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Home schooling Information You Don’t Hear About
By aldwin pet
For many of us who don’t particularly like the public school system, we think that home schooling may be the perfect answer. You can teach your child the things you want him to know in a one on one Read more...
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Home Remedies For Hair Loss: Ease Hair Growth Without Hurting Your Pocket
By Javier Fuller
For most of the people loss of hairs and resulting baldness happens to be a traumatic experience. The agony of hair loss may cause depression in some. But folks with excessive hair loss must give up Read more...
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Work At Home Mom, Dream or Reality?
By Ove Nordkvist
Today it's a very popular option to become a work at home mom. And there are many advantages, compared to a regular job. If you do get things done by your own, that is, you don't need a boss to point Read more...
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The difference between home equity loan and home line of credit.
By Stefano Sandano
Once you have built up equity in your home, you have the privilege of applying for a equity line of credit, which allows you to borrow the money you need.
Most financial insititutions ( banks, savings and loans ) have entered the equity market, so you have plenty of options when you shop for the best loan.
In effect, a equity loan is a second mortgage on your home. You usually get a line of credit up to 70 percent or 80 percent of the appraised value of your home, minus whatever you still owe on your first mortgage.
For example, if your is worth $100,000 and you owe $20,000 on your mortgage, you might receive a equity line of credit for $60,000 because your lender would subtract your $20,000 owed on the first mortgage from your $80,000 worth of equity.
You will qualify for a loan not only on the value of your but also on your creditworthiness. For instance you must prove that you have a regular source of income to repay a equity loan.
The difference between the two kind of credits is easy:
the equity loan has a fixed rate and the equity line of credit has a rate that fluctuate and it's better indicate to consolidate other debts than the credit cards.
The equity line of credit is an " on demand" source of funds that you can access and pay back as needed.
You only pay interest if you carry a balance because these line of credits are essentially a revolving line of credit, like a credit card but with a much lower rate because the line of credit is secured by your home.
Like other mortgages, the equity loan requires you to go through an elaborate process to qualify for an open line of credit. You will usually need a appraisal and must pay legal and application fees and closing costs.
Because a equity loan is backed by your as collateral, it is considered more secure by lenders than unsecured debt, such as credit card debt. Further, because the loans are less risky for banks, you benefit by paying a much lower interest rate than you would on credit cards or most other kinds of loans.
Home equity loans can therefore offer extremely attractive rates when the prime interest rate is low, but subject you to much higher interest costs if the prime shoots up.
You can tap the credit line simply by writing a check, and you can pay back the loan as quickly or as slowly as you like, as long as you meet the minimum payment each month.
Stefano Sandano is a home equity loan expert and you can get more information about home equity loans tips on www.homequity-loan.com
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