| |
Have you ever wondered what exactly is up with
ames home loans
Home Equity Loan vs Home Equity Line Of Credit
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 aren't 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
More Useful Resource and Updates on ames home loans
- Misery Loves Company: Negative Equity Edition (Time Magazine)
Almost half of all mortgage holders in Nevada now owe more than their house is worth. Mindboggling to think about.
- Chicago's Skyscraper Swagger Fades as Trump Extends Tower Loan (Bloomberg)
Oct. 31 (Bloomberg) -- The credit crunch has made even Chicago, birthplace of the skyscraper, inhospitable to high-rise construction. Just ask high-profile developer Donald Trump . He's been forced to hit up his bankers for extra time to pay back a loan used to finance the 92-story Trump International Hotel & Tower Chicago . Progress on the world's tallest residential building, the Chicago ...
- Your Shrinking Home Equity Line of Credit (News On 6 Tulsa)
Do you know how much you really have available on your home equity line of credit? Increasingly, Americans cannot be sure.
- Opening the Tap on Home Equity (New York Times)
Lenders are cutting back on homeowners? credit lines or freezing them altogether.
- U.S. mulls up to $600 billion in home loan guarantees (Reuters via Yahoo! News)
U.S. regulators are working on a new federal program that could provide government guarantees for up to $600 billion of home mortgages to help prevent foreclosures, a source familiar with the discussions told Reuters on Wednesday.
- Buying a home? 12 places to find money for a down payment (ABC 2 Baltimore)
The mortgage crisis has made it more difficult for home buyers to get a mortgage, and bigger down payments are becoming the norms. Here are 12 places to look for...
- Report: Homeowner equity sinking (Pioneer Press)
Falling home values have left nearly 52,000 mortgages in Minnesota in a negative-equity position, meaning the homeowner's debt is greater than the estimated value of the property.
- Home equity is gone for many mortgage holders (Seattle Times)
Almost 8 percent of Washington homeowners owe more on their mortgages than their home is worth, and another 11 percent are close to being in that position, a new report shows. It also reveals that almost a quarter of all U.S. mortgage holders are in danger of having no home equity ? because they bought recently with little or no money down, or because refinanced to take out equity or because ...
- US mulls up to $600 billion in home loan guarantees (The Economic Times)
US regulators work on a new federal programme that could provide govt guarantees for up to $600 bn of home mortgages.
- Ames Mortgage, Ames Home Equity Loan (AmesMortgage)
Nationwide Home Loans > Iowa > Ames. Looking for a Ames Mortgage Company? ... Get home equity loan quotes from lenders in Ames, Iowa. ...
- Elliot Ames Nevada, Inc. Home Loans in Nevada EZ Commerce
Home Loans in Nevada. Licensed Mortgage Broker for Nevada, 1st, 2nd, FHA and VA, No Down, our experienced loan professionals will find the right loan for you at the ...
- Ames Banks in Ames IA Yellow Pages by SuperPages
Directory of Ames Banks in IA yellow pages. ... Home Equity Loans, Mortgage Brokers, Mortgages, Banks, Mortgage & Loan Banks, more? ...
- Aames Home Loan A
... accounts, mechanic's liens, tax liens, credit cards, car loans, or other debts ... Aames Home Loan. A. AMES. U. NDERWRITING ...
- Mortgages, Loans and Rates in Bill Ames
... lenders, loan, loans, prequalify, rates, real estate, financing, home loans, 0 down, ... better terms on their home purchase and now that payments ...
- Ames, Iowa Home Mortgage, Refinance, and Home Equity Loans
... .com providing Ames, Iowa home mortgages, home loans, and refinancing ... A Guide to Home Equity Loans and Lines of Credit. Calculators: Which Loan is better? ...
|
|
|
