Saturday, June 2, 2007

Do You Need Another Home Loan? How Much Can You Borrow Out of Your Home?

Home equity loans allow you to borrow up to 100% of your home�s value. They are perfect for the homeowner who needs quick cash to consolidate debt, make home repairs, or pay for expenses like college tuition or medial bills.

Do You Need Another Home Loan?

Home equity loans have many advantages. You can borrow large sums of money, while benefiting from a typically low interest rate. Plus, home equity loan payments usually come with certain tax advantages. If you do need another home loan, a home equity loan may be your best option.

How Much Can You Borrow Out of Your Home?

Most home equity loan lenders allow you to borrow up to 100% of your home�s value. To find out how much you can borrow out of your house, have the house appraised and equity then subtract the amount of money that you owe on your current mortgage. For example, if your house is appraised at $100,000 and equity you only owe $70,000, you have $30,000 in home equity.

No Equity? No Problem!

Many home equity loan lenders offer no equity home equity loans. Sometimes called high loan-to-value plans, these loans allow you to borrow more than your home is worth. In some cases you may be able to borrow 125% of your home�s value. If you need fast cash, but have low equity or no equity in your home, a no equity home equity loan could be the answer.

A Final Thought on Home Equity Loans

Home equity loans are a wonderful source of credit. However, before applying for a loan, make sure that you take time to compare lenders and equity research the type of home equity loan that is right for you.

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