Welcome to Home Equity Loans
Calculate Home Equity Article
This is a selection made from among articles on Calculate Home Equity. 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 A line of credit is usually used for smaller sums of money that are withdrawn over a period of time.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
Calculate Home Equity Specific links
Calculate Home Equity
- Looking for Calculate Home Equity?
-- http://www.shopica.org/
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/
Calculate Home Equity
- Symptoms, causes, treatments of Calculate Home Equity
-- http://www.myoptumhealth.com/
Searching For Dog or Cat Breeds?
- Find Every Dog & Cat Breed at Petside.com
-- http://www.petside.com/
Calculate Home Equity News
A Private Equity Bailout - Forbes
Since Election Day, Washington has been talking of a massive recovery package to be passed early in an Obama presidency. As Congress gets underway--and two weeks before Obama is sworn into office--details of recovery and stimulus ideas are emerging ...
Read more...Goodwill Hunting - CFO.com
When boards of directors convene to review a dismal 2008, many will vote to leave shareholders with even less. They may have little choice. At dozens of public companies, market values now languish below book values, a situation that makes write-offs ...
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...As loan rates fall, homeowners consider refinancing - Record Searchlight
The economic turmoil of 2008 has left few bright spots, but here's one: Mortgage rates have plummeted. Rates on 30-year, fixed loans are hovering around 5 percent - the lowest level since Freddie Mac began tracking rates in 1971. Some economists ...
Read more...Plan ahead to save money on energy, home improvement - Staunton News Leader
Installing storm windows or insulated replacement windows might cut your energy bills and save you a pot full of cash in the long run, but the folks at Dominion Power say they might not be the best use of your energy improvement dollars because of ...
Read more...Louisiana Business: Horrible Job Loss, Ochsner, Obama and Gulf Coast ... - Bayou Buzz
The economic news keeps getting worse. According to the US Labor Department on Friday, t he U.S. economy lost 524,000 jobs in December. The result was the worst year since World War II according to Marketwatch. Nearly 2.6 million jobs were lost in ...
Read more...8 steps for rebuilding your finances - KUSA-TV
KUSA - Life events such as a recent divorce, dealth in the family, getting job after a long period of unemployment or filing for bankruptcy, present a common challenge: the need to reestablish yourself financially. The following steps can help get ...
Read more...After pink slip, make a plan - New Britain Herald
In this troubled economy, few jobs are safe. However, if you lose yours, don’t panic. There are steps you can take to keep your finances in order. “I’m seeing so many people lately who have been laid off that it’s scary,” says financial ...
Read more...IPhone Apps Round-up: Ambient Music for the Mind - PC World
I don't know about you, but I like to listen to background music while I work. It drowns out ambient chatter, helps me focus on the task at hand, and really eliminates any distractions that might cause me to lose focus. Trouble is, when a song I like ...
Read more...Save £2,500 with our new year cash diet - Daily Telegraph
Just like losing weight, a little discipline will bring rich rewards when you decide to tone up your finances Photo: GETTY This year make it your new year’s resolution to pile on the pounds, rather than shed them. We are talking pounds sterling of ...
Read more...