Types of Home Equity Loans

There are at least two types of home equity loans.

The first is a term or closed end loan and the second is basically a line of credit. Most people prefer to refer to them as a second mortgage because they are secured against your home much like your first home loan or mortgage. Typically these types of home equity loans usually have a payback life of between 5 and 15 years.

The term loan is a one-time lump sum payment that is paid off over a set amount of time. There is a fixed interest rate which allows for the same loan repayment each month. After you get your money you cannot borrow further from the loan.

A home equity loan line of credit works more like a credit card. You are allowed to borrow up to a certain amount for the life of the loan. The time limit is usually set by the lender of the loan. During that time you can withdraw money as you require it to purchase items or pay for things that interest you. As you pay off the principal your credit revolves and you can use it again. This credit line gives you more flexibility than a term home equity loan.

Which ever of the two types of home equity loans that you should use depends on your unique situation. You can base your decision on some common questions such as how much money will you need, how long will you need the money for, how long will you need to pay the loan off and how much of a monthly payment can you afford.

Timothy Gorman is a successful webmaster and publisher of Military-Loans-Online.com. He provides more free financial information and types of home equity loans that you can research in your pajamas on his website.

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 - Offers discount auto, life and home insurance.

---

Home Equity Loan ? With a Reverse Mortgage, Your Home Pays You!

The home equity loan has become quite popular in the... Read More

Some of the Available Loan Types

There are many mortgage products available on the market today.... Read More

Guide to Remortgages

Here is a useful guide to remortgages. What is a... Read More

Mortgage Pre Approval - Getting Pre Approved For a Home Loan Online

A pre-approved mortgage is a must in a competitive housing... Read More

Home Loans For People With Poor Credit - Understanding The Requirements For a Subprime Mortgage

Home loans for people with poor credit demand that you... Read More

Mortgage Refinance - Tips to Help You Cut Fees and Costs

Saving money through a mortgage refi is more than just... Read More

5 Ways to Use Your Home Equity Line of Credit

Your home is a source of pride and accomplishment. Did... Read More

Carolina Mortgage Loans

You're selling your home and are looking to relocate to... Read More

A Guide to Getting Bad Credit Home Improvement Loans

You might be wanting to look into bad credit home... Read More

Refinance Your Home Mortgage Online

The largest financial obligation most people ever take on couldn't... Read More

Bad Credit Remortgage Loan: When Bad Credit Plays Mischief With Your Mortgage

Financial difficulties are married to bad credit. It is a... Read More

Home Loans for Credit Challenged Borrowers

Just because you have negative items on your credit report... Read More

Reverse Mortgages Learn The Facts First!

Reverse Mortgages, Most Common Features:Many offer special appeal to older... Read More

Home Loans and Mortgages ? Beware of Deed Theft Scam

The average home in the United States has a value... Read More

Home Loans ? Lenders Continue to Offer High-Risk Loans

Home prices in the Untied States continue to soar, and... Read More

How To Choose Your Mortgage Loan

Are you excited about purchasing your first home? Or maybe... Read More

Essence of Self Certified Mortgages

Your search for a mortgage isn't leading results.Check for any... Read More

A Guide to Quick Homeowner Loans

The search for quick homeowner loans can seem futile at... Read More

Avoiding Foreclosure

If you fall behind in your mortgage payments, you face... Read More

Mortgages - Which Loan is Right For You

When buying a home, you need to take a home... Read More

Getting the Best Homeowner Loan for Your Money

With so many lenders out there, it can be hard... Read More

Buying a House or a Home?

A house is just that, a house, until someone lives... Read More

Adjustable Rate Mortgages - Understand the Benefits Compared to a Fixed Rate Mortgage

Adjustable rate mortgages can be very tempting to home buyers,... Read More

Home Equity Loans Can Provide Cash in a Hurry

Think About the Long Term. Estimate how long you expect... Read More

Stop Foreclosure - 7 Tips to Save Your Home

Faced with the threat of a foreclosure on their home,... Read More

The Worst Way to Shop for a Home Mortgage

You've found a house that is perfect for you. It... Read More

Should You Get an Interest-only Home Mortgage?

Before you consider taking out an interest-only mortgage, you should... Read More

Home Mortgages: Think Before You Borrow

In today's overheated housing market, lenders are making it easier... Read More

Home Loans: To Substantiate Financial Possibilities On Your Land

Availability of Home loans is in full bloom. They are... Read More

Buying A Home With No Money Down or Bad Credit - PMI Can Make It Easier

Private mortgage insurance is an excellent method for homebuyers who... Read More

How To Save Hundreds A Month On Your Mortgage

When it comes to American spending habits, the sad truth... Read More

Reverse Mortgage Maximization

Have your home's appreciation grow twice as fast.For Seniors over... Read More

Low Home Mortgage Interest Rate - Finding the Best Mortgage Rate

Interest rates are at an all time low, making now... Read More