Home Equity Loan Article
Home equity loans and lines of credit are useful tools for homeowners. They allow the homeowner to borrow against the value of his or her home for all kinds of purposes – home improvement, debt consolidation, vacations, and more. The loans, backed by the value of the house itself, come with attractive interest rates and the added bonus of tax deductible interest. That interest, however, is often variable, adjusting up and down with changes in market conditions. At the moment, conditions are such that interest rates for adjustable rate loans are increasing while rates for fixed-rate loans are still fairly stable. This is probably a good time for homeowners with variable rate equity loans to consider consolidating their primary mortgage and home equity loan into a single entity.
The ideal candidate for such a consolidation would be a homeowner who has a variable rate home equity loan, rather than a line of credit or an equity loan at a fixed rate. A line of credit is sort of a revolving loan, with an amount that may be drawn, as needed, time and again, much like a credit card loan. A home equity loan would represent a fixed amount of money borrowed for a specific length of time. To consolidate a home equity loan and a primary mortgage, the home would have to be refinanced with a new mortgage issued for the combined amounts of both loans. There are costs associated with this, so homeowners should consider the following:
Refinancing costs – It may cost several thousand dollars to combine two loans into one. A home appraisal will be required, along with paperwork fees, filing fees, and possible points paid at closing. A homeowner should make sure that he or she will remain in the home long enough to offset the additional costs of refinancing, otherwise the savings of consolidation are lost.
Interest rate on the primary mortgage – If you have financed or refinanced your home during the last three years, your primary mortgage rate may already be lower than the rate you could get today. You don’t want to raise your overall interest rate just to consolidate the smaller amount of money from a home equity loan.
The amount of money owed on the home equity loan – The larger the amount of money owed on the equity loan, the greater the benefit of consolidation. You wouldn’t want to refinance your home over an equity loan balance of $1000, but you might want to do so if the balance is $50,000.
Market conditions change regularly, but now is a good time for anyone with a variable rate home equity loan with a considerable balance to consider consolidating the equity loan and the primary mortgage into a single loan. If you aren’t sure if you can benefit from this, you may wish to consult with your lender.
About the Author©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including HomeEquityHelp.com, a site devoted to information regarding mortgages and home equity loans .
|
Insurance Settlement News
Economist Puts Economic Downturn in Perspective
Many Americans are uneasy about the country's current economic instability. Economist Adam Posen talks about the possible length and severity of the current economic downturn, which some are already calling a recession.
Global Pool of Money Got Too Hungry
NPR's Adam Davidson and This American Life's Alex Blumberg jointly report on how rising defaults on subprime mortgages in the U.S. became a global financial crisis. This American Life host Ira Glass talks with Michele Noris about this first ever collaboration.
Public Transit Ridership in Miami Grows
For most people in Miami, public transportation means the bus. Expanding public transit is a hot political issue, with communities north and west of the city clamoring for the rail system to be extended. Ridership is up, but at the same time, the county is grappling with rising costs and a big budget shortfall.
Helpful Home Equity Loan Links
Mortgages, Home Equity, Refinance & Auto Loans | LendingTree.com
LendingTree - When banks compete, you win. Fill out one simple form and get banks and realtors competing for your business. Whether you're looking for a loan, a realtor, or a new home, we can help.
Home Equity Loans & Home Equity Line of Credit (HELOC) Credit Lines
Home equity loans through Lending Expo let you buy that new car, fix your home or have more cash. ... A home equity loan is especially useful in paying off existing higher interest debts, paying for home renovations ... is similar to a home equity loan except money can be taken ...
Home Equity Loans - Home Equity Credit Loan Approvals
Home Equity Loans - Provides fast online services for your home equity loan or line of credit. ... All Homes Nationwide! Home Equity Loan Programs for All Credit! ... you need a small home equity loan or looking for 100 or 125% home equity loans our loan ...
How to Find : The Lowest Home Equity Loan Rates
How to Find the Best Home equity Loan rate in your area ... Best home equity loan rate area ... I finally published the winner. Home Equity Loan - New Home Refinance/Purchase/Improvement - Equity Line of Credit - 1st ...
Low Rate Mortgage, Refinance, Home Equity & Auto Loans - ELOAN
Refinance home loan or get first & second mortgages. Bad credit OK. Compare E-Loan rates on 125 % home equity loans & line of credit. New & used cars financing available. No lender fees.
Home Equity Credit Lines
Home Equity Credit Lines. Using a credit line to borrow against the equity in your home has become a popular source of consumer credit. And lenders are offering these home equity credit lines in a variety of ways. ... the lender about the length of the home equity loan, whether there is a minimum withdrawal requirement when ... to the cost of your home equity loan. This is especially important ...
Bad Credit Home Loans
... second mortgage on your home. Thus, in Home Equity Loan your home is used as the collateral to ... With a Home Equity Loan a set amount of money is loaned ...
Home Equity Loan
... Information about: Home Equity Loan-commercial construction loan ... tax advantages that may be yours by having a home equity loan Credit Cards $100,000 instant approval U.N ...
Home Equity Loan and Line of Credit rates -- Compare rates
Compare home equity loan and line of credit rates. ... Don't know a HELOC from a Home Equity Loan? Click here ... or refinance: Which is best for you? Home equity loan or a total refi of your mortgage ...
Home Equity Scams: Borrowers Beware!
Home Equity Loans: Borrowers Beware! Do you own your home? If so, it's likely to be your greatest single asset. ... realize that the papers you signed are a home equity loan. The interest rate, points and fees seem ... Agree to a home equity loan if you don't have enough income ...
Loan FM - Mortgage, Home Equity Loans, Refinancing Info
Mortgage Loans Home Equity Loans & Refinance information online. Learn about refinancing and applying for mortgage loans when purchasing your new home or refinancing your current home. ... Buy the things you need with a refinance home equity loan ... and your mortgage minimal, you could borrow a very substantial sum with a refinance home equity loan. ...
Home Equity Loans, Home Loans, Mortgage Refinancing : LendingExpo Mortgage Loans Quotes
Lending Expo network of lenders offering Home Equity Loans, Home Loans, Refinancing and Refinance Rates. ... Considering a Home Equity Loan? Why not get cash out from your equity and refinance in one ... get a low rate home equity loan or save money by refinancing ...
|
|
