Online Home Equity Loans: A Basic Glossary

Written by John Ross


Continued from page 1

Equity: This isrepparttar amount of money that you have vested in your home. This can be determined by subtractingrepparttar 139873 lien amount fromrepparttar 139874 property's value.

Equity Loan: A loan or line of credit that is based onrepparttar 139875 amount of equity that you have in your home. Your home is essentially used as collateral.

Fixed Interest Rate: An interest rate that remains constant throughoutrepparttar 139876 life ofrepparttar 139877 loan. A fixed-rate mortgage will haverepparttar 139878 same interest rate and payments forrepparttar 139879 length ofrepparttar 139880 loan.

Home Equity Line of Credit: Similar to a home equity loan, but you receive a line of credit that you can draw upon at any time.

Home Equity Loan: A loan based onrepparttar 139881 amount of equity you have in your home.

Interest: This isrepparttar 139882 cost for borrowing money.

Interest Rate: This isrepparttar 139883 percentage ofrepparttar 139884 loan amount that you must add to your principle, forrepparttar 139885 privilege of borrowing money.

Loan-To-Value Ratio: This isrepparttar 139886 ratio betweenrepparttar 139887 amount ofrepparttar 139888 loan andrepparttar 139889 actual value ofrepparttar 139890 home. Some loans can give you up to a 125% Loan-To-Value Ratio.

Market Value: This isrepparttar 139891 price that buyers would be willing to pay for your home, atrepparttar 139892 present time. This can vary fromrepparttar 139893 actual sale price ofrepparttar 139894 home.

PITI (Principal, Interest, Taxes, and Insurance): This isrepparttar 139895 usual breakdown for mortgage payments.

Principal: The amount of your original loan before interest was added.

John Ross is a freelance author who writes articles about financial loans including: home equity loans company, online home equity loans, and fixed rate home equity loans.


Home Equity – Is it Time to Cash Out and Move?

Written by Charles Essmeier


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he or she could buy a comparable or even larger home, pay cash, and probably keep a healthy profit to invest. For most Americans,repparttar equity in their home is their single largest asset. Examining that equity to see if it can be used more wisely would be a sound move, particularly as real estate experts warn of a housing “bubble” that may soon reduce prices to more realistic levels. Should this “correction” inrepparttar 139838 market take place, homeowner equity could be seriously reduced.

Obviously, selling a home and moving just to pocketrepparttar 139839 equity is not something that suits everyone. While it may make sense from a financial standpoint, it will mean finding a new employer, finding a new home, finding new friends and moving children to new schools and friends. Anyone considering such a move would be well advised to carefully consider all ofrepparttar 139840 ramifications of simply picking up and moving. Onrepparttar 139841 other hand,repparttar 139842 opportunity to extract several hundred thousand dollars in cash from a home is a rare one, and investing it wisely could go a long way towards financing a better lifestyle or a more comfortable retirement. Homeowners should be aware that there might be capital gains taxes to be paid onrepparttar 139843 sale of a home. Those considering selling their home to extract their equity would probably benefit from a consultation with a financial advisor.

©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 information and HomeEquityHelp.net, a site devoted to information on home equity loans.


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