Welcome to Mortgage Guide and Tips
Refinancing Your Home Mortgage Article
. You may Bookmark this article or link to it permanently - ,click here.
Home Equity
********Using credit lines against the 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 the end of the 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 the 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 the home equity contract carefully before signing it.
* Do not hesitate to ask questions about the terms and conditions of your financing.
Is Home Equity Credit Line Right for You?
One of the best sources of credit is your home equity line. This is because you can use the value of your home as collateral for a loan without having to sell your property. Initially, home equity credit lines may provide you with large amounts of cash at relatively low interest rates. And, what’s more, they also offer tax deductions, which is an advantage you can’t find in other types of loans.
However, with home equity loans, your house serves as mortgage collateral. This further means that if you default on your loan, your lender may foreclose on your home. With home equity loans, therefore, your home is at risk if you are late or cannot make your monthly payments. Loans which require you to pay a large final (balloon) payment may lead you to borrow money in order to pay off this current debt. And if you do not qualify for refinancing, your home may be in jeopardy. In addition, because home equity loans give you relatively easy access to cash, you might find yourself borrowing money more freely. Selling your home may not always be the option when a situation arises where you can’t afford to make anymore payments on your loan. This is because most plans offered require you to pay off your credit line at that time.
TOTAL WORD COUNT - 451
KEYWORDS "Home Equity" = 15 (density = 3.3%)
Refinancing Your Home Mortgage Specific links
Refinancing Your Home Mortgage News
Risks when refinancing your home
If you are a homeowner who was lucky enough to buy when mortgage rates were low, you may have no interest in refinancing your present loan. However, if you bought your home when rates were higher, or perhaps you have an adjustable rate loan and would like to refinance, be cautious.
Read more...Prepay mortgage or refinance your home?
Dear Dr. Don, My wife and I have a mortgage balance of about $60,000. Our principal and interest expense is about $1,000 per month. We're about eight years into a 15-year mortgage.
Read more...Prepay Your Mortgage or Refinance Your Home?
You could cut your interest and loan costs by prepaying but at today's rates, why not refi?
Read more...Is a cash-out home refinancing right for you?
Dear Dr. Don,I have a question of whether to refinance. We have been in our home for 21 years and are not close to retirement. Our ages are 49 and 51, and we have a first and second mortgage. The first ...
Read more...Vail Daily column: More on the Making Home Affordable Act
In the first part of this series we identified the Making Home Affordable Act, the Obama Administration's initiative to help struggling homeowners get mortgage relief through mortgage modifications, interest rate reductions, refinanci Copyright 2012 Vail Daily. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Vail Daily Vail Daily column: More on ...
Read more...First Person: Refinancing My Mortgage for the Right Reasons
*Note: This was written by a Yahoo! contributor. Do you have a personal finance story that you'd like to share? Sign up with the Yahoo! Contributor Network to start publishing your own finance articles.
Read more...No Help From HAMP? Refinance Your Mortgage to Lower Costs, Advises Informa Research Services
CALABASAS, CA-- - For many homeowners, government programs such as the Home Affordable Modification Program have been supremely helpful in getting their mortgage obligations to a more affordable level ...
Read more...