In a nutshell, debt consolidation allows consumers to roll up all of their high interest consumer loans, namely credit cards, into one loan. Most of these loans are actually home equity loans in disguise as the lender is issuing a second mortgage on the consumer’s home. (more…)

Fixed rate home equity loans are great for consumers who need a large amount of money upfront to fund a home improvement project, pay out-of-pocket medical expenses, or any other need. Payments remain stable because interest rates are fixed for the term of the loan. (more…)

If you have a house with underlying equity and find yourself needing some extra cash, a home equity loan may be a good option. When you find yourself facing significant out-of-pocket expenses it’s likely too late for a traditional unsecured loan. When this happens many homeowners turn to home equity loans.  However, before you jump into anything you want to make sure you find the best home equity lender. (more…)

While cash out refinance and home equity loans offer essentially the same benefit, they are quite different loan products. Let’s look at the differences:

Cash Out Refinance Loan

A cash out refinance loan is essentially a new larger loan to pay off an older loan with the difference in loan amounts being provided to the homeowner in cash at closing. For example, let’s say you have a 10-yr old mortgage that has been paid down to say $100,000 and your home is worth $250,000.  A lender might be willing to finance say 80% of your home’s appraised value or $200,000.  So in this case with a cash out refinance loan, you would be taking home $100,000 at closing and you’d have a new mortgage loan of $200,000 afterward. (more…)

Most Americans spend more time at home than any other place, including their workplace. One’s home provides  a place to relax after work, spend time with the family, and entertain guests. But in today’s harsh economic climate many people are feeling a bit uneasy about their finances. Fortunately equity in one’s home can provide a source of cash to pay the bills or fund home improvement projects for example. (more…)

With interest rates hovering at all time lows, right now is a perfect time to consider a home equity loan.  But how can you find the lowest home equity loan rate with so many options available? Consider these tips: (more…)

On the surface, a home equity loan and home equity line of credit may seem the same, but it’s not quite that simple.

A home equity loan is likely best if you have a larger one-time need such as credit card debt consolidation, replacing a leaky roof, or paying for a child’s college expenses. With a fixed rate home equity loan, your monthly payments are fixed, which allows you to budget easily. (more…)

Unlocking your home’s equity to make home improvements, which hopefully increase your home’s value, is perfectly logical if you have sufficient equity and extra income to fund the new debt payment. But in some cases, a home equity loan might not be the best idea. For example, using a home equity loan to build a pool in your backyard, which have historically shown to be a worthless addition (depending on the area). Any number of websites can provide you with estimated returns on new additions to your house. (more…)

A home equity line of credit is a perfect way to tap equity in your home. At the most basic level, a HELOC essentially allows checkbook access to your home’s equity to use however you wish. Let’s look at some of the benefits you can receive with a home equity line of credit. (more…)