home on the loan line
If you’re having money problems, consider these
options before you put your home on the loan line.
Talk with your creditors or with representatives of
non-profi t or other reputable credit or budget counseling
organizations to work out a plan that reduces
your bill payments to a more manageable level.
Contact your local social service agency, community
or religious groups, and local or state housing
agencies. They may have programs that help
consumers, including the elderly and those with
disabilities, with energy bills, home repairs, or other
emergency needs.
Remember, if
you decide to get a home equity loan and can’t
make the payments, the lender could foreclose and
you would lose your home.
If you decide a loan is right for you, talk with several
lenders, including at least one bank, savings and
loan, or credit union in your community. Their loans
may cost less than loans from fi nance companies.
And don’t assume that if you’re on a fi xed income
or have credit problems, you won’t qualify for a loan
from a bank, savings and loan, or credit union—they
may have the loan you want!
Sabtu, 10 April 2010
Rabu, 10 Maret 2010
Home equity
Welcome to Home equity
This is the market value of a homeowner's unencumbered interest in their real property—that is, the difference between the home's fair market value and the outstanding balance of all liens on the property.
Technically, home equity has a zero rate of return and is not liquid. Home equity management refers to the process of using equity extraction via loans—at favorable, and often tax-favored, interest rates—to invest otherwise illiquid equity in a target that offers higher returns.
The property's equity increases as the debtor makes payments against the mortgage balance, and/or as the property value appreciates. In economics, home equity is sometimes called real property value.
Home equity may serve as collateral for a home equity loan or home equity line of credit (HELOC). Many home equity plans set a fixed period during which the person can borrow money, such as 10 years. At the end of this “draw period,” the person may be allowed to renew the credit line. If the plan does not allow renewals, the person will not be able to borrow additional money once the period has ended. Some plans may call for payment in full of any outstanding balance at the end of the period. Others may allow repayment over a fixed period, for example, 10 years.[1]
This is the market value of a homeowner's unencumbered interest in their real property—that is, the difference between the home's fair market value and the outstanding balance of all liens on the property.
Technically, home equity has a zero rate of return and is not liquid. Home equity management refers to the process of using equity extraction via loans—at favorable, and often tax-favored, interest rates—to invest otherwise illiquid equity in a target that offers higher returns.
The property's equity increases as the debtor makes payments against the mortgage balance, and/or as the property value appreciates. In economics, home equity is sometimes called real property value.
Home equity may serve as collateral for a home equity loan or home equity line of credit (HELOC). Many home equity plans set a fixed period during which the person can borrow money, such as 10 years. At the end of this “draw period,” the person may be allowed to renew the credit line. If the plan does not allow renewals, the person will not be able to borrow additional money once the period has ended. Some plans may call for payment in full of any outstanding balance at the end of the period. Others may allow repayment over a fixed period, for example, 10 years.[1]
Rabu, 10 Februari 2010
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