Home Equity Line Credit Tips


The following information on the Home Equity Line Credit Tips is provided by Bankrate. This is a great resource and can be accessed at:


http://www.bankrate.com


12 tips for wise use of equity
Before taking a home equity loan, look over these guidelines.

1. Make your mortgage payments a priority. It's your home that's on the line.


2. Don't go with a high loan-to-value product. Lenders who let you borrow more than your house is worth may not be doing you a favor.

3. If you like plastic too much, forgo using a credit card to access a line of credit and get checks instead. Paper is a little harder to let go of.


4. Don't tempt yourself by carrying your home equity credit card or checks with you all the time.


5. Keep some equity freed up for emergencies.


6. Maintain good credit. Banks monitor your payment habits and if they see a change for the worse, they could reduce or freeze your credit.
7. Read the fine print in your loan agreement.


8. If a lender is unfamiliar to you, check with government agencies to see if there have been any complaints.


9. Before you do anything, ask yourself whether you can afford more debt and, if so, how much.


10. If you're out of a job, you could soon be out of a house too if you can't make the loan payments. Investigate other resources -- disability, unemployment, savings, borrowing against a 401(k), stocks, insurance policy or retirement plan -- before you decide to take that risk.


11. If you are going to use the money to make a large purchase, make sure it's something that's going to outlast the life of the loan. Don't put your house on the line for a vacation or new clothes.


12. Don't use home equity loans for day-to-day expenses. Those should be paid entirely out of your current income.

 

 

Mortgages

http://www.mortgagesaver101.com

Home Mortgages

MortgageSaver101.com
101waystosave.com








FREE Quote
Apporval Process
ARM
Avoid Scams
Bad Credit
Best for you
Calculator
Credit Score
Fannie Mae
Fixed Rate
Freddie Mac
Good Credit
Home Improvement
Interest Only
Line Credit
Rates
Reverse Mortgages
Carryback Mortgages
Second Mortgage
Tax Advantages
Tips
VA Loans
Variable Rate
What is a HELOC
What to Avoid
Hazards


Site Map
Contact Us
Links
Home

Email to a friend