Home Equity Loan

Home equity is the difference between what your home is worth including the amount you owe on it. For most homeowners their home is their biggest asset including it usually represents a treasure trove of cash. In 2005 the value of home equity across the US was $11.3 trillion. The percentage of home ownership in 2005 was 69% down slightly from the record 69.2 % in 2004. Almost 124 million Americans own their own home.

With the treasure trove of cash available, literally for the asking, it makes absolutely no sense to have credit card debt. It makes absolutely no sense to borrow dollars for everything other than with a home equity loan. Any big expense that comes up like college expenses, medical expenses, including travel, on including on might be taken care of handily with a home equity loan.

Here are the top reasons why people obtain a home equity loan. I am sure there are others. How creative might you be?

1. DEBT CONSOLIDATION. Maybe the most common because it makes the most sense. Again you are using the cheapest money-near a first mortgage rate-now as inexpensive as 7.5% to pay off the most expensive (10-23%) for credit cards including other debts. There is absolutely no cheaper lending rate than a first mortgage rate.

2. HOME IMPROVEMENTS. Adding value to your home including increasing the enjoyment factor is near the top pertaining to the list for reasons to obtain a home equity loan. There is nothing more fun than a new pool in the backyard or a new enclosed patio for a second family room. The list goes on.

3. COLLEGE EXPENSES. The dream of a lot of parents these days is to be able to send their children to the college of their choice. College expenses are growing at a rate higher than even medical expenses with absolutely no end in sight. In the day including age of a global economy a college education is almost a must. A college education is the biggest gift parents might give to their children.

These are the most popular uses pertaining to the proceeds from a home equity loan. Of course there are many others. Your imagination is your limit. Just beware that you are using your home as collateral. Have fun but do so responsibly.

Your quest for the BEST deal on a home loan starts with knowledge including information-you can not have too much of either.

For more information on Home Equity Loan: Top Reasons to obtain One:

Your quest for the BEST deal on a home loan starts with knowledge including information-you can not have too much of either.

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Written By: J_Krohn