Tuesday, October 26, 2010

Home Equity Line of Credit Approvals, Even For the Credit Challenged?

Consumers who are looking to finance big ticket purchases, debt consolidations, finance home improvements etc… will often turn to their homes to find the money.

There are many reasons why and it makes good sense to do so. Home Equity loans offer low monthly payments, less interest in comparison to most credit cards and more flexibility.

Even consumers who have had bruised credit in the past can obtain Home Equity financing, but they will be required to have more equity in their home as opposed to those who have less equity in their home.

One of the most flexible Home Equity Loan products is a Home Equity Line of Credit. If you are approved for a Home Equity Line of Credit you will be issued a Visa or Master Card and credit limit. The beauty of a Home Equity Line of Credit is that you are given a limit which you can use to pay down the line of credit. If you use the line of credit and then pay it off, in the future if you require funds you won’t have to refinance again.

Home Equity lines of credit often have smaller monthly payments than conventional second mortgages and most will calculate your minimum monthly payment based on your balance (1%-2% of your monthly payment).

Home Equity lines of credit are cheaper and faster to arrange than conventional second mortgages. Most home equity line of credit lenders, use title insurance, rather than a lawyer on closing.

If you are considering refinancing your home to obtain capital, you most likely have many options. Take into consideration the amount of money you need, your financial goals, how soon can you realistically pay off the debt, your personal and financial circumstances and how much equity you have in your home when choosing the right credit product.

For more information visit http://www.gtamortgagematters.com.

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