Ken Charnly asked:
You are in need of money and have decided to get a home equity loan, but want to know what options are available to you. Which home equity loan is right for you? What is the different between them?
A home equity loan is the amount in between what your house is worth and how much you owe on your home. It is secured by the amount of equity in the home and can be taxable. It can lower your interest as well as giving you a fixed rate.
You have two options when making the decision. First, you can receive a home equity loan. With this one you get a lump sum of money, at a fixed rate, and one monthly payment. When you pay it off that is it, your debt is gone.
Another option is a home equity line. With a home equity line you receive a line of credit that is available for you to use for a certain time frame. You can use it and pay it off, then use it again. Just like a credit card. The interest rates are variable and you only make payments on the amount you use, not the amount you have available to you.
If you know what you need the money for and how much, then a home equity loan would be your better choice. However, if you don’t know how much your project is going to cost and/or know it will be paid off in a certain length of time, then the home equity line would be better for you. It all depends on what your needs are at the time.
DORIAN
You are in need of money and have decided to get a home equity loan, but want to know what options are available to you. Which home equity loan is right for you? What is the different between them?
A home equity loan is the amount in between what your house is worth and how much you owe on your home. It is secured by the amount of equity in the home and can be taxable. It can lower your interest as well as giving you a fixed rate.
You have two options when making the decision. First, you can receive a home equity loan. With this one you get a lump sum of money, at a fixed rate, and one monthly payment. When you pay it off that is it, your debt is gone.
Another option is a home equity line. With a home equity line you receive a line of credit that is available for you to use for a certain time frame. You can use it and pay it off, then use it again. Just like a credit card. The interest rates are variable and you only make payments on the amount you use, not the amount you have available to you.
If you know what you need the money for and how much, then a home equity loan would be your better choice. However, if you don’t know how much your project is going to cost and/or know it will be paid off in a certain length of time, then the home equity line would be better for you. It all depends on what your needs are at the time.
DORIAN
