NEWS & ADVICE : HOME LOANS
Home Equity Loan: A shoulder you can bank upon
By Joseph Samson
Print    Email    RSS   

Sometimes we come across certain situations where we may require a large amount of funds to support our need. It might be to complete your college education, pay your medical bills or may be to consolidate your debt. Under such situations we mainly look at various finance options but it is really hard for an individual to get a huge amount of loan. To avail a loan without providing collateral worth its amount is just not an easy task. So Home Equity loans are a great option at these odd hours.

A home Equity loan is a type of loan in which the borrower uses the equity in their home as collateral. Equity can be defined as the difference between the market value of your house and the amount which you owe on it. It can also be known as the financial value of a real estate property beyond any sum you owe on it for claims, loans or mortgages. This kind of a loan is secured as the lender gets the home as collateral and the loan amount depends on the amount of equity. The borrower is only sanctioned that amount of loan which is equal to his equity. This makes them secured loans because here the lender is sure of getting back the loan amount even if the borrower defaults. Typically home equity loans are offered at much lower interest rates than any other kinds of financing, such as credit cards and personal loans. There are larger repayment periods that range between 5 years and 30 years and you can easily choose the one that suit your repaying capacity. The EMIs on this loan depends on the same factors in which a typical EMI rests such as the amount of loan applied for and the repayment time selected. Similarly even the interest rate varies the EMI.

These loans are categorized in two types - A home equity loan or a second mortgage and Home equity line of credit:

A home equity loan or a second mortgage is the scheme through which one can borrow total amount worth your collateral in one go or lump sum. With this type of home equity loan, interest begins building as soon as the bank issues you the money. Such a loan is paid off by the borrower over a fixed amount of time, for a fixed rate of interest and fixed monthly payments. It also known as a close ended loan.


Page  | 12 |  
(Comments Posted : 5) Post Your Comments
1. For more details please visit https://housing.com/in/home-loans/faq
Sachin (Posted: Oct 20, 2015)
2. DO YOU NEED A LOAN TO START UP OR EXPAND YOUR BUSINESS? Zion financial services is a sincere and certified private Loan company approved by the Canada Government, we give out international and local loans to all countries in the world, Amount given out $2,500 to $10 Million. We offer loans with a dependable guarantee to all of our clients. Our loan interest rates are very low and affordable with a negotiable duration.

Available now are
MORTGAGE LOANS, PERSONAL, START-UP & EXPANSION OF BUSINESS LOANS AND NEW ARE UNSECURED & SECURE LOANS, CONSOLIDATE LOANS

Apply for a loan today with your loan amount and duration, Its Easy and fast to get 3% interest rates and monthly installment payments. email us now to apply: zionloanfirm.ltd@aol.com

TO APPLY TO APPLY:
Regards
Peter James
General Manager
zion capital investment, Canada
Email: zionloanfirm.ltd@aol.com
Peter James (Posted: Jan 27, 2015)
3. May an employer request documentation when an employee who has diabetes requests a reasonable accommodation?
Sometimes the phrase "happy diabetic kids" seems to be an oxymoron.

type 1 2 diabetes difference
Dyewtevydiabet (Posted: Sep 13, 2013)
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Carnival of Indian Personal Finance Blogs #2
Property: A good investment option to...
J&K Bank raises PLR
Loan against Property: A shoulder to rest...
Complete Guide to the Home Loan Process in...


High Profile Escorts In Haridwar...
PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

NEWS THIS WEEK
Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive