Welcome to Home Equity Loans
Home Equity Loan Company Article
This is a selection made from among articles on Home Equity Loan Company. For a permanent link to this article, or to bookmark it for future reading, click here.
from:
The Difference Between Home Equity Loans and Home Equity Line of Credit
By Connie Barker
Using your home equity is a very savvy way to borrow large sums of money at a very low cost. While there are different types of loan products that lenders offer, the two most common and popular are the home equity loan and home equity credit line.
Before jumping into these two types of loan products, it is important to understand the nature of these two types of lending. Two terms that are extremely important are equity and collateral. Equity is a term that is used to describe the difference between the current appraised value of your home and the amount of the money that you owe (mortgage). For instance, if your home is currently valued at $300,000 and you own $100,000, your equity is equal to $200,000.
Collateral is another term that you should be aware of, whether in home equity loans or a home equity line of credit, it is important to note that you are putting up your home as collateral. Collateral is a way to secure your loan. If you are unable to repay your loan, the bank uses your home as collateral and can sell it to recoup its losses.
The main difference between these two different types of lending is that home equity loans are a one time loan for large sum of money. A home equity line of credit is an open account similar to a credit card where you can borrow money at various installments. Another important difference between both products is that the loan usually always has a fixed loan rate. The rate of the loan always stays the same for the life of the loan. In a home equity line of credit, the interest rate is variable and can increase or decrease throughout your repayment.
Most people use these two products very differently. For instance, for people looking to purchase one large item using their home's equity, a loan is preferred. For instance, loans are used for adding an addition to your home or paying for college tuition. A line of credit is usually used for smaller sums of money that are withdrawn over a period of time. For instance, many homeowners might use a line of credit to manage debt or to renovate their home piece by piece over the course of a couple of years instead of all at one time.
Connie Barker is the owner of several financial websites including those dealing with Bad Credit Loans, Personal Loans, and Online Loans
Article Source: http://EzineArticles.com/?expert=Connie_Barker
http://EzineArticles.com/?The-Difference-Between-Home-Equity-Loans-and-Home-Equity-Line-of-Credit&id=934139
Home Equity Loan Company Specific links
Home Equity Loan Company
- Looking for Home Equity Loan Company?
-- http://www.shopica.org/
Free Tech, Product & Gadget Videos!
- Watch PC Mag Reviews on Mevio.com
-- http://www.mevio.com/
Old People News
- World moving too fast for you these days? Interwebz got you down? Take a Metamucil break with Dolly and Charlie on Old People News.
-- http://www.atom.com/
Home Equity Loan Company
- Symptoms, causes, treatments of Home Equity Loan Company
-- http://www.myoptumhealth.com/
Searching For Dog or Cat Breeds?
- Find Every Dog & Cat Breed at Petside.com
-- http://www.petside.com/
Home Equity Loan Company News
GMAC backs ailing affiliate - Fort Wayne Journal Gazette
NEW YORK – GMAC LLC, the financing arm of automaker General Motors Corp., said Thursday that it has made progress in restructuring its ailing home mortgage subsidiary but didn’t go as far as to guarantee its future. Residential Capital LLC, which ...
Read more...Equity Residential to Take Fourth Quarter 2008 Impairment Charge from ... - Businesswire.com
CHICAGO--( BUSINESS WIRE )--Equity Residential (NYSE:EQR) announced today that the company will reduce the number of planned development projects it will undertake and, as a result, will incur a non-cash charge in the fourth quarter of 2008 of ...
Read more...Worst Small Towns To Own A Home - Forbes
Homeowners in West Little River, Fla. , Westmont, Calif. , and Copiague, N.Y. , could use some time with their financial planners. That's because these areas have the highest percentages of mortgage holders whose monthly housing costs--73.6%, 73.3 ...
Read more...Distressed-Loan Buyer Gaining After Slow Start - American Banker Online
The growing mound of nonperforming mortgages led Stanford Kurland , the former Countrywide Financial Corp. executive, to start Private National Mortgage Acceptance Co. LLC last March to buy and service distressed loans. But the expected flood of loan ...
Read more...Freddie Mac report: 30-year mortgage rates are in free-fall - Toledo Blade
WASHINGTON - Rates on 30-year mortgages fell to a record level for a fourth straight week, dropping to the lowest mark since Freddie Mac started tracking nearly 38 years ago. Rates have been falling since late November, when the Federal Reserve ...
Read more...Fitch Downgrades YRC Worldwide's IDR to 'CCC'; Rating Watch Negative - Businesswire.com
All of the ratings for YRCW and YRC Regional Transportation have been placed on Rating Watch Negative. Fitch's ratings apply to approximately $550 million in notes, a $150 million secured term loan and a $950 million secured revolving credit facility ...
Read more...Bitter end - Financial Times
A mogul mourned: flowers and candles placed near the spot where Adolf Merckle killed himself on Monday night He ranked, according to Forbes magazine, among the world’s 100 richest people. Yet the 74-year-old Adolf Merckle, who this week became the ...
Read more...Kill the competition: Obama spending ... Rate doubts ... Brown rev-up - Times Online
The Times : Barack Obama said only unprecedented and urgent government spending can prevent the deepening recession stretching for years. The Times : Experts warned the lowest interest rate in the Bank of England's history will deter savers from ...
Read more...US gov't sends Chrysler $4B bridge loan - Ann Arbor News
AUBURN HILLS, Mich. (AP) — Chrysler LLC and the U.S. Treasury Department said Friday that the government had supplied the automaker with a $4 billion loan that was necessary to keep it operating. Chrysler Chief Executive Bob Nardelli said in a ...
Read more...Register for FREE - Wall Street Journal
Please register to gain free access to WSJ tools. An account already exists for the email address entered. President George W. Bush entered office in 2001 just as a recession was starting, and is preparing to leave in the middle of a long one. That ...
Read more...