Free Website Content » Finance » Mortgage - Refinancing Articles

Print This Article
Publish This Article

Home Equity Credit Lines Provide Quick Access to Cash

By: Colin P

If you need to borrow money, home equity credit lines can be one of the options available to you. This line of credit home equity is a loan granted to the borrower with his home as collateral. Home equity per say is the difference between the worth of your property and the amount you owe on your mortgage.

Of late many people are opting for home equity lines of credit because of its ease of acquisition and flexibility. If you use the equity of your home as collateral in a loan, you have access to a large pool of funds which you can use to expand existing business or undertake a new one whilst still owing your home. If you negotiate well, you can obtain line of credit home equity far exceeding the current price of your home. Again, you have the advantage over other kinds of borrowed funds because you enjoy low interest here. The biggest advantage for home equity for small businesses owners especially is that the interest on home equity credit lines is treated as tax deductible. This simply means you can take out the interest payments as an expense before you declare profits, thus leaving you with more money as net income.

Line of credit home equity is the best option for a business with homes which needs long term capital. As the homes increase in value, the loan interest decreases in value with the effect that businesses gain over the long term.

Home equity loans need to be contracted with great care. Look around for the best plan or terms so you don't risk defaulting on the loan. If you default on the loan, your home may be foreclosed. Foreclosure is the process of offsetting a debt with the sale of a borrower's home. The forced sale comes about because you have irreversibly used the home as collateral in the agreement and have authorized the lender to take over the house in the event you are unable to pay up on the interests.

When it comes to using your home as collateral for a loan, there are two major options: home equity line of credit and a home equity loan.

Home Equity lines of credit are used for any kind of expense at all such as home improvements, educational and medical expenses and small business expenses. You make monthly payments at varied interest rates. If you are not the type that worries about changing payments and interest rates, then you may go for this option.

On the contrary, home equity loans gives you access to funds which need to be expended in a lump sum such as the expenses in connection with buying a new car or starting a new business. In this type of loan, interest payments are fixed. If you want a predictable payment, then this is the option for you.

Home equity credit lines have helped many businesses and individuals get access to large pools of funds for business expansion or acquisition of another home. This ease of access must be balanced with the fact that persistent default in payments can result in the loss of your home.

Author Bio
More information on Home Equity Credit Lines

Article Source: - Free Website Content

Related Mortgage & Refinancing Articles

Finding a Bad Credit Mortgage
Bad Credit Mortgage Refinance
Bad Credit Mortgage Refinancing
Buying a Home with No Money Down
Cash Out Refinancing
Understand Credit Report's Relevance In Mortgage
The Current Mortgage Rate
Getting a Home Inspection
Securing the Best Mortgage Rate
Shopping Home Equity Loan Rates
Assumption, Assuming a Mortgage
California Home Mortgage
Refinancing Houses
Looking for a Home Mortgage? Shop Around
Locating a Home Mortgage
Agreement of Sale
How Much is too Much for Mortgage Closing Costs?
Let the Mortgage Companies Fight for Your Business
Finding a Mortgage Refinance Advisor
The Right Time for Mortgage Refinancing
Mortgage Refinancing
Shop Around for a Mortgage
Glossary of common terms used during the mortgage process
New Home Purchase
Obtaining a Mortgage On-line
On Line Mortgage Quotes
Refinancing Online - Can You Really Save Time And Money?
Refinancing With Cash Out
Refinancing with Home Equity Loans
Reverse Mortgage
Home Equity Credit Lines Provide Quick Access to Cash

©2006 Free Website Content - All Rights Reserved

Free Website Content
Home / Free Articles
About Article Geek
Contact Us
Latest Articles
Link to Us
Privacy Policy
Site Map

Your Account / Login
Article Tips
Author TOS
Article Benefits
Editorial Guidelines
Submit Article

Publisher TOS
RSS Feeds

RSS Feed Parser

Resource Directory - Free Website Content