| Also called a second mortgage a home equity loan is | | | | term of the loan is up any outstanding balance must |
| a good way to tap into the value you have built up in | | | | be paid in full. |
| your manufactured home. These types of loans are | | | | One advantage of getting a manufactured home |
| normally capped at $100,000 but the main limiting factor | | | | equity loan is the ability to get a large amount of |
| is the amount of equity you have in your home. The | | | | money in a short amount of time. This money can be |
| interest is also tax deductible just like that of a first | | | | used for a multitude of things including home |
| mortgage. | | | | improvement projects, paying off another loan, college |
| Home equity loans come in two basic types; the fixed | | | | tuition, and other expenses that come unexpectedly. |
| rate and the line of credit. The terms for both similar | | | | One of the most common uses for a home equity |
| and are normally required to be paid off in 5 to 20 | | | | loan is debt consolidation. By transferring all your debt |
| years. The loan will also need to be paid off if and | | | | to one loan you will have one monthly payment at a |
| when you sell your home. | | | | much lower interest rate then found on those nasty |
| The main difference between these two types of | | | | credit cards. |
| loans is how they are paid out to the borrower. | | | | These types of loans come with one danger; your |
| With a fixed rate home equity loan the borrower get a | | | | home is the collateral and if for any reason you fall |
| lump sum payment for the face value of the loan. The | | | | behind on or fail to make payments the lender can |
| interest rate is fixed with set monthly payments that | | | | start foreclosure proceedings. This is why anyone |
| remain the same for the life of the loan. | | | | considering using the equity in their home in this manner |
| A line of credit usually has a variable interest rate and | | | | needs to thoroughly research and understand the |
| is set up to function in much the same way a pre-paid | | | | terms of the offer the lender is making. |
| credit card works. In fact many lines of credit come | | | | Getting an equity loan on your manufactured home |
| with a credit card that allows the borrower to tap into | | | | can be a good financial tool if it is used correctly. The |
| the account whenever needed. Once the borrower | | | | advantages and disadvantages must be weighed |
| starts using the money monthly payments will start | | | | carefully before making a final decision to determine if |
| and are based on the current interest rate and how | | | | such a loan is right for you. |
| much money was borrowed that month. Once the life | | | | |