|
Author: Tim Gorman Article source: http://www.qooqe.com/. Used with author's permission.
A home equity loan can be an excellent way to obtain money in order to pay off high interest bills or consolidate your current debt into one monthly payment. A home equity line of credit is a form of revolving credit in which your home serves as collateral. Because the home is likely to be a consumer's largest asset, many homeowners use their credit lines only for major items such as education, home improvements, or medical bills and not for day-to-day expenses. Additional benefits include a nice tax advantage and the possibility of an overall lower monthly payment. However before you decide that a home equity loan is right for you make sure you do your homework.
Not all online lenders of home equity loans are the same which means there are ample opportunities to save a few more of your hard earned dollars.
The biggest obstacle to overcome is deciding on the appropriate online loan lender. Make the wrong choice here and it could come back to haunt you in the form of higher payments. I have compiled a small list of items to check for when searching for the best online loan lender. One item to be on the look out for is the annual percentage rate or (APR) as it's commonly known. This is the cost of credit on a yearly basis expressed as a percentage. This cost is based on the interest rate alone and will not take into effect other fees and charges such as closing costs.
Most home equity loans or lines of credit revolve around variable interest rates. In many cases lenders entice consumers with an offer to temporarily discount interest rate for home equity lines. This rate is unusually low and may last for only an introductory period, such as 6 months.
Typical information that a loan officer will ask you to provide include a checklist for "Full Document" loan approvals, 1 month of pay stubs from your employer, the previous 2 years worth of W2 forms, a mortgage coupon or copy of your monthly mortgage statement, your homeowners insurance policy information, the mortgage note on your current mortgage, your drivers license and social security card. Having these items handy will help speed up the loan approval process.
Remember those pesky closing costs when you first bought your house? Well there back in force when you apply for a home equity loan. They include but are not limited to the following: Up-front charges, such as one or more points (one point equals 1 percent of the credit limit), application fees, appraisal fees and closing costs, including fees for attorneys, title search, and mortgage preparation and filing; property and title insurance; and taxes.
Once recommendation before applying for a loan would be to have a plan in place describing how you intend to pay the loan back. Some plans set minimum payments that cover a portion of the principal plus accrued interest. Other plans may allow payment of interest alone during the life of the plan, which means that you pay nothing toward the principal. If you borrow $10,000, you will owe that amount when the plan ends. You'll need to be aware of the possibility of a balloon payment. This means whatever your payment arrangements during the life of the plan--whether you pay some, a little, or none of the principal amount of the loan--when the plan ends you may have to pay the entire balance owed, all at once. Failure to complete the loan arrangement by making the balloon payment could result in the forfeiture of your house.
Finally the federal Truth in Lending Act requires lenders to disclose the important terms and costs of their home equity plans, including the APR, miscellaneous charges, the payment terms, and information about any variable-rate feature. You usually get these disclosures when you receive an application form, and you will get additional disclosures before the plan is opened.
These simple guidelines were meant to provide you some additional information with the hopes of making you more comfortable and aware of the issues involved when applying for a home equity loan. Other websites operated by Tim
Cellular-Phone-Solutions.com - Free information and resources regarding cell phones and cell phone plans.
Best-Free-Insurance-Quotes.com. - Provides free insurance information and offers discount home, life and auto insurance.
How to Manage and Conquer Depression
Millions of people suffer from a depressive illness. They thought that depression is just a normal occurrence in their lives, which will go away after a short ...
Standing Out Head and Shoulders Above the Rest
Online communities have existed for over 15 years, but are still under-utilitized. Learn more about using this dynamic solution for driving and growing your onl...
Physical Activity Versus Exercise: Is there a Difference?
Quite often a client will come into the gym discouraged with their exercise program. The common complaint being lack of results. They give a list of activities ...
Websites for Writers – Why You Need One and How to Get Started Today
If you've been thinking about launching your own writer's website, this article will explain the advantages and how to get started. It's easier than you think ...
Market Reaching its Peak
real estate market peaking
Beat Angina Naturally
Beat angina naturally
Web-Safe Fonts for Your Site
Choosing the right typeface for your website copy is important, since it will affect the way your readers perceive your page (serious and formal, or friendly an...
3 Overlooked Ways to Get Hundreds of Links and Prospects to Your Blog
In four days, the number one method generated just over 1000 visitors. 157 newsletter leads, 98 new feed subscribers, and 206 links to my site.
Business Credit Card Dirty Tricks
My system teaches people that the proper use of credit is the fastest way to speed up your profits in real estate investing.
Reciprocal Linking Scams, What to Look for and How to Avoid Them
Details the imaginative and plain crass reciprocal linking scams uncovered by the author whilst trying to identify the cause of continually falling page rank an...
Dating Options for Christian Singles
As a Christian, you understand that to visit bars, nightclubs, and many other worldly establishments is not the way for you to meet your mate. The people who ha...
Chicken Mushroom Marsala – Easy and Elegant for the Amateur Gourmet
If you are having company and want to make something easy but really flavorful, try this chicken Marsala recipe. I love the way the flavors mix, and it is quick...
A Six Percent Loss In Two Weeks!
Did you know that 80% of the price movement in a stock or a mutual fund is determined by the overall market conditions and by the company's sector? This is the ...
Thank You
I wonder if anyone really reads long stuff from Ezines except for the juicy and interesting ones but I am one of those few who painstakingly reads almost all ar...
Golf Apparel -- The Start Of Good Golf Etiquette
Today's golfing rules of etiquette can seem archaic. They harken back to a slower paced time when consideration for others was perhaps easier. In the 21st centu...
Dating Myths: Someday My Prince (or Princess) Will Come
This is one of the most prevalent myths of dating. Instead of waiting for your prince/princess to come, here are some ways you can go out and find this person.
Protecting Your Computer From Viruses
If you are on the Internet you are open to intrusions to your computer that you may and often do not want. I wrote this to help protect yourself from these unw...
Is Your Company in Need of Family Therapy?
Underlying dynamics of a healthy company versus a dysfunctional one.
Get Out Those Legos
Many of my clients are working harder than smarter. This is not a put-down of their intelligence. It is a statement about the conventions of the way most of us ...
Partnering With Your Daycare or Preschool
For the most positive daycare experience for your child, partner with your childcare center and make a personal investment beyond the monthly tuition. If your ...
Five Ways to Create a Healthy Home
Have you ever thought of your home as being healthy or unhealthy? While the concept of a healthy home may be new to some of us, it is steadily gaining populari...
A Backup To The Internet Is Vital & Now Cost Effective
It doesn't take a Terrorist Act, Tsunami or Earthquake to put a business heavily dependent on the internet in the dark and effectively out of business……for hour...
Put Your Kitchen on a Diet
Without the right kitchen you'll never succeed at your weight loss program. But there's no need to go into debt and have it remodelled. Learn the secrets of a d...
Lose Weight and Exercise Now – Or Face the Music Later!
Our country is just starting to face the music for our actions. Look at what we've done to ourselves over the last thirty years. It's expected that millions wil...
|
Print this page