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All you need to Know About Mortgage Loan Types Home Equity Line Heloc

Q&A: Should I Use My Home’s Equity to Pay Off a Loan with a High Interest Rate?

Q: I’ve heard of people using home equity to pay off debt and am wondering if that’s a safe strategy. I have a high-interest auto loan that I’d like to swap for lower home equity loan interest rates that are available, but I’m not sure it’s a good idea. A: If you’re lucky enough to actually have equity...

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PMI vs. Piggyback Loan

Banks usually ask you to put down 20% of the mortgage loan amount as a down payment. You may be unable to afford it, or may simply prefer to use your cash for other purposes. Regardless, if you’re not making the 20% down payment, you may be asked to purchase private mortgage insurance (PMI). The...

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Line of Credit Or a Loan

If you are a homeowner in need of some instant cash, you may be looking into different financial options and one of them is borrowing against your home equity using a home equity line of credit. Whether you’re building an addition to your home or just paying down credit card debt, if you have equity...

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What is a Home Equity Loan?

A home equity loan is a loan using a borrower’s house as collateral. If you’re a homeowner who is thinking about making major improvements to your home, or have some sort of a big-ticket item in front of you that you need help paying for, a home equity loan could be the right way to...

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What is a HELOC?

Anyone who is looking for a home, or currently owns one, should be familiar with the pros and cons of a home equity line of credit, commonly referred to as a HELOC. A home equity line of credit is a loan where you, the borrower, offer the equity in your home as collateral to the...

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HELOC Associated Risk

There are significant risks associated with home equity lines of credit, which are commonly referred to as HELOCs. Many people have been unpleasantly surprised by their experiences, and still others are encountering problems using their HELOCs now that the economy is in trouble. If you’re thinking about getting a HELOC you need to know as...

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HELOC APR vs. Standard Loan APR: Two Different Things

When comparing the Annual Percentage Rate (APR) of a Home Equity Line of Credit (HELOC) and a standard loan, it is important to remember that they are essentially two different things. When it comes to a home equity line of credit, the APR will be the prime rate (or whichever major interest rate index your...

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Common Mistakes When Applying for a HELOC

Many people make mistakes when applying for a home equity line of credit (HELOC). The good news is that, as with just about everything in life, being “forewarned is forearmed.” Read on for some valuable tips on what not to do when applying for a HELOC. One common mistake people make when applying for a...

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Advantages of a HELOC

The average homeowner will want to take a close look at what a HELOC can do for them. There are significant advantages to getting a home equity line of credit, as opposed to a traditional home equity loan, and the choice needs to be made carefully and thoroughly. You may find that a HELOC is...

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HELOC vs. Traditional Home Equity Loan

If you’re a homeowner and you’re trying to choose between a traditional home equity loan and a HELOC (home equity line of credit), then you need to be aware of their differences and similarities. They’ve got their pros and cons, of course, and these details could make a major difference in your financial picture. One...

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Top Banks Offering HELOCs

Banks all over America are in the business of offering home equity lines of credit, more commonly known as HELOC. They’ve been used by millions of American home owners to get to the kind of credit line they need. Some of the biggest names in the HELOC game are: Wells Fargo Home Mortgage Countrywide Washington...

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When Are Home Equity Loans Frozen?

Home equity loans are frozen when banks and other financial institutions in the business of lending money stop lending out more money to protect from losses they might face, due to either subprime mortgage or any other high-risk loans. When this happens it is very hard for borrowers to get any money on their existing...

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