Category — Mortgage

When you start looking for ways to finance your child’s education, to make home improvements, or other large expenses, one option which always comes up is home equity loans. Are these loans your best friend in times of need, or are they a large burden which will harm you?

Home Equity Loans

First you need to understand exactly what a Home Equity Loan is. You are borrowing money against the equity you own in your home. If you purchased your home with a $200,000 mortgage, and you have made enough payments to cut the remaining balance down to $100,000, you may have $100,000 in equity. This will depend on the current appraised value of your home. The loan company will evaluate your income, your other debts, and determine how much money you can borrow against your $100,000 of equity. Normally home equity loans are lower in cost than other forms of loans, and much lower than credit card debt. However, there is a risk. Continue reading →

Grab your local newspaper and take a quick look at the local bank mortgage rates. You will see many banks seeming to be all inline with each other and a few with wildly different rates. Why are the rates so different? Why do you need to shop?

Bank Mortgage Rates

Many people wanting to buy their first home or to refinance their mortgage walk into their own bank, sit down with the loan officer and write up the papers. They are sure their bank is going to give them a fair deal, and they are right. The bank will give them a fair deal for themselves, but it may not be the best deal for you. Continue reading →