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Comparing a Home Equity Loan and a Line of Credit
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Comparing a Home Equity Loan and a Line of Credit

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Understand how a line of credit on your home and home equity loan are different before deciding to apply for this type of financing. Alternatively, you may browse over to ...

Understand how a line of credit on your home and home equity loan are different before deciding to apply for this type of financing. Alternatively, you may browse over to http://www.onlinehomeequity.net

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    Comparing a Home Equity Loan and a Line of Credit Comparing a Home Equity Loan and a Line of Credit Presentation Transcript

    • Comparison: Home Equity Loan and Home Equity Line of Credit By Scott Adams
    • Home Equity Line of Credit (HELOC) | Home Equity Loan (HEL) HELOC HEL Revolving credit, with a specific A fixed amount of money, up toWhat You Get credit limit of up to 100 percent 100 percent of your equity in of the value of your home (its your home (its value minus value minus all debts against it). your first mortgage debt and Some lenders will allow you to other debts). Some lenders will borrow up to 125 percent of the allow you to borrow up to 125 value of your home. percent of the value of your home.
    • Home Equity Line of Credit (HELOC) | Home Equity Loan (HEL) HELOC HEL You typically need to provide You typically need to provideHow To Qualify proof of your income, home proof of your income and ownership, your mortgage and home ownership, and proof how much equity you have in that at least 20 percent of the your home. An appraisal is value of your home is paid off. usually required as well. An appraisal is usually required as well.
    • Home Equity Line of Credit (HELOC) | Home Equity Loan (HEL) HELOC HEL Minimum payments (possible Fixed payments of interest andHow To Repay as interest only) every month; principal over a set period of ultimately you have to repay time. the entire amount borrowed along with interest.
    • Home Equity Line of Credit (HELOC) | Home Equity Loan (HEL) HELOC HEL You have a 10 to 20-year The term of the loan can be asHow long it period which you can withdraw short as a year or up to 30 from the line (up to the credit years.lasts limit), after which you have a fixed period to pay back the outstanding balance plus interest.
    • Home Equity Line of Credit (HELOC) | Home Equity Loan (HEL) HELOC HEL Usually no closing costs, but Usually no closing costs, butCosts may range from $150 to $800 may range from $150 to $800 and have an annual fee and which is lower than a first non usage fee. mortgage.
    • Home Equity Line of Credit (HELOC) | Home Equity Loan (HEL) HELOC HEL You draw funds as needed, You receive one up-front lumpHow you receive typically using special checks or sum a credit cardthe funds
    • Home Equity Line of Credit (HELOC) | Home Equity Loan (HEL) HELOC HEL The prime interest rate plus a Fixed or adjustable rateInterest rate margin (which can vary from one institution to another).
    • Home Equity Line of Credit (HELOC) | Home Equity Loan (HEL) HELOC HEL Interest may be tax-deductible Interest may be tax-deductibleTaxes (consult with a tax advisor). (consult with a tax advisor).
    • Home Equity Line of Credit (HELOC) | Home Equity Loan (HEL) HELOC HELWhich is suited Those who need access to Those who need a specific funds now and in the future amount for an immediate needfor me and want the flexibility to use and want to receive all of your your credit any time funds up-front and/or prefer to always pay your loan in fixed payments over a fixed period of time.
    • Home Equity Line of Credit (HELOC) | Home Equity Loan (HEL) HELOC HELWhere do I Apply with your local bank or Apply with your local bank or click the website below click the website below:apply www.OnlineHomeEquity.net www.OnlineHomeEquity.net