Real Estate Information


Your Home Equity Can Work for You


"Use your home's equity to pay off your debt. It's easy and simple, no closing costs!" Every time I turn on the television, commercials bombard me telling me to take out a home equity line of credit. People are using their dream homes to pay for even bigger dreams, like a "debt free" lifestyle and college educations for their children. Despite the ease in securing these seemingly beneficial lines of credit, many CPA's and financial planners are cautioning homeowners to gain a full understanding of how these lending options work before they turn their homes into a source of money.

There are two options in using your equity to secure funding: a home equity loan or a home equity line of credit. Most lenders will let a homeowner borrow up to 80% of existing equity based on the amount owed on the first mortgage and the appreciated value of the home. Unlike other forms of nondeductible consumer debt, loans less than $100,000 or less that use a home as collateral may have a tax deduction available for interest paid.

A home equity loan is most usually used for large purchases, such as financing a major home improvement project, starting a business, purchasing a luxury item or consolidating high-interest credit card debt. There are advantages to securing lending for these purposes, but these types of loans are better suited to those who don't foresee future borrowing needs.

Home equity loans are basically second mortgages, which provide you with money that is repayable over a fixed term from five to 15 years. These loans can feature locked-in rates and monthly payments that remain the same.

Home equity lines of credit are ideal for use as emergency money. They can be used for irregular or unanticipated expenses like medical deductibles and automobile repairs. These lines are often used by higher income families who don't qualify for college financial aid to pay for their children's college educations. When faced with using a home equity line of credit or savings to pay off credit card debt, it is advised to use the savings to pay of the debt and the line of credit for future emergencies.

With home equity lines of credit, you are approved for a certain amount of money, a credit limit. You can borrow any amount of money during the life of your line of credit up to your credit limit. You may be given a check or a debit card that can be used at almost all retailers. Home equity lines of credit are usually variable-rate loans.

Using the equity in your home is not a flip decision. Think about it seriously. If you are doing this to consolidate high-interest rate credit cards, it will only work if you do not accumulate any new debt. If you keep using the cards, you are only digging a further pit of debt.

Your credit card company cannot foreclose on your home, but your home equity loan lender can. You are placing your home at risk with every mortgage placed on it. It is necessary that you shop for the best rates and terms available. Talk to different lenders and be aware of introductory rates. Read all paperwork carefully before you sign it.

Using your home equity can benefit you in many ways, but always display caution. It is still debt

Martin Lukac, California mortgage Lender(http://www.martinlukac.com), provides mortgage financing for purchase,refinance,bad credit and more. Request a free quote or ask a question.


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


CNBC

Student, senior, storage real estate could withstand Fed's interest rates
CNBC
Student, senior, storage real estate could withstand Fed's interest rates. 5 Hours Ago. Chris Merrill, Harrison Street Real Estate CEO, discusses the impact the Federal Reserve could have on the real estate industry if it continues to raise interest rates.



Rutgers Real Estate School releases landmark study on school-aged children in multifamily properties
ROI-NJ.com
The number of school-age children in multifamily housing units increases with the number of bedrooms, regardless of the residents' income level and building product type. And, if income and bedrooms are fixed, it can be shown that denser properties ...



The Sun Herald

A Coast real estate agent cried when a judge told her how long she could spend in prison
The Sun Herald
Coast real estate agent Kim Foster, 47, of Vancleave, has pleaded guilty to conspiring to rig bids on properties sold at public auctions in South Mississippi. Foster began to cry Thursday afternoon when U.S. District Judge Louis Guirola Jr. told her ...

and more »


Chime Complete Real Estate Business Solutions
Inman.com
Chime is the world's smartest real estate platform. Chime Technologies offers the real estate professional a full suite of integrated online and offline sales acceleration products and services — the smartest business-growth tools available for high ...



Law.com

Dechert Targets Middle East Real Estate With Dubai Hires
Law.com
“We have an enormous commitment to the Middle East already, which is not just lawyers there but in London, Paris and elsewhere,” said Rick Jones, who chairs the firm's global finance and real estate practice groups. “A piece of the puzzle we were ...



GoDanRiver.com

Dan River Region real estate transfers
GoDanRiver.com
Douglas L. Dawson and Vernie M. Dawson to Stephanie L. Sigmon, 160 feet, 160 Withers Road, no money transferred. » Odell Roy Inc. to PCM Real Estate, 45 feet, partial lot, 460 Henry St., $10. » Davis Rental Real Estate Inc. to Richmond Wholesale Deals, ...



Miami Herald

How dirty is Miami real estate? Secret home deals dried up when feds started watching
Miami Herald
The staggering fall in transactions may give ammunition to federal officials who argue that secretive real estate deals allow criminals to launder stolen money into the condos and mansions sprouting up around South Florida. Those officials want to see ...



Chron.com

Real estate briefs: New coworking brand, California industrial investor, Engel & Völkers ink new deals
Chron.com
REth!nk, a new coworking brand focused on the real estate industry, has acquired the Master Mattress Works building at 1512 Center Street at Houston Avenue. The property, along with another in the RiNo Arts District in Denver, will launch a national ...
Engel & Völkers buys brokerage with $130M in salesSouth Florida Business Journal

all 3 news articles »


Why Wall Street loves real estate tech, according to a short seller
Inman.com
Wall Street vet Andrew Left tells real estate professionals why Wall Street suddenly loves real estate tech at Inman Connect San Francisco. Article image credited to Scott Chernis/Inman. Subscribe to Inman Select and read the entire article. Get the ...



Forbes

The Hidden Gem Of Turnkey Real Estate Investing Is In Ohio
Forbes
Take it from this Ohio investor and turnkey investment provider: The Gem City, — Dayton, Ohio — is truly a hidden gem of turnkey real estate investing. Here are eight reasons you may want to add Dayton investments to your portfolio. • Promising rent ...

and more »

Google News

home | site map
© 2007