Is A Home Equity Credit Line Right for You?
Home Equity
Using credit lines against
equity of your home are one source of consumer credit that is fast gaining popularity. Home equity is a valuable asset which both lenders and borrowers can benefit from and as such, lenders are offering home equity credit lines in a variety of ways.
As you probably know, most loans come with variable interest rates. Generally, home equity loan rates differ with each lender. Some come with attractive low introductory rates, and a few come with fixed rates. Also, you may find that most home equity loans have large one-time upfront fees, others have closing costs, and some have continuing costs, such as annual fees. There are also home equity loans with large balloon payments at end of loan and others with no balloons but with higher monthly payments.
There is no one loan that is right for every homeowner. Different homeowners have different loan needs. The challenge therefore is to contact different lenders in order to compare your options and select home equity loan best tailored to your needs.
Some things you need to keep in mind before choosing your home equity loan:
- Be sure to review home equity contract carefully before signing it.
- Do not hesitate to ask questions about terms and conditions of your financing.
