Hi nronronronro-ga! Thanks for another question!
I was able to find the following information for you.
Home Equity Loan ? ?A Home Equity Loan allows a homeowner to borrow
money by leveraging their equity, or the amount of money they have
invested into owning their home. A Home Equity Loan can be either a
fixed rate mortgage or an adjustable rate mortgage, and can be
acquired as a lump sum or used as a revolving line of credit.?
?What is a Home Equity Loan? How Can I Use a Home Equity Loan??
http://www.forbes.com/home_equity_loan.html
Our next link provides the different pros and cons of home equity loans.
The advantages of home equity loans are it is tax deductible, the
interest rates are lower than credit cards, and they can be used for
different things like home improvement to medical emergencies.
The disadvantages meanwhile are that there is a possibility of losing
your home once you default in paying for the loan. Such loans are
risky for young and very old people due to possible financial
instability. Interest rates could shoot up as well and your home might
lose value in the future thereby owing more money when you started. It
will take you too much time to pay off the loan as well and you may
not be able to lease it as long as this arrangement is in effect.
?Pros and cons of equity debt?
http://www.bankrate.com/brm/green/loan/basics2-2a.asp
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Home Equity Line of Credit ? ?A home equity line of credit is a form
of revolving credit in which your home serves as collateral.?
?With a home equity line, you will be approved for a specific amount
of credit--your credit limit, the maximum amount you may borrow at any
one time under the plan.?
?When Your Home is on the Line?
http://www.federalreserve.gov/pubs/HomeLine/
The advantages in this type of loan are that you can you can spend as
frequently as you want as long as it is within your credit limit. Some
of all your interest payments maybe tax deductible and that some
interest rates are variable meaning you can go up and down.
However; variable interest rates can go don as well thereby making it
a disadvantage. You will be limited by your lines of credit as well.
And if ever you decide to sell your house, you will have to pay the
loan in full. Finally, you may have to renegotiate every 10 to 15
years.
Pros and Cons:
http://66.102.7.104/search?q=cache:hCWgPSHtwBkJ:www.lendingtree.com/cec/yourhome/homeequityloans/smooth-out-uneven-income.asp%3Fesourceid%3D24200%26source%3D24200+%22Home+Equity+Line+of+Credit%22+pros+cons&hl=en&lr=&strip=1
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Reverse Mortgage ? ?A reverse mortgage is a unique loan that enables
older homeowners (62+) to convert part of the equity in their homes
into tax-free income without having to sell the home, give up title,
or take on a new monthly mortgage payment.?
?The reverse mortgage is aptly named because the payment stream is
?reversed.? Instead of making monthly payments to a lender, as with a
regular mortgage, a lender makes payments to you.?
?About Reverse Mortgages?
http://www.reversemortgage.org/Default.aspx?tabid=230
One advantage in this type of loan is that it is tax free as well. You
can use the proceeds of the loan any way you want. You also have a
source of money as long as you live in your home and you only pay for
the loan if you sell it or move out of the house. Even if you borrowed
a lot, you only have to pay how much the house is worth. Plus your
heirs receive any extra money that was generated from selling the
house.
The disadvantages meanwhile are the following: the transactions are
expensive and complicated, it can reduce the size of the estate you?re
heirs will get when you die and low income borrowers might find it
difficult to qualify for other loans like Medicaid.
Pros and Cons:
http://www.atouchofgrey.com/reversemort.html
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Our next link provides the different methods by way you can get a loan
by using home equity.
?Types of Mortgage Loans?
http://mortgage-x.com/library/loans.htm
Search terms used:
?Home Equity Loan?
?Home Equity Line of Credit?
?Reverse Mortgage?
different types mortgage loans
I hope these links would help you in your research. Before rating this
answer, please ask for a clarification if you have a question or if
you would need further information.
Thanks for visiting us.
Regards,
Easterangel-ga
Google Answers Researcher |
