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Reviews of the Lowest Home Equity LoansIf you are like most people these days, the real estate boom has left you with a lot of paper money in your homes equity. Past generations left the equity alone and let it build, but todays generation wants to spend, spend, spend. Home Equity loans are offered now by all major banks (Countrywide, Wells Fargo, Washington Mutual, Chase) and there are countless online services that let you get rates quoted from 4 lending institions at once. They are websites like Lendingtree.com, Lowermybills.com, and Ameriquestmortage.com. Many banks offer teaser rates or interest only loans which have little money due now, but in the near future come due with higher payments which may leave many borrowers in debt over their heads. Home Equity loans can be useful, but beware of offers to good to be true since you are essentially going more into debt to get the money out of your house now instead of later.
What kind of home equity loan can I get with bad credit?:Surprisingly enough, even borrowers with bad credit can secure home equity loans from almost all banks. The reason being is that the banks only loan out money if you have collateral (such as a home). Therefore, their risk is limited since they can take possession of your home if you fail to pay off your loans. Be careful though, since most banking institutions will loan money at levels way beyond what you actually need and you can get yourself more in the hole. Sound credit counseling is a wise choice before turning to a bank to solve your issues.
Countrywide Home Loans:Countrywide is a well recognized home loan bank that covers the entire US and is a good place to start in terms of finding a home loan or equity loan. They offer competitive rates for both types of loans and can accommodate all types of borrowers with their loan programs. We strongly recommend staying away from any Interest Only loans unless you are well aware of the financial ramifications down the road with those type of alternative loans. Many people find themselves strapped for cash when the payments increase and end of having to sell their homes at a loss. With interest rates rising again, it's a good time to lock in a 30 year fixed (they are still at almost 40 year lows - less than 6%).Is it a good idea to take out the equity in my house?:It really comes down to an economic decision on a case by case basis. If you are in good financial shape (no credit card debt), then a home equity loan can be a good idea if you plan on investing the money wisely in a 2nd home or a home improvement project. Many homeowners in California and Florida have seen a 100% increase in the price of their homes over the last few years and they are taking out equity in record #'s to invest the money in further real estate deals (some are speculative). We don't recommend taking out equity to pay off credit card debt unless you are going to be dedicated to not run up your balances again. Bailing yourself out of debt by taking equity from your home can be a disaster if a year or 2 later you are back in the same spot. Use your best judgement when considering a home equity loan.
What can I use a home equity loan for?:There are dozens of things people are using equity loans for these days. College tuition for their kids, home improvement projects, paying off high interest credit card debt, getting a down payment ready for a 2nd home or vacation property, and taking vacations. With the recent boom in real estate prices, people are finding their homes are worth twice as much as they paid for them and are now tapping the equity to enjoy their lives.
Do you have a quality site or product that belongs in this guide? We are always happy to evaluate or review new products and websites. Feel free to contact us at the email address below and let us know about you. If you have a demo product you'd like us to look at, please contact us before sending anything. Thank you.
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