Home Equity Loans: A Useful Financial Tool

The investment need of an individual varies with time. Thus the need to buy a car or invest in a new house, which may have seemed "beyond means" a few years ago, may be a relevant and wise decision today. However, taking a consumer loan at existing rates may add to the existing debt burden of the individual. This is where home equity loans can be of help.

A home equity loan can be a very useful financial tool in the hands of the borrower, particularly if the avenue where the borrower would invest the loan amount would otherwise have to be financed at higher lending rates.

Thus the borrower can get access to cheaper loans, which can be used to finance secondary requirements like buying a car or modifying/renovating his/her existing home, repaying existing debt, medical costs, etc.

Home equity loans have other advantages too:

Tax deductions: The interest payable on the secured equity loan is deductible up to a maximum of $100,000 or the equity value in your home, whichever is less. Thus besides access to lower rates of interest, the equity loan also gives the borrower tax benefits.

Lower interest rates: As discussed earlier, a home equity loan can give access to loans at a lower rate than other means of debt like credit card debt or consumer loans. This can amount to a considerable savings on interest payments. Hence these loans can be used to retire old high-cost debt and help in the consolidation of debt.

Ease of qualification: As compared to other loans, it is easier to qualify for a home equity loan. This is because the loan is disbursed against the equity of your existing home. This results in a faster and relatively hassle-free disbursement of loans.

Flexibility of payment: The borrower can use the loan as and when required and may also be able to decide when the principal repayment should be done. This proves to a useful tool in the case of money management, particularly in the case of emergencies.

Home equity loans, if used wisely, can improve the financial standing of an individual as they provide easy and relatively cheap access to money.

Home Equity Loans - Rates, in depth articles and professional second mortgage advice. Find the lowest home equity loans rates and lenders.

---

Mortgage Free In 15 Years!

Imagine paying your mortgage off in 15 years! Think of... Read More

Buying a Home After a Foreclosure

Buying a home after a foreclosure is not an impossible... Read More

Bridging Finance Basics

Bridging finance is a short-term loan that is used as... Read More

Securing a Cheap Home Improvement Loan

Finding a cheap home improvement loan can be a challenge... Read More

Housing Bill - Changes in the Right To Buy Scheme

Presently council tenants are able to purchase their rented property... Read More

Option ARM ? The World?s Most Dangerous Mortgage

Home prices have reached record levels, and in many parts... Read More

A Home Equity Loan - What You Should Know?

Asking yourself, "Is a home equity loan right for me?"... Read More

Zero Down Mortgage Loans - Is 100% Financing a Good Idea and Can You Get Approved?

Are you wondering if you can get approved for a... Read More

Top 10 Things to Consider on Home Loans

Here are our Top 10 most important things to consider... Read More

Home Loans For People With Bad Credit - When you Should Wait and When You Should Get a Home Loan

Home loans may seem like a bad idea for people... Read More

Consolidate Debt With A Home Equity Loan

If you are a home owner who is having to... Read More

Refinancing and Car Finance - Is it worth it?

Refinancing and Car Finance - Is it Worth It?No doubt... Read More

The Best Way To Get The Right Mortgage

Are you thinking of buying a home? If so, then... Read More

Securing a US Commercial Mortgage

What's the most efficient way to secure a US Commercial... Read More

Homeowner Loans ? Drawing Lessons of the Past

Loans are not of a recent origin. People used to... Read More

Selling Your Business Note

Before I go further, let me ask a question- if... Read More

Making Sense of Mortgage Speak

Applying for a home loan can be overwhelming. You will... Read More

A Mortgage and Bank Trick You Should Avoid at All Costs

Once you've purchased your home, you will begin to get... Read More

Home Mortgage Lenders - How to Find A Good Mortgage Broker Online

Mortgage lenders have set up shop online, but they aren't... Read More

Mortgage After Bankruptcy

Most people probably assume that obtaining a mortgage to purchase... Read More

Home Construction Loans

You can maximize your savings by shopping for a lender... Read More

Stock Market, Bonds, Deposit Account, Cash, Equities, Unit Trusts - Few, Just Few of the Ways of Sav

Man has been known for continually simplifying things in his... Read More

Bad Credit Mortgage Loans ? How To Get Approved

Persistence is the key working toward getting approved for a... Read More

The Power of a Home Equity Loan to Pay Down Debt

Households across the country are finding themselves in a similar... Read More

Home Loan Applications Made Easy

You have finally found the home of your dreams. You... Read More

Refinancing Your Mortgage Can Open Up A Lot Of Options For You And Your Family

It can happen to anyone, the roof is leaking, the... Read More

Getting the Best Homeowner Loan for Your Money

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

Home Loans and Mortgages ? The Myth of Tax Deductible Interest

Home ownership has risen sharply in recent years, and the... Read More

Total Cost Of Credit vs Monthly Payments

I read a press release the other day which points... Read More

Mortgage Information

A mortgage is borrowing money using property as a security,... Read More

Home Equity Loans

A home equity loan allows you to cash-in on the... Read More

Mortgage-Refinance Treachery: Avoid Mortgage Bankers and Brokers Biggest Trick -- The Sales Pitch

What the average homeowner or home buyer fails to realize... Read More

Save Money on Your Mortgage

You should say goodbye to PMI. You may not notice... Read More