Elmira Nancy
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| home equity loan work |
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I need to know all the details and if it is a good choice. I have payed off my vehicle and credit cards and have none, but I have alot of student loan debt. Our dilema are the student loans. And paying them. I have heard about home equity loans and heard about being tax deductible. How do they work? Do they look bad on your credit? How much can you borrow ? Does it add to the years to pay off your house? We only have eleven years left to pay as it is right now. Just wondering what is a good option. I even thought that after I graduate and am working that my pay checks can go all to my student loans. I am just looking for some good ideas without having to stress out about debt and bills and such. We are trying to pay our bills off and so far have done good. But those student loans are looming in the background.
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Thu Dec 03, 2009 6:22 am |
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littleroc02us
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I'm not sure I understand, so you want to move the debt to something else (Home equity Loan) and call it a good financial decision. The tax write off isn't worth it, because imagine if you lost your job and you put a lean on your home. Not a good idea. You stated that you don't have CC and car debt. So work like heck to pay off the school loans. Get it done.
“If you want to stay in debt forever, keep borrowing money.”
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Thu Dec 03, 2009 2:41 pm |
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oldguy
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quote:
I even thought that after I graduate and am working that my pay checks can go all to my student loans. I am just looking for some good ideas without having to stress out about debt and bills and such.
It depends on your interest rates. Typically SLs have very low interest rates and very long repayment terms, 20, 25, even 30 yrs. If that is what you have, that is probably the most inexpensive use of someone else's capital that you will have in your lifetime. So you should keep the SL for its entire term, don't prepay any of it. Instead, use your income stream for better things, build your famiy wealth - ie, your 401k's, your Roth IRA's, a taxable investment account, etc.
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Thu Dec 03, 2009 4:46 pm |
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Robertspeicher
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| Re: home equity loan work |
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There will be times when you need extra funds to do home improvements, purchase a car, or go on a vacation. A homeowner who does not want to use his credit card or tap into his savings can use the equity of his home. With equity loans, you tap into the value of the home and place the home as collateral for the loan. Equity is the value that you have in your home computed by market value minus what you owe on the home.
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Tue Dec 08, 2009 7:42 am |
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littleroc02us
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| Re: home equity loan work |
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quote:
Originally posted by Robertspeicher
There will be times when you need extra funds to do home improvements, purchase a car, or go on a vacation. A homeowner who does not want to use his credit card or tap into his savings can use the equity of his home. With equity loans, you tap into the value of the home and place the home as collateral for the loan. Equity is the value that you have in your home computed by market value minus what you owe on the home.
In my opinion this is absolutely not a good idea. Never take out a home equity loan to purchase a car, take a vacation or do home improvements. Try saving the money and paying for it in cash. If you keep increasing your debt load you'll never be financially secure.
“If you want to stay in debt forever, keep borrowing money.”
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Tue Dec 08, 2009 7:06 pm |
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jimmy123
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Hello
"This is Patrick Munro, financial adviser, talking about how does home equity loan rates work. Basically home equity loans are secondary loans made to the principle mortgage. The mortgage is what's called the primary position on a piece of real estate. That's when you first bought your home, you took out a mortgage to buy the house. You put a down payment down under the guide lines of the bank. Over time you start to pay your mortgage down and then you see that your house is growing in value normally over time as well. Then you'll see that the equity position that you do have in your house is quite substantial. What you're able to do is take out a secondary line of financing from your same bank or a different bank. That particular mortgage is a secondary position and therefore, has a higher interest rate normally then the primary mortgage. This is how home equity line of credit interest work. And this is financial adviser Patrick Munro."
Wrestling
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Wed May 19, 2010 4:57 am |
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Keilysmith
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The home equity loans allow a house to borrow money for the promise of home warranty. Borrowers who want to borrow a large sum of money or not having a bad credit loan home equity loan capital are often used attractive.Borrowers home to some of life to higher costs, because the houses are often very useful to borrow against.
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Wed Aug 11, 2010 12:08 pm |
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SaraCEO
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According to me you should not take loan for home warranty for car. I advice you to wait and save some money then buy a car. Buy car with home is not a good deal.
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Fri Aug 13, 2010 1:25 pm |
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