Saturday, October 11, 2008
What this all about home equity line of credit
Let’s say you or your spouse loses a job or gets into an accident. And you needed extra money to help you out. If you are a home owner you have some help. A home equity line of credit can be the answer that you need. As a home owner your home equity lines you mite have many options to chose from.
A home equity line of credit will mite be based on variable interest rates as a home owner you can not know for sure from month one month what your interest payment will be. What ever the Federal Reserve Board set the interest rate that is the rate your interest rate will be.
A lot home equity lines loan rates offer low introductory rates. Then later you find yourself paying a great deal more money paying higher interest rate. That has got a lot of homeowner in big trouble. All the more reason to pull out your magnify glass and read that fine print do not let any one rush you in to signing anything until you do. You mite also consult a lawyer that can be cost saver in the long run and save you a ton of headache latter.
Other things to be concern with that mite not be mention on less you read your paper work is that. How ever you can ask also. Is there an application fee, is it continuing in the cost of home equity loan, or is it a one time fee. Also ask about balloon payment and how to avoid them.
This mite be confusing for consumers. I think some providers like it that way. You mite consider looking for an alternative then to using your home equity line of credit. What about looking into getting a second mortgage?
Which ever way you go do your home work ask as many people as can. You can also find and buy books that will help you decide.