LOOKING FOR HOME EQUITY LOAN ?
Interest rates are so low right now that for some people, getting a home equity loan or a home equity line of credit seems like a no-brainer. But that may not be the best solution for your circumstances.

A home equity loan allows you to borrow against the value of your home and your payment is the same every month.

If you take out a home equity line of credit, a certain amount of money is approved and put into an account for you. It stays there until you take it out. However, the risk is that if the prime rate moves, so does what you pay for your line of credit.

Is it worth it to apply for a home equity loan or line of credit? It all depends on your particular situation.
People take out home equity loans and lines of credit for a variety of reasons. No matter which type of loan you choose, there are certain things you should never ever use the money for. For instance: weddings, furniture, drapery, vacations, and meals. None of these items has a lasting financial value. Using the equity in your home to buy them is called stripping yourself of equity. Your home’s equity is an asset. When you use it to buy things that don’t appreciate in some way, you are basically throwing that asset away.

This entry was posted on Sunday, September 4th, 2005 at 5:03 pm and is filed under Masala. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.