Home Equity Loans – The Things You Should Know
If you are planning on buying your dream home, a second or vacation home, or already planning to move with a new home buy, there are definitely a variety of home loan options to check out.
Many edges, financial institutions and private lenders offer home loans; home equity loans, private loans or equity line of credit loans. All good lending programs will consider this, as it helps you to borrow the money, just by using your home on collateral basis.
What is equity?
In financial jargon, it is said to be the difference between the cost of home and how much you owe on the mortgage or combined mortgages, in the case where you have a second mortgage out on the character. In other words the value of your home is the equity you have built into it.
Home Equity Loan Rates
You can find out what current home equity loan rates are, compare them with several different financial institutions and use handy online calculators at BankRate.com: http://bankrate.com . For example, as per the current statistics of the Bank of America, their home equity loan interest rates are as follows:
1. 30 year with a fixed rate is 5.81 percent on the amount taken as loan.
2. 15 year with a fixed rate is 5.51 percent on the amount taken as loan.
3. 30 year with a fixed jumbo is 6.12 percent on the amount taken as loan.
4. 15 year with a fixed jumbo is 5.78 percent on the amount taken as loan.
The monthly payment of a loan is calculated to be around $400 to $1000.
Home Improvement Loan
If you want to fix up your home, then you will want to search for information on a home improvement loan. These types of loans are designed for the people who want to finance their home repairs, renovation of their homes, room additions to their old homes, etc. without going for equity loans.
The benefits for this kind of loans are:
No or limited requirement of collateral.
Interest rates are competitive and are lower than line of credit loans.
Approval of loans is faster
Information of the loan and the move of the balance both are can be done by online banking.
move of funds for the payment of loans can be done by online banking access.
Now that you have been shown the ins and outs of getting a home loan, what do you think that next thing you should do is?
So get a loan and get ready to move into your dream home today!