Donดt have enough money to pursue higher studies in a
reputed institution? There is no need to worry at all.
You can easily get a 100% Home Equity Loan to achieve
your dreams.
The functioning of 100% Home Equity Loan is similar to that
of the credit card. One can use the loan continuously up to
the credit limit. The main advantages of 100% Home Equity
Loan is that the interest is lower than that of the credit
card and the interest paid is tax deductible. All you need
is to talk with your tax planner or financial advisor to
know about the tax deductions. As the name states, with
100% Home Equity Loan, you can borrow up to 100% of your
homes value at fixed rate of interest. For the reason that
you receive the money you borrow in a lump sum, it will
be an ideal option to achieve long term financial goals.
Generally, the period of repayment of 100% Home Equity
Loans is much shorter than ordinary mortgages.
Ways to Use 100% Home Equity Loan
Take cash only for genuine and specific reasons.
Save your tax payments through Home Equity loans
whose interest may be fully tax deductible.
Home Equity can be used as the part of down payments
to get better terms of home purchase or loan
refinancing.
Through home equity, you can obtain "instant cash"
which can be used for other investments or other
emergencies as they come up.
How to Get a 100% Home Equity Loan
If you need instant money and you have your home as equity,
it is very easy to get the loan since real estate is the
collateral most lenders seek after. The way of attaining a
home equity loan can be illustrated using an example.
Consider that your home worth $1000 and you owe $400 as
mortgage. So, you now have a home equity of $600. With this,
you wont get a loan amounting $600 since if he pays you
that amount, you will be 100% financed and if you fail to
repay the loan the loss is only for the lender. Hence in
most cases lenders need you to hold an equity level above
the first mortgage and home equity loan combined.
What to look before taking 100% Home Equity Loan:
Obtain as many offers as many as you get and compare
the advantages and disadvantages of each and choose
the best among them.
Go for fixed rate loans so that the interest will
neither rise nor fall like adjustable rate loans.
If going for an adjustable rate loan, make sure that
the maximum and minimum interest rates are specified.
Make sure that you can afford to pay the monthly
interest and amortization.
Make the contracts reviewed by professionals.
Christian louis is the author of this article |
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