Low Rate Home Equity Line of Credit Is Not A Thing Of The Past

There are many things that you probably want to do with your life and simply aren’t able to do because of money. Think about where you live now – are the improvements that you’d like to make but are putting off because of money? Would you like to make changes to your house, or move somewhere else entirely? Most people have things that they would like to do if they had a chance, or if they had the finances to do so. However, without something like HELOC, it can be very hard to do.

HELOC is not a traditional loan or mortgage. It extends you a line of credit that you can borrow against. This means that you can borrow as little or as much as you want against your agreed upon line of credit and you pay back what you borrowed plus interest. And with the current low financing, you can do so at a way that really enhances your life instead of pushing you further into debt. If you own a home and are considering a HELOC you can make the changes to your life that you’d really like to make. No matter what these changes are, trained professionals that deal each day with Home Equity Credit lines can help you figure out a way to best benefit your life.

With HELOC, you will never have to say that you simply cannot afford it. Life is too short to not be happy, and with a low rate HELOC or Home Equity Line of Credit, you can take the money that you have already put into your home and use it in a way that benefits you. You can pull from the credit line when you need to, and pay it back on a schedule, just like a credit card. You can use this money in any way that you would like, but the most important factor is that you have access to a line of credit to YOUR MONEY. Money that you have earned by working hard throughout your life.

Unlike a loan, you’ll be able to only use the money that you need to use, and pay it back at a much easier rate. You can take control of your own life, and take control of where you want your finances to go!

About Vladimir Rozumniy and American Mortgage and Real Estate Group (AMRE Group):
Many people have benefited from a HELOC from AMRE Group. With http://www.amergroup.com, you can take out a Home Equity Line of Credit starting at rates as low as 3.99% and get the best HELOC for your situation. Vladimir Rozumniy is the President of American Mortgage & Real Estate Group, established in 2004, got its start with the idea that by using technology it can save a lot of money researching lenders and pass on those savings to its clients. It now offers its services nationwide for commercial loans and statewide for residential loans, and consists of two divisions (residential and commercial lending departments).

Based in Glendale, California, it has met with success through competitive pricing and outstanding customer service. You can contact American Mortgage & Real Estate Group via http://www.amregroup.com or by calling toll free 866-357-1707.

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

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Why Get a Home Equity Loan?

If you're a homeowner, chances are that you've been deluged with offers from finance companies to lend you money based on the equity you have invested in your home. A home equity loan is a loan extended to you that is secured by your home. The amount of the loan is based on how much 'equity' you have invested in your home. The basic explanation of 'equity' is 'the difference between your home's value and how much you still owe on the mortgage'.

In other words, if you bought your home for $125,000 and put $20,000 down on it, financing $105,000, then your equity in your home on the day that you close the deal is $20,000. Now imagine several years pass. You've paid off $15,000 toward your mortgage - but at the same time, the value of your house has increased to $175,000. Your equity in your home is now $85,000: $175,000 (your home's current value) - $90,000 (the amount you still owe on your home) = $85,000.

A home equity loan allows you to turn the equity you have in your home into cash by borrowing money and using your home as collateral to insure that you'll repay it. If you default on the loan, the bank or housing agency can force the sale of your home to recover its money.

There are many reasons that people apply for home equity loans, though most fall into a few broad categories. The reason for taking out a home equity loan will often determine what kind of loan you apply for.

Debt Consolidation

By far one of the biggest reasons that homeowners apply for a home equity loan is to consolidate their debts. If you have outstanding debt to several different creditors at several different interest rates, it's often to your benefit to consolidate all those loans. To do that, you can take out a home equity loan for the amount that you owe on all your debts together - or more - then use that money to pay off all your outstanding debts in full. By doing that, you trade writing several checks each month for writing one check, which is often less than the amount that you've been paying on all of the debts combined. This is because you're also trading in the higher interest rates on your credit cards and loans for a lower interest rate on one loan. Chances are that you've also set a fixed time to pay back that loan, most often 15 years, though it could be as little as five or as much as thirty.

Home Improvements

If you want to make improvements or repairs to your home, it only makes sense to get the money OUT of your home to do it. Home improvements are one of the top five reasons that homeowners give for taking out home equity loans. If the reason for making improvements is to increase the home's value or prepare it for a sale, then you should definitely take a look at the home improvements that return the most on your investment. In many cases, when the reason for taking out a home equity loan is to pay for home improvements, the homeowner applies for a home equity line of credit rather than a flat out loan.

Weddings, Vacations and College

Special events like weddings and vacations are the third most popular reason for taking out a home equity loan. For a wedding or other special event, where there will be multiple payments made to different merchants, a home equity line of credit is often a better choice than a lump sum home equity loan.

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

Joseph Kenny is the webmaster of the loan information sites www.selectloans.co.uk/ and also www.ukpersonalloanstore.co.uk. At the Personal Loan Store you can find some of the latest secured home loans explained in detail.

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What To Look For In A Fixed Rate Home Equity Loan

If you are a homeowner, you may be tempted to get a fixed rate home equity loan. But do so cautiously. Placing a higher burden of debt upon yourself can sometimes have disastrous consequences. So before you decide that you want to get a loan to pay for that Caribbean cruise, make sure that you know exactly what you are getting yourself into.

A fixed rate home equity loan is an installment contract that you are given using the equity that you have built up in your home as collateral. You then pay back the loan over time. But you must be aware that if you default on your loan, the lender can come in and foreclose on your home. So, before you decide on a home equity loan, make absolutely sure that you will not have trouble making the extra payments.

When shopping for a fixed rate home equity loan, there are a few things that you should be aware of before you sign anything. First of all, shop around a bit for a good loan with a good interest rate. If you have a good credit rating, there is no reason why you should not receive the lowest interest rate possible. It's a good idea to get a copy of your credit report before you apply for a loan. Look for any discrepancies and have them removed before you apply for a loan.

Be wary of the fees. If you have a decent credit rating, you should not be required to pay application or processing fees. A lot of lenders like to tack on extra fees to your loan. Read all of the fine print very carefully before signing. If there is something you don't understand, don't sign it until you do.

Check with your accountant and know the tax rules before you get a loan. A lot of people think that all home equity loans are tax deductible. This is not true in all cases. If you are planning on getting a loan and are expecting a big tax break, check with your accountant before you do anything.

Use your loan proceeds wisely. Getting one to pay for a vacation may not be a wise move. But getting one for a home improvement project can be a smart move. A home improvement project can increase the value of your home and therefore be a wise investment.

Fixed rate home equity loans are wonderful things if you know exactly what you are getting yourself into. Educate yourself and you should have no trouble finding the best loan available.

You can learn more about a Fixed Rate Home Equity Loan as well as more information on everything to do with home equity loans and home equity lines of credit by visiting http://www.HomeEquityLoansA-Z.com

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

How Home Equity Works

Your home equity is the appraised value remaining in your house after you subtract the remaining balance you owe on your existing mortgage(s). It can be thought of as the part of the house you actually own instead of the bank: the part you've paid for so far.

It isn't difficult to build equity in your home, and chances are if you've owned your house for a while and have been making your regular mortgage payments, you probably have built a considerable amount of home equity already. Though the housing market rises and falls in cycles, the overall tendency is consistently upward. In other words, property values tend to rise over the long term.

How Can Home Equity Be Used?

Once you have equity in your home, you can start to use it to fund nearly anything you want or need. Having equity in your home puts you in a powerful position, as you can use it to qualify for credit and borrow money. Buy a new car, take that dream vacation, fund a college education, make renovations and improvements to your house. Whether to pay for an emergency or finance a dream, there are two primary ways to tap into the wellspring that is your home equity: a home equity loan or a line of credit.

What Are Interest Rates Like?

A good question to ask before borrowing money from any source is: how much is it going to cost in the long run? Because your house is being used as collateral on the loan or line of credit, the risk for the lender is considerably lower, and therefore interest rates on these loans are usually lower than the average interest rate on a credit card.

Home equity loans and lines of credit are, however, usually higher than the interest rate on the average fixed rate mortgage. And in general, home equity loans usually have lower interest rates than lines of credit.

What Are Some of the Other Benefits?

As if borrowing money weren't advantage enough, there are a bevy of other benefits as well, including:

* tax advantages (in many cases, interest paid on home equity loans and lines of credit are tax deductible)

* you can use equity to build more equity (if you tap into home equity to make improvements to your home, you raise your home's value, thereby building more equity)

* debt consolidation (you can use it to pay off higher priced loans or debt)

Somerset Mortgage Lenders has been in business since 1979. Whether you are looking to refinance your mortgage, consolidate your debt, improve your home, we can help. Call us toll-free at 1-800-675-9783 or visit us online.

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

Tips For Finding a Great Home Equity Loan Interest Rate

If you are a homeowner and have mounting debts, then it may be a good idea to get a home equity loan. But it is very important that you find a good home equity loan interest rate before you agree to sign anything. Read on to discover more tips on finding a good home equity loan.

A home equity loan is a secured loan because you are using your home as collateral. You must take into consideration your ability to make your payments, because failing to make payments on your home equity loan can result in you losing your home.

It is also important that you find a great home equity loan interest rate. Do some shopping around to find a lender that can give you the best interest rate. It is also imperative that you know your credit score before you shop for a loan. The higher your credit score, the better home equity interest loan you are entitled to.

Check with you tax adviser, because home equity loans are usually tax deductible, which could save you a lot of money at tax time. It is also a good idea to make use of a rate calculator or a home equity loan calculator so that you will have an idea of what your payments are going to be before you commit to anything. You can find free home equity loan interest rate calculators online.

If you are going to use your home equity loans to pay off credit card debts, you need to take a long hard look at your spending habits. Examine how you got into debt in the first place and make a plan to change. Get rid of all of your credit cards so that you don't get into debt again. If you cannot be committed to getting rid of your credit cards, then you will probably rack up credit card debt again and be in worse shape than you were to begin with. Taking debt management classes may be a good idea to help you get a handle on your spending habits.

Finding a good home equity loan interest rate is not hard if you shop around. Always know what you are signing before you sign it. Make sure there are no hidden fees or charges in your contract. Educate yourself and you less likely to be taken advantage of and more likely to find a great home equity loan interest rate.

By Terry Edwards

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Home Equity Loans Make Financial Sense

The optimum word in “home equity loan” is equity. Start with the fair market value of a home, subtract the mortgages (first and second) and any liens against the property, and what you have left is the equity. This equity can be used as collateral to secure cash in the form of a loan or mortgage.

The amount borrowed is based on a percentage of the appraised value of the home. The percentage rate can vary from 75% to 125%. The length of the financing will also vary. The two main types of home equity loans are fixed rate loans and adjustable rate loans.

Fixed rate loan - provides a fixed amount of money at a fixed rate of interest, repayable in equal payments over the life of the loan. Fixed rate financing costs more in set-up fees and comes at higher interest than adjustable rate loans. But if homeowners stay put and interest rates go up, they will save money over a comparable adjustable rate loan.

Adjustable rate loan - the interest rate goes up or down according to the index upon which it is based. Adjustable rate loans will have a cap on how high the interest rate can go. Usually called ARMs (Adjustable Rate Mortgages), this type of loan has lower up-front costs and starts at a lower interest rate than fixed rate financing. This means lower initial monthly payments.

Putting home equity to good use
According to the Consumer Banker Association, the top ten reasons for getting a home equity loan are:

10. Vacation
9. Medical expenses
8. Business expenses
7. Household expenditures
6. Investment
5. Major purchase
4. Education expenses
3. Automobile purchase
2. Home improvement
1. Debt consolidation

Debt consolidation, the most popular reason people cash out their home equity, is a smart form of financing because of the money it can save. For example, say you owe $15,000 on a credit card that charges 17% interest. If you get a debt consolidation loan at 9% interest and pay it off in five years, you’ll save you over $30,000!

If you’re paying more than 15% interest on anything, you should seriously consider a debt consolidation loan. The right terms could drop your monthly payments by 35% - 50%, depending on interest rates, origination costs and tax consequences.

Even for people who have bad credit or who have filed for bankruptcy, a home equity loan is not out of reach. It can be a good way to make a fresh start. Websites like www.easyhomeequitymortgages.com/ help borrowers with bad credit get the home equity loan that best fits their unique situation.

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

Mike Hamel is Senior Writer for Sales and Marketing LLC (www.salesandmarketingllc.com), an Internet marketing company offering everything from website development and optimization to creating and monitoring cost-effective ad programs. Their specialty is improving visitor-to-sale conversion rates using proprietary software and advanced SEM techniques.

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Tips For Finding a Great Home Equity Loan Interest Rate

If you are a homeowner and have mounting debts, then it may be a good idea to get a home equity loan. But it is very important that you find a good home equity loan interest rate before you agree to sign anything. Read on to discover more tips on finding a good home equity loan.

A home equity loan is a secured loan because you are using your home as collateral. You must take into consideration your ability to make your payments, because failing to make payments on your home equity loan can result in you losing your home.

It is also important that you find a great home equity loan interest rate. Do some shopping around to find a lender that can give you the best interest rate. It is also imperative that you know your credit score before you shop for a loan. The higher your credit score, the better home equity interest loan you are entitled to.

Check with you tax adviser, because home equity loans are usually tax deductible, which could save you a lot of money at tax time. It is also a good idea to make use of a rate calculator or a home equity loan calculator so that you will have an idea of what your payments are going to be before you commit to anything. You can find free home equity loan interest rate calculators online.

If you are going to use your home equity loans to pay off credit card debts, you need to take a long hard look at your spending habits. Examine how you got into debt in the first place and make a plan to change. Get rid of all of your credit cards so that you don't get into debt again. If you cannot be committed to getting rid of your credit cards, then you will probably rack up credit card debt again and be in worse shape than you were to begin with. Taking debt management classes may be a good idea to help you get a handle on your spending habits.

Finding a good home equity loan interest rate is not hard if you shop around. Always know what you are signing before you sign it. Make sure there are no hidden fees or charges in your contract. Educate yourself and you less likely to be taken advantage of and more likely to find a great home equity loan interest rate.

By Terry Edwards

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Home Equity Loans

Most of us understand that when someone talks about equity they are referring to something related to finances. That might be the extent of their knowledge though and having a more than passing interest in the business of equity is a good thing.

Equity is defined as the amount of something less any debt. For instance the equity in your home is the value of your home minus any mortgage you have on the home. If your home is worth $200,000 and you have a mortgage owing of $50,000, than your home’s equity is $150,000.

Often home equity loans will be advertised. This is when a lending company offers you the opportunity to take out a loan based on the equity you’ve acquired in your property. Some of the reasons that people consider a home equity loan are for remodeling, vacations or to cover unforeseen debt.

If you decide to inquire about a home equity loan it’s best to contact a professional in your area who handles these types of loans. It’s always wise when borrowing money to get a few different opinions, and in the case of a home equity loan it’s not any different.

Many home equity loans are offered at a smaller than usual interest rate. The main reason for this is that when you take out a home equity loan, your home is used as collateral. The lender sees this as low risk. They want your business and they know that there are many other competing companies who want the same thing.

They will offer you a reduced interest rate to secure your home equity loan. You’ll be given a check for the amount of the loan and the equity you have built in your home can now be used for other things.

One reason that many people take out a home equity loan is to repay credit card debt. Credit cards generally charge a significantly higher rate of interest than traditional lenders do. For a family with several thousand dollars in credit card debt this translates into high payments each month. A home equity loan offers them the opportunity to combine that debt and repay it using the proceeds of the loan.

The interest charged on the home equity loan is much less and therefore they end up saving a large sum of money. They’ve done that using the equity that they’ve already worked hard to acquire, it’s a win-win situation.

Sometimes unexpected things happen in life such as a job loss or an illness and a home equity loan can be a lifesaver in these cases as well. If one partner loses their job, the other may need some financial assistance to keep the family budget balanced. Using the equity in the home helps tremendously with that and the low monthly payments don’t break the budget.

The same holds true when one family member is ill. A home equity loan can afford them the time off of work they need to recover. It also can allow other family members the benefit of taking time away from their jobs to care for an ailing loved one. Using your home’s equity in this way is really to the benefit of everyone involved.

If you’ve worked hard to build equity in your home and you find yourself in a financial pinch, consider using that equity to its advantage. Talk to a loan professional about all the benefits of a home equity loan.

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

Equity Resources and Information

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