets. You lose points when you default, make late payments or file for bankruptcy. Scores range from 350 to 850 points. Those who have a high credit score pay low interest rates. People who have a score of less than 600 are usually asked to pay a high rate of interest or denied loans. However, they can always avail of bad credit home equity loans.

What Is A Bad Credit Home Equity Loan?

Originally, home equity loans were designed to pay for renovations and add on structures to your home. However, as lenders never check where the money is going, you can use it for almost any purpose. People with low credit scores usually go in to pay off their debts. The only difference between bad credit home equity loans and regular home equity loans is the slightly higher rate of interest.

Lending companies and banks are always ready to dole out cash as bad credit home equity loans. As the loan is secured by a mortgage on your house, the lender faces very little risk. If you are unable to pay the loan in the future, they simple repossess your house to recover their dues. Plus the high interest rates and loan charges make it quite profitable for them.

Advantages To People With Bad Credit

They are extremely useful to people who are stuck in a cycle of debt or in a debt crisis. If you have multiple high interest rate arrears like credit card debts, then it makes sense to use a low interest home equity loan to pay it off. The advantages are -

# You will have to deal with just one creditor - the home equity loan company.
# You will make smaller monthly payments

As you pay off the previous loans, your credit rating will increase. This debt consolidation function of bad credit home equity loans is the reason why it is become so popular today.

Thomas Lonsdale works for clickoncredit.co.uk a secured loans broker aimed at the uk market offering savings financial news.

Article Source: http://EzineArticles.com/?expert=Thomas_Lonsdale

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Understanding A Fixed Rate Home Equity Loan

There comes a time when everyone considers taking out a loan. There are many types of loans, however an fixed rate home equity loan is the most popular among homeowners. A fixed rate home equity loan is just as it sounds. It is a loan that is taken out against the equity of your home at a fixed rate. It is sometimes referred to as a second mortgage.

The money you receive for a fixed rate home equity loan can be used for anything, however most people choose to use the money to pay off credit card balances. The payments that you make can be used as a tax deduction as long as you are also paying interest.

It is important however to note that if you use the home equity loan to make home improvements, than the equity of your home is increased. Don't forget to research each company you are considering using. Each company has their own interest rates whether they are fixed or not, and you want to find the lowest rate possible. It is also important to research the companies to make sure that are reputable before you use your home as collateral.

When speaking with a representative, try to understand what the process for a fixed rate home equity loan will be. Find out the rules and regulations, terms of service and the interest rate. These are paramount factors when you are considering a fixed rate home equity loan. Most fixed rate home equity loan have closing costs, much like your home did when you purchased it. Remember to ask what these costs will be and if there are any hidden costs or charges that are associated with it. The last thing that you need is to have any little surprises pop up at the last minute.

Those who have less than perfect credits are more apt to be granted a fixed rate home equity loan. This is because traditional lending institutions do not grant loans often to those with bad credit, and even though the interest rates are higher for a fixed rate home equity loan, many with bad credit will apply for it because it is the only one they will be accepted for. Above all, it is critical that you understand that if you skip or miss a payment on your fixed rate home equity loan, you risk losing your home, and if you sell your home before the loan is paid off, you the balance will be taken before you see the check.

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Four Key Benefits Of a Equity Home Loan Mortgage Refinance

When it comes time to remodel your home or pay off excess credit card debt nothing can beat a equity home loan mortgage refinance for getting the cash you need quickly. While you may be looking at a traditional refinance you cover your monetary needs a home equity loan may actually be better for you.

Low Closing Costs: When you use a equity home loan mortgage refinance you will generally not pay any closing costs for the loan. At worst some banks may charge a few hundred dollars but that is still cheaper then the thousands of dollars a standard mortgage refinance can cost.

Avoids Private Mortgage Insurance: If you to borrow against your home for more then 80% of the value you will pay PMI. PMI is expensive and an unnecessary cost. By using a home equity loan you can borrow up to 100% of the available equity you have and avoid PMI insurance.

Fast Closing Time: Many banks can close your home equity home mortgage refinance in as little as one week and some may not even need to do an appraisal on your home. Compare this to the standard mortgage refinance time table and its clear how convenient an equity loan is.

Low Interest Rates: Equity loans are one of the most competitive segments of the mortgage industry. By shopping around and looking for the best offer you can secure some great low rates. Local banks are a great source for these loans and are often the most competitive, even when compared to the large national lending companies.

While a equity home loan mortgage refinance may not suit every borrower they are a very beneficial financial tool for many people. By understanding the key benefits they offer you can make the choice that is right for your situation.

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