Why Choose Home Equity Loan

Author: Prerna Joneja

Home equity loan can be a difficult concept for the people who have never dealt with home ownership earlier. So, we define equity as the financial value of a property or business beyond any amounts payable on mortgages, liens, claims, etc. In short, home equity is how many houses the person has earned.

Equity is basically the difference between the market value of a property and the claims held against it. It is the difference between the price for which a property could be sold and the total debts registered against it. For example, if your house is worth $150,000 and you owe $110,000 then your equity is $ 40,000. Then, you get home equity loan depending on the credit and many other factors for $40,000 that you have built up in equity.

There are two types of Home Equity Loan:

• Standard Home Equity Loan
• Home Equity Line of Credit

Standard Home Equity Loan is the loan that is assured by your home or is secured by the equity in a home. This type is a better option if you need a large amount of loan and for long term.

Standard home equity loan is also known as Second Mortgage or equity loan. Home equity loan can help people pay off their big interest rates, non tax-deductible customer’s debt or meet some other short term needs.

A standard home equity loan is a closed-end loan that can have a fixed term, a fixed rate, and fixed monthly payments. It can carry a variable finance charge rate that switches with a federal interest rate. The amount of the loan is usually made available in a lump sum.

Home Equity Line of Credit is a loan option if you need a smaller amount of loan and for short term. This loan type provides you an option of withdrawing money from an equity account when you need it. The home equity line of credit is an 'on demand' source of funds that a borrower can access and pay back as needed.

This type of loan has fluctuating rate of interest. The borrower has to only pay the interest if he carries a balance because this line of credit are essentially a revolving line of credit, like a credit card but with a much lower rate because the line of credit is secured by your home. The borrower can tap the credit line simply by writing a check, and pay back the loan as quickly or as slowly as the borrower like, as long as he meets the minimum payment each month.

Benefits of Home Equity Loan are:

• Home Equity loan can be the best option if you need to repair or reconstruct your home for debt consolidation or for medical or educational expenses.
• It can be used to get rid of credit card debts.
• It can be used to meet your educational loans.
• It can be used for investment in other real estate.
• It can be used to pay off your medical debt.
• It can be used to refinance your other debt.
• It can be used for home improvement.
• It can be used for some major purchases and expenses.
• It can be used for debt consolidation.

Home Equity Loan can be used for home improvement projects because home improvement can be costly and paying that cost might be difficult. Home equity loan provides good interest rates.

Studying in a college has become very expensive these days. Home equity loan can also be used for paying college expenses. This type of loan helps people who have financial problems so that they can afford the college expenses.

It does not matter what is your decision but whenever you take a home equity loan it should be taken from a trusted and well reputed lender. As a whole, home equity loan is a better option while taking loan because it is beneficial in all aspects.

Article Source: http://www.articlesbase.com/loans-articles/why-choose-home-equity-loan-191599.html

About the Author

Prerna Joneja is a Professional Content Developer at Webart Softech having proficiency on diverse topics. http://www.theloanbazaar.com provides more information about the above mentioned topics.

Advantages And Disadvantages Of Home Equity Loans

Author: John Tahan

For example, nearly 50 percent of credit line holders cited the convenience of obtaining money as needed as an important advantage; only 7 percent of traditional home equity loan users mentioned this factor (table 6). In addition, in comparing users of the two types of loans, a larger proportion of the credit line holders mentioned cost, principally a lack of fees, as an important advantage. Many observers have suggested that tax deductibility of interest payments likely is an important factor contributing to the recent growth of home equity credit lines, and the survey responses support this conclusion. Nearly 30 percent of credit line holders and 16 percent of traditional home equity loan users mentioned tax deductibility as an advantage of home equity loans compared with other types of consumer credit. Consumers also cited several potential disadvantages of home equity products. Roughly equal proportions of the users of each type of home equity product mentioned the risk of losing the home as a disadvantage, but credit line holders expressed concerns about possible debt  overextension

extension beyond the normal limit for a joint, commonly causing sprain of its ligaments. twice as frequently as users of traditional home equity loans. Likewise, a higher proportion of credit line users cited cost (interest rate) as a disadvantage of this type of credit, probably reflecting simultaneously the sensitivity to prices of this upscale group of borrowers and the variable rates on most of these accounts.9

In sum, survey evidence suggests that holders of credit lines and users of closed-end loans represent different market segments, albeit with some similarities and overlaps. Credit line holders have somewhat higher incomes and more equity in their homes, but, so far at least, have borrowed less. Debt repayment and home improvement are the main uses of both kinds of loan, but the credit lines are also used more broadly for other purposes. Credit line holders are more likely to mention convenience as an advantage, but they also more often mention the cost in terms of variable interest rates and the risk of possible debt overextension as disadvantages.

Significantly, lack of knowledge about alternatives does not appear to be associated with the selection of loan type. The 1988 surveys show 9. Virtually all credit line accounts have a variable interest rate feature, typically one that allows monthly adjustments that are indexed to changes in the prime rate or to some other short-term money market rate.

Table : 1. Sources of home equity loans

Table : 2. Characteristics of homeowners, by debt status

Table : 3. Proportion of homeowners with home equity loans, by demographic characteristic

Table : 4. Outstanding balance on home equity loans

Table : 5. Purpose of home equity borrowing, by type of loan

Table : 6. Advantages and disadvantages cited by holders of home equity loans, by loan type that 92 percent of all homeowners are aware of that availability of traditional home equity loans, and 75 percent are aware of home equity lines of credit. In comparing the two types of credit, about 90 percent of users of each type were aware of the availability of the other product. But, despite their high levels of awareness, most users of either a traditional home equity loan or of a credit line account did not seriously consider the other type of credit instrument before obtaining their current loan. Among homeowners with a traditional home equity loan, only 16 percent considered obtaining a line of credit instead. Similarly, among homeowners with a credit line, only 20 percent considered taking out a traditional home equity loan. This lack of cross-product shopping likely reflects factors such as the differences in loan purpose discussed earlier. For instance, as previously noted, many credit line holders seem to have established their accounts as standby lines with no immediate use intended, and roughly three-quarters of them mentioned convenience (in one form or another) as a key advantage of that loan product.
Article Source: http://www.articlesbase.com/mortgage-articles/advantages-and-disadvantages-of-home-equity-loans-3414836.html

About the Author

If you found this article interesting and would like to learn more about the loans in general please click on this link http://www.insurancecostfor17yearold.com/homeloans.htm

Why You May Need an Insurance Medical Temporary Plan

Author: Muna wa Wanjiru

You might be traveling and you do not have the assurance that you are going to be safe throughout your travel but, with a short term insurance plan, you will be able to enjoy yourself knowing that you are covered against any accident or incident that many happen and this is a temporary medical insurance. You may get a cover for one month or for a year depending on the duration you think you are going to need it. Various insurance companies have different plans and you need to get a plan that is going to suit you. You may be between jobs and need to have an insurance medical temporary plan. Some of the features of plans include the ability to keep your personal doctor and even the hospital you normally visit.

The second feature is that there is coverage of prescription drugs and discounts, and also insurance for many prescriptions and medical services. However, many plans do not cover pre existing conditions and illnesses. Most insurance medical temporary covers cover only prescriptions, physician services, x ray, laboratory services, in patient hospital stay, skilled nursing facilities, inpatient and outpatient surgeries and rehabilitation. On the internet, you can read about the various plans and get to see the payment plans. Most insurance companies have provided flexible payment plans and they are very affordable to anybody who wishes to apply. It is good to have all the information before you start making any payments.

One of the insurance medical temporary plan is the Celtic plan which covers persons who are 6 months to 64 1/2 years and it does not cover pregnant women. You must also not be covered by any other medical plan. The plan is for all US citizens and people who have lived in the country for over 2 years and they must show the evidence that they are indeed citizens. The insurance medical temporary covers manipulative therapy, radiology and laboratory expenses, surgical charges, prescription drug charges, intensive care charges, hospital out patient charges, inpatient psychiatric charges and others. You should therefore know the kind of insurance you want so that you can get the best deal.

The best deal only comes when you have looked at the available plans. Most plans at first may look great but after comparing to others, you will realize that there are better insurance medical temporary covers to go for. There are no covers that are made for pregnant women and this is primarily because there is certainty that there are medical bills that will need to be paid. Also, all women who are pregnant may bring down an insurance company just because of the huge number of people that would apply. Pre existing conditions are also not covered for the same reason. Choose a cover wisely and you will be assured that in case of a problem, you have the financial aspect covered. Different states have different policies and when you are searching on the internet, you search for specific insurance companies in your home area. Temporary medical insurance is vital to have because it can save life.
Article Source: http://www.articlesbase.com/personal-injury-articles/why-you-may-need-an-insurance-medical-temporary-plan-463927.html

About the Author

Peter Gitundu Is A Web Administrator And Has Been Researching And Reporting On Insurance For Years. You Can Post Your Views On this Article On My Blog Here

Adverse Credit Remortgage UK – Switch Mortgage for Benefits

Author: George Cummings

You are paying a huge amount per month towards the current mortgage which is a burden on your repaying capacity. The best considered way to reduced monthly payments is to go for remortgage. but your problem is that you have adverse credit and lenders may refuge you a new mortgage. In the UK, you can however rely on adverse credit remortgage that is designed especially for the UK people who could not make timely payments, have payment defaults or arrears and county court judgments.

Adverse Credit Remortgage UK allows the UK people to switch their current mortgage to a new mortgage of competitive rates. The advantage of adverse credit remortgage is that people having adverse credit in their names can release extra equity in their home and thus they can use the amount for home improvements, buying car, and wedding or for educational purpose. Despite adverse credit, you can get adverse credit remortgage at competitive interest rate as it is a secured loan using the same property as security of the remortgage. Also, you have the choice of paying back adverse credit remortgage in larger duration which surely reduces monthly outgo towards its installments.

The UK people can get adverse credit remortage at competitive interest rate as such lenders are plenty on internet. Take their rate quotes first of all and compare lenders for a suitable interest rate as per your conditions. Also note that as you clear installments of adverse credit remortgage your credit score improves which goes a long way in taking easier loans in future.

Search well on internet for a suitable adverse credit remortgage in the UK who has right package for your circumstances. Go through terms-conditions of such lenders carefully. Ensure timely paying the remortgage installments as your home is at stake.
Article Source: http://www.articlesbase.com/loans-articles/adverse-credit-remortgage-uk-switch-mortgage-for-benefits-175730.html

About the Author

George Cummings works as financial advisor in Problem Remortgage. He is offering loan advice for quite some time. Cheap Remortgage is a place where you can get the remortgage deal that will be beneficial for you in all respects.To know more about Adverse Credit Remortgage UK, Poor credit remortgage, Remortgage quote, Remortgage quote UK, Online remortgage quote UK visit http://www.problemremortgage.net/

Cheap Insurance Life

Author: Danny Wirken

Permanent life insurance provides lifetime insurance protection (does not expire), but the premiums must be paid on time. Most permanent policies offer a savings or investment component combined with the insurance coverage. This component, in turn, causes premiums to be higher than those of term insurance. The investment may offer a fixed interest rate or may be in the form of money market securities, bonds or mutual funds. This savings portion of the policy allows the policy owner to build a cash value within the policy which can be borrowed or distributed at some time in the future.

The characteristics of Permanent Life Insurance are: permanent insurance protection, it is more expensive to own; it builds cash value, loans are permitted against the policy; it has favorable tax treatment of policy earnings and it has
level premiums.

There are three basic types of permanent insurance: whole life, variable life and universal life. The two most common are whole life and universal life. Whole life insurance provides lifetime protection, for which you pay a predetermined premium. Cash values usually have a minimum guaranteed rate of interest and the death benefit is a fixed amount. Whole life insurance is the most expensive life-insurance product available. 'Universal life insurance separates the investment and the death benefit portions. The investment choices available usually include some type of equity investments, which may make your cash value accumulate quicker. As the you can usually change your premiums and death benefits to suit your current budget'.

Final Tips

• Consider buying a 'break point' level of insurance coverage - better premium rates are given at coverage levels of $100,000, $250,000, $500,000 and $1,000,000.

• Make sure you obtain an illustration for the policy that you have chosen. If the insurer will not provide you with one, look for another insurance company.

• Always shop for a level-premium policy. Nobody likes a surprise increase in their premium payments! So, before you buy term or permanent insurance make sure your illustration shows that your premium payment is guaranteed not to increase over the duration of your coverage.

• Don\'t be sold on permanent insurance for the investment or cash-value feature. For the first two to 10 years, your premiums are paying the agent\'s commission anyways. Most policies don\'t start to build respectable cash value until their 12th year, so ask yourself if the feature is really worth it.

• Determine your desired duration of coverage so that you purchase the correct type of policy and keep your premium payments affordable. If you only need insurance for 10 years, then buy term. Also, check out multiple-quality insurance companies for their rates.

• Don\'t be taken with riders. A very few number of policies ever pay under these riders, so avoid things like the accidental death and waiver of premium riders since they will only jack up your premiums.

• For 24 hours before your medical exam, keep sugar and caffeine out of your system. It\'s best to schedule your exam early in the morning, and don\'t consume anything but water for at least eight hours beforehand.

• If your premiums are much too high due to medical reasons or you are denied coverage, check if a group plan is available through your company. These group plans require no medical exam or physical.

When seeking insurance, don\'t rush into buying expensive permanent life insurance before considering if term life insurance sufficiently meets your needs. Unfortunately, in many cases the fees charged for policies with investment features far outweigh the benefits. When you purchase life insurance, you\'re betting that you\'ll live, but also securing peace of mind in case you\'re wrong. Don\'t leave your family unprotected in the sudden event of your death - after all, they are your most important assets.
Article Source: http://www.articlesbase.com/advice-articles/cheap-insurance-life-26039.html

About the Author

For more information please visit http://www.444.net/.