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An equity loan is a mortgage placed on real estate in exchange for cash to the borrower. For example, if a person owns a home worth $100,000, but does not currently have a lien on it, they may take an equity loan at 80% loan to value (LTV) or $80,000 in cash in exchange for a lien on title placed by the lender of the equity loan. Many lending institutions require the borrower to repay only an interest component of the loan each month (calculated daily, and compounded to the loan once each month). The borrower can apply any surplus funds to the outstanding loan principal at any time, reducing the amount of interest calculated from that day onwards. Some loan products also allow the possibility to redraw cash up to the original LTV, potentially perpetuating the life of the loan beyond the original loan term. The rate of interest applied to equity loans is much lower than that applied to unsecured loans, such as credit card debt. The reasoning behind this is that equity loans involve collateral, and credit card debt does not. This economics or finance-related article is a stub. You can help Wikipedia by expanding it.Categories: Personal finance | From Wikipedia under the
GNU Free Documentation License Equity Loan? Q. Need cash..I'm not sure if I get a Home Equity loan or refinance..I have a 5/2 ARM with 4.37 APR. 2 years left before the rate is adjusted. The value of the house gone up to 60K. Can you advise? Asked by Tom - Fri Dec 28 21:59:43 2007 - - 2 Answers - 0 Comments A. always refinance to a better rate if you can for every 0.125% lower in rate you will save at least 500 a year in interest. Try to go for an 30 year fixed or 15 year fixed for a slightly better rate. Answered by Billy T - Fri Dec 28 22:08:56 2007 Is the interest on $200k home equity loan used to buy a new primary residence deductible on Sch A.? Q. We are planning to rent our existing home and pull $200k equity from that home to buy a new primary residence. I am not clear about the $100k deductible limit on the home-equity loans. Can I deduct it on Sch A or against the rental income and is the deductible equity loan capped at $100k. We file married jointly and our AGI is $160k. Asked by Rajan A - Sun May 3 04:49:26 2009 - - 2 Answers - 0 Comments A. The loan is on the rental property, stupid move, as now you have full capital gains tax, but that is not your question. The interest is not applied to your primary home, but to your rental. Answered by Landlord - Sun May 3 10:38:13 2009 Can you change a home equity loan to a personal loan?
Q. My brother-in-law took out a home equity loan and he went to refinance his house and for whatever reason the house did not appraise for what it needed to partly because of the home equity loan that he already had. He was told to pay off his home equity loan and come back to refinance his house. Is there anyway that he can change his home equity loan to a personal loan? Or would that even help? please help. thanks. Asked by Jessica B - Mon Sep 1 17:55:10 2008 - - 2 Answers - 0 Comments A. Sure, but an unsecured la will have a rate of 2% higher attached to it. Based on what you're saying the brother-in-law has enough debt already. Answered by David M - Mon Sep 1 18:49:49 2008 From Yahoo Answer Search: "Equity loan"  marketwatch.com Wed, 04 Aug 2010 21:16:46 GMT+00:00 MarketWatch (press release) "This partnership gives AAA Mid-Atlantic members access to three great loan products, including Mortgages, Equity Loans , and Auto Loans. ...  bankrate.com Wed, 28 Jul 2010 10:27:29 GMT+00:00 Bankrate.com ... borrower who wants to purchase a home, refinance an existing mortgage or take out a home equity loan or line of credit -- also called a second mortgage. ...  chicagotribune.com Sat, 31 Jul 2010 19:29:56 GMT+00:00 Chicago Tribune ... testified that Rod and Patti Blagojevich lived far beyond their means, carrying more than $9000 in credit card debt and a $22000 home- equity loan . ... From Google News Search: "Equity loan" From Yahoo Image Search: "Equity loan"  equity-shop.co.de admin Wed, 01 Sep 2010 22:26:40 GM 2002 FIFA World Cup Korea/Japan Movie (Part 4/12). at home . equity loan. interest rate. Legally Blonde: The Harvard Variations · Alex Takes Calls About Health-Care on The Alex Jones 2/2 ... From Google Blog Search: "Equity loan" |
