Home Equity Loan Information - What Is A Home Equity Line Of Credit?

Did you know that if you have a home that you've been paying on for years, you may have a lot of usable money right under your nose? What's more, a home equity loan just may be the perfect way to get your hands on that money!

Here's how it works. Let's imagine that your home mortgage is for $250,000, but after years of paying on that note, you only owe the mortgage company $100,000. In this instance, you would have $150,000 in equity in your home. A home equity loan is a specific type of loan that will allow you to borrow against that equity.

Why would you want to do this? The number one reason that people take out home equity loans is as a means to consolidate their debt. Because a home equity loan is a secured loan, the interest rates are considerably lower than that of credit credits or personal loans. And so if a person had $10,000 in credit card debt, they could reduce the total amount of owed-as well as their monthly payments-by taking out a home equity loan and using the cash to pay off their credit card debt.

Another great reason for taking out a home equity loan is to make improvements on your home. Have you been thinking about adding a swimming pool to your backyard? A greenhouse to your yard? A new bedroom or bathroom addition? A home equity loan is a great way to finance those types of projects.

Your first step should be to talk to your current mortgage company about your options, but don't stop there. You will quickly find that there are plenty of companies who are willing to lend you money against your house, and so you should shop around for the best deal.

And that brings us to our final point. A home equity loan is secured by your home. What that means is that if you don't make the payments on time, the lender will have the right to take your home and sell it in order to collect on the debt. Make sure that you are in a position to pay back any amount you borrow against your home!

To view our recommended sources for home equity loans, visit: Recommended Home Equity Lenders Online.

Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and the latest news about various types of loans.

---

Second Mortgage Loans

A second mortgage is a loan that is secured by... Read More

Risk It With A Bridging Loan?

How many times have you been casually going about your... Read More

8 Point Checklist: Evaluating Online Vendors

Here are 8 things to consider, when evaluating lenders online:Website... Read More

Making Cars Accessible Through Secured Car Loans

Enervated by the hectic schedule at the work place, traveling... Read More

All About Secured Loans

A secured loan is a loan agreement in which the... Read More

Become A Smarter Borrower

With a nation that has in the region of a... Read More

What is a Homeowner Loan?

A Homeowner Loan is a way of using the equity... Read More

Payday Loans ? The Legal Loan Sharking Industry

Laws have been created to protect people against "Loan Shark"... Read More

What is a Car Loan?

A car loan is a type of credit offered by... Read More

Financial Aid for College Students - Grants

The bad news about attending college is that it costs... Read More

What are Secured Loans?

Secured loans are one of the most popular personal loans... Read More

A Guide to Finding Home Owner Loans

If you're in the process of trying to find home... Read More

A Little Lesson on Loans

The opportunity to spend money is everywhere. There is no... Read More

Securing Debt Consolidation Secured Loans

If you're like most people, then you've got debt in... Read More

Loans for Doctors ? Financial Funding for Healthcare Professionals

The revolution that has affected everyone's financing technique is online... Read More

Useful Information About Homeowner Loans UK

Homeowner loans UK are a very versatile type of personal... Read More

A Heavenly Wedding - Courtesy Wedding Loans

You always dreamt of walking down the aisle in style.... Read More

Refinance Your Car Loan - 3 Tips For Refinancing Your Auto Loan Online

Refinancing your car loan is an ideal way to lower... Read More

Finding the Right Online Loan for You

If you're looking for an online loan, you might be... Read More

Giving Finances a Breather Through Loans for Unemployed

Martin graduated of the college with dreams of a highflying... Read More

Payday Loan Qualifications - What to Expect

Payday loan qualifications are different from other types of short-term... Read More

5% Down Vs. 10% Down - A Comparison

It has always been an issue for home buyers to... Read More

To Be Mr. and Mrs. Sometimes You Need Wedding Loans

The conception of wedding has changed over the years. Its... Read More

Government Loans for Beginners

Government loans are those that the government of a country... Read More

Benefits of an Unsecured Loan

Listed below are some of the benefits of an unsecured... Read More

Payday Loans And Pawnshops: Comparing Two Popular Ways Of Getting Cash Quickly

I remember years ago growing up when you needed some... Read More

SBA Loan: Qualifying and Applying

According to federal government research, small businesses provide about 75%... Read More

No Credit Check Payday Cash Advance Loan - Benefits to Using a Payday Loan

No Credit Check Payday Cash Advance Loan - Benefits to... Read More

No Credit Car Loans - Even With No Credit History, You Can Still Get Approved

Even it you have no credit history, you can still... Read More

Finding the Loan UK that Meets Your Needs

For those in the market for a loan UK ,... Read More

Finding the Best Secured Loan for Your Money

If you're looking for a secured loan, there are several... Read More

Secured Loans - UK Overview

Borrowing money has become more and more popular in the... Read More

What is a Loan?

A loan is money that you borrow and agree to... Read More