ArticlesReader.com Menu
Newest Articles
Most Viewed Articles
ArticlesReader.com RSS
Submit Article
Login
Signup
Search the articles

Articles Main Categories
Advice
Animals
Automobiles
Business
Career
Communications
Computer Programming
Computers
Entertainment
Environment
Family
Fashion
Finance
Food
Health & Medical
Home & Garden
Humor
Internet Business
Internet Marketing
Legal
Leisure & Recreation
Marketing
Other
Politics
Reference & Education
Religion
Self Improvement
Sports
Technology & Science
Travel
Writing
Subscribe
Receive alert message from us when new articles submitted to our site for free.

Enter your name

Enter your email

Syndicate

















Related Products
Home::Mortgage

Shopping Home Equity Loan Rates

Author : jen
Shopping Home Equity Loan Rates



If you have been in your home for a number of years and you have established some equity, you may be considering liquidating some of that equity. A great way to do this would be to go with a Home Equity Loan.



A home equity loan allows for you to borrow off of the equity you have established in your home through appreciation and monthly mortgage payments without having to touch your first mortgage.



This is why a home equity loan can also be known as a second mortgage. But before you go and start signing applications, shop around so you can find the best home equity loan rate out there.



There are two types of home equity loans on the market that you have to choose from. The first one is your standard home equity loan with a fixed rate, which of course, is based on prime. This loan you receive in a lump sum and begin to make monthly payments upon it immediately.



The second type of loan is the home equity credit line. This one, as its name implies comes in the form of a line of credit. The home equity line of credit has a rate that is variable, which means it will fluctuate with the prime rate. Many of them come with introductory rates for the first five or six months.



Once approved for a home equity line of credit, you will not receive it in the form of a lump sum. Instead you will receive it in the form of a check book giving you easy access to draw upon it in the amount you would like at your convenience. Once you do draw upon it, you will have to begin paying it back on a monthly basis. Normally in the form of interest only for the first ten years.



Suppose you were to receive a home equity line of credit in the amount of $25,000.00. If you only wanted to borrow $6000.00, than all you would have to do is write out one of the checkÂ’s the lender sent you and deposit it into your checking account. Your payment would than be based on the $6000.00 you borrowed from your line.



Keep in mind, home equity credit lines do come with a rate that is variable, and that rate is based on prime. So, if the prime rate goes up, the rate on your home equity credit line will go up as well.



On the other hand, if the prime rate goes down, than the rate on your home equity credit line will go down.



Mortgage companies are very competitive, so whichever home equity loan you decide to go with, it would be in your best interest to shop around so that you may compare rates.



After allowing for a few loan officers to assess your situation and offer you a rate and product, base your decision on the rate and product that best fits your needs and budget.


Article Source: http://www.articledashboard.com





Jennifer Hershey has more than twenty years of experience in the Mortgage Industry as a loan officer. She is the owner of www.explainingmortgages.com/, a mortgage resource site devoted to making mortgage terms and products easy to understand.





Spam emails More free articles

Related articles


  1. Flexible Mortgages - Offering Relief from the Fixed Mortgage
  2. Unlock your Home Loan Piggy Bank
  3. Home or Investment Property Equity: Be Sure the Bank Gives You All that You Deserve
  4. Refinancing Online - Get The Best Refinance Home Loan You Can Get
  5. A Hud Reverse Mortage For Retirement?
  6. Why Get Pre-Approved For A Mortgage?
  7. Second Mortgage a Good First Step
  8. Fees Paid To Brokers By Mortgage Lenders Are Far Too High
  9. How Not To Be Ripped Off By Mortgage Brokers
  10. Rates May Be Rising: Mortgage And Refinancing Preparation Made Simple For You
  11. "How Much Interest is Your Home Equity Earning?"
  12. A Guide to Selecting a Mortgage Broker in Australia
  13. 5 Steps to Getting on Top of your Mortgage
  14. Comparing The True Cost Of Obtaining A Home Loan
  15. Adjustable Rate Mortgages Offer Alternatives For Home Buyers
  16. How To Determine The Price Of Your Home
  17. Benefits of a Remortgage
  18. Securing a US Commercial Mortgage
  19. Mortgage Elimination- A Horrible and Sure Way to Lose Your Home to Foreclosure
  20. How Homeowner Can Save Their Home From Foreclosure
  21. Are You A Victim Of A Predatory Mortgage Foreclosure?
  22. Home Loans
  23. What Exactly is a Mortgage Broker and How Can He/She Help You Save Thousands on Your Mortgage?
  24. Mortgage Soup
  25. Understanding Mortgage Basics
More related feeds
Home Equity Loans Versus HELOCS and Personal Loan
Con: The interest rate is adjustable and often higher than a home equity loan. When shopping for a home equity line of credit, look for a low permanent rate. Personal Loan * Best for: Small single expenses like a new car or small ...

» Blog Archive Illinois Mortgage Rates and News - Chicago Mortgage ...
If you have an adjustable rate loan and you want to fix the rate, this is the time to do it when the rates low. If you have equity in your home and too much consumer debt, a debt consolidation loan can save you hundreds of dollars each ...

Home improvement loans: make desirable changes
To apply online you just need to fill a simple online form and also you can search for a lower rate deal as well. Home improvement loans not only allow you to improve and remodel your home but also add to the equity in your home. ...

Car Insurance – How to Compare Rates From Multiple Companies ...
Shopping for car insurance online is the best way to compare rates from multiple car insurance companies. Online, you can also read about a company’s history and make sure they’re a quality company. Most companies offer instant online ...

Queercents » Blog Archive » Equity Line of Credit: Seek Other ...
GreenPoint Mortgage Funding, Inc. services your home equity line of credit, which was sold to Lehman Brothers, Inc. some time ago. As the servicer, GreenPoint is responsible for temporarily advancing draws against your line of credit. ...

The Mortgage Porter: Mortgage Rates Drop Under 5
At this moment, I'm quoting the following for a 30 year fixed rate (no prepayment penaltie) for a purchase of $500000 with a $400000 loan amount and a 45 day lock (same rates apply for rate/term refinance with $400k-$417000 loan...

Save More Money For Your Home Loan
Save More Money For Your Home Loan. 3 December 2008. If you would like to make even more repayments to your mortgage company while interest rates are low, you may need to look for ways to save more money. Those who are struggling to ...

Mortgage Rates Fall, U.S. Seeks Further Interest Rate Reduction ...
With the US Treasury purchasing $600 billion in mortgage backed securities mortgage rates are falling. There is also a plan being floated where the government would set the 30 year mortgage rate at 4.50% on home purchases - almost 1% ...

Proposal could drop mortgage rates to 4.5 percent - MontereyHerald ...
At rates of 4.5 percent for a fixed, 30-year loan, "We would have everybody and their brother who had equity in their homes coming to refinance. That would be an amazing influx of loan applications. It would keep things going for a long ...

O.C. in top 10 for home-lending risk - Mortgage Insider ...
Orange County is the 9th riskiest place in the country for banks to make home loans, according to First American CoreLogic’s 4th quarter rankings. The county dropped one spot from...

 

 

© 2007 articlesreader.com - All Rights Reserved