Home Equity Line of Credit – Great for Remodeling ProjectsWritten by Charles Essmeier
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lime green carpet, and smiley face wallpaper, you may be looking at a remodeling project of indeterminate duration. For such a project, a better financing choice would be a home equity line of credit, or HELOC. A line of credit offers greater flexibility, both in interest rates and repayment terms, than a traditional line of credit. The loan amount is based on amount of equity in home, but funds aren’t dispersed all at once. Instead, borrower is given a checkbook, a special credit card, or both and can use them to draw upon funds at his or her leisure. Payments only apply when money is actually borrowed, and repayment plans can be arranged with both fixed and adjustable interest rates, depending on lender. This is ideal financing for someone who has purchased a fixer-upper home that needs a variety of changes, repairs, or modifications. The credit card can easily be used to purchase paint, drapes, flooring, appliances or whatever homeowner requires to make home fit their needs.
If you just need to hire a contractor to add a gameroom to your home, a traditional home equity loan would work well. For ongoing projects with indefinite timeframes and budgets, a home equity line of credit may be best choice.
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation and credit counseling information and HomeEquityHelp.net, a site devoted to information on mortgages and home equity loans.
| | Home Equity – Foreclosure Often Not Necessary in Current MarketWritten by Charles Essmeier
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While losing a home due to lack of payment is generally financially catastrophic for homeowners, current market has offered many financially troubled homeowners a simple way out – they can sell home.
The price of homes nationwide has skyrocketed in last few years, and in many markets, values have doubled or ever tripled. Many homeowners now have huge amounts of equity in their homes and that equity often exceeds amount owed on primary mortgage. That may be little consolation to a homeowner who has just lost his or her job, but homeowner now has another option besides watching bank sell home from under their feet. The homeowner can now sell home, pay off mortgage and often pocket some cash at same time. In most markets, this can be accomplished rather quickly, before foreclosure proceedings take place. The debtor will no longer have a place to live, but debt will be repaid, and he or she will often have quite a bit of cash left over. This is certainly a better option than either dealing with a scammer or losing home to foreclosure.
Anyone with financial troubles that prevents them from making their house payments should consult with their lender first. Lenders aren’t really interested in removing people from their homes unless it’s absolutely necessary. Still, it is comforting to know that current market may provide a somewhat more attractive alternative that may actually yield some cash.
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation and credit counseling information and HomeEquityHelp.net, a site devoted to information on mortgages and home equity loans.
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