| If you are thinking about using the equity in your home | | | | Instead of drawing one lump sum amount with a Home |
| to consolidate your loans and take control of your | | | | Equity Loan, an Equity Line allows you to write checks |
| debt, then you have a few different options available, | | | | and borrow against your equity for smaller amounts, |
| with considerable different and terms and conditions. | | | | over an extended period of time, and usually at lower |
| Before committing to a certain path, do some research | | | | rates than an unsecured credit line. In essence, your |
| and educate yourself on the differences between a | | | | home becomes the security for your new credit line, |
| Home Mortgage, a Home Equity Loan, an Equity Line, | | | | but be careful, although this may feel like a wonderfully |
| and Home Refinancing. | | | | large credit card, if you are unable to pay your home is |
| Obtain a first mortgage on your home | | | | in jeopardy. |
| If you haven't already, obtaining a first mortgage on | | | | Refinancing your home |
| your home is usually the first step, and the best choice | | | | Refinancing your home usually provides a lower |
| overall. | | | | interest rate than a second mortgage or Home Equity |
| Obtain a loan on the equity in your home | | | | Loan, and the mortgage term can be longer, resulting in |
| A Home Equity Loan, also called a second mortgage, | | | | lower monthly payments. However, it can be more |
| doesn't require you to refinance your entire home loan. | | | | costly to refinance a home than to obtain a second |
| The rates and costs of Home Equity Loans are usually | | | | mortgage. Check to make sure that interest rates are |
| more attractive than most credit cards or other | | | | low enough to make refinancing the best choice and |
| unsecured lines of credit and the amount available is | | | | remember that a lower interest rate means less to |
| usually up to 85% of the value of your home. Obtaining | | | | deduct on your taxes and in the end can increase |
| a second mortgage is very similar to a first mortgage | | | | your tax payments, which decreases your overall |
| process. | | | | savings. |
| Home Equity secures an Equity Line | | | | |