Home
Equity Loan
A
home
equity loan is borrowing against the equity
you have acquired in your home.
Lets
suppose your original mortgage was $175,000.00, but your house is worth
$225,000.00. The difference is $50,000.00. This $50,000.00 is the equity
you have in your home. This is the portion you can borrow either in the
form of a lump sum, or in the form of a line
of credit.
Home
equity loans are used for all kinds of things. Such as, home
improvement, college tuition, new cars, family vacations, etc.
A
good feature to consider when it comes to borrowing against the equity
in your home, is that you do not have to borrow all of the equity all
at once, if you choose not to.
Of
the $50,000.00 worth of equity we discussed in an earlier paragraph, it
is not necessary to take it all if you don’t need it all. Suppose
you only need $15,000.00 for a new roof or new windows, than you only
need to apply for a home equity loan for that amount, and that amount
only.
Keep
in mind, home equity loans and lines are tax
deductible, so remember to deduct at tax time.
Remember,
continue to educate yourself to get the best deal possible, and shop around.
The mortgage industry is very competitive and there are a lot of lenders
out there hungry for your business, so let them fight over you, and go
with the best deal possible.
Refinancing
Securing
the Best Mortgage Rate
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