| Need Assistance? 1-866-597-HALO 1-866-597-4256 |
Home Equity Loans...
| Are you thinking about a home equity loan? If you are, we can assist you. Home equity loans are good for a number of reasons, including consolidating high interest debt or that home improvement project that you have been delaying. Many individuals even use them if they start to get behind on their mortgage payments. Whatever your reason is, we can guide you through the process and explain all of your options to you. Contact us today and find out if a home equity loan is right for you. |
| Need Assistance? 1-866-597-HALO 1-866-597-4256 |
 | |  | |  | |  | |  |
| • Refinance • Purchase Real Estate • Lower your bills • consolidate debt • Get cash out • Credit improvement • Expand your business |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
 | |  | |  | |  | |  |
 | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  |
Should I Utilize a Home Equity Loan?
A home equity line of credit amounts to an arrangement where a
borrower's home acts as protection/collateral for a loan. In essence, your
home becomes a source of credit to finance home improvement projects,
education, retirement programs, and other big ticket items. Generally, your
bank or lending institution will allow you to draw upon a fixed amount of
equity. This number is based on a percentage of the appraised value of
your property minus the rest of the money you owe on your mortgage.
For instance, let's say that your home is worth around $500,000, and your
equity line of credit allows you to access 50 percent of that value. Does
that mean you can take out $250,000 worth of credit against your home?
Not quite -- you have to subtract out how much you have left to pay on
your house.
For instance, let's say that you've only put down $200,000. Your total
home value minus the amount of equity you've stored up is $300,000 --
that's more than the $250,000 you need to get started, so you may not
qualify for a line of credit. However, let's say that you've put down
$300,000. Your remaining mortgage balance is $200,000. Therefore, you
can take out $50,000 of credit against your home.
Once the period during which you can draw equity closes, you have to
pay back the loan. This can happen all at once or over a fixed amount of
time. Understand the conditions by which you need to repay the money
before you start taking out an equity line, since the arrangement can have
long-term consequences for your family's financial plan.
Are there dangers to using your home equity as a kind of credit card?
Absolutely -- if you fail to pay back the balance you owe plus your
interest, you can get into creditor trouble and potentially lose your house
or at least go into foreclosure. Conversely, you may able to get a better
rate on your equity line of credit than you could by applying for standard
consumer credit cards.
Figure out various financing options before you institute paperwork for
your equity line of credit, and take into account whether or not you might
be moving in the next few years, since that may impact your rates and
potential refinancing options.
A home equity line of credit amounts to an arrangement where a
borrower's home acts as protection/collateral for a loan. In essence, your
home becomes a source of credit to finance home improvement projects,
education, retirement programs, and other big ticket items. Generally, your
bank or lending institution will allow you to draw upon a fixed amount of
equity. This number is based on a percentage of the appraised value of
your property minus the rest of the money you owe on your mortgage.
For instance, let's say that your home is worth around $500,000, and your
equity line of credit allows you to access 50 percent of that value. Does
that mean you can take out $250,000 worth of credit against your home?
Not quite -- you have to subtract out how much you have left to pay on
your house.
For instance, let's say that you've only put down $200,000. Your total
home value minus the amount of equity you've stored up is $300,000 --
that's more than the $250,000 you need to get started, so you may not
qualify for a line of credit. However, let's say that you've put down
$300,000. Your remaining mortgage balance is $200,000. Therefore, you
can take out $50,000 of credit against your home.
Once the period during which you can draw equity closes, you have to
pay back the loan. This can happen all at once or over a fixed amount of
time. Understand the conditions by which you need to repay the money
before you start taking out an equity line, since the arrangement can have
long-term consequences for your family's financial plan.
Are there dangers to using your home equity as a kind of credit card?
Absolutely -- if you fail to pay back the balance you owe plus your
interest, you can get into creditor trouble and potentially lose your house
or at least go into foreclosure. Conversely, you may able to get a better
rate on your equity line of credit than you could by applying for standard
consumer credit cards.
Figure out various financing options before you institute paperwork for
your equity line of credit, and take into account whether or not you might
be moving in the next few years, since that may impact your rates and
potential refinancing options.