Real Estate Information

Luxury Real Estate Information


Rancho Palos Verdes, California Homes
Palos Verdes, California Homes
South Bay, California Homes
Luxury Mexican Beachfront Homes

Featured Properties


Oceanfront Estate Near Trump National

Related Information


Loan Information
Real Estate Information
Mortgage Refinance Information

Your Home Equity Can Work for You


"Use your home's equity to pay off your debt. It's easy and simple, no closing costs!" Every time I turn on the television, commercials bombard me telling me to take out a home equity line of credit. People are using their dream homes to pay for even bigger dreams, like a "debt free" lifestyle and college educations for their children. Despite the ease in securing these seemingly beneficial lines of credit, many CPA's and financial planners are cautioning homeowners to gain a full understanding of how these lending options work before they turn their homes into a source of money.

There are two options in using your equity to secure funding: a home equity loan or a home equity line of credit. Most lenders will let a homeowner borrow up to 80% of existing equity based on the amount owed on the first mortgage and the appreciated value of the home. Unlike other forms of nondeductible consumer debt, loans less than $100,000 or less that use a home as collateral may have a tax deduction available for interest paid.

A home equity loan is most usually used for large purchases, such as financing a major home improvement project, starting a business, purchasing a luxury item or consolidating high-interest credit card debt. There are advantages to securing lending for these purposes, but these types of loans are better suited to those who don't foresee future borrowing needs.

Home equity loans are basically second mortgages, which provide you with money that is repayable over a fixed term from five to 15 years. These loans can feature locked-in rates and monthly payments that remain the same.

Home equity lines of credit are ideal for use as emergency money. They can be used for irregular or unanticipated expenses like medical deductibles and automobile repairs. These lines are often used by higher income families who don't qualify for college financial aid to pay for their children's college educations. When faced with using a home equity line of credit or savings to pay off credit card debt, it is advised to use the savings to pay of the debt and the line of credit for future emergencies.

With home equity lines of credit, you are approved for a certain amount of money, a credit limit. You can borrow any amount of money during the life of your line of credit up to your credit limit. You may be given a check or a debit card that can be used at almost all retailers. Home equity lines of credit are usually variable-rate loans.

Using the equity in your home is not a flip decision. Think about it seriously. If you are doing this to consolidate high-interest rate credit cards, it will only work if you do not accumulate any new debt. If you keep using the cards, you are only digging a further pit of debt.

Your credit card company cannot foreclose on your home, but your home equity loan lender can. You are placing your home at risk with every mortgage placed on it. It is necessary that you shop for the best rates and terms available. Talk to different lenders and be aware of introductory rates. Read all paperwork carefully before you sign it.

Using your home equity can benefit you in many ways, but always display caution. It is still debt

Martin Lukac, California mortgage Lender(http://www.martinlukac.com), provides mortgage financing for purchase,refinance,bad credit and more. Request a free quote or ask a question.


MORE RESOURCES:

GlobeSt.com

How “Real Estate Fracking” Is Leaving Its Mark
GlobeSt.com
As Weikal explains it, real estate fracking involves using technology to break or open up a real estate asset and monetize it in entirely new ways, much like the process of injecting rock formations with high-pressure liquids to release the oil inside ...



Charleston Post Courier

Charleston's tight industrial real estate market expected to stay that way
Charleston Post Courier
Increased industrial growth is putting pressure on builders to keep up with demand for manufacturing and warehouse space, according to a report by the commercial real estate firm CBRE Group Inc. The Charleston-area vacancy rate for industrial-use ...



PR Newswire (press release)

Investcorp Announces Completion of First European Real Estate Portfolio
PR Newswire (press release)
LONDON, Oct. 23, 2017 /PRNewswire/ -- Investcorp (the "Company"), a leading global provider and manager of alternative investment products, today announces the completion of its first European real estate portfolio following the acquisition of seven ...

and more »


Partners of Life: Best of Real Estate
ValpoLife.com
The real estate scene is booming in Northwest Indiana! Not only are there a ton of great homes and properties on the market at all times, but there are a great number of real estate agencies, teams, and realtors out there working hard to connect the ...

and more »


Australia shares lose steam as financials and real estate stocks weigh
Reuters
The sell-off was led by real estate stocks, which accounted for more than a quarter of losses in the index, with industrial property developer Goodman Group Pty Ltd falling 2.3 percent to its lowest in over two weeks, and shopping centre developer ...

and more »


Tucson Local Media

A normal day in real estate
Tucson Local Media
Ever since the boom from 2004 to the crash of 2008, homeowners and potential buyers are interested in knowing what the real estate market is like today. At every open house I hold, the most consistent question I get asked is, “What is the real estate ...



Albuquerque Journal

Taking the plunge into real estate
Albuquerque Journal
ALBUQUERQUE, N.M. — While parts of Nob Hill, Downtown and Old Town have drawn strong interest from investors looking for residential and commercial real estate, some brokers say it's actually in some of the city's marginal neighborhoods where small ...



Seeking Alpha

Changing Of The Guard: Monmouth Delivers
Seeking Alpha
The path that begins with an order placed on your smartphone and ends with a package at your door is creating a powerful secular growth story for various REIT sectors. There's a headline that somehow got lost in the noise… that began with a Big Town ...



Pleasant Hills shopping center sold to California real estate investor
Tribune-Review
A three-store shopping center in Pleasant Hills, featuring the area's first Starbucks, was sold to a private commercial real estate investor from California for $5.3 million. The shopping center, once a freestanding home to Pier 1 Imports then Party ...



How to speed up your new real estate career in a slow market
Inman.com
When the market slows what's a new real estate agent to do? The answer is simple: Embrace the down time and revamp your career. This is the perfect time to optimize your efforts by planning, polishing your presentation tools and implementing systems.


Google News

home | site map
© 2006 TIGER MEDIA