123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Home Equity Loans

Profile Picture
By Author: Alex Ivanov
Total Articles: 3764
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Introduction

There are a number of different loans available in the market today and while there are indeed many home loans available, home equity loans really do deserve to be put in a league of their own. There are so many different methods that a person can use to apply for a home equity loan that sometimes it seems foolish to sit there and look at home equity loans in a way that makes them seem esoteric because really when you think about it there is nothing esoteric about them at all. Home equity loans in fact are quite populist; just like the mortgage agreements that you will frequently see them modelled after.

Ideology

The ideology behind the vast percentage of home equity loans is simply that the loans themselves are there to act as a safety net. When you look at the different safety nets that are around and the ways in which they are served to the people, very few safety nets are actually immediate. Usually, there is a wait of some kind involved with the safety nets themselves that prevents the people from enjoying their benefit right away. Not so with a home equity loan. Because you are using your ...
... own home as collateral against the loan itself, what you will eventually find is that home equity loans to a very large degree are loans that you can take out immediately in lump sum form in order to deal with any emergencies that might arise in your life.

Emergencies

What exactly constitutes an emergency? Well, there are a number of different emergencies around that might require a person to get money right away. Funeral expenses for a friend or relative that are unexpected come to mind immediately as being such an emergency. Medical bills that you don't have insurance for and need to pay right away also come up as a being a frequent emergency. There are many things that can happen in life and ultimately the home equity loan is there to help people deal with these things.

The Loan

So what exactly is the loan itself? Well, the loan is like a mortgage in that it is money that is borrowed with the house put up as collateral; this is why home equity loans are sometimes referred to as second mortgages. There are a number of different ways in which this can happen, but ultimately the end result is a lump sum amount up to whatever the value of the house is minus any loans that might already be on it. The home, as previously mentioned, is put up for collateral on that loan and ultimately the money is paid back in a manner very similar to what you would see in a mortgage; low monthly payments and a low interest rate.

Home Equity Loans are definitely very interesting agreements and because of their ability not only to act as a safety net, but also to leverage a person to higher spending has resulted in an increase in their popularity; an increase that is still happening to this very day.

Total Views: 374Word Count: 507See All articles From Author

Add Comment

Investing / Finance Articles

1. Why London’s Financial District Prefers Outsourced Accounting Services
Author: Ahmad

2. What To Look For In A Health Insurance Plan In The Uk
Author: Financeadvisors

3. Tech Startups And Business Loans In Hyderabad: A Perfect Match
Author: anilsinhaanni

4. 7 Simple Steps To Buying A Home For The First Time
Author: X2 mortgage

5. Buy A New Home With Equity Release: A Step-by-step Guide
Author: Financeadvisors

6. Ponta Do Sol: Viver E Investir No Coração De Santo Antão
Author: Camila Soldev

7. How Hyderabad’s Millennials Are Using Personal Loans In 2025
Author: anilsinhaanni

8. Finsta: Simplifying Finance With Smart Loan Management Software
Author: Ojeshwanigyb31

9. Direct Lender Installment Loans For Life’s Big Moments
Author: Novlik

10. Why Hiring An Sme Ipo Consultant Is Critical For Your Company’s Successful Listing
Author: IPO Consultant

11. $500 Cash Advance No Credit Check
Author: Easy Payday Lenders

12. Why You Should Consult A Pension Advisor In The Uk
Author: Financeadvisors

13. Fixed Vs Floating Rates: Smarter Housing Loans In Hyderabad
Author: anilsinhaanni

14. See Beyond: Master The Markets With Expert Online Stock Market Training
Author: seebeyond

15. Stock Market Advisory: How To Identify The Best Stock Advisory For Smart Investments
Author: SandeepS

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: