What can an equity home loan be used for?
An equity home loan is a loan that is secured against your home - basically, you are freeing up some of the equity in your property by borrowing cash from a lender. There are many reasons why people may decide to opt for an equity home loan, but whatever the motivation, the important thing to know is that if you are a homeowner, and would like to borrow some money, an equity home loan can help.
The cash raised from taking an equity home loan is yours to use however you choose. While a mortgage is used specifically to buy a property, an equity home loan is an additional loan a homeowner can take out on their property, even if they are still paying a mortgage. An equity home loan is also known as a secured loan, because you are using the equity in your home as security for the loan. If you are a homeowner and need to raise some cash, but for whatever reason would prefer not to remortgage your home, then an equity home loan could provide the solution. Like a mortgage, an equity home loan is secured on your property, but it will not affect your mortgage. There are also a variety of options homeowners who take an equity home loan can choose from. As well as choosing how much money you wish to borrow (although it's important to note different lenders will offer different maximum loan amounts) you can choose the term of your loan, that is, the period of time over which you would like to repay the loan.
What else should I be aware of?
Often people who opt to take an equity home loan already have a mortgage on their property. If you are already making mortgage payments, then any lender you apply to for an equity home loan will want to check that you would be able to cope with the repayments on the loan as well as maintaining any other financial commitments, such as your mortgage and other debts. This is known as checking the "affordability" of a loan. You may choose to discuss your circumstances with a financial adviser who can discuss and help you decide much you can afford to borrow, and also the best lender for your needs. There are a wide choice of lenders available who can offer an equity home loan, so professional help could make it easier when it comes to choosing the right type of loan, and where to go to get it.
So if you are a homeowner, and want to borrow some additional money, for whatever purpose, an equity home loan may well prove suitable.
Source:www.securedloancentre.com
The cash raised from taking an equity home loan is yours to use however you choose. While a mortgage is used specifically to buy a property, an equity home loan is an additional loan a homeowner can take out on their property, even if they are still paying a mortgage. An equity home loan is also known as a secured loan, because you are using the equity in your home as security for the loan. If you are a homeowner and need to raise some cash, but for whatever reason would prefer not to remortgage your home, then an equity home loan could provide the solution. Like a mortgage, an equity home loan is secured on your property, but it will not affect your mortgage. There are also a variety of options homeowners who take an equity home loan can choose from. As well as choosing how much money you wish to borrow (although it's important to note different lenders will offer different maximum loan amounts) you can choose the term of your loan, that is, the period of time over which you would like to repay the loan.
What else should I be aware of?
Often people who opt to take an equity home loan already have a mortgage on their property. If you are already making mortgage payments, then any lender you apply to for an equity home loan will want to check that you would be able to cope with the repayments on the loan as well as maintaining any other financial commitments, such as your mortgage and other debts. This is known as checking the "affordability" of a loan. You may choose to discuss your circumstances with a financial adviser who can discuss and help you decide much you can afford to borrow, and also the best lender for your needs. There are a wide choice of lenders available who can offer an equity home loan, so professional help could make it easier when it comes to choosing the right type of loan, and where to go to get it.
So if you are a homeowner, and want to borrow some additional money, for whatever purpose, an equity home loan may well prove suitable.
Source:www.securedloancentre.com
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