Home Equity Loans
If you need to remodel or repair your home, for debt consolidation or for educational expenses a home equity loan may be the best option available to you. Not only are you able to “tap” the equity in your home, the interest charges are, in most cases, tax deductable (there are limits to your deductability if the total amount of loans is in excess of 100% of its value).
There are a couple of options available to you. You can choose either a Home Equity Loan which is a fixed amount of money that is repaid over a fixed number of years, or a Home Equity Line of Credit where you will be approved for a set amount of money which you will access as you need it–whether for home improvements or some other use. Accessing your line of credit is as easy as writing a check.
Like all other loans, there are variances in terms, interest rates and the like.
With interest rates still historically very low, this can be an excellent opportunity to restructure your payments, get a better rate than most credit cards and personal loans and work on the process of eliminating your debt load.
Although you cannot currently handle the entire mortgage process online (you will still need to personally sign some paperwork and attend a formal settlement) much of the process is available to you from the comfort of your home or office. You can do a loan request form, compare offers, keep up with progress of your loan process and get online pre- qualification and approval. By handling many of the mortgage details online, it is easier to compare rates and offers, saving much of the time and aggravation traditionally associated with mortgage applications and procedures.
What is the difference between a Home Equity Loan and a Home Equity Line of Credit?
A home equity loan is a fixed loan. You will receive a specific amount of funds and your loan will be for a specific term (for example, 48 months). A home equity line of credit, on the other hand, can be thought of as a checking account with a balance. You will be apprived for a specific limit of funds which you can draw against as you desire, up to the limit. Your payments–and term–will be determined by the amount of money you use.