| Are you thinking about mining the equity for a home | | | | as long as the draw period lasts. Although the rates |
| improvement loan, but are wondering if you have | | | | are better than credit cards, there is still a variable |
| missed the boat not doing a refinance and cashing | | | | interest rate and variable payments. This can be a |
| out? There are still many home equity loans available | | | | good loan for home improvements if you plan on |
| that may suit your needs without breaking the bank | | | | paying it off in a short period of time. Some HELOCs |
| with payments. "Home-equity loans have been growing | | | | have interest-only payments for the first few years as |
| at a large clip for years," notes Wells Fargo | | | | incentive to utilize the product. |
| spokeswoman Mary Berg. "It's definitely slowed, but | | | | If you would rather have a fixed payment to hedge |
| people are still borrowing. They're finding other | | | | against inflation and the fact that all your bills will |
| products that are more flexible in this rate | | | | continue to increase, a standard second mortgage |
| environment." It's true that there are many options for | | | | with a fixed interest rate may work best for you. The |
| consumers these days and home equity loans are | | | | payments may be higher than a loan with an interest |
| available as a credit line with variable interest, as a | | | | only payment period, but you can be certain of how |
| fixed rate mortgage, and you can even find a second | | | | much you are paying monthly down the road as well. |
| mortgage with interest only payments for a set period. | | | | An adjustable rate mortgage in a market with rising |
| A home equity line of credit generally has a variable | | | | interest rates can be daunting. |
| interest rate tied to the prime index, which is published | | | | Keep in mind with all second mortgages you are |
| daily in the Wall Street Journal. The rate is dictated by | | | | borrowing against your house, which means if the |
| the Federal Reserve. This loan works differently from | | | | payments become too much for you to handle, you |
| a standard second mortgage. The HELOC is a | | | | will lose your home. If you are smart about utilizing your |
| revolving line of credit that works like a credit card, but | | | | equity, however, it can be used to your advantage. |
| is secured by your home. You are able use the line for | | | | |