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Home Equity Mortgage Loans

What is a home equity loan? A home equity loan is a fixed rate second mortgage which is backed by the equity in your home. Home equity loans can be used for home improvements, debt consolidation, vacations or anything else the borrower chooses to use the proceeds towards. The use the remaining equity in your home as collateral. Click Here to Compare Home Equity Loan Deals Today!

How do home equity loans work? The borrower decides exactly how much of his or her home he/she wants to borrow and completes a loan application. The lender will approve or deny the mortgage similar to how the first mortgage was approved. Once approved, the funds are either paid directly to the borrower or checks are made to pay off debt, make purchases (e.g. cars, boats, etc.). The borrower will make a monthly home equity loan payment (that's also tax deductible!). Apply Now!

Using Your Home Equity Credit Line as Emergency Funds
Many consumers don't apply for home equity credit lines unless they have an immediate need for one. However, if you do not have significant savings that are tagged for emergencies (i.e. job loss, theft, accident, death, etc.) and you have equity in your home, you should have a home equity line of credit as emergency funds. Since most lenders do not charge an annual fee and the initial costs are low, it's in your best interest to get a HELOC which would help your family make ends meet for 6-12 months in a crisis situation. The trick is not to be tempted to use your HELOC emergency fund for regular purchases. It should remain unused until you have an emergency.

Why not wait until the emergency or crisis happens then get the home equity line? To put it bluntly, banks typically will not lend you money during those tough times. An unemployed person simply will not qualify under most loan programs. However, if you get your HELOC approved before the crisis arises, then it's there for you when you need it. Most banks give you anywhere from 3-10 years to draw on the line and they do not re-qualify you during this period.

Click Here to Apply for a Home Equity Loan Today!