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If you are looking for a home equity loan, you have come to the right place. Lender411.com is the #1 mortgage resource on the web and will assist you in finding the lowest home equity loan rates. Our cutting edge lender search technology matches you up with the most qualified lenders and brokers and saves you thousands of dollars.
When you fill out the above short application, you will soon be contacted by up to 4 lenders from our lender network. We advise you to compare and carefully examine all submitted mortgage quotes in order to get the best interest rates.
A home equity loan or home equity line of credit (HELOC) allows you to use your investment in your home to finance other things that you need or want.
When you borrow money, the bank or finance company needs some assurance that you'll repay the loan and a way to recover its money if you don't. Usually, they'll ask you to put up something of equal or greater value to the money they're loaning you as "collateral." If you fail to make your payments, the bank has the right to take your collateral and sell it to get their money back.
A home equity loan is money that is lent to you using your home as collateral.
| Home Equity mortgage loan to consolidate debt |
One very popular use for a home equity mortgage, for instance, is to consolidate other debts. A person who is carrying $10,000 of credit card debt may be paying interest on that debt of as much as 28% APR monthly. Even when you add in loan closing costs, it makes far more sense for that person to take out a home equity mortgage for $10,000, pay off the credit card debts with that, and then pay off the second mortgage at much lower APR.
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| Home Equity loans are tax deductible |
Back in the 1980s, interest paid on most loans was tax deductible. As the national debt grew, however, the government took a long hard look at ways of increasing revenues. Rather than raise taxes, they did away with the tax deduction for interest paid on most kinds of loans. The only interest that remained tax deductible was that on a mortgage on your residence – and that includes the interest on a home equity mortgage up to $100,000.
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| Get money without selling your home |
Over the past ten years, real estate values have climbed at astonishing rates. Many people found that the home they bought for $100,000 was worth nearly double that, less than ten years later. Since home equity is tied to the present value of your home, a home equity mortgage is one way of accessing the increased value of your home without selling it.
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| Home Equity vs. Home Equity Line of Credit (HELOC) |
The difference in a home equity loan and a home equity line of credit (HELOC) vary slightly. A home equity loan gives you a lump amount of money immediately, while a HELOC lets you borrow money as needed up to a credit limit much like a credit card. A home equity loan can be a fixed rate mortgage or an adjustable rate mortgage.
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| Other Uses for home equity loans |
One of the most popular uses for a home equity line of credit is to make home improvements or repairs. In some cases, they might be necessary home repairs like repairing a leaky roof or replacing a failed furnace. Other borrowers use the money from a home equity line of credit to make additions that increase the value of their home or bring it closer to their dream home.
Paying for college tuition or a wedding? Paying for high-ticket items or expenses for education is another popular use for a home equity line of credit. Because a home equity line of credit is secured by your home, it’s often easier to get than an unsecured personal loan, and carries a lower interest rate. Not only do you get a lower rate of interest when you pay for high ticket items with a home equity loan line of credit, you get to deduct the interest on your taxes. |
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