Mortgage and Refinancing Information Channel:
We would like to thank the local libraries, schools, and universities for recommending students to visit us when doing research on any of our information topics.
Home Equity Loans - Are They Right For You?
The bills are out of control and you need a new car. "Maybe we can get a new carpet and paint the house", you say to yourself. These are just a few reasons why home equity loans can seem like the solution to all your problems and are so popular.
Home equity loans can be a fantastic way to start your own business or to take advantage of an investment opportunity. They can also make your situation worse than it was before you got the home equity loan.
The reason's for taking advantage of home equity loans are the most important part of the process. Take the time to sit down and ask yourself, "Do I really need a home equity loan? Do I want to go on a spending spree or am I really trying to improve my life?"
A home equity loan is like having a second mortgage on your home. Suppose your home is worth $200,000 and you have a mortgage against it at $150,000, you will have $50,000 of equity available. Home equity loans allow you to borrow up to 80%, and sometimes more in certain situations, of your home value. In this situation you could borrow $80,000 as a home equity loan and still have only borrowed 80%.
This is why it is so important to take a good look at your situation before making a decision. You can see how easy it could be to get carried away with home equity loans.
Let's say you only need $20,000 for that new car and some home improvements. You decide to borrow another $15,000 of equity for that vacation to Hawaii you have been dreaming about. First of all, a vacation to Hawaii would not cost $15,000 unless you went on a first class, spare no expense vacation.
Using a home equity loan to buy a car may not be a great idea with today's 0% interest rates and no money down loans. There is no sense in risking losing your home to buy a new car with these type of loan programs that are available in todays market.
On the other hand, a home equity loan for home improvements may be a great idea. This will add value to your home as long as you can afford the higher loan payments.
A business that's doing great that you want to expand may be another good use of a home equity loan. As long as the business is already in profit and is not losing money.
Some solid investments can be a good idea if you have done your research before hand. The latest IPO may or may not be a great idea.
Consolidating high interest credit cards may be a great idea as long as you close the accounts and don't run them back up. You really only need one or two credit cards in case of an emergency.
Educational expenses may be a good reason to take a home equity loan to get your children started in the right direction. Someday this type of an investment can pay off.
These are just a few things you can do with home equity loans. It's very easy to borrow too much, only to find yourself having a tough time making the new payments.
The important thing to remember with home equity loans is to be logical and don't let your emotions get the best of you. Again, take the time to sit down and research all your options. This way you can rest well at night and not have to be concerned about losing your home. You can enjoy the things you do with your home equity loan knowing you've made a wise decision.
Dean Shainin is a consultant specializing in home equity loan strategies and home mortgage loan information. To see a list of recommended home equity loans, advice and information, visit this site: http://www.homemortgageloantips.com
MORE RESOURCES updated Fri. July / 01 / 2022
When Should You Refinance an Adjustable-Rate Mortgage? | Mortgages and Advice | US News - U.S News & World Report Money
When Should You Refinance an Adjustable-Rate Mortgage? | Mortgages and Advice | US News U.S News & World Report Money
Credit Conditions in the Pandemic Mortgage Market Federal Reserve Bank of San Francisco
Almost 25% of Homeowners Refinanced in 2021. Is It Too Late for You to Do the Same? - The Motley Fool
What Is a Home Equity Investment? | Guide To Equity Sharing The Mortgage Reports
Cash-Out Refinance vs. HELOC: Which Should You Choose? Business Insider
U.S. Housing Hold-Ups Put Thousands of Jobs on the Line U.S News & World Report Money
Moreira Team Is Helping Atlanta Homeowners Find The Best Cash Out Refinance Options - Digital Journal
Today's best refinance deal? 20-year rates freefall back under 5% | June 3, 2022 - FOX 11 Los Angeles
5 Best Ways to Use a Home Equity Loan | Mortgages and Advice | US News - U.S News & World Report Money
5 Best Ways to Use a Home Equity Loan | Mortgages and Advice | US News U.S News & World Report Money
Refinancing slips out of fashion in Pittsburgh, while borrowing against home equity makes comeback - Pittsburgh Post-Gazette
Refinancing slips out of fashion in Pittsburgh, while borrowing against home equity makes comeback Pittsburgh Post-Gazette
Does It Ever Make Sense to Buy a Home if You Have Bad Credit? The Motley Fool
3 Ways Rising Property Values Are Actually Bad for Homeowners Business Insider
The Housing Market Is Slowing Down, But Buying a Home Isn’t Getting Easier. Here’s Why - NextAdvisor
Refinance Calculator Bankrate.com
Trends in Mortgage Refinancing Activity Freddie Mac
Today's refi rates move up | June 2, 2022 Bankrate.com
Today’s mortgage refinance rates: Steady shorter terms offer best savings chances | March 17, 2022 - Fox Business
Today’s mortgage refinance rates: Steady shorter terms offer best savings chances | March 17, 2022 Fox Business
New mortgage refinance programs from Fannie Mae and Freddie Mac are expanding to reach more homeowners - CNBC
New mortgage refinance programs from Fannie Mae and Freddie Mac are expanding to reach more homeowners CNBC
When to Refinance Your Mortgage Business Insider
Refinancing a reverse mortgage: What to know Fox Business
Today's Mortgage, Refinance Rates: June 18, 2022 | Rates Remain High After Recent Spike - Business Insider
Today's Mortgage, Refinance Rates: June 18, 2022 | Rates Remain High After Recent Spike Business Insider
How to refinance your mortgage, a step-by-step guide The Washington Post
The Mortgage Refinance Rush Has Cooled, But HELOCs Can Unlock Housing Wealth - Hawaii Business Magazine
The Mortgage Refinance Rush Has Cooled, But HELOCs Can Unlock Housing Wealth Hawaii Business Magazine
Today's Mortgage, Refinance Rates: June 22, 2022 | Rates Probably Won't Decrease Soon - Business Insider
Today's Mortgage, Refinance Rates: June 22, 2022 | Rates Probably Won't Decrease Soon Business Insider
Is It Too Late to Refinance Now That Mortgage Rates Are Soaring? The Motley Fool
Mortgage Refinance As An Inflation Hedge Surfky.com
Jumbo Loan Refinance Guide | 2022 Rates and Guidelines The Mortgage Reports
3.8 million homeowners would still benefit from refinancing amid rise in mortgage rates, says Black Knight - Fox Business
3.8 million homeowners would still benefit from refinancing amid rise in mortgage rates, says Black Knight Fox Business
How Long Does It Take To Refinance A House? Zing! Blog by Quicken Loans
3 Reasons to Refinance Your Mortgage Despite Rising Rates The Motley Fool
After Losing Her Home in a Fire, This Teacher Needed a Fresh Start. A Mortgage Refinance Helped Her Do It - NextAdvisor
After Losing Her Home in a Fire, This Teacher Needed a Fresh Start. A Mortgage Refinance Helped Her Do It NextAdvisor
10 Mistakes To Avoid When You Refinance a Home Loan GOBankingRates
Home Mortgage Refinancing Disparities During the COVID-19 Pandemic: Insights for Delaware, New Jersey, and Pennsylvania - Philadelphia Fed
Home Mortgage Refinancing Disparities During the COVID-19 Pandemic: Insights for Delaware, New Jersey, and Pennsylvania Philadelphia Fed
Still time to lock in a lower rate: Today's 30-year mortgage refinance rates fall | Feb. 9, 2022 - Fox Business
Still time to lock in a lower rate: Today's 30-year mortgage refinance rates fall | Feb. 9, 2022 Fox Business
Should You Refinance Your Mortgage in 2022? The Motley Fool
Cash-In Refinance: What It Is And If It's Worth It Zing! Blog by Quicken Loans
The cost to refinance a mortgage: What to expect | Mortgage | Chase Chase News & Stories
Cash-out mortgage refinancing hits 14-year high The Real Deal
3 reasons it’s not too late to refinance your mortgage CNN Underscored