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Credit Cards versus Home Equity Loans

Credit Cards versus Home Equity Loans If you own your home and pay a mortgage, you probably already know that there are certain income tax advantages for deductions such as interest payments made each month. And if you use a credit card, you know that there are no such perks available, even though credit card borrowing usually means paying much higher rates of interest, fees, and penalties. For some circumstances, especially when attractive interest rates are offered, the credit card can be a superior choice. If you happen to be one of the rare consumers who can manage credit card...

Finance

Home Equity: Your Ace In The Hole

Home Equity: Your Ace In The Hole Almost 15 years ago, you bought your first home. You’ve been diligent in working and paying on the mortgage, and finally have more equity than mortgage. Ah, the sweet smell of victory, and home ownership. But are you playing the financial investment game as well as you think? Are you missing out on tax savings, funding strategies, or just plain smart money options? How do you check your equity options versus your tax savings options, to comparative shop and make use of your smart options? Today, the tax benefits of retaining a mortgage...

Finance

California Home Equity Loan Rates

California Home Equity Loan Rates Since home equity loans are secured by equity in real estate they are considered a safer investment by financial institutions than unsecured consumer debt. As a result, the rate of interest reflects the value of this collateral on the debt. While the interest rate of a home equity loan is higher than a first mortgage it is considerably less than general consumer debt. Like most other financial instruments, the rate varies based on supply and demand factors and the overall availability of credit in the market. Common standard interest rate levels used to compare debt...

Finance

I used money from my home equity loan to pay off some of my personal debts. Can I deduct interest?

I used money from my home equity loan to pay off some of my personal debts. Can I deduct interest? In some instances, it is possible for individuals to deduct the interest of such home equity loans on their state and federal taxes, which are, or at least should be, filed annually the Internal Revenue Service. Despite the fact that the money can be used for reasons other than to buy, build or improve an individual’s place of residency or home, the debt for which the home equity loan is used may still allow the loan’s interest to qualify as...

Finance

Home Equity Loan Cashing In On Your Equity

Home Equity Loan Cashing In On Your Equity This is a type of loan under which a property owner uses his residence as collateral security and can get prearranged amount against the property. The loan allows you to use into your home’s built-up equity. Home equity is the actual difference between the amount your home could be sold for and the amount that you already owe on the mortgage. Assume that the market value of your home is 0,000 and you owe ,000 on your mortgage, then you have 0,000 equity available on your home. Remember that if you have...

Finance

Secured Home Equity Loans – How Do They Work?

Secured Home Equity Loans – How Do They Work? Home equity loans provide you with low rate credit based on the security of your home’s value. Your home is your collateral, which reduces your loan risk with creditors. Home equity loans also come in a variety of terms, so you can pick what is best for your financial needs. Home Equity Loan Basics You can cash out all or part of your home’s equity with a second mortgage or line of credit. Home equity loan rates are typically a couple of points higher than a regular mortgage. In some cases,...

Finance

Home Equity Loans-Bad Credit Loans Made Easy

Home Equity Loans-Bad Credit Loans Made Easy I remember back in the good old days when things were not so rosy for me- a couple of bankruptcies will do that to you-when I couldn’t borrow a cold. Bad credit is always an obstacle when trying to borrow money or get a credit card. You will be faced with higher rates and payments if you can get one at all. Your options are very limited. Lending institutions will assume you’re a high risk customer and act accordingly either denying you the loan or charging higher rates to compensate the risk. Offering...

Finance

The difference between home equity loan and home line of credit.

The difference between home equity loan and home line of credit. Once you have built up equity in your home, you have the privilege of applying for a home equity line of credit, which allows you to borrow the money you need. Most financial insititutions ( banks, savings and loans ) have entered the home equity market, so you have plenty of options when you shop for the best loan. In effect, a home equity loan is a second mortgage on your home. You usually get a line of credit up to 70 percent or 80 percent of the appraised...

Finance

Refinancing Your Home Equity Loan – How To Use A Home Equity Loan

Refinancing Your Home Equity Loan – How To Use A Home Equity Loan Refinancing your home equity loan can help you save cash through lower rates or lower payments. To get the most out of your home equity, use your second mortgage as part of your overall financial plan. That may mean consolidating debt, paying for home repairs, or investing in a college education. Getting The Most Out Of A Home Equity Loan Home equity loans offer low rate credit, lower than almost any other type of financing. Your home’s equity is also your investment, and ideally should increase in...

Finance

No Equity Home Loans Could Fix Leaking Roofs But Cost You A House

No Equity Home Loans Could Fix Leaking Roofs But Cost You A House If you could wish yourself somewhere else, you would. Bills are mounting, the roof is leaking, and you’re in the middle of the worst rainy season in recent memory. For the moment, however, you’re pressed for time and strapped for cash, and there’s not much you can do about these. Then, out of the blue, a lender shoves a mouth-watering offer at you, in the form of a no equity home loan. “Salvation,” you think. Before you jump in and take as much as the lender can...

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