Mortgage : Home Loans : Refinance : Home Equity Loans

By Steve Jones

You will have seen adverts all over television, radio, and newspapers urging you to consolidate your debts. This can be done by using the equity of your home so you no longer have to pay the high interest rates on credit cards and loan repayments. It sounds like the best thing to do. But be warned there are risks! You still have the same debt to pay; only now it is linked to your home. Therefore, if you miss payments, your home will be at risk. The worst that can happen if you miss a credit card company is that you will have to answer to the Credit Company and you can miss a few payments before they call in debt collection companies. Even then you still have your house. However, with an equity loan if you miss even one of your monthly payments then you may have your house taken away from you by the bank. This is called foreclosure and it is important that you work out that you can make the repayments before taking out the loan.

Before we get into more complex details of equity loans, lets look at a few basic terms. Equity is a form of secured loan, which means that the loan is secured by the debtor

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This entry was posted on Saturday, July 22nd, 2006 at 4:50 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.