Mortgage & Refinancing Information


Home Equity Line of Credit - Great for Remodeling Projects


Many homeowners are lucky enough to find a house that represents exactly what they want in a home. They buy it, make the payments on it, and live more or less happily ever after. Others are not so fortunate. Some buyers who live in a pricey market may have to settle for less house than they need, hoping to find a solution to their lack of space later. A third group of buyers may find that their housing needs change over time, as their family size increases. What can be done in these situations?

A common solution to these problems is to add on to the house, often accomplished by converting a garage to a room, adding a room over the garage, or simply adding a room somewhere else on the property. For these projects, a home equity loan is a great source of financing. The home itself is used as collateral for the loan, and the addition actually increases the value of the house. As most of these projects involve a fixed cost, the payments can be structured at a fixed interest rate over a specific period of time. But what about the do-it-yourself project? What if the problem with the home isn't a lack of space, but a lack of taste on the part of previous owners? Is there a better financing choice in these situations?

If your problem is gold appliances, lime green carpet, and smiley face wallpaper, you may be looking at a remodeling project of indeterminate duration. For such a project, a better financing choice would be a home equity line of credit, or HELOC. A line of credit offers greater flexibility, both in interest rates and repayment terms, than a traditional line of credit. The loan amount is based on the amount of equity in the home, but the funds aren't dispersed all at once. Instead, the borrower is given a checkbook, a special credit card, or both and can use them to draw upon funds at his or her leisure. Payments only apply when money is actually borrowed, and the repayment plans can be arranged with both fixed and adjustable interest rates, depending on the lender. This is ideal financing for someone who has purchased a fixer-upper home that needs a variety of changes, repairs, or modifications. The credit card can easily be used to purchase paint, drapes, flooring, appliances or whatever the homeowner requires to make the home fit their needs.

If you just need to hire a contractor to add a gameroom to your home, a traditional home equity loan would work well. For ongoing projects with indefinite timeframes and budgets, a home equity line of credit may be the best choice.

©Copyright 2005 by Retro Marketing.

Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation and credit counseling information and HomeEquityHelp.net, a site devoted to information on mortgages and home equity loans.


MORE RESOURCES:
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


Investopedia (blog)

Mortgage Refinance Applications Hit 18-Year Low
Investopedia (blog)
Mortgage refinance applications hit their lowest level since December of 2000 as mortgage rates have increased through most of 2018. According to data from the Mortgage Bankers Association (MBA), for the week ending July 6, mortgage applications ...

and more »


The Citizen Daily

Mortgage Refinance Company lists Sh12bn bond
The Citizen Daily
Dar es Salaam. Tanzania Mortgage Refinance Company Ltd (TMRC) has listed a Sh12.5 billion bond at the Dar es Salaam Stock Exchange (DSE), giving investors another investment avenue. This is the first segment of the Sh120 billion corporate bond ...



The Citizen

Mortgage Refinance Company Sh12bn bond exceeds target by 4.3pc
The Citizen
Dar es Salaam. The Sh12 billion bond issued by the Tanzania Mortgage Refinance Company (TMRC) Ltd has been oversubscribed by 4.3 per cent as the sale closed. The financial institution which has a sole purpose of supporting mortgage lending in the ...



Business Daily (press release) (blog)

Mortgage refinancing key to unlocking affordable housing
Business Daily (press release) (blog)
This is why I find the latest effort by the National Treasury to establish a window for a mortgage refinance company highly laudable. The announcement by the National Treasury, back in April 2018, of the creation of Kenya Mortgage Refinance Company may ...

and more »


National Mortgage News

Mortgage refinance candidates cut by half in the past four months
National Mortgage News
The number of mortgage borrowers for whom it made sense to refinance declined by nearly half since the end of last year and is at its lowest since November 2008. Approximately 2.3 million mortgagors are candidates for a refinance, a decline of 2 ...

and more »


CNBC

Mortgage refinance applications surge 9 percent as rates fall back
CNBC
Interest rates on home loans are now significantly lower than a year ago, and that may be bringing more homeowners back to their lenders to refinance. Total mortgage applications rose 4.7 percent last week from the previous week. The increase in the ...

and more »


Bankrate.com

4 ways to get the best mortgage refinance rate
Bankrate.com
When mortgage rates are low, you can cut your monthly house payment by refinancing into a better interest rate. If you can shave at least one-half of 1 percentage point off your current mortgage rate, it can be worth your while to trade in your ...

and more »


THISDAY Newspapers

NMRC Seeks Approval for N440bn Debt Programme
THISDAY Newspapers
The Nigeria Mortgage Refinance Company (NMRC) plans to seek approval from members by the end of the month to triple the size of its debt programme to N440 billion ($1.44 billion), the state-backed mortgage agency said on Monday. Nigeria set up a ...

and more »


HousingWire

Mortgage refinance share jumps 5% despite rising interest rates
HousingWire
Mortgage refinance share jumps 5% despite rising interest rates. Expected to soon sink back down. February 23, 2018. Kelsey RamĂ­rez. KEYWORDS Ellie Mae FHA mortgage rates Refinance. House. The refinance share of mortgage activity increased a full ...

and more »


Business Daily (press release) (blog)

Mortgage sacco to be established
Business Daily (press release) (blog)
Francis Kamande, the chairman, said the mortgage sacco business model will see Nachu facilitate the country's 23,000 saccos to get mortgage guarantees from Kenya Mortgage Refinance Company, enabling them to fully participate in the government's ...


Google News

home | site map
© 2007