Tweet

When Should You Seek a Home Equity Loan?

Guest post by: Brian King

Article Overview: Home equity loans are a better option compared to many other types of loans as they come at lower rates. This is because the lender is able to secure the loan against your property. However, you should only take them when you have a particular expense in mind and take only as much as is required to cover this expense.

When Should You Seek a Home Equity Loan?

Home equity loans are useful when the homeowner needs substantial funds to undertake projects like home renovation or improvements, financing some major purchase or paying for other expenses like education. These loans are backed by the value of your house and they allow you to convert some of your home equity into cash. But it is important to understand what the right time to take a home equity loan is.

Property Market Conditions are Conducive

The amount of home loan is based on the present value of your house. This means that if the market value of the house has fallen recently, then it is not a good time to seek a loan against your home equity. In this case, it makes sense to wait until the housing market is doing better so that you can qualify for a higher loan amount.

You Have Significant Equity Built Up in Your House

You get a home equity loan only on the debt free portion of the house value and this becomes the collateral for the lender. If you have repaid a significant chunk of the mortgage on your house and have built up substantial equity, it could be a good time to seek a home equity loan.

Interest Rates are Low

Just like any other loan, the best time to seek a home equity loan is when the interest rates have been low for some time and are only likely to go up in the future.

You Have a Good Credit History

If you have been regular with your mortgage, credit cards and other debt payments and your outstanding debt is at an all time low, then it is a good time to go for a home equity loan. This is because at this time, your credit history will look attractive to the lenders and they will be willing to give you good rates on the loan.

You Have a Specific Expense in Mind

Home equity loans are a better option compared to many other types of loans as they come at lower rates. This is because the lender is able to secure the loan against your property. However, you should only take them when you have a particular expense in mind and take only as much as is required to cover this expense. This will prevent you form spending on unnecessary expenses. You should make sure that you really need the loan and that it is the right time for you to opt for it.

Related Articles
  How to Buy a Business Using a Home Equity Loan
  Cashing out, but staying in
  Funding Your Franchise
  Riveria Boat Loans
  Can You Afford A New Boat Loan
  Financing 101 for Entrepreneurs - Debt vs. Equity or Both?
  What to look for when refinancing your home
  Non-Real Estate Loans Private Lenders
  Business Loan: The Debt to Equity Ratio
  Debt Consolidation and Refinancing – Is it Right for You?
  Guaranteed Car Loans
  Do I Offer Debt or Equity to Raise Capital
  Why doesnt the SBA include franchise territories in their loans and how am I supposed to finance the territory
  Consolidation Debt Management Money
  Getting Boat Finance For Your Dream Boat
  Anyone Can Get A Car Loan With Bad Credit
  Types of Finance
  Finding Information on Small Business Loans
  Franchise Financing in Canada – A Solution overview
  The Truth About New Business Loans for Your Franchise Investment

Article Tags: construction loan, home equity loan, home equity loans, home renovation, line of credit, mortgage broker
Referred by: http://www.searchengineworkshops.com



Related Forum Posts
Re: Quick Ways To Utilize SEO Effectively - 1. If you dont want too much competition from other SEO's, choose your keywords precisely.For example, Instead of keyword Loan choose keywords like Bank Loan, Equity Loan, Student Loan, Home Loan etc. Order of keyword also matter for search engines. Search engine treats ?Loan Equity? and ?Equity Loan? as different keywords. 2. Best seo practice is to get at least one of your primary keywords in domain or sub domain name of your website. You can use hyphens (-) to separate multiple keywords. For example: seo-service, seo-guidelines, free-seo each cover two keywords. 3. Get your second or third keywords in your directory name and filename. 4. Keep your webpage free from any syntax error, declare document type at the beginning and validate your HTML and CSS because search engine don?t like pages with too many errors. 5. Give a short Title in of your page in 3-9 words (60-80 characters) maximum in length containing your primary keyword. Remember it will be displayed in search results so choose wisely. 6. Try to include your most important keyword phrases in heading tags on your page if you can but keep in mind it should not be exactly same as title of your page. You can use (H1 H2 H3) tag for specifying anything important. To reduce size of heading use CSS. 7. Specify Meta keywords in heading of document. Limit it to 15 to 20 words. Although not all the search engines give importance but there is no harm doing it. Search engine like Yahoo still give it importance. 8. Write Your Meta Description tag attractive containing keywords because it will appear on the search engine result pages. 9. Use text for navigation menu instead of using images or Java scripts. 10. Try to include your most important keyword in hyper linked text and text and text that immediately precedes or follows the hyperlink. Do not use same keyword always use synonyms at few places. Just like instead of seo, I have use search engine optimization at many places on this page.
Home Equity to Finance your business - Jen, do you have Home Equity you can leverage? Maybe a relative or close family member can do it for you in return for an interest "balloon payment" at the end of 5 years (the rate would be above what they would get if they invested it in a GIC).
Should FDIC Worry about FHLB? - What do you think the impact would be on the Bank Insurance Fund with Federal Home Loan Advances for business? Especially since you can obtain a grant when used in combination with FHLB advance. The grant can be used for anything you want for your business (down payment to a seller or franchise fees, working capital...etc.) This puts the borrower in a pretty good position. Should FDIC worry about FHLB?
Lisa Shepherd Story - Great story! I love the Earn - Learn - Equity - it's very relavent for new entrepreneurs.
Re: Should FDIC Worry about FHLB? - [quote="BizLoanz4u":3cde91n6]What do you think the impact would be on the Bank Insurance Fund with Federal Home Loan Advances for business? Especially since you can obtain a grant when used in combination with FHLB advance. The grant can be used for anything you want for your business (down payment to a seller or franchise fees, working capital...etc.) This puts the borrower in a pretty good position. Should FDIC worry about FHLB?[/quote:3cde91n6] Hi Michele, Could you first tell us a little more detail about both organizations?


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

International Employment Background Checks

When Your Smiling

How do you keep it together on a daily basis?

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.