California Home Equity Loans

Written by Ingrid Chen
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Since there are military bases spread around California, many people who are on active duty or about to get out have homes in California. As most homes in California are not of the inexpensive variety, you are likely to have some equity in your house. This equity can be used to get a loan for any purpose. You might want to send a child to college, go on a dream vacation, do some remodeling or get a new car.

Whatever your reasons, you are more likely to get approved and get more money if you use the equity in your home. However, there has to be equity there for you to use. If you are just beginning to make small payments on your home, you probably don't have much equity to use for a loan. However, if you have been there for a while and the house value has gone up and/or you have made substantial payments, you have a bit of equity.

In general, interest rates for a home equity loan are greater than for a mortgage. This will help when you start to do some comparison-shopping. Before you apply for a home equity loan, it's a good idea to get all your finances in order. Sit down with a pen and paper and start to make some lists. Write down any and all sources of income. Then, write down everything you spend money on.

Making a List

If you don't have old receipts and bank statements to help you with this step, just take your best guess. It's always good to guess high when it comes to your spending. Notice whether there are places you feel you could cut back. You need to eat, but it doesn't have to be in a restaurant all the time. If you can cut back on some things, you will pay off your loans faster.

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