A home equity loan is very attractive to home owners since it can help increase immediate cash on hand, provide a way to fund repairs or renovations of the home, and offer an extended line of credit. A fixed rate equity loan can reduce monthly payments, and an extended line of credit can help pay down high-interest credit cards or personal debt. Still, there are some dangers of home equity loans.
Some lenders and brokers can promise a lower interest rate or lower monthly payment, but the payment can go up if the borrowers credit score decreases. Homeowners who are not able to meet the demands of the change can put their house at risk of repossession if they cannot repay the debt in time. Consolidating debts or refinancing a home in this way is not a good idea if the borrower ends up instead with a larger loan that they cannot pay off easily.
Even when money is saved on the home equity loan or line of credit itself, some borrowers may end up overspending in other areas. If credit cards are paid off, they may start buying things on credit again and end up making monthly payments beyond what is affordable. Plus what happens when the funding estimated for a project...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
