Home Equity Loan vs Home Equity Line Of Credit – Debt Consolidation
Home Equity Loan vs Home Equity Line Of Credit
Gary Gresham
Many people confuse a home-equity line of credit with a home-equity loan. With so many different kinds of loans it can get confusing. So lets look at the difference so you can get a better understanding of what works best for you.
Home Equity Line Of Credit
Home-equity lines have experienced unprecedented growth in the past two years and presently represent 80 percent of the home-equity market.
A home-equity line of credit is a varible interest rate loan that works like a credit card. You get a pre-determined loan amount that is secured by your home.
Most come with checks and credit cards that you can use to draw on as you need the money.
Most lenders only require an interest only payment for either 10 or 15 years. After that the loan must be paid in full. The reality is most people will sell their home and pay the loan off before it actually comes due. You could always refinance if you decide you want to stay in your home.
An important thing to remember on a home-equity line of credit is it is based on varible interest rates. These varible rates will cause your payment to change as the interest rates move up or down.
Home Equity Loan
A home-equity loan has a fixed interest rate and fixed payment. These loans are more like a standard second loan on your home. Like a home-equity line of credit, these loans are also secured by your home.
You borrow a certain amount of money for a specific period and get the whole sum at the close of the loan. The payments a on home-equity loan are typically based on 10 to 15 years and are level.
People who arent comfortable with an adjustable or varible rate payment tend to favor a home-equity loan instead of a home-equity line of credit. As interest rates rise, these loans become more popular than home-equity lines of credit.
A home-equity loan will have a higher interest rate because it is fixed. Varible rate loans usually have lower starting interest rates. But if interest rates are rising, a varible rate could catch up or even get higher than what the fixed rate is.
About The Author
Gary Gresham is a mortgage loan officer and the webmaster for http://www.1stopshoppingonline.com. He offers you purchase, refinance, debt consolidation or home equity loans at competitive rates at http://www.1stopshoppingonline.com/home-loan.html
Gary@1stopshoppingonline.com
How Will Check 21 Affect You – Debt Consolidation
How Will Check 21 Affect You
Shannon Jarvies
You may already be familiar with Check 21, a federal law that goes into effect on October 28, 2004. If youre like me, this may be something you hadnt heard about until just yesterday. The Check Clearing for the 21st Century Act, otherwise known as Check 21, is the process of turning the checks your write into images and transmitting them by computer.
What does this mean to you
Expect the time your check clears to decrease drastically. If you live paycheck to paycheck and often count on a one or two day "grace period" to get funds into your account after paying bills, youll need to re-organize your budgeting process. Checks will clear in a matter of hours now, not days.
You will no longer be getting your cancelled checks back with your bank statement. If you get anything at all, it will be a "substitute check" which is a certain kind of copy of your original check.
You may be charged extra fees. Its possible that by using this method, your check will be paid twice: once with the original and once with the scanned image. Or there may be an error made in the amount a check was written for in the process of turning an paper check into an electronic check.
What you should do:
Re-organize your budget. You have to make sure that you have the funds in your account to cover every check you write to avoid bouncing any checks.
Request substitute checks. You will not be entitled to a credit to your account if an error has been made unless you have a substitute check.
Balance your checkbook. If you are not in the habit of balancing your checkbook with your bank statement each month, you need to start. This will ensure that youll find any mistakes that may have been made.
Learn more. Consumers Union did not support Check 21. Find out why and learn more about Check 21 HERE
About The Author
Shannon Jarvies is a WAHM with five beautiful children and a wonderful husband. She also runs a Debt Management Website where you can find resources on how to eliminate debt including debt consolidation, budgeting help and money saving tips and ideas.
shannon@consolidationdebtfree.com
Why Choose a Debt Consolidation Loan – Debt Consolidation
Why Choose a Debt Consolidation Loan
John Mussi
If you are one of the many people who continually struggle to cope with an ever increasing amount of debt the solution could well be within your reach.
If your are looking to:
reduce interest rates
lower your monthly payments,
avoid bankruptcy,
consolidate your bills
have one monthly payment,
or simply get out of debt the fastest way possible
then a debt consolidation loan could provide the answer.
Are you feeling overburdened with debt Are you paying out too much every month for your credit cards, store cards and loans Then why not replace them all with one, lower, convenient repayment through a consolidation loan
Consolidation loans can give you a fresh start, allowing you to consolidate all of your loans into one - giving you one easy to manage payment, and in most cases, at a lower rate of interest.
Secured on your UK home, low cost, low rate, cheap, low interest debt consolidation loans can sweep away the pile of repayments to your credit and store cards, HP, loans and replace them with one, low cost, monthly payment