Home Equity Loans - How To Use Your Home's Equity to Consolidate Debt

Written by Carrie Reeder


If you've got a wallet full of credit cards, and monthly payments on them that total more than 25% of your monthly income, chances are that you've considered debt consolidation loans or some other means of taming your credit card debt. But did you know that a home equity loan is another way to getrepparttar money that you need to pay off your creditors, reduce your monthly payments, and get out from underrepparttar 146134 weight of all those monthly payments?

A home equity loan is essentially a second mortgage taken out with your house asrepparttar 146135 collateral. Becauserepparttar 146136 loan is secured, you'll have a much more favorable interest rate. And those lower rates will translate to a lower monthly payment overall. You'll wind up with one creditor, one monthly payment, and more money in your pocket each month.

There are some definite advantages to taking out a home equity loan or line of credit to get out of debt, and one very big danger. By trading your unsecured loans (your credit card debts) for a secured loan, you are putting your house onrepparttar 146137 line. Why? Because if you don't makerepparttar 146138 payments,repparttar 146139 lender hasrepparttar 146140 right to take your home from you and sell it in order to collect onrepparttar 146141 loan. But if you've got at least 20% equity in your house, and are certain that you'll be able to meetrepparttar 146142 monthly payments, then taking out a home equity loan to pay off your debts may be a good choice for you.

Once you've decided that a home equity loan is an acceptable risk for you, you'll have a few other decisions to make.

All home equity loans are not created equal! There are two types of loans, and you'll need to decide which one is right for you.

A flat home equity loan is a standard loan for a fixed amount. The amount will be limited byrepparttar 146143 amount of equity you've invested in your house. If you use uprepparttar 146144 entire amount of your loan and need more money, you'll have to apply for another loan.

Refinancing Online - Get The Best Refinance Home Loan You Can Get

Written by Carrie Reeder


When going to refinance or get a mortgage loan quote,repparttar internet can be a useful tool to shop around forrepparttar 146124 best interest rate. The reasonrepparttar 146125 internet is a good place to start applying, is because most mortgage applications online do not typically pull your credit withrepparttar 146126 first application. Most ofrepparttar 146127 time,repparttar 146128 application will ask you to describe your credit. Once you have received an initial offer, then,repparttar 146129 mortgage loan consultant who contacts you will ask you if they can pull your credit.

The point is, there is really no risk in applying to many different mortgage companies or lenders online. This can help you compare refinance quotes from multiple lenders.

There are quite a few mortgage companies out there that will submit your pre-approval application to hundreds of lenders and then forward yourepparttar 146130 4 best mortgage loan refinance quotes. To see a list of these companies, click onrepparttar 146131 link below. If you do this pre-approval process with about 3-4 companies, in less than 24 hours, you could have mortgage refinance quotes from about 12-16 lenders. Imagine how comfortable you would feel knowing what all of your refinance options are. If you had over 10 mortgage loan offers, you would not makerepparttar 146132 mistake of settling for a refinance loan that is notrepparttar 146133 best you can get.

When refinancing, you absolutely want to make sure of a few things before you settle on an offer:

1. Make absolutely sure that you are gettingrepparttar 146134 lowest mortgage rate possible for your qualifications. With mortgage rates slowly onrepparttar 146135 rise, you want to make sure that you are not getting a mortgage loan any higher than you can qualify for. If you go direct throughrepparttar 146136 lender and not use a broker middleman, sometimes that can help you get a lower interest rate.

Cont'd on page 2 ==>
 
ImproveHomeLife.com © 2005
Terms of Use