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Home Equity Line
Unlike a home equity mortgage, a home equity line of credit isn’t spent all at once and paid back over time. It is more like a credit card account, where you get a separate checkbook to pay bills, drawing on a finite line of credit based on the equity you hold in your home. With quick approval, lower interest rates, and very little in up-front costs, a home equity line of credit is most often used for things that will be paid off over time, like college tuition or extended home improvement projects.
Home Mortgage
For first-time homebuyers, the Home Mortgage Center provides help in navigating the often intimidating world of real estate terminology. Learn about home mortgage loans and home mortgage companies. What do you need to know about home mortgage loan rates and the complex loan application process? And finally, pick up some advice on evaluating a home mortgage loan quote.
Home Equity Loan General Requirements
In order to be eligible for a home equity loan, you need to have amassed some equity in your home. In other words, a home equity lender needs to see a significant difference between the current market value of your home and the outstanding principal on your home mortgage loan. Even if you haven’t owned your home for very long, if it has appreciated significantly since your original mortgage, you may be eligible for a home equity loan. Traditionally, home equity loans have been taken by middle-aged homeowners with plans to stay in their house. But with today’s home equity loan rates and low costs, younger homeowners are qualifying to cash in their homes’ appreciated market value.
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