Home Equity Mortgage

The Home Equity Center offers tips and advice on choosing a home equity lender and the different types of home equity loans. For instance, are you looking to take out a home equity mortgage? Maybe it’s time to refinance a home equity loan? Or do you need a home equity line of credit? Learn important information about the types of home equity loan rates as you decide which lending format is best for your situation.

Many consumers aren’t sure what a home equity loan is, or how home equity loan rates can help them. A home equity loan uses the portion of your home that you currently own as collateral. In other words, home equity lenders let you borrow on the difference between the current market value of your home and what you still owe on your first mortgage. It is the same thing as a second mortgage loan.

Home equity loans can be used for a variety of purposes. Many people take advantage of home equity lines of credit to pay off major expenses like college tuition or medical bills. Others put the money right back into the house with major renovations funded by a straight home equity loan. Some savvy consumers take advantage of home equity loan rates to consolidate other high interest debt, using home equity loan rate calculators to see how their bills will be turned into one, reliable monthly payment.

With today’s low interest rates, the market is very competitive for home equity loans and lines of credit. More than 35,000 home equity lenders, from banks to mortgage companies, are eager to extend you credit using your home as collateral. Savvy consumers know it is a good time to consider taking a home equity mortgage or refinancing an existing loan.

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.

FAQs about Home Equity Loans

Q.:	What can I use a home equity loan for?
A.:	Just about anything! Many homeowners choose to put the money back into the house with home improvements or renovations. But others use home equity loans for college tuition, high interest debt consolidation, and even major new purchases.
Q.:	What kind of interest rate will I get?
A.:	While home mortgage loans still carry the lowest interest rates, home equity loan rates are surprisingly low these days, and they are sure to be lower than rates charged on credit card debt or personal loans.
Q.:	How long is a home equity loan term?
A.:	A home equity lender can work with you to find the term that is most appropriate for you. But most home equity loans carry terms of 10-20 years.
Q.:	How do I decide between a home equity loan and a line of credit?
A.:	It depends on what you are using the money for. A home equity line of credit is handy when you are not making a lump sum payment because you don’t pay interest until you have drawn on the credit line. A home equity loan will usually have a fixed home equity loan rate, leaving you less susceptible to market changes, while a credit line usually comes with adjustable-rate interest.
Q.:	How do I know how much I can borrow?
A.:	In addition to typical factors like income and credit rating, home equity lenders will determine the amount you are eligible to borrow based on the equity in your home. This is the difference between the current market value of your home and the outstanding principal on your home mortgage loan.

Home Equity Loans Resource