Fixed Rate Home Equity Loan

By Martin Lukac
The sense of equity generates from the amount judgment of your investment at the time of purchasing or refurnishing a property. As the value of the fixed assets at most of the time matures, so also the equity value of an asset increases. For that reason, the value of your home has increased from the time you have purchased the property. As the owner of the house, now you own a certain property value that if transferred into a liquid form like money, can serve various purposes for you. A fixed rate home equity loan can exactly do this job for you.

A home equity loan is a kind of loan where you use the equity of your home as the security or collateral of the loan. If you fail to pay off the loan amount, your lender may encroach into your home. The difference between a FRM and a fixed rate home equity loan is that, the second one is generally of a short term period and in many cases a fixed rate home equity loan is considered as tax deductible upon your personal tax returns.

A home equity loan can be of two types -

(i)Standard Home Equity Loan: This is also known as close-end home equity loan, or term loan or a second mortgage installment loan. This type of loan generally comes up with fixed rate.

(ii)Home Equity Line of Credit: This type of loan is also called a revolving credit loan. This generally comes up with an adjustable rate loan.

This difference between a normal home equity loan with fixed interest rate and a home equity line of credit elongates to the point of payment structure. In case of fixed rate home equity loan, you can avail the amount of money for a certain period of time, and you have drawn the entire amount at the time of the closing. But in the second case, the loan amount is available as a series of lien. If you are in a need of urgent fund of large amount, then it is advisable to go for the standard home equity loan with fixed interest rate, rather than home equity line of credit loan.

A fixed rate home equity loan is generally comes up with a tenure period of 15 years. With a reduced amortization, the home equity loans closes with a due balloon payment. This huge payment is advised to avoid by refinancing or by paying above the minimum payment line. The amount of loan depends on many factors like your income, credit history, the appraised value of the collateral etc.

Generally, a fixed rate home equity loan offers you to borrow on the 100% equity value of the home. Sometimes in case of over-equity loans, you can borrow above the equity value of your home. For example, the 125% home equity loan provides you the opportunity to borrow 25% extra amount of money on the equity of your home. Generally, over-equity loans come up with high interest rates.

Fixed rate home equity loan charges you some fees to along with its interest rate. Whenever, you are opting for a fixed rate home equity loan, scan every pros and cons and then choose the best option available to suit your need.

#1 Home Equity provides financial marketplace connects consumers with multiple home equity loan companies that compete for your business. For more information please visit Fixed Rate Home Equity Loan

Article Source: http://EzineArticles.com/?expert=Martin_Lukac

Cheap Unsecured Loans refer the Money without Pledging

by Alex Jonnes
Due to serious threat to property, across the country, tenants and other non-homeowners started constituting a majority of borrowers of cheap unsecured loans. However, they are not as fortunate as their counterparts with homes. Tenants have to choose unsecured forms of loans as the only options available. Those with homes turn down secured loans are offered cheap unsecured loans in order to save their homes. Ironically, tenants may however have to be disappointed with some lenders, since they make it necessary for the borrowers to have a house, even though it is not accounted for the collateral purposes.

Cheap Unsecured Loans are kinds of loans which are not secured against the assets of the borrower. Generally, these types of loans pose more risk to the lenders concerned, hence they may ask for more down-payment and monthly interest rates. In addition to this, cheap unsecured loans also have a bit higher APR (annual percentage rate) than its counterpart loans i.e., secured loans.

There are all sorts of ways individuals can find themselves with what is known as bad credit. Maybe, you were late with payments on a loan, got into arrears with your loan, missed payments on your credit cards, had a CCJ registered against you, missed some payments on your mortgage, defaulted on a finance agreement, were the subject of an IVA, or perhaps you have previously been declared bankrupt. Despite all these, the lending authority has taken a generous step forward to make it financially under the provisions of cheap unsecured loans.

For cheap unsecured loans, applicants do not require providing any guarantee, so there is more risk for the lender and less for you - but you still have some risk because you have to pay the loan back, and lenders can still take some legal action against you to recover their money. The amount of money you can borrow on cheap unsecured loans is usually limited by your ability to repay.

In nutshell, cheap unsecured loans are cost-effective monetary provisions for tenants and other homeowners who do not wish to let their property at stake. Followings are some benefits of cheap unsecured loans:

* Good amount ( ranges in between£3, 000-£25, 000)

* Cost-effective

* Extendable repayment period up to 10 years

* Unlimited utilities( home to debt consolidation)

* Adverse credit acceptable

* Fast processing online

* Still confidential

* Instant money provision
Alex Jonnes is associated with Secured Unsecured Loans UK. He is Masters in Business Administration and writes on various finance related topics. To find cheap unsecured loans, unsecured loans, secured loans, unsecured loans uk, holiday loans visit http://www.securedunsecuredloansuk.co.uk/