Home Equity Article Archive 2006

A Scam To Avoid: Home Equity Stripping

By:

Maria Esposito - MortgageLoan.com | November 26, 2006

If you've owned your home for a number of years, you've built up equity that can be helpful if you need extra cash to pay bills or make home improvements. But people in foreclosure must be extra careful when trying to tap into money through home equity loans. A smooth-talking con artist can rob you through a scam known as "equity stripping."

Prepare for Unforeseen Disasters with a HELOC

By:

Greg Mischio - MortgageLoan.com | November 23, 2006

Life is unpredictable. Disasters strike, often when we least expect it. But while we can't predict when or where misfortune will occur, we can take steps to prepare ourselves for when those moments arrive. A home equity line of credit (HELOC) is a great tool to ensure that you've got the back-up cash when hard rains fall.

Need Money Fast? Try a Home Equity Loan

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- MortgageLoan.com | November 22, 2006

No matter how careful you are with your finances, the unexpected is bound to happen eventually. Unforeseen medical expenses or emergency home repairs can be devastating to your budget. Coming up with the necessary funds may seem impossible, but it could be relatively simple. All you need is some equity in your home.

Four Tips for Using the 125 Percent Home Equity Loan

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- MortgageLoan.com | November 16, 2006

In the land of power shopping, our willingness to spend has exceeded the size of our wallets. Debt is now a way of life, and more and more people are digging deeper into their home's equity by using the 125 percent home equity loan.

Cash out and cash in with a HELOC

By:

Jan Lindsey - MortgageLoan.com | November 07, 2006

A home equity line of credit can give you the flexibility and the cash you need to make improvements to your home. If you make the right improvements, the value of your house will climb. Wouldn't it be satisfying to use equity to create equity?

The No-Income Verification Home Equity Loan

By:

Jan Lindsey - MortgageLoan.com | October 24, 2006

Whether you're self-employed or simply in a hurry, applying for a no-income verification home equity loan can make tapping your biggest asset much easier. Less paperwork can mean fewer hassles.

How to Determine the Value of Your Home

By:

Tom Kerr - MortgageLoan.com | October 22, 2006

Before you get a first or second mortgage, it's important to know how much your property is worth. The two principal methods available to do this are by appraisal or comparative market analysis. Deciding which is best for you will be easy once you understand how these evaluation tools work.

Four Ways to Save Money on a Home Equity Loan

By:

Greg Mischio - MortgageLoan.com | October 11, 2006

Competition is a great thing, and not only for sports fans. It can make for happy campers among mortgage shoppers, as well. Take the home equity loan, for example. There are multiple lending institutions ready to offer you a second mortgage. These firms include banks, credit unions, mortgage brokers, and even non-traditional lenders like Wal-Mart. With so many people vying for your loan, you, as the consumer, have a big advantage-especially if you follow the four money-saving tips in this article.

Converting a HELOC to a fixed rate Home Equity Loan

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- MortgageLoan.com | October 04, 2006

Many homeowners who have enjoyed the convenience and savings of a home equity line of credit (HELOC) aren't enjoying the consequences of rising interest rates. As a result, many are now turning to fixed rate equity loans instead. Converting from one to the other is neither a difficult nor expensive process.

Rising Interest Rates? Time to refinance your HELOC

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- MortgageLoan.com | September 28, 2006

With interest rates rising, there's no time like the present to get your financial ducks in a row in order to save money. Back when rates were still cheap, home equity lines of credit (HELOCs), with their low introductory adjustable rates, were the preferred way to go. But now that they're becoming pricey compared to other loans, consumers are seeking prudent alternatives.

Bad Credit Home Equity Loans

By:

Greg Mischio - MortgageLoan.com | September 26, 2006

America is the land of opportunity-especially when it comes to mortgages. Even those who have damaged credit and need a home equity loan will discover that there are plenty of lenders out there willing to do business. The key to picking the right mortgage is to get many different offers and keep a sense of perspective about your overall financial situation.

Rising Interest Rates? Time to refinance your HELOC.

By:

- MortgageLoan.com | September 25, 2006

With interest rates rising, there's no time like the present to get your financial ducks in a row in order to save money. Back when rates were still cheap, home equity lines of credit (HELOCs), with their low introductory adjustable rates, were the preferred way to go. But now that they're becoming pricey compared to other loans, consumers are seeking prudent alternatives.

Lenders Are Sweetening Home Equity Loans

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- MortgageLoan.com | September 22, 2006

Is the home equity spending spree coming to a close? After years of low interest rates, homeowners are no longer tapping equity like it's water from the faucet. Interest rates on a line of credit, once hovering in the 4.5 to 5 percent range, have crept into the 8 percent area. It's put a crimp in the mortgage business, prompting lenders to get innovative. Instead of just offering the usual alternative- fixed-rate home equity loans- lenders are proposing a variety of intriguing new incentives.

Home Equity Loan Helps Prepare for Sale

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- MortgageLoan.com | September 21, 2006

One of the smartest ways to add value to your home is to spruce it up with a quick makeover. And if you plan to sell your house, such a strategy can pay off in a higher sales price and a shorter time on the market. A home equity loan is an ideal source of cash to help finance such a project.

Home Equity Loans in a Rising Interest-Rate Environment

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- MortgageLoan.com | August 28, 2006

The recent rise in home values has created a tremendous boon in home equity, and homeowners are eager to tap it. However, the rise in interest rates makes a cash-out refinance of a first mortgage an unpalatable option. But there are choices for homeowners who can't wait for the next dip in interest rates to tap their equity. Using a home equity loan, or a home equity line of credit, might be the best way to tap equity in a rising rate environment.

Home Equity Loan instead of Bridge Loans

By:

Tom Kerr - MortgageLoan.com | July 28, 2006

If you're buying a new home, you may need to sell your existing one in order to finance your new purchase. Not everyone has enough money to straddle two pieces of property. Even if you've already found the house of your dreams, you may not be able to buy it if your first home is still on the market. When the timing of two real estate transactions is not ideal, you can use a home equity loan to bridge the gap. But you'll need to plan ahead.

Risks of Home Equity Loans

By:

- MortgageLoan.com | July 28, 2006

Home equity loans are great financial tools. However, if you abuse them, you may find yourself on a bridge over troubled financial waters. Here are four common mistakes people make that can cause serious problems. Avoid them, and you'll enjoy all the perks, while avoiding the pitfalls.

Choosing the Right Home Equity Loan Option

By:

- MortgageLoan.com | July 28, 2006

There are a dizzying number of lending options available to borrowers. To help you narrow your focus, start with the end product: the cash. Do you want a lump sum, or would you prefer to draw the money out in smaller increments? This decision can help pinpoint the loan that's just right for you.

Shopping for a HELOC

By:

Greg Mischio - MortgageLoan.com | July 28, 2006

Although you may have knowledge and experience regarding how to shop for a traditional first or second mortgage, browsing around for a home equity line of credit (or HELOC) is a loan of a different color. The good news is that it's normally a much easier and less costly procedure, with some rather attractive perks.

Business Loan? Second Mortgage!

By:

- MortgageLoan.com | July 28, 2006

Small business owners and entrepreneurs sometimes get sweaty palms when faced with the challenge of making a convincing presentation to bank officers or private investors in order to get needed investment capital. Competition for funds is fierce. Even with a stellar proposal, many businesses are rejected when they ask for loans. But others get around the red tape by tapping into their home's equity.

Pay off HELOC with Cash-out Refinancing

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- MortgageLoan.com | June 27, 2006

A few years ago, when you opened your home equity line of credit (HELOC), you thought you'd found the perfect financial tool. With a flexible line that you could tap when you needed, it seemed like the ideal way to take care of short-term debts. But every financial tool has its shortcomings, and the HELOC is no different. With the recent climb in the prime rate, you've probably noticed that less and less of your monthly payment is going toward principal. Fear not-a cash-out refinance of your first mortgage could be the answer to your short-term woes.

Converting your HELOC to a Traditional Mortgage

By:

- MortgageLoan.com | June 26, 2006

A home equity line of credit-known by mortgage pros as a HELOC-is a good way to borrow, especially for those who want streamlined loan applications and lower origination fees. But HELOCs are tied to the prime rate, and adjust accordingly. In times of rising interest rates, a fixed-rate traditional mortgage may be a more attractive cost-conscious alternative to the HELOC, which is more attractive in low interest-rate environments.

Is the 125 Percent Home Equity Loan Right for You?

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- MortgageLoan.com | June 16, 2006

The 125 percent home equity loan, which allows you to borrow more money than your home is actually worth, could leave you unable to sell your house and locked into a high interest rate loan. Only in extreme circumstances should a lender consider the 125 percent home equity loan.

Home Improvement Time - HELOC or Home Equity Loan?

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- MortgageLoan.com | June 14, 2006

Summer is everyone's favorite time for reading, traveling, and home improvement projects. A wise way to manage financing the latter is to tap into your accumulated home equity. But before you visit your bank, it's important to decide whether you want to use a home equity loan or a home equity line of credit.

Pay off Your Mortgage with Home Equity Loan

By:

- MortgageLoan.com | June 11, 2006

Although it may seem strange to pay off your mortgage with a home equity loan, in some special circumstances, it makes good financial sense. It's especially attractive to those who hold a mortgage with a high interest rate and a small outstanding balance, and want to refinance for a lower rate.

Financing a Second Home? Use a Home Equity Loan

By:

- MortgageLoan.com | June 05, 2006

Leveraging one asset to purchase another one can be a shortcut to wealth, especially when the strategy is applied to real estate. If you own your own home and have watched its value appreciate over the last few years, you may be an ideal candidate for using a home equity loan to buy a second home.

Versatility of HELOCs

By:

- MortgageLoan.com | May 24, 2006

When it comes to versatility, few lending options can equal a home equity line of credit (HELOC). Unlike a home equity loan, which requires borrowing a lump sum at a fixed rate, the HELOC offers exceptional flexibility.

Home Equity Line of Credit - How Much Should You Borrow?

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- MortgageLoan.com | May 18, 2006

When you decide to get a home equity line of credit (HELOC), it's important to determine how large your credit line should be. This may be an easy decision as far as financial choices go; but you still should choose your credit limit wisely.

Using a Home Equity Line of Credit for College Tuition

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- MortgageLoan.com | May 14, 2006

As college tuition continues to rise faster than the rate of inflation, consumers need to investigate all possibilities to pay for their children's educations. A home equity line of credit (HELOC) is a practical way to pay tuition without sacrificing your own financial future.

Using a Home Equity Line of Credit to Reduce Debt

By:

- MortgageLoan.com | May 10, 2006

If you own a home, your accrued equity may be an excellent resource to help with the reduction of your personal debt. Consider a home equity line of credit, commonly referred to as a HELOC. It's not difficult to acquire, and you can use it whenever you decide, for any expense you choose.

Examining home equity loan rates

By:

- MortgageLoan.com | May 08, 2006

Money costs money, but how much? Rates, fees, and conditions of home equity loans differ greatly between programs. If you are serious about entering into a home equity loan, you should examine the loan programs in its entirety. We will help you out.

No Emergency Fund? Try a Home Equity Line of Credit

By:

- MortgageLoan.com | May 02, 2006

Financial planners recommend that you have three to six months in savings as an emergency fund. However, generating that extra cash can be challenging. That's when a home equity line of credit (HELOC), with its flexible terms, can be a true lifesaver.