Home equity loans - Home equity cash

What are the short-term loans, Home Equity loans and home equity lines of credit (HELOC)?

Home equity loans are typically junior loans and should not be confused with the base to refinance, which means repayment of existing mortgage and replace it with another loan. Refinances can take 30 days or more to process. Home loan fund shares rather quickly and are subject to the existing first mortgage. In other words, equity loan falls to second place.

Lender security on your home loan, which means if you are going to default and not make mortgage payments or otherwise comply with the terms of the loan, the lender is entitled to recover. In many states, like California, if a homeowner stops paying the first lender to protect their safety, the second position of the lender can step in, represent the first payments to the lender, and begin its own foreclosure proceedings. All this means that your home is threatened, when you take out home equity loans.

Bridge Loans
Bridge loans are used by sellers who want to buy a new house before selling the existing homes, but needed cash from existing homes. You will see the bridge loans are used most often in the market than a buyer in the market. General conditions for overcoming the loan are:

* Loan amounts up to 80% of market value
* Higher borrowing costs, such as centers or administrator Boards
* No payments for a period of 3 to 4 months
* The right to revise the terms of the loan if the house does not sell on credit term
* Some lenders require borrowers to obtain financing for their new house with the lender to make a bridge loan

Home equity loans
Borrowers can obtain loans of justice in all 50 states. Equity loans can be used for the purchase price of new houses, but the lender will not loan, if your house is on the market. This is the main reason many sellers receive loans, instead of bridges. But because the costs above, with a bridge loan, it makes more sense to get a loan of shares, if you can plan far enough ahead.

Borrowers also get a home equity loan to pay for home improvements / remodeling, higher education or medical expenses. Since the interest tax on home equity loan, many homeowners have decided to borrow against homes for the purchase of consumer goods. They reason that if they finance consumer goods by obtaining an unsecured loan or a deposit for purchase by credit card, they can not deduct the interest, but they often do not stop to consider the question of whether the item is really necessary. This is not a good idea to take from your house to buy luxury items such as motor homes, boats or ski vacations, but they do it. Benefits for home equity loan are:

* As a rule, the fixed interest rate
* Use 100% of the shares or more
* Amortized Payment
* For loan terms such as 3, 5, 7, 10 or 15 years.

Home equity line of credit (HELOC)
Borrowers can take advantage of home equity line of credit and does not return a penny. This is because the HELOC is a line of credit, ie if you never make any money, you never have to pay it back. It is available to check more than you have in your account, or to make a conclusion on a specific account in your lending institution.

Some of the features inherent to the HELOC are:
* As a rule, controlled currency loan
* Once the money has been returned, you can take it again
* Flexible payment terms, and sometimes even 1% of the outstanding loan

Note: At the time to ask for HELOC, when it is not required. This credit, which will be available for you if you ever need to draw on it, as you subsequently unemployed or facing immediate financial emergencies.

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