How To Tap In To Your Home Equity

Written by Frank Kelly


With today's relatively low interest rates and climbing property values, many consumers are considering taping into their home equity to finance everything from home improvement projects to debt consolidation.

Secured home loans, also called home equity loans, are loans backed byrepparttar borrower's equity in their property. Equity isrepparttar 137876 difference between your home's appraised value andrepparttar 137877 balance on your mortgage.

When a homeowner takes out a secured home loan, they promise to repayrepparttar 137878 lender and sign a contract that makes their homerepparttar 137879 collateral forrepparttar 137880 loan. Ifrepparttar 137881 borrower does not repayrepparttar 137882 loan as agreed,repparttar 137883 lender hasrepparttar 137884 right to foreclose onrepparttar 137885 home. Generally, loans are repaid with a monthly payment over a fixed term.

As interest rates and loan terms may vary widely depending on your credit score, your home equity, andrepparttar 137886 amount ofrepparttar 137887 loan, it is important to compare several different lenders to ensure you are gettingrepparttar 137888 best loan for your situation.

There are many advantages to secured home loans. Home equity loans generally have lower interest rates than unsecured loans. In addition, there are many different types of secured home loans to fit your needs.

Debt Consolidation Versus Debt Negotiation

Written by Gary Gresham


Debt consolidation versus debt negotiation are two options that are available to you if you need debt assistance. When your monthly bills become too much for you to handle, it makes sense to use debt consolidation or debt negotiation for solving debt and credit problems. Debt Consolidation Debt consolidation services have prearranged debt repayment plans with most credit card and collection companies. When you sign up with a debt consolidation company you are offered a lower overall monthly payment based on a lower interest rate they have arranged withrepparttar creditor. This payment is lower than whatrepparttar 137861 credit card companies offer you, saves you money every month and is oftenrepparttar 137862 best way to consolidate debt. One benefit of a debt consolidation repayment plan is it will stop you from getting harassed by your creditors as long as you makerepparttar 137863 new, lower monthly payments. The downside ofrepparttar 137864 debt consolidation repayment plan is that you have to cancel all credit cards that you include inrepparttar 137865 plan. You are also charged your first payment you make towardrepparttar 137866 program and an additional monthly administration fee. This administration fee ranges from flat fees of $10-$50, while others charge a $5 fee for each creditor. That means you'll pay about $30 a month that doesn't go to paying off your debts. The debt consolidation program benefits you if you have high interest rates or have higher credit card bills than you can manage. Some people like to make only one payment to one company for all of their debts. Debt Negotiation Debt negotiation is sometimes referred to as debt settlement. This is most often offered to people who can't handle a debt consolidation program. If you can't makerepparttar 137867 minimum payments of a debt consolidation repayment plan or haven't made payments inrepparttar 137868 past 3 months, a debt negotiation program isrepparttar 137869 next step for solving debt and credit problems.

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