A Home Equity Loan ? Is It For You?
Home equity loans are often touted as being the solution to so many things ? giving you access to money for home repairs or improvements, a way to consolidate debt, finance a sudden family emergency, or even as a way to start an investment portfolio. There's a lot to think about, though, before you go and sign up for the first home equity loan you see. A home equity loan is like a second mortgage on your home. If your home is currently worth $130,000, and you have a mortgage against it for $70,000, then you have $60,000 of equity available. Some home equity loans may allow you to borrow up to 80% of your home's value, others may go higher in special circumstances.
In this example, you would be able to borrow another $34,000 as a home equity loan and still have only borrowed 80%.So the first step is to get a reasonably good idea of what your home is worth on the market. Your friendly realtor may help with this, but be aware that sometimes they can inflate the value in the hope of getting your business. You can also look at what price similar houses close by have sold for. Or you can pay a qualified valuer to assess your home.Now you have a starting figure, you can work out how much equity you have in your home. The other important figure to work out is how much you need for whatever purpose you have in mind.
Hopefully that works out to be less than the equity available! It's even better if it's less than 80% of the available equity.At this point it's important not to get carried away. It can be all too easy to say, well, I have $50,000 available and I really only need $30,000 to complete the repairs, so why not borrow $40,000 and blow the rest on a holiday? Remember ? the more you borrow, the more it will cost you in repayments. It's very easy to borrow too much, only to find yourself struggling to meet the payments and maybe even losing your home.You also need to decide what type of home equity loan you want. There are two main types ? a closed end loan and a line of credit. A closed end loan is basically the same as a standard home mortgage ? you borrow the amount for a set period of time, and make payments over time to gradually pay off the balance.A line of credit, on the other hand, is like having a credit card with a big limit.
Some banks will require you to make minimum payments each month, others only require payments if you're at your limit. Either way, the loan will only be for a set period of time, and at the end of that you will either have to extend the time period or refinance the loan with another lender. This type of facility can be useful if you're disciplined with your money, but if you're the type of person whose credits cards are always at their limits, it may not be a good idea at all to have ready access to such a large amount of credit.Next, you need to work out how long you want to borrow the money for. This will vary depending on how much money you are borrowing, the type of home equity loan and how much you can afford to pay. There are lots of good mortgage calculators online that can help you to work this out.
If borrowing the money over 5 years for a closed end loan means you won't be able to meet the payments, then see if spreading the loan over 10 years becomes more affordable for you. You will pay more in the long run, but at least you won't default on your loan.When you know what you want, it's time to go and find it! It may be worth starting with banks recommended to you by friends and family ? at least they'll be able to give feedback on their experiences. You can also shop around online, looking for the best deal.Finally, when you have chosen the loan you want and are ready to proceed, do two more things. Firstly, check for fees. Banks are aware of the need to be competitive, and will often avoid charging up front fees for that reason.
However it's amazing what can be hidden in the fine print of a contract. So read any loan documents thoroughly before signing. If you can, get the contract explained to you by your legal advisor. Home equity loans can be a wonderful tool when used correctly. Do your homework first, find the loan that best matches what you want, and go for it.
Just make sure you don't over extend yourself or sign documents that will give you nightmares forever.Copyright
2005.
Ohio Real Estate Virtual Assistant Earns Real Estate Professional Assistant (REPA) Certificate
Springfield, OH (ContentDesk) January 13, 2006 -- Lisa Morgan of Virtuoso Administrative Services has recently earned the Real Estate Professional Assistant (REPA) Certificate, awarded by the NATIONAL ASSOCIATION OF REALTORS?.All successful real estate brokers and agents know how important a good assistant is to their success.
"The best investment of time and money," says Martin Edwards, Jr., president of the NATIONAL ASSOCIATION OF REALTORS?, "just might be in a well-trained professional assistant.
The REPA course can turn the right candidate for assistant - or any support position, for the matter - into an agent's 'right hand.'"Understanding this, Morgan took the two-day REPA certificate course to become familiar with the inner workings of the real estate industry, studying such topics as professional and ethical standards, local listing and sales procedures, and how to manage a real estate transaction.Morgan, who has also received the International Association of...
Mortgage calculator > Ohio Real Estate Virtual Assistant Earns Real Estate Professional Assistant (REPA) Certificate
Searching for Inner Peace: Stressed Exec Finds Peace in Practing Yoga
(ContentDesk) April 14, 2006 -- Teresa Lopez of Santa Fe, New Mexico was the typical type-A personality, goal-oriented, success-driven professional whose career consumes them.
Stressed, tired and looking for some answers, she wandered into a Dahn Yoga center and her life changed. I had been trying to find a structured yoga program that wouldnt twist my body like a pretzel and would support me on my home practice. Today I have more energy, sleep better, am happier and more centered and I attribute that to my Dahn Yoga training. I was very stressed when I walked into the Dahn Center, but I quickly learned the tools to help me manage my life better, she noted.The roots of Dahn Yoga or Dahnhak? Practice extend several thousand years back into Korean history. The practice is scientifically designed to work every muscle, tendon, joint, organ, and gland while moving fresh, oxygenated blood throughout the whole body.
Practitioners use simple stretching, breathing and mediation...
Searching for Inner Peace: Stressed Exec Finds Peace in Practing Yoga
Mortgage calculator > Searching for Inner Peace: Stressed Exec Finds Peace in Practing Yoga
Refinancing Boom Catalyzes Increase in Lender Mistakes
BOSTON (ContentDesk) October 15, 2003 ? Last week, a Freddie Mac press release signaled the end of the refinance boom: "Long-term mortgage rates rise on signs of economic recovery." The after-effects of the refinancing frenzy will last for years to come, and not all are good.Millions of Americans reduced mortgage payments and saved money over the past 36 months through refinancing, but many continue to pay unnecessary fees without even realizing it. As homeowners scrambled to refinance ? industry...
A Home Equity Loan ? Is It For You? Mortgage calculator insurance quotes
Mortgage calculator > Refinancing Boom Catalyzes Increase in Lender Mistakes
Bora Bora Flights
There are, of course, no direct flights to Bora Bora. A full-fledged airport would have detracted from the island's rustic ethnicity. It does feature a miniscule airport at Motu Mute, however.
The way to fly to Bora Bora is via Tahiti's Faa'a International Airport at Papeete, and catching a smaller craft from there to Motu Mute. For reference, it takes a normal commercial flight something like seven hours to reach Papeete from Los Angeles. The airlines that have regular flights to...
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Livingiseasy.co.uk - Nourkrin Hair Loss Remedy Product.
Don't suffer hair loss in silence ? There is a solution NOURKRIN. Recently voted the Leading Brand for Hair Loss by the European Medical Journal ECM. In a number of studies carried out on NOURKRIN results show an improvement in 75% of cases!Losing your hair?Hair loss is not just a male problem. Did you know that nearly 50% of all women now suffer from some form of thinning hair or hair loss? The effects that hair loss has on a persons well being are often dismissed as trivial but it's true to...
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Mortgage calculator > Livingiseasy.co.uk - Nourkrin Hair Loss Remedy Product.
Start New Projects With Bad Credit Business Loans
Often business persons going through a bad credit phase face hurdles in availing much required finance. This, however, is not the case with the business people who take route of bad credit business loans. If key aspects of bad credit business loans are given a thought, business persons take the required amount of loan at lower interest rate.
There are number of utilizations of bad credit business loans such as starting a new business, buying new business assets, making payments...
Mortgage calculator > Start New Projects With Bad Credit Business Loans
Home Improvement Refinancing
If the homeowners are interested in increasing the value of his home equity, he can undertake some remodeling projects for his house. Even in such a situation also, he can opt for refinancing called home improvement refinancing. The main idea behind taking home improvement refinancing is have the advantage of best and lower interest rates. If the owner takes the refinance loan for a higher amount at the comparatively lower interest rate than the rate on the consumer debt, he will be in a position...
A Home Equity Loan ? Is It For You? Mortgage calculator Home Improvement Refinancing tax help
Mortgage calculator > Home Improvement Refinancing