• Home Equity Loan vs HELOC

    Both HELOC and home equity loan are entirely determined by the equity that you have in your home. The HELOC works like a revolving line of credit and it has an interest rate, which is variable. In other words, the interest rate is based on the going rate in the market at any given time. The market dictates your interest rate and so it could be high or low. Personal Loan and Line of Credit The home equity loan is more like having a...
  • How does a home equity loan work?

    As long as you own or have access to a property that has sufficient equity in it, you can apply for a home equity loan. Most lenders will assess the market value of the home first before approving your application. You also have to provide documentation to process the loan such as credit report, income statement or paystub, bank statements, verified identification, social security number, and other variables. It depends on which lender you are doing business with. The Collateral What properties can be...
  • How does HELOC work?

    A home equity line of credit or a HELOC is considered a second mortgage, which serves as a revolving credit line. Your home is the security for this line of credit, which means, if you default on it, you can lose your home. Some homeowners borrow money on their home’s equity to do home improvements, go on vacation, debt consolidation or pay off an educational loan. It does not matter what you use the money to do. Home equity lines of credit have a...
  • Requirements for a HELOC

    Some homeowners access the equity in their home by applying for a home equity line of credit or HELOC. In many cases, they do so to handle unexpected expenses. If you own a home and you have equity in the home, you can be approved for a HELOC by your lender. You get about twenty years to pay off the balance and since this is a revolving line of credit, you can keep using it during this borrowing period. There are certain requirements to...
  • Requirements for a home equity loan

    You get access to a large amount of money at one time when you acquire a home equity loan. You get to repay the loan’s interest and principal on a monthly basis. You can obtain a home equity loan using the equity in your home and using the funds to go home improvement or paying off a student loan. This type of loan is considered a second mortgage. Be sure that you are able to afford paying for your first mortgage and other monthly...
  • Best home equity loans

    If you want to obtain a home equity loan, you should be aware that you are tapping into the equity that you have in your house; whether it is for paying off student loans, doing home improvements or taking care of major expenses. You can get one of these loans for almost anything. You can even use it for debt consolidation of your high interest loans. However, if you want to get the best out of your home equity loan, you should choose the...
  • Best HELOC

    If you want to utilize the equity in your home, you could consider a home equity line of credit known as a HELOC. These types of loans are quite flexible and allow the borrower to tap into an amount equal to their limit. The HELOC is very similar to a credit card as it is allows you to use it as such. However, it is a secured loan because it is attached to your home, which means, if you forfeit the loan, the lender...
  • HELOC drawbacks

    Many homeowners try to take advantage of the equity in their home to obtain a home equity line of credit. There are some disadvantages as it relates to a HELOC loan. Let’s take a look at some of these pros that you should be aware of. The Collateral Risk Because you will be using your home as the collateral for acquiring the home equity line of credit, it is considered a secured loan and you are taking a risk of losing your home, if...
  • Home equity loan drawbacks

    While home equity loans are great for different reasons such as home improvement, buying a car, going on a vacation, and paying off educational loans, there are a few downsides to it, which we will discuss below. If you already have a large debt or your credit is not good, it will be more difficult to get a home equity loan. Higher Interest Rate The interest rate for a home equity loan can be higher than you would pay for a conventional loan. It...