Home Equity Loans

What is a Home Equity Loan?

A home equity loan is a home loan that you can obtain based on using the collateral paid in to your existing mortgage. This type of loan can even be secured against the equity earned from the appreciated value in your home. The beauty of a Home Equity Loan is that it can be used for a variety of purposes -many of which would not be approved under a typical loan policy.

Uses of a Home Equity Loan

As your home appreciates in value, it may make sense to use your new equity to get cash through a refinance for a variety of purposes. You could:

• build an addition to your home (adding even more value),
• pay for college,
• invest in or start a new business,
• consolidate your high interest consumer debt,
• or simply take a much needed vacation.

Debt Consolidation
Do you have balances on your credit cards that eat into your spendable income every month? Why not refinance and pay off all your credit cards? One mortgage payment that is tax deductable will save you time and money.

Or, if you would rather not use your equity to pay off high-interest credit card debt, find out about other Debt Consolidation options.

Be sure to ask the following in order to decide on the best refinance lender:

• What is the term of the home equity loan note?
• Is there a pre-payment penalty?
• What are the closing costs- recurring and non-recurring?
  Ask what the difference is to be sure you're on the same page...
• Do you require any money up-front? If not, then ask how to get your deposit back if you are not approved. You'll want this spelled out to avoid hassle later.
• How long is the rate good for?
• What is the maximum amount of money I can borrow based on my home's value and my credit score?

You can get the answers to all your questions quickly, securely, and professionally by using a refinance quotes service that will scour the home equity lenders for the best deals.

If you feel you're ready to look at a home equity loan or simply want to "test the waters", consider getting a quote from LowerMyBills. From one, simple and quick form you will receive the 4 best home equity loan quotes from local and respected lenders.

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