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Home Equity Loans and HELOCs
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
You're Now Reading:
Home Equity Loans and HELOCs
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
You're Now Reading:
Home Equity Loans and HELOCs
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Mortgage Rates
Home Buying Tips
Home Selling Tips
About Mortgages
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Mortgage Rates
Home Equity Loans and HELOCs 2017-09-25T18:25:13+00:00

The equity you have in your home is an asset. You can “tap” into it to pay for other things, like a remodeling project or your child’s college tuition. But you need to learn some of the basic concepts before you make such a decision. Home equity loans and HELOC’s (Home Equity Lines Of Credit) can only be utilized if your homes value is greater than the amount that you owe.

Home equity loans usually come in two forms: Second Trust Deed Mortgages or HELOCs. A home equity loan is a loan that a homeowner can take out if their home is worth more than the balance on their mortgage. The difference between the balance that is owed on the mortgage and the fair market value of the house is the ‘equity.’ This is the amount the homeowner would get to keep if he sold his house and paid off the mortgage.

Home equity loans generally have a higher interest rate than First Trust Deed Mortgages because they are considered a higher risk. Home equity loans can be obtained as both fixed rate loans and adjustable loans, with the interest rate on a Second Trust Deed loan usually fixed and a HELOC usually with a variable rate of interest.

Here’s a comparison of the two:

Second Trust Deed Mortgages:

A second mortgage gives you a fixed amount of money that you would repay over a fixed period of time. You might benefit from using a second mortgage instead of a HELOC if you need a specific amount of money (a lump sum). For example, if you need a certain amount for a remodeling project, the second might be a better option.

If home values drop you still have your money whereas with a HELOC the lender may lower the credit limit or cancel it altogether.

HELOCs:

Just as the name implies, a HELOC is a home equity line of credit that can be used incrementally and you only pay for what you use. The homeowner receives a credit limit in accordance with the equity in the home, and he can use it as needed. For example, if a homeowner applies for a $100,000 home equity line of credit, he can us $30,000 to put in a new kitchen right away, and then use $40,000 to pay for a year of college five years later. The advantage to the home equity line of credit is that the interest in charged only on the amount of money that is actually accessed.

Similar to a credit card, in the sense that you draw on it periodically and have a credit limit and pay a minimum monthly payment based upon whatever the balance is.

One advantage to this loan is that you usually don’t have to pay points to obtain the loan like you do with a second Trust Deed Mortgage.

Other Types of Mortgages:

Fixed Rate Mortgages

Adjustable Rate Mortgages

Balloon Loans

Government-backed Loans

Interest-only Loans

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
HOW
LOANRATEUPDATE
WORKS
Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at LoanRateUpdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
LOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Home Buying
Tips
Home Selling
Tips
About
Mortgages
Mortgage
Calculator
Mortgage
Rates
Home Equity Loans and HELOCs 2017-09-25T18:25:13+00:00

The equity you have in your home is an asset. You can “tap” into it to pay for other things, like a remodeling project or your child’s college tuition. But you need to learn some of the basic concepts before you make such a decision. Home equity loans and HELOC’s (Home Equity Lines Of Credit) can only be utilized if your homes value is greater than the amount that you owe.

Home equity loans usually come in two forms: Second Trust Deed Mortgages or HELOCs. A home equity loan is a loan that a homeowner can take out if their home is worth more than the balance on their mortgage. The difference between the balance that is owed on the mortgage and the fair market value of the house is the ‘equity.’ This is the amount the homeowner would get to keep if he sold his house and paid off the mortgage.

Home equity loans generally have a higher interest rate than First Trust Deed Mortgages because they are considered a higher risk. Home equity loans can be obtained as both fixed rate loans and adjustable loans, with the interest rate on a Second Trust Deed loan usually fixed and a HELOC usually with a variable rate of interest.

Here’s a comparison of the two:

Second Trust Deed Mortgages:

A second mortgage gives you a fixed amount of money that you would repay over a fixed period of time. You might benefit from using a second mortgage instead of a HELOC if you need a specific amount of money (a lump sum). For example, if you need a certain amount for a remodeling project, the second might be a better option.

If home values drop you still have your money whereas with a HELOC the lender may lower the credit limit or cancel it altogether.

HELOCs:

Just as the name implies, a HELOC is a home equity line of credit that can be used incrementally and you only pay for what you use. The homeowner receives a credit limit in accordance with the equity in the home, and he can use it as needed. For example, if a homeowner applies for a $100,000 home equity line of credit, he can us $30,000 to put in a new kitchen right away, and then use $40,000 to pay for a year of college five years later. The advantage to the home equity line of credit is that the interest in charged only on the amount of money that is actually accessed.

Similar to a credit card, in the sense that you draw on it periodically and have a credit limit and pay a minimum monthly payment based upon whatever the balance is.

One advantage to this loan is that you usually don’t have to pay points to obtain the loan like you do with a second Trust Deed Mortgage.

Other Types of Mortgages:

Fixed Rate Mortgages

Adjustable Rate Mortgages

Balloon Loans

Government-backed Loans

Interest-only Loans

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
HOW
LOANRATEUPDATE
WORKS
Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at LoanRateUpdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
LOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Home Equity Loans and HELOCs 2017-09-25T18:25:13+00:00

The equity you have in your home is an asset. You can “tap” into it to pay for other things, like a remodeling project or your child’s college tuition. But you need to learn some of the basic concepts before you make such a decision. Home equity loans and HELOC’s (Home Equity Lines Of Credit) can only be utilized if your homes value is greater than the amount that you owe.

Home equity loans usually come in two forms: Second Trust Deed Mortgages or HELOCs. A home equity loan is a loan that a homeowner can take out if their home is worth more than the balance on their mortgage. The difference between the balance that is owed on the mortgage and the fair market value of the house is the ‘equity.’ This is the amount the homeowner would get to keep if he sold his house and paid off the mortgage.

Home equity loans generally have a higher interest rate than First Trust Deed Mortgages because they are considered a higher risk. Home equity loans can be obtained as both fixed rate loans and adjustable loans, with the interest rate on a Second Trust Deed loan usually fixed and a HELOC usually with a variable rate of interest.

Here’s a comparison of the two:

Second Trust Deed Mortgages:

A second mortgage gives you a fixed amount of money that you would repay over a fixed period of time. You might benefit from using a second mortgage instead of a HELOC if you need a specific amount of money (a lump sum). For example, if you need a certain amount for a remodeling project, the second might be a better option.

If home values drop you still have your money whereas with a HELOC the lender may lower the credit limit or cancel it altogether.

HELOCs:

Just as the name implies, a HELOC is a home equity line of credit that can be used incrementally and you only pay for what you use. The homeowner receives a credit limit in accordance with the equity in the home, and he can use it as needed. For example, if a homeowner applies for a $100,000 home equity line of credit, he can us $30,000 to put in a new kitchen right away, and then use $40,000 to pay for a year of college five years later. The advantage to the home equity line of credit is that the interest in charged only on the amount of money that is actually accessed.

Similar to a credit card, in the sense that you draw on it periodically and have a credit limit and pay a minimum monthly payment based upon whatever the balance is.

One advantage to this loan is that you usually don’t have to pay points to obtain the loan like you do with a second Trust Deed Mortgage.

Other Types of Mortgages:

Fixed Rate Mortgages

Adjustable Rate Mortgages

Balloon Loans

Government-backed Loans

Interest-only Loans

Home Buying Tips
Home Selling Tips
About
Mortgages
HOW
LOANRATEUPDATE
WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
LOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.