Tuesday, 18 June 2013

Various Reasons To Refinanced Home Equity Line Of Credit!!

Today we are going to look at home equity and how to effectively use its potential to improve other areas of your life. Home equity is the market value of your unencumbered interest in your property. This is basically the difference between what your home's fair market value is, and whatever the outstanding balance of all liens are on your property. As you make your mortgage payments each month the equity in your home increases. This is sometimes called real property value. You can also gain equity if the principal value of your property increases. If you've been making payments on your mortgage and have put a down payment on a home already, this money can be accessed in the form of a refinanced home equity line of credit or loan.

  • Home equity lines of credit with fixed rates generally last a certain length of time before the balance must be paid off in full.
  • Sometimes the agreement allows for the homeowner to pay it off over time once the length of the line of credit has ceased, however this is all tax deductible!
  • Home equity loans are lump sums given all at once. The loan must be paid off within a set period of time similar to other loans however because it is tied to your property it too is tax deductible.
  • You are allowed to spend this money however you choose. Many people invest in a small business, send their children to higher education, or fund long needed vacations.
How will you use your equity?

Many people who have been paying fixed or adjustable rate mortgages will eventually want to tap into their equity in order to reinvest in their property. Some military veterans who have been away on active duty while paying off their VA mortgage loan might have come home to a house in disrepair. Maybe you just want to remove the lead paint in your aging home, or perhaps the asbestos within your walls? Perhaps you've heard about the government tax breaks for people who make "green" improvements to their homes. Do you want to add a pool to your back yard, or an addition to expand your living room? Home improvement projects are fairly common forms of equity use and can have great returns for you down the line if you are able to increase the value of your home. Remember by increasing your home value you are actually gaining back equity!

What about a line of credit?

Home equity lines of credit are better for people who expect that they will need a boost to their income over the course of a few years. These are often used to fund higher education. However maybe you or a family member has fallen ill and will have medical costs mounting over the next few years. Equity lines of credit can help get you through the lean years of life and make sometimes unexpected costs of living more manageable.
The most professional and up to date advice on all things related to real estate is found at www.real-estate-yogi.com. You can speak with an expert representative anywhere in the country at any time by calling 1-800-987-1397.

Monday, 3 June 2013

Resorting To Home Equity Loans with Bad Credit

Remodeling our home was long and arduous, full of decision making and negotiating. Numerous problems arose, and we ended up needing to do more than we had planned. We needed twice the materials we started with, old fixtures could not be reused, and my wife’s entire kitchen had to be broken down. The best opportunity for a loan we had was with a home equity credit. This ended up working in our favor because the value of the house increased with our addition.

The Home Equity Line of Credit Concept

My wife and I were at loose ends with a mound of bad credit on our laps. Our reports were abysmal, juggling car and medical payments. Having eight kids is like living on the edge. It’s even worse when your house is unfit to contain everyone. Luckily our mortgage payments had been current. A friend suggested that we look into home equity line of credit for this new remodeling project. Home equity is the value of the house against the amount that is currently owed. It can be calculated by subtracting the amount owed from the value. Establishing a line of credit with a home equity loan gives the lender a solid form of collateral; the entire house, as a guarantee against default.  Also known as a second mortgage, payment options can come either with a fixed monthly rate or a changing, adjustable rate. Real-Estate-Yogi.com representatives can determine whether a consumer should take an adjustable rate mortgage option, in which the loan is paid in piecemeal, and the interest rate on monthly payments changes, or a fixed interest rate mortgage option.

Finding a Lender

With our bad credit, there was an appreciable risk to borrowing against the repossession of the house. We had to search around to find the lender with the best interest rates. Most gave us a high interest rate because of our credit. Applying for a homeequity line of credit with bad credit will put most up against this inconvenience, despite having the house as collateral.

Home Equity Line of Credit with Bad Credit

Most will want to look further into the home equity process with bad credit hanging over their heads. If payments defaulted and suddenly we could not keep up, the lender would have to foreclose our house once it was finished being remodeled. We were reassured by a friendly Real-Estate-Yogi.com Representative, and took careful note of their direction in case our second mortgage fell through.

Some people may need to hold off on taking this kind of loan. They may feel the risk of letting payments get out of hand or defaulting would be too great. These people might want to get their finances in order before finding the best home equity line of credit available to them. Real-Estate-Yogi can work with consumers by helping them manage their credit giving advice on loan rates before searching for lenders.

If you’re unsure about home remodeling or any other item that a home equity might adequately support, www.real-estate-yogi.com can provide personnel with knowledge and intuition on both finance and real estate.  Call 1-800-987-1397 for a free consultation.