|
Why So Popular?
Lenders have been promoting home equity loans and home equity lines
of credit significantly in recent years for good reason. For lenders
a home equity loan or home equity line of credit represents a
relatively safe risk for a better return than a first mortgage home
loan using the same collateral-the home.
Read More
*********************************************************************
New homeowners have a lot to think about. Scratch SECURITY off your
list. Get one month free
security system and sleep better tonight knowing you have that
protection!
*************************************************************
What is Home Equity?
In a nutshell home equity is the difference between what your home
is worth and the amount you owe on it. For most homeowners their
home is their biggest asset and it usually represents a treasure
trove of cash. In 2005 the value of home equity across the US was
$11.3 trillion. The percentage of home ownership in 2005 was 69%
down slightly from the record 69.2 % in 2004. Almost 124 million
Americans own their own home.
Read More
Types of Loans
There are probably 20-30 variations of the home equity loan but the
two most popular types of home equity loans are called "open" and
"closed." The "open" loan or a line of credit sometimes called a
HELOC. In this loan usually the interest rate is variable tied to
the prime rate and the term of the loan can range from five to
thirty years. Because the rate is variable the payment amount is as
well which might be problematic. Lenders often offer a special
introductory rate as an added incentive.
Read More
More Home Equity Loans
125 Home Equity Loan
One of the variations which has broad appeal is the 125 home equity
loan so designated because the borrowers can get up to 125 % of the
current combined loan to value (CLTV). This type of loan is
particularly appealing to first time home buyers who may need to
spend extra money on furniture, home improvements, landscaping, etc.
The extra money can be used for debt consolidation, medical
expenses, or college tuition as well.
Read More
What's at
Risk?
There is risk
associated with every loan both for the borrower and the lender. For
the lender the risk is minimal. That is part of the reason why
lenders are promoting home equity loans so much is because they are
secured by a second deed of trust on the home.
Read More
Uses for Home Equity Loans
Home equity loans are used for a variety of reasons. They usually
are used for big ticket items like debt consolidation, college
expenses, home repair, home improvement, medical bills, or any other
major expense.
Read
More
What to Look For
Like any other financial transaction, make sure the home equity loan
meets your needs. Don't borrow $10,000 if you need $15,000 and
generally visa versa don’t borrow more than you need.
Read More
What to Look Out For
Fortunately most lenders are pillars
of their communities and can be trusted. Unfortunately there are
lenders who prey on the elderly, the poor, and those in financial
trouble with bad credit. These unscrupulous lenders deliberately
target weak borrowers with the hopes they get further in trouble and
end up losing their home for financial gain.
Read More
*********************************************************************
New homeowners have a lot to think about. Scratch SECURITY off your
list. Get one month free
security system and sleep better tonight knowing you have that
protection!
*************************************************************
The Good,
Bad, and the Ugly
The home equity line/loan is a great tool to use in financial
emergencies, make home improvements, pay medical bills, pay for
major expenses, or consolidate debt. If it is misused it can bring
financial turmoil into your household. Let's look at a few examples.
Read
More
Where Do You Find a Lender?
There are two concerns here. First finding someone you feel
comfortable with, someone you feel you can trust. After all it is
not everyday you are looking to use your home equity and apply for a
home equity loan.
Read
More
Reverse
Mortgages Exposed
I wasn't born a
skeptic. Actually I'm probably more naïve than not. But over the
years, thru life's travails, I have become one. Maybe being married
to a pathological liar for twenty plus years had something to do
with it-but I digress.
Read
More
Is There One in
Your Future
Reverse mortgages
have gotten a lot of publicity lately and will probably get a lot of
press in the future as baby boomers near retirement age. What are
they? Who can use one? Is there a reverse mortgage in your future?.
Read
More
Life Made
Easy
Retirement is full
of choices. There are choices on everything from where to vacation,
where to eat, where to play golf-choices, choices, choices-the list
is virtually endless. There will be no bigger choice for you to make
when the time comes than deciding where to live and what to do with
your home. You worked your whole life long-NOW WHAT?.
Read More
Reverse Mortgages-Wait Just a
Minute!
The marketplace is changing
so rapidly in one of the fastest growing sectors of lending-reverse
mortgages-that it might be well worth your while to catch your
breathe and wait a minute (or two) and let the dust settle. Things
are only going to get better.
Read More
Reverse Mortgages-The Dark Side!
Reverse mortgages are not unlike any other product-buyers need to do
their homework especially in an area that has the earmarks for abuse
and scams. Take advantage of the free HUD approved counselors before
making a decision.
Read More
Reverse Mortgage Home Equity Loan-
The Pot of Gold at the End of the Rainbow
After 45 plus years of working in your
lifetime and grossing close to $3 million what do you have to show
for it? Surprisingly, for a lot of people the answer is close to
nothing. Maybe it isn't so bad after all with a reverse mortgage.
Read More
Home Equity Loans-Why Lenders Love
Them
Home equity loans are one of the most
popular and most profitable products in the field of lending right
now. Knowing why they are so popular may make you think twice about
getting one.
Read More
Reverse Mortgage Home Equity
Loan-Most Popular Uses of Proceeds
More and more baby boomers are getting reverse mortgages-but what to
do with the proceeds. Like you really need some help here? How are
you going to spend all that money?
Read More
Summary
Let's face it
Americans are much better at spending than saving. My ex-wife can
testify to that. The national savings rate is typically one of the
lowest in the world. In June of 2006 it was just announced the
average American managed to spend more than he made taking a page
from the book of the U.S. Congress who makes that a habit.
Read More |
