info - EQUITY LINE OF CREDIT...HELOC, loans, mortgage, rates, freeze...

Home Equity Line Of Credit | Articles

2008-07-19T06:23:00.000-07:00

By:: MortgageLoan.com | July 15, 2008

Arming yourself with information is the best way to protect yourself from some common home equity scams.

All By Yourself: Sell Your Home without a Broker

By:: Greg Mischio - MortgageLoan.com | July 07, 2008

In a declining real estate market, anyone selling a home is desperately trying to squeeze home equity dollars out of a sale. More sellers are deciding to be their own brokers-a bold move that has equal amounts of risks and rewards.

Scarce Solutions for the Home Equity Loan Freeze

By:: Tom Kerr - MortgageLoan.com | July 02, 2008

Home Equity Line Articles and Advice from bills.com

2008-07-02T14:59:00.003-07:00

The Basics of a Home Equity Line of Credit
The equity you’ve built up in your home can come in handy, but only for a few carefully chosen purposes. Learn more about how to use a home equity line of credit to your advantage.
Home equity line of credit basics

How to Shop for a Home Equity Line of Credit Loan
Not all of the offers you receive to apply for a home equity line of credit will be good for your lifestyle. Learn more about what to look for.
Home equity line of credit loans

Home Equity Loan or Home Equity Line of Credit
When choosing between a second mortgage and a home equity line of credit, learn the differences between the loans before you make your decision.
Home equity loan vs. line of credit

When to Refinance Your Home Equity Line of Credit
If you have a variable interest rate on your home equity line of credit, you might consider refinancing. Find out the details on how to refinance and when to do it.
Refinancing a home equity line

News : Has the credit crunch hit your home equity line?

2008-07-02T14:59:00.001-07:00

Lenders are shrinking these lines of credit, making it harder for Americans to finance major expenses.

By Kathleen Connell

from the June 16, 2008 edition

For many high school seniors, spring graduation marks the start of the transition to college. It is also the time when parents finalize their college-financing plans. Unfortunately, those preparing to write large checks this fall to cover college expenses are faced with an increasingly limited college-loan market. In particular, many must deal with an unexpected tightening of a popular source of college financing: the Home Equity Lines of Credit (HELOC)....

read all from csmonitor.com

Mortgage | HELOC.. : News from bankrate.com

2008-07-02T14:58:00.001-07:00

Taxes on home equity

You can deduct the interest on up to $100,000 of home equity debt that is used for any purpose.

Interest Rate Roundup

See rates from our national survey of mortgages, home equity loans, auto loans, credit cards and CDs.

Interactive: State, national home equity rates

Whether it's a fresh coat of paint or a total home renovation, sooner or later it comes down to paying for it.

5 bad equity-borrowing moves

Tapping your home equity is not always a wise money move. In some cases it's always a bad move.

More home equity news from bankrate.com »

Article : Bad Credit Home Equity Line of Credit - 3 Benefits of an Equity Line of Credit

2008-04-02T09:35:00.001-07:00

By Carrie Reeder

Acquiring a home equity line of credit with poor credit has several benefits. Moreover, because lines of credit are secured, getting approved is simple and fast. There are many options available to homeowners hoping to get their hands on extra cash. While refinancing is a top choice, creating a new mortgage entails additional costs and fees. Here are three reasons why a home equity line of credit is advantageous.

Ability to Consolidate High Interest Debts

Consolidating debts and having one low monthly payment is a huge perk of home equity lines of credit. If you have a low credit rating or excessive debts, your credit card interest rate is probably 18% or more. Furthermore, creditors have the power to gradually increase rates.

Home equity lines of credit have low, fixed rates. While a homeowner may not become completely debt free, a home equity line of credit enables them to payoff credit card balances. Because of a low rate, home equity lines of credit can be paid in full within a few short years.

Home Equity Line of Credit: Easy Access to Funds

Home equity lines of credit are similar to revolving credit accounts. Upon approval, the lending institution will establish a line of credit up to your approval amount. To access funds, homeowners are provided checkbooks or ATM cards. Whenever you need to borrow money, simply write yourself a check or visit the nearest automatic teller machine and withdraw funds.

Lines of credit allow homeowners to borrow what they need. If paying off debts, make payments using your equity line of credit checkbook. After creditors receive and deposit payments, the funds are deducted from your available credit. Likewise, you may withdraw money for home improvements, college tuition, car repairs, and so forth. Although lines of credit are useful, and may improve your financial standing, avoid borrowing too much money. Failure to repay a home equity line of credit puts a property owner in jeopardy of losing their home

Deduct Interest Paid on a Home Equity Line of Credit

Homeowners who obtain a home equity line of credit have a huge tax advantage. The interests paid on home equity lines of credit are 100% deductible. To qualify, the funds must be allocated towards making home improvements, debt consolidation, college tuition, and other large expenses.

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source : http://ezinearticles.com/?Bad-Credit-Home-Equity-Line-of-Credit---
3-Benefits-of-an-Equity-Line-of-Credit&id=137576

Article : Refinance Home Equity Line Of Credit - Options For Paying Off A Line Of Credit

2008-04-02T09:34:00.002-07:00

Submitted By: Carrie Reeder

Refinancing a home equity line of credit can save you from rising interest rates. They can also help you develop a payment schedule that fits your budget needs. And if you consolidate your home equity loan with your first mortgage, you can save even more on rates.

Options For Paying Off Your Line Of Credit

A home equity line of credit with its open terms and rates, makes it an ideal candidate to refinance. The easiest option for refinancing is to roll over the loan to a second mortgage. You can choose fixed or adjustable rates and terms. Closing costs will also be minimal. The other choice is to combine your home loans into one mortgage. This will qualify you for lower rates than if you just apply for a second mortgage. However, if you already have a low rate mortgage, you could lose out on closing costs and interest charges. If you are thinking about doing a total mortgage refi, it’s best to compare numbers on your financing options. Factor in how long you have left on your original loan, future interest charges, and possible savings.

Be Choosing With Your Lender

Your current lender will automatically strive for your business, but take the time to look at other offers. The best way to make comparisons is to ask for loan quotes. These loan estimates should be based on preliminary information supplied by you. Don’t allow lenders to access credit report; unless you want to see your score go down. With loan quote numbers, look at the fine print. Compare the APR for overall loan costs, but also look at the closing costs and rates separately. If you don’t plan on keeping your home or loan for more than seven years, you don’t want to pay a lot at closing, even for a small reduction in rates. You won’t recoup the cost in such a short time.

Don’t Delay Refinancing

Once you find a favorable loan offer, start the application process to secure the rate quoted. With online applications, your loan can be processed in less than two weeks with paperwork complete through the mail.

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source : http://www.isnare.com/?aid=36144&ca=Finances

Article : Home Equity Line of Credit vs Loan

2008-04-02T09:34:00.001-07:00

By Joseph V. Formale

When deciding between a Home Equity Loan against a Home Equity Line of Credit, first we need to determine what the money is being used for and how much money are we going to need. Generally, a HELOC (Home Equity Line of Credit) is a better choice for ongoing cash needs, such as college tuition payments or medical bills. These are recurring debts. When you need a set amount of money for a specific, one-time purpose, such as buying a car or a major home renovation, then you want to consider a HEL (Home Equity Loan).

When you're a homeowner, you have the collateral necessary to borrow against the equity value of your house through either a HELOC or a HEL. Both are essentially a second mortgage. The difference is a HELOC is a form of revolving credit, similar to a credit card. It allows you to draw funds whenever you need money, capped at a predetermined limit. There is generally a minimum payment due each month, with the option to pay off as much of the line as you want. With a HEL, you receive a onetime lump sum of money and have a fixed monthly payment that you pay off over a specific time period. In each case, factors such as your income, your debts, the value of your home, how much you still owe on your first or second mortgage, and your credit history will all be taken into consideration to determine the amount you can borrow.

The appeal of both of these types of loans is in their interest rates. They are almost always lower than those of credit cards or conventional bank loans, because they are secured against the equity value in your home. In addition, the interest you pay on a home equity loan or line of credit, is often tax deductible (consult a tax advisor about your particular situation). Unfortunately, both HELOCs and HELs usually carry a higher interest rate than that of a first mortgage. With a HEL, you may choose either an adjustable rate that fluctuates according to variations in the prime rate, or you may choose a fixed rate. A fixed rate enables you to budget a set monthly payment without worrying about increasing costs should interest rates rise.

With a HEL, there are also closing costs that you need to take into account. This refers to the money paid at closing to the lender. It may include one or more of the following fees: a loan origination fee, points, appraisal fee, title search and insurance, survey, taxes, deed recording fee, credit report charge and other costs assessed at settlement.

A HELOC will usually carry a lower initial interest rate than a HEL, but its rate fluctuates according to the prime rate, so there is always more of an interest rate risk. Unlike a HEL, where your monthly payment is a set amount, a HELOC enables you to borrow funds as needed and repay as little as interest only each month. Also unlike the HEL, there are generally no closing costs when you open a HELOC.

One important fact to keep in mind is your home is the collateral for both a HELOC and a HEL. If a HELOC's easy access to cash tempts you to run up more debt than you can repay, or if you fail to make your monthly payments on you HEL, you risk losing your house.

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source : http://ezinearticles.com/?Home-Equity-Line-of-Credit-vs-Loan&id=906569

Article : Home equity lines of credit yanked

2008-03-02T13:50:00.001-08:00

Last Updated: Wednesday, Feb 20 2008 12:04 PM

About two weeks ago, real estate agent Lynette Madden was on the phone with a client who had just received a disturbing letter in the mail.

Countrywide Home Loans was suspending his home equity line of credit, the letter read, because the company believed the value of his property had significantly declined from the date when the loan was made. ...read all...

Article : Shelter from the Storm

2008-03-02T13:49:00.000-08:00

By Maggie Gilmour Fri Feb 15, 8:08 AM ET

The numbers are grim, even if they seem familiar by now. In 2007, lenders filed foreclosure notices on 90,782 homes in Illinois, up 25.3% from a year earlier. That tally puts the state among the top 10 nationally in foreclosures, says RealtyTrac, an online real-estate database. The figures are likely to go even higher in 2008. Subprime mortgages with adjustable rates -- given to home buyers with less than pristine credit -- will become more costly in 2008 as teaser rates expire. The Center for Responsible Lending predicts that in the next two to three years, 25,000 people in the Cook County area will lose their homes...read all...

Home Equity Line of Credit | News

2008-03-02T13:48:00.000-08:00

S&P: Mortgage bond credit worsens
Wed, Feb 27 2008, 19:59 GMT

Omega Executes Investment Agreement for $20,000,000 "Equity Line of Credit" With Investment Banker
updated 9:36 a.m. ET Feb. 25, 2008

JPMorgan Chase details loan standards
February 27, 2008 5:09 PM ET

Link to a forum : Home Equity Loan or Home Equity Line of Credit??

2008-02-11T11:44:00.003-08:00

Tue, Apr 17, 07 (6 posts)
First post of this forum :

"We are doing some major renovations in our home. We just don't know whether to apply for a home equity loan or a HELOC. The interest rates are different (HELOC is prime+.5), home equity loan is fixed. Is it better to take out the home equity loan with fixed rate and start paying on whole amount? Or apply for the HELOC, make payments on what we use but pay the higher interest rate? Also, is there a home equity loan where you just pay the interest?

I might add that this loan is to pay for renovations to our new home. When we sell our old home, the loan will be paid off. Any help in deciding which is the best loan to apply for will be greatly appreciated. It is so confusing !!"

see this forum at : http://ths.gardenweb.com/forums/load/finance/msg041507205839.html?9

Link to a forum : Home equity line of credit or refinance

2008-02-11T11:44:00.001-08:00

Mon, Feb 4, 08 (5 posts)
First post of this forum :

"We are going to be undergoing a major remodel costs of which will hover between $150-160. We are six years into a 15 year loan and have paid off all but $150. Which would be the best way to go given the way the economy is going?

We would like to pay off the loan within 5-6 years if all goes well with my husband's company. Usually he gets an end of the year bonus (last year it was his entire's year salary) but the forecast is grim for the next little while. Any advise would be appreciated."

see this forum at : http://ths.gardenweb.com/forums/load/finance/msg0220520825427.html?4

Home Equity Line of Credit | News & Articles

2008-02-11T11:25:00.001-08:00

Is Home Equity Debt Inherently Evil?By Hayli Morison | January 14th, 2008

Home equity rates are finally falling thanks to the Federal Reserve

By Carolyn Siegel
Interest.com Associate Editor

Home Equity Line Basics Submitted By: Carrie Reeder

All About Home Equity Line of Credit Loans Submitted By: Tim Paul

Refinancing Your Home Equity Line of Credit

Home Equity Loan vs. Home Equity Line of Credit

Link to a forum : Home equity line of credit rate?

2008-01-06T05:53:00.000-08:00

08-15-2007

First comment from this forum :

" I am checking out rates for HELOC and citibank is giving a rate of prime-0.54%. Is this a good rate? I see some ads for prime-0.99% online but don't want to go everywhere and have them run my credit report (thats how they start)....Any advise on this one? I have currently some CDs at about 5% that mature in next few months. Do you think it is a good idea to borrow from HELOC and then pay it back when CD matures? I can just delay the expenses, if needed, so trying to figure out if it really make sense to have this line of credit. Please advise.
Thanks. Bill"

see this forum at : http://socialize.morningstar.com/NewSocialize/forums/thread/204845.aspx

Article : What Exactly is a Homeowner's Loan?

2008-01-06T03:58:00.000-08:00

By Ezilon.com Articles
Nov 12, 2005, 20:15

What Exactly is a Homeowner's Loan?

The term "homeowner's loan" has created a lot of buzz in the past few years, mainly because it is not a formal tag for any kind of loan. Rather, it is a general label for many types of credit extended to a homeowner whenever he or she would use his or her own house as collateral to secure the grant of a loan. There are quite a number of homeowner loans that you could avail of, so it is not correct to say that you simply want to apply for a homeowner's loan. Determining which type of homeowner's loan is most suitable for you is the first step that should be taken with this general kind of loan agreement.

Home Mortgage Loans

The most popular kind of homeowner's loan is a mortgage loan. This isn't really a homeowner's loan, technically speaking, as your full ownership of the house would be suspended until such time that you fully pay off the mortgage. You only have inchoate rights to the housed pending full satisfaction of the mortgage loan. However, because of common usage, mortgage loans have been included under the general umbrella of homeowner's loan.

A mortgage loan is a great alternative to renting. The latter does not bestow any equity over the house. At the end of the lease agreement, the rent you have paid would be for naught, whereas with a mortgage loan, you would be able to use the house under a mortgage loan even during the period when you are striving to pay off the same.

The way it goes is that you would have to pay the down payment for the house you are considering. Make sure that you pay at least 20% of the total amount. This would assure lower taxes and levies for you. The balance would then be paid by the creditor. You would have to pay the creditor what is due to him in stated installments, plus stipulated interests. As security, the creditor would get to keep the deed to the house. This deed would be passed on to you upon full satisfaction of the mortgage loan.

And as we've mentioned earlier, you would get to use the house even during the pendency of the mortgage. This is indeed a better alternative to renting as you would get to gradually acquire equities to the house you have decided to buy through such a route.

Home Equity Line Of Credit

And speaking of equities, we have another kind of homeowner�s loan based on the same. It is called a home equity line of credit. Basically, a home equity line of credit is a credit line that uses your equity to a house as collateral. Equity simply refers to the rights to the house which you own. A house under a mortgage loan, for example, which you have paid 80% of would give you 80% equity over the same home. This 80% equity would be used as security for a home equity line of credit.

As is commonly practiced, once you have attained substantial equity over a house under a mortgage loan agreement, you could apply for a home equity line of credit to pay off the mortgage. This would extend the maturity date of the original loan as it would be replaced with the new one, and if the new loan imposes a lower interest rate, it would be a better alternative for you to pursue.

Basic Homeowner's Loan

There is, of course, the basic kind of homeowner's loan, that is, a loan that is granted with your house as collateral. This presupposes the fact that you are the full owner of the house. It should be under your name. Whatever purpose you�re planning for the loan, be it to pay for some existing obligations, or to establish a startup business, you would be able to avail of some credit by using your house as collateral.

It goes without saying that with any kind of homeowner's loan you want to avail of, you would need a good credit score to position yourself for favorable benefits like lower interests rates and other applicable fees. Also, you should be fully committed to comply with the terms of the loan. Loans are always a double-edged sword. They can be used to make life easier or harder for you. It all depends on how you use them.

source : http://www.ezilon.com/information/article_13636.shtml

Link to a forum : Pay off Home Equity Line of Credit?

2007-12-20T11:22:00.000-08:00

First comment from this forum :

02-24-2003(5 posts)

"My wife and I have a home equity line of credit with a $23k balance. Rate is variable at 1.75 over prime and the monthly payment goes to *interest only*. We have the opporunity to pay most of it off (17k) with $ from a money market account (annual return of 1.5%). Investing in the stock market is not an option for us right now, and it is important for us to remain liquid just in case one of us loses our jobs in the next few years (an unfortunate reality in our neck of the woods).

My theory is that if we put the 17k towards the line of credit, we'll save ourselves about $80/month in interest payments, or about $960/year, which is more than we would see in return from the money market (and also more than the tax benefit if we were to leave the balance on the LOC). The way I see it is that if we hit financial hardship, we can always borrow from the line of credit just as easily as from the money market.

And lastly, we still have our first mortgage of 124k with 29.5 years left to pay, so we still have plenty of interest to write off in order for us to itemize!

Can anyone advise on the pros and cons of the above? Am I missing something?"

see this forum at : http://forums.kiplinger.com/showthread.php?t=1193

Article : Truth About Home Equity Loans

2007-12-13T16:25:00.000-08:00

If you are a home owner and you need money, you can consider home equity loans as a means of raising money. Your home will serve as collateral and you can use the funds you have invested in buying or improving your home, as equity.

Your home serves as the security against which home equity loans are given, but remember that it may have to be sold to pay off the debt, if you are not able to keep up with the monthly payments. If you need a large amount of money for medical expenses, college tuition for your kids, debt consolidation, home repairs or other necessary requirements, you can consider home equity loans.

You can opt for fixed rate mortgages or adjustable rate mortgages. These home loans are available either as a lump sum or as a revolving line of credit. One of the benefits of home equity loans is that the interest you pay is usually tax-deductible. The Federal Trade Commission (FTC) advises that your home may be your single most valuable asset and those who agree to take home loans based on the equity they have in their homes, may be putting their most important asset at risk.

Homeowners must be careful while taking home equity loans, because certain exploitative borrowers indulge in abusive practices like equity stripping, loan flipping, hiding loan terms and adding extra charges. The elderly, minorities and those with low incomes or poor credit, are most at risk and these exploitative lenders tend to target them. Lenders who indulge in equity stripping help home owners with a low income to take home equity loans that they may not be able to afford. Home owners who are unable to keep up with the monthly payments usually end up losing their homes.

Home owners who have fallen behind in their mortgage payments and are facing foreclosure may be approached by another lender. The lender will offer to save them from foreclosure by refinancing their mortgages and also offer lower monthly payments. Actually the monthly payments may be lower only because the borrower will only be paying interest every month, while the principal amount remains unchanged. The entire amount borrowed will be payable at the end of the loan term, in one lump sum, called a balloon payment. Borrowers, who cannot make the balloon payment or refinance the loan, may lose their homes.

Loan flipping involves refinancing existing mortgages to raise money. Home owners who do this to raise money may have to pay high points and fees, apart from prepayment penalties. Borrowers who refinance their home loans may have to pay a higher interest rate and accept a longer loan term. With each refinancing they may take on more debt and increase the risk of foreclosure. Unscrupulous lenders may try to trick borrowers into signing papers for credit insurance that they don’t need, or ask them to pay additional fees and costs. Others may ask borrowers to sign over their deeds, in return for saving them from foreclosure.

Never sign any document without reading it carefully or sign a document that has blank spaces meant to be filled in later. Never consider home equity loans, if your income is insufficient to meet the monthly payments. Don’t get lured by extra cash or lower monthly payments. Use your discretion to determine whether the loan you are considering is worth the money you will have to pay for it. Before signing up for home equity loans or signing away their deeds, home owners must consult trusted and knowledgeable family members and/or attorneys.

source : http://www.myloanexpert.com/news/truth-about-home-equity-loans.html

Article : Making the Most Out of Your Home Equity Line of Credit

2007-12-03T05:23:00.000-08:00

By Ezilon.com Articles
Nov 12, 2005, 20:06

Making the Most Out of Your Home Equity Line of Credit

Not all of us are full owners of our dwelling places. With the high cost of living these days coupled with the rising financial demands necessitated by our existence in this day and age, people have deemed it more appropriate and practical to pay for a house in installments. Some even resort to home mortgage loans to borrow the payment for the house, in which case, the creditor would get to keep to the deed to the said house as security while the mortgagee would pay for what he has borrowed in accordance with a similar installment plan he has arranged with the mortgagor.

Under these arrangements, what option is available for the house �owner� if he has to acquire another loan and he has no other property to use as collateral? Is he at a dead end? Should he just wait until full ownership of the house is transferred under his name before he could pursue other credit options?

Not necessarily. There�s always what many people call as home equity line of credit.

What Is Equity?

Before we could discuss what a home equity line of credit is, a thorough knowledge of the term �equity� is needed. Equity is quite simply the rights you have over a property that has gradually accumulated and accrued to you.

For example, the house you�ve been paying for every month, the arrangement of which calls for full payment to be completed in equal installments for 100 months. Supposing you have spent 50 months in paying for the house, this would mean that you already have a 50% equity on the same. Though you cannot alienate this equity ever so freely, there are some instances that are allowable by law where you could use it for some beneficial ends. A home equity line of credit is one of them.

What Is A Home Equity Line Of Credit?

A home equity line of credit is an open-ended credit line. It�s like an account from which you could borrow some loans from time to time. You would have to pay for whatever you would borrow, of course, with corresponding interests of course, but having a dedicated credit line would make those financially trying times easier to bear.

A home equity line of credit, by its very name, uses whatever equity you have over a house that have accumulated throughout the years as security for whatever amount you would have to borrow.

It is important to note that most home equity lines of credit are second loans. They are applied for during the subsistence of a home mortgage loan. Most people who avail of home equity lines of credit actually use the same to pay off the home mortgage loan, because the former is more beneficial in quite a number of regards which we will discuss in the next paragraph.

What Are The Benefits Of A Home Equity Line Of Credit?

A home equity line of credit is preferred by most people considering that it is less onerous for their running budget. Let�s take a look at two essential advantages that separate a home equity line of credit from other financial options available in the market.

1. A home equity line of credit imposes one of the lowest interest loans that can be found anywhere; and

2. The interests demanded by a home equity line of credit are usually tax-deductible in most states.

These outstanding benefits make a home equity line of credit a more lucrative and practical option. As we have discussed above, you could simply pay of the home mortgage loan with this kind of credit, and you will have to pay what you have borrowed with substantially lower interest rates. Doing the math, it would immediately become apparent that you will be able to save more for your other financial obligations if you engage yourself with a home equity line of credit.

source : http://www.ezilon.com/information/article_13630.shtml

Link to a forum : Can equity line of credit be denied?

2007-12-03T05:19:00.000-08:00

First comment from this forum :

"I have a home equity line of credit that I can use for ten years. Are there typically any provisions in these agreements that would allow the lender to deny lending on the unused credit before the ten year period ends?"

see this forum at : http://forums.kiplinger.com/showthread.php?t=10219

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2007-11-25T09:50:00.000-08:00

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source : http://www.zirve100.net/incele.php

Article : 5 Ways to Use Your Home Equity Line of Credit

2007-11-17T07:33:00.000-08:00

For most of us our home is our most valuable asset. When a large financial need arises, you can make this asset work for you by securing a home equity loan or line of credit. There are several benefits of a home equity line of credit. For example, this type of loan gives you access to a lump sum of cash for big ticket expenses like home renovations, the purchase of a car or college education. In many cases, the interest is tax deductible.

Home equity loans and lines of credit offer you the flexibility you need to meet a variety of financial needs. If you have an ongoing project or are not entirely sure how much your project will require, you might apply for a home equity line of credit. You can access loan funds via check or a special debit card as the need arises. If the project expenses are more fixed you may choose a home equity loan, which makes available a one time lump sum that can be used for any of a number of expenses. Following are some of the most popular uses for your home equity loan.

* Bill consolidation - credit card spending is on the rise. In fact, in recent years spending has outpaced saving and the average American carries nearly $10,000 in credit card debt. Using a home equity loan to bring your credit cards to a zero balance can save you thousands of dollars, especially when you consider how much interest you might accrue paying only the minimum on high balances each month. If you choose a home equity loan to pay off your credit cards be very careful to then use cash for most or all of your expenses. If not, you might find yourself with the burden of paying new credit card debts in addition to loan payments. Don't forget a home equity loan is secured by your home. If you fail to repay the loan as agreed you run the risk of foreclosure.

* Education - Most parents want to help their children meet educational expenses, but let's face it, with so many other expenses it can be tough. A home equity loan or line of credit gives you access to the money you need to help your with tuition and other educational expenses.

* Renovation or remodeling projects - Your home is probably your greatest investment. A home equity loan or line of credit can help you protect and build on your home's value by completing renovations. Your loan can also make it possible to add that second bathroom or home theatre you have been dreaming of, or even that gourmet kitchen.

* Travel - The vacation of a lifetime awaits. Perhaps you have always dreamed of traveling to Africa or China. Your home can be your ticket. Home equity loans can be used for just about anything you can imagine and the trip you have always dreamed of may be the perfect way to celebrate a 50th birthday or silver anniversary.

* Buy a new car - Using a home equity loan can actually save you money when buying a car. A home equity loan can make it possible for you to approach the dealer with the full amount of the sticker price in hand giving you more power to negotiate and retain incentives. You may also save significantly off of dealer financing interest rates.

Home equity lines of credit make it financially possible to do more of the things that are important to you. These loans can be an important part of building a strong financial foundation for you and your family. But you must proceed with caution. Home equity loans are secured by your home. If you fail to honor the terms of the loan agreement, the lender may exercise the legal option of repossessing your property to cure the default. You could lose your home in as little as 5 weeks in some states. It is important to have a repayment plan you are comfortable with and to understand the laws in your state before you agree to the loan terms. A home equity loan should help you improve your financial picture, not risk homelessness.

source :http://finance.families.com/5-ways-to-use-your-home-equity-line-of-credit

Article : Basics Of Home Buying

2007-11-10T12:20:00.000-08:00

By: Pro Content

The most important investment you will ever make is probably the purchase of a home. Finding the right home for you can be a long and arduous process, but there is no getting around that.

Know Your Wants And Needs

Before embarking on your journey of house hunting, you must know what you really want to find. Sit down with pen and paper and list all the features you care most about, such as:

- Location (in a particular city, school district or neighborhood)

- Size -- how many bedrooms and bathrooms

- Parking -- a 1-car garage or 2?

- Style -- 2-story house or ranch style home?

- Heating -- central heating and/or air conditioning?

Equally important, on a new sheet of paper list all the features you absolutely do not want in a house. For example:

- high-traffic area.

- high noise area (airport, train station or highway in close proximity)

- maintenance -- major repairs needed

As you look at houses, keep both lists in mind. Your lists may change over time as you do more looking. You'll want to add or remove features, or perhaps you'll become willing to make compromises. Realize that you most likely will not find the "perfect" home. Experienced homebuyers will tell you, perfect homes are not found, they are made perfect through hard work.

Get Your Credit Report In Order

Prior to looking at properties, you must get your finances in order. This is the time to review your credit report and clean it up, if need be, to maximize your credit score. Many people do not realize how important it is to check your credit report periodically to make sure it is accurate. You should pay off any past due amounts, or negotiate a settlement price to close the debt. Get such agreements in writing, before paying any settlement. Keep all receipts for any settled items from your credit report since it may take months to get the debt actually removed.

Research Your Home-Buying Options

Decide what kind of property you are interested in. Do you want a HUD property, a foreclosure, real estate, or property for sale by owner?

A number of web sites list homes according to city, state, or price range. Visit these sites to see pictures of homes, many with virtual tours, and review the listing features.

Get Pre-Approved For A Loan

You're ready now to find a lender and get yourself pre-approved for the loan. Being pre-approved offers a number of advantages. It will clarify the price range you can afford. Also, once you find the home you want, you can place an immediate offer. If you have to wait for pre-approval, someone could buy the house right out from under you.

Several special programs are often available from lenders, such as the FHA or Ameri-Dream, that can save you money in the closing. Ask the lender about any special programs before you decide on a loan.

Find A Good Real Estate Agent

It is wise for the first time homebuyer to work closely with a real estate agent, no matter what type of property you're looking for. A knowledgeable real estate agent will make your house-hunting much easier. A good real estate agent is usually a good negotiator, and will be able to help you with the complicated paperwork involved in placing an offer on a house or in closing a deal.

It's essential that you have a real estate agent working for you as the buyer, rather than relying on the seller's agent for the house you want to buy. The latter can involve a conflict of interest, which usually works to your disadvantage.

To select a real estate agent, you should check with your friends and neighbors for recommendations. Find an agent you feel comfortable with and who is knowledgeable about the area you hope to buy in.

These are just the basics of home buying. You will find many details you need to master as you move through the buying process, but having these basics under your belt will give you a head start.

source : http://www.articleboy.com/Article/Basics-Of-Home-Buying/261

Link to a forum : Home Equity Lines of Credit Ideas Sought

2007-11-06T10:55:00.000-08:00

First comment from this forum :

"I'm interested in hearing ideas about how (financially responsible) people use their HELOCs to save or make money. One idea I've used is to significantly raise deductibles for car and homeowners insurance with the knowledge that I have low-interest cash readily available if needed. I figure I've saved about $1,000 in premiums in 2 years and haven't tapped the HELOC yet. Do others have creative ideas to share on how HELOCs can be put to use?"

see this forum at : http://forums.kiplinger.com/showthread.php?t=2035

Link to a forum : Question Pay off Home Equity Line of Credit?

2007-11-06T10:53:00.001-08:00

First comment from this forum :

see this forum at : http://forums.kiplinger.com/showthread.php?t=1193

Article 06/08/2007 : Home equity line of credit, defined

2007-11-01T12:59:00.000-07:00

A "home equity loan line of credit" is a refinance mortgage you get on your home to take an amount of equity (or 'cash') that's in your home, out of your home. Then, that amount of equity is converted into a line of credit for you to draw cash from as you please.

Just like with credit cards, you are only charged interest on the amount you've actually used from your home equity credit line, and not on the total amount. That's the difference between a regular home equity loan, and a 'line of credit home equity loan:' with a regular home equity loan that is not a line of credit, you would be charged interest on the full amount of the loan right from when you first obtained that loan.

But with a 'line of credit' home equity loan, you're only charged interest on the amount you actually use out of the line of credit: making it cheaper than a regular home equity loan, and far cheaper than a credit card.

For example, with a 'regular home equity loan' of $10,000 - you would be charged interest on that full amount right away: so at a rate of 6%, you would start paying $63/month for that home equity loan. But, with a 'line of credit' home equity loan that is also $10,000 - if you only used $1,000 of that amount, you would only make payments of $6/month (yes, 'six dollars') and you wouldn't be charged any interest on the remaining $9,000 unless you used it.

source : http://www.themortgagestoreonline.com/articles/home.php?include=133139