Home - Mortgage Loans | Personal Loans | Bad Debt Loans | Foreclosure Loans
Apply for a Loan | Best Auto Loans | Best Bad Credit Auto Loans | Best Bad Credit Loans | Best Bill Consolidation Loans | Best Cash Advance Loans | Best Credit Cards | Best Credit Repair Tips | Best Debt Consolidation Loans | Best Free Credit Reporting Tips | Best Home Equity Loans | Best Mortgage Loans | Best Pay Day Loans | Best Personal Loans | Best Products on the Internet | Best Unsecured Loans
Great Financial Advice
Apply for a Loan
Latest Financial News
Rate Lock Advisory
Best Products
Join Our Mailing List
Contact Us
Loan Articles Index
Auto Loans
Bad Credit Auto Loans
Bad Credit Loans
Bill Consolidation Loans
Cash Advance Loans
Credit Cards
Credit Repair Tips
Debt Consolidation Loans
Debt Reduction Loans
Foreclosure Loans
Free Credit Reporting Tips
High Risk Loans
Home Equity Loans
Home Loans
Lawsuit Loans
Mortgage Loans
Pay Day Loans
Personal Loans
Products on the Internet
Real Estate Services
UK loans
Unsecured Loans
Loan Article Index
Loan Articles A-G
Loan Articles H-Q
Loan Articles R-Z
Mortgage Calculators
Mortgage Calculator
Mortgage Amortization Calculator
Rent vs. Buy Calculator
How Much Can I Afford Calculator
Auto Payment Calculator
Click here to Sign up for Email and Newsletter

 

redhotloantips fat loss


Home Equity Loans Online - Types Of Home Equity Loans

Written by: Carrie Reeder

A home equity loan allows you to tap into your property's value to pay off short-term debt, remodel, or pay for college. There are several options for drawing on your equity, each with their own benefits and drawbacks. No matter which option you choose, interest is still tax deductible.

Refinancing Your Mortgage

By refinancing your mortgage, you can withdraw all or part of your equity. With this type of loan, you have one monthly payment with a low interest rate. If your mortgage originated when interest rates were high, you may find savings by refinancing now.

However, refinancing is costly with loan origination fees. You will have to go through the whole loan process again. You may also find that you may not find a better interest rate.

Opening A Home Equity Loan

A home equity loan allows you to take out a second loan based on your home's equity. With this type of financing you have lower loan costs and can usually choose shorter loan terms.

With a home equity loan, you find interest rates slightly higher than mortgages. Monthly payments are typically larger than with a refinanced mortgage. But in the long term, you will probably pay less in interest charges.

Creating A Line Of Credit

A line of credit based on you home equity provides the greatest amount of flexibility. You can choose to withdraw all or part of the available cash as you need it. You payments are much like a credit card payment. You can pay off a portion, then use that credit later on.

Lines of credit have low to no fees, but interest rates are higher than any other type home equity loan.

Picking The Best Option

When you pick a home equity loan, you need to take a look at your budget first. Decide how much you can afford monthly to pay. Also, look at how much you can save with each financing option. For example, if you home loan has a high rate, refinancing may save you money even with loan fees.

No matter which finance option you choose, research rates from various lenders. Even a difference as small as 1/8% can save you hundreds. Don't be afraid of asking for quotes. This way you can get information on rates without getting hit on your credit report.

About the author:

See my recommended Home Equity Loan Lenders online. Carrie Reeder is the owner of ABC Loan Guide, which offers help with loans for people with low credit scores.


Other Related Articles:

Payday Loans: Personal Finance Savior Or Disaster?
Summary: You need a small amount of financial help fast, but you heard payday loans can be expensive and dangerous. What now? Find out how to avoid the dangers and reap the benefits of payday loans. Payday loans may be right for you if you need...read more

FHA Loans Lower Fees and Raise Acceptance
FHA mortgage insurance programs assist low and moderate income families become homeowners by lowering some of the costs of their mortgage loans. FHA loans encourage mortgage companies to make loans to otherwise creditworthy borrowers and projects...read more

Bad Credit Remortgage Loan: When Bad Credit Plays Mischief With Your Mortgage
Financial difficulties are married to bad credit. It is a tough marriage but can be peaceful with a little bit of counseling. The recommended counseling in case you have bad credit with a mortgage loan is bad credit remortgage. Remortgage is defined...read more


Return to Home

468x60

Best Auto Loans, Best Bad Credit Auto Loans, Best Bad Credit Loans, Best Bill Consolidation Loans, Best Cash Advance Loans, Best Credit Cards, Best Credit Repair Tips, Best Debt Consolidation Loans, Best Debt Reduction Loans, Best Foreclosure Loans, Best Free Credit Reporting Tips, Best High Risk Loans, Best Home Equity Loans, Best Home Loans, Best Lawsuit Loans, Best Mortgage Loans, Best Pay Day Loans, Best Personal Loans, Best Products on the Internet, Best Real Estate Services, Best UK loans, Best Unsecured Loans
Subscribe to Mailing List | Private Policy | Unsubscribe | Site Map