A home equity loan is a form of financing that allows the homeowner to get a new loan using the accrued, built up equity in their home, as collateral. The built-up equity would consist of whatever funds the homeowner has invested, in the time they he or she has owned the home, in order to improve the property. Since it is actually a debt against property, a home equity loan is a secured debt. The danger in that property may be foreclosed or sold if the creditor wants you to return the money that you have borrowed, and you are unable to do so.
A home equity loan can either be obtained as a lump sum, or acquired and used as a line of credit. Basically, home equity loans can be of either of the following types:
- Fixed rate mortgage
- Adjustable rate mortgage
Homeowners may sometimes require money suddenly, in large amounts, for home improvements, hospital bills, or some other emergency. This is usually the time when a homeowner usually applies for a home equity loan. Emergency expenses that might make it necessary for a homeowner to get a home equity loan are:
- Debt consolidation
- Home repairs
- Medical bills
- College tuition
You can use our home equity loan calculator to check how various home equity loan rates will affect your monthly payments. Always compare offers from several lenders and brokers to obtain the lowest home equity rate possible.
Most loan, mortgage and home loan related websites give you information about home equity loans as well as handy online home equity loan calculators. If you need information about home equity loans and need to use a home equity loan calculator, and how to find the best home equity loans, all you have to do is to fill out the simple form that is available on the sites.
If you need further help, most of these sites also provide contact details, where you can apply, and their home equity loan specialists get in touch with you to inform you of your options, and help you decide how a home equity loan can best help you.
You can use these free online home equity loan calculators to work out the correct home loan, or home equity line of credit, based on your needs. You can also use these home equity loan calculators to check how much equity you have accrued, see whether you qualify for a home loan or a home equity line of credit or compare loans and rates with the comparison tool.
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