By Bob Buckham                                                            February 09, 2001

Website: http://www.best-choice-loans.com

Home equity loan: Your walls are loaded with money

There is money in “them-thar-walls”. Ever done a renovation on an old house, and after tearing down a wall, find thousands of dollars hidden behind the drywall. Believe it or not, I had a friend who found $10,000 hidden in a wall when he was tearing it down. He didn’t feel guilty because his grandma had “willed” him the house, so the money was his anyway. He thanked her in a prayer and the money paid for the renovation.

(If you wish to skip the home equity loan tips and go straight to our site that has the best loan providers with the lowest interest rates, click here.)

This is an unusual situation, but in fact, you may even have more than $10,000 in your walls. It’s called equity, and you can withdraw it in a Home Equity Loan.

How much you can take out depends on the value of the home minus what you owe on it. For example, many lenders will set the amount of your home equity loan by taking a percentage (say 75%) of the apprasied value pf the home and subtracting the balance owed on the existing mortgage.

Assume

Appraisal of home $100,000
Percentage x75%
Percentage of appraised value $75,000
Less mortgage debt -$40,000
Potential credit line $35,000

A Home Equity Loan can allow you to consolidate debt, finance a new business, pay off high interest credit cards, improve your home or simply get cash to buy a car or go on vacation. Home Equity loans are generally tax deductible so you may save on your taxes also.

The costs of obtaining a Home Equity Loan are similar to getting a regular mortgage. There is the standard fees for property appraisal, loan application, title and escrow search, etc.

To get your application costs and interest rates as low as possible, shop around, because lenders are always trying to be competitive in this field.

Click on your choice:

Personal Loans  l  Car and Auto Loans  l  Student Loans  l   Home Equity Loans 

 Payday Loans  l  Mortgages  l  Business Loans  l  Credit Cards  l  Insurance  l

 Online Banking  l  Merchant Accounts  l  Credit Reports  l  Affiliate Programs  l 

  Contact Us  l   Site Map

About The Author:

Bob Buckham is a successful author and the publisher of http://www.best-choice-loans.com. Many have commented that his website offers the best recommendations, links and information on loans, mortgages and financing.