Home Equity Loans

Written by Liza Hartung
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Home equity loans have nothing to do with buying a home. With these loans, you can use the equity in your home to get another kind of loan. You might want to do some home improvements, get a new car, pay off debt or send a child to college. Home equity loans are also a form of secured loans. With secured loans, you can use any equity that you have, not just what's in your home.

Equity can sometimes be a good thing to use when you don't have great credit. By using equity in your home, you open yourself up to more money and lower interest rates. This is because you have something at stake other than your credit. Your home is in on the line. If you default, the bank can repossess your home.

If you are applying for more money than you think can repay on time, you need to do some serious budgeting. In 2002, 1.3 million people filed for bankruptcy because of debt. You don't want to end up filing for bankruptcy and losing your home at the same time. If you need to sit down with a financial planner, then go ahead and do that. If you need to eat out a little less often, do that.

Applying Online

With the Internet growing as quickly as it is, you can now apply for home loans online. You will eventually get in touch with a lender, but you can get free estimates by simply filling out some easy online forms. This is great because you can't forget to fill anything out. If you do, the site won't let you go onto the next page.

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