Home Loans Articles

Home Equity Loans

Borrowing money seems to be a popular pastime that goes on all of the time. Seriously though, taking out home equity loans has helped many a homeowner out of a financial bind. The money is obtained quickly and comes with reasonable repayment terms. Home equity loans are reliable means of borrowing funds for an extended period of time.

What Are Home Equity Loans?

Home equity loans are secondary loans that are taken out by a homeowner using the home as collateral or security for the loan. Typically, the amount that is borrowed is considerably less than the amount of financing obtained through a primary mortgage loan. However, it isn't necessary to still have a mortgage loan in order to get a home equity loan.

If a first mortgage is still in place, the home equity loan takes the position of second lien. In the event of a foreclosure, the first mortgage has primary leverage in recouping their investment in the property. In general, home equity loans can be taken out for as little as 5 years or as long as 20 years. Both terms and interest rates vary according to lenders, the borrower's credit history, and other mitigating factors. Monthly payments are required once the individual obtains the funds.

The Benefits of Home Equity Loans

Home equity loans come with quite a few benefits attached to them. Typically, it is easier to obtain one of these than it is to obtain a first mortgage. Additionally, since home equity loans ae secured by the homeowner's property, the interest rates are often considerably lower than that attached to other types of loans including unsecured loans, payday loans, and cash advance loans. Plus, there's no need to worry about obtaining private mortgage insurance either.

The Benefits of Applying Online for Home Equity Loans

An online application is not only short to fill out, it produces quick results. In fact, the process often takes less than ten minutes. Plus, the results are generated quickly, effectively cutting down the applicant's wait time. Therefore, you can apply for the money and receive it all in the same week. Online applications are free to complete and the quotes carry no obligation with them.

Applicants simply need a reliable source of income, a few pertinent personal facts, and an idea as to how much money they would like to borrow. While the applicant's credit history might come into play as far as interest rates and terms, home equity loans are available for individuals with all types of credit- good and bad.