Consolidate Your Debts With Home Equity Loans
Your home is your biggest asset. It does not just provide you shelter; it also comes to your aid when you are in financial distress. The equity of your home, built over the years, can be used to obtain loans by acting as the collateral. You can find two types of home equity debt, namely in the form of home equity loans and also in the form of home equity lines of credit otherwise known as HELOCs. Both of them are described as second mortgages, because just like the primary mortgage, the equity loan is also secured by your property. But unlike the first mortgage, the equity debt is repaid over a shorter span of time. The first mortgage is usually repaid over a span of 30 years, whereas the equity loan is usually paid within fifteen years. However, there are exceptions and the repayment period may be as short as 5 years and as long as 30 years.
The growing popularity of these type of loans generally coincides with the recent surge in property value and relatively lower rate of interest. Thus more and more homeowners are turning to these loans for managing their personal debts. Other advantages of the home equity loan also include lower interest rate and tax deductions, making this mode of debt even more popular.
So far as the equity rate of interest is concerned, it is slightly higher than the first mortgage, but considerably lower than credit card loans or other consumer loan interests. Because your property is used as the collateral in equity loans, lenders consider them as secure as the first mortgage.
The tax deduction feature may be the biggest reason behind the huge popularity of home equity loans. Mortgage debt comes with attractive tax savings compared to lets say consumer loans, thus it is highly cost effective to consolidate your other debts with this loan and enjoy lower interest rate plus tax deduction benefits at the same time.
With these benefits, namely considerably low rates for equity debt and tax deduction on the interest payments, it is no wonder that a number of homeowners are utilizing the equity of their homes to meet further expenses and debts. True, it is a mortgage on your precious home, but if you are able to pay back the entire amount within a short span of time and you have stable income, home equity loan is a good option for much needed credit.
Related Tags: home equity, home equity loan refinancing, home equity line, home equity loan line of credit
For more information on how to use Home Equity Loans to consolidate debt, visit QuickHomeEquityLoan.info. You can read up on more Home Equity Loan articles at nicheblog.info.
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- The Beginning of the Cataloging Code
The first significant cataloging code was published in 1841. The realization that cooperation and s - In the Lap of the Gods 24
Life moved on. Lily became well liked by both students and staff because of her cheerful outlook on - In the Lap of the Gods 23
Does fate decide the future? Is it all mapped out for us, predestined, or can we influence what com - Write Your Memoir: How to Write About What Troubles You the Most
Everyone has a story to tell, and unfortunately those stories aren't always pleasant. What makes me - How Crafty Word Order Can Instantly Improve Your Writing
by Philip Yaffe I am usually very reticent about offering writing tips. Unless they are linked to - You Say Grandpa, I Say Deda
I was born with two grandmothers but only one grandfather. In nature's rules of familial supply and - My Russian American Dichotomy
I was a Russian girl and an American teenager. I had no choice about the first but I tried very har - In the Lap of the Gods 22
This is just an explanation for those who have read some of the other Chapters of, "In the Lap of t - Write a Book: 8 Reasons You Should Do it
Studies have shown that 82% of people want to write a book, but few of these actually ever achieve - Book Review: the Book of Common Prayer
Book Review: The Book of Common Prayer, "My carry-with-me copy is this size, and I recommend it for
Most viewed articles in this category:
- Real Estate Investment - Investing In Commercial Properties
As in any other type of investment, its obviously advisable to do your research well so that the pro - Taking Care Of Acne Prone Skin With Proper Skin Care Products
Although acne has been largely associated with teeners and puberty, the condition is not only confin - Do I Really Need Eight Hours Of Sleep Each Night?
What if you were told that there is no definitive answer for why we need to sleep? Your initial reac - How to Improve Your FICO Credit Score
If you didn't know this already, having a good credit score is more important than having a lot of c - 10 Tips for a Magnificent Memory
"Where did I leave my keys?" "What did I come in here for?" "Your glasses are on top of your head!" - Things You Might Like To Know About Card Companies
If you have a regular income and are 18 or over then you may be able to get a credit card. You will - Bad Breath in Babies and Toddlers
If your baby or toddler has had bad breath lately, not to worry. There are plenty of things you can - Starving College Students No More
The majority of today's college students are extremely Internet savvy. In fact, many of those studen - Cosmetic Surgery Financing: How Can You Get It?
Cosmetic surgery, a branch of plastic surgery, can be quite expensive, especially if you are plannin - Article Marketing, Improve Your Ranking With Links
Article Marketing, without a doubt remains the best free formula for attracting website traffic. At