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Home Equity Fixed Rate - Home Equity Fixed Rate Loans: The Light at the End of a Dark Financial Tunnel

The Benefits of a Fixed Rate Equity Loan

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Everyone has heard about the bleak financial crisis, and many of us are living with its consequences. Lost jobs, depleted savings and tight credit all tell us that we should be saving more and spending less. However, the problem remains that unexpected expenses arise that need attention. Whether it is home improvements, college tuition, or car repairs, there are times when you cannot put off an expense but you simply don’t have the money for it. One way to get the money you need is to take advantage of a home equity fixed rate loan.

Home equity loans, also known as second mortgages, are a sound investment when you need quick cash. With a home equity loan, you are taking the equity you have accumulated with home payments and making a loan using your house as collateral. Banks are eager to make these loans because if you do not make the payments, they can foreclose on your house for the remainder of the balance. Home equity loans allow you to borrow up to 80% of the equity you have paid in your home. This can be a high loan. Contact your mortgage company and ask how much equity you have on your home. You can then determine exactly how much you can borrow.

With a fixed rate home equity line of credit, you will have the ease of mind knowing your interest rate is the same throughout the terms of the loan. If the national interest rate rises, it will stay at the same rate. You also take the chance that the interest rate will dip and you will continue to have a high interest rate.

A good reason to take advantage of a fixed rate equity loan today is the projected trend of the interest rate. The interest rates are at an all time low right now. In the next three to five years, the interest rates will rise. When you lock in your interest rate, you will not have to worry about this increase. Locking in your rate will mean you will save money through the duration of your loan.

When looking for a fixed rate loan, you need to take into consideration the amount of money you need and do not get extra. This loan will be an added payment to your mortgage. You want to make sure you can afford the payments. If you miss payments and go into default, you will lose your home. You will also want to contact several lenders. Do not take the first interest rate offered. Remember the banks are competing to get your loan. This competition could mean a lower interest rate on your loan.

When you feel like you are treading water financially a home equity loan can be the life preserver you need. A home equity fixed rate loan will give you the finances and peace of mind to get out of your financial crisis.

Home Equity Finance - Home Equity Loans and Home Equity Lines of Credit - What is a Home Equity Loan?, Home Equity Lines of Credit [next] [back] Home Builders In Texas - Home Builders in Texas—Grand Homes, Newmark, and Lennar - Grand Homes, Estates of Verona, Newmark Homes Houston

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