Home Equity Loan
When you do debt consolidation through home ownership...?
does the bank only loan you the amount of money equal to the equity in your home? Or do they go above the home's value?
Public Comments
- i dont think they will give you any more money than your house is worth..unless you earn a lot of money at the moment which makes it possible for you to pay back a higher amount of money (which in this situation is kinda unlikely because you would rarely, if ever, consolidate a debt if you are making enough money)
- The credit market has drastically changed when it comes to borrowing against your house. Odds are strong that unless you make a lot of money, or have really good credit ratings, that most legitimate banks will not loan you above 80% of market value in total (primary mortgage plus equity loan). If the company is willing to loan you more than 80% of the value of your home, be careful. There are thousands of people losing their homes because they took adjustable rate equity loans and when the interest rate went up they couldn't refinance nor pay it. It would suck to lose your house for an equity loan. Good luck to you.
- Practically any type of loan can be wrapped into the debt consolidation process. Common types include finance charges, late fees and overdraft charges, credit cards, personal loans, utility bills, medical bills, car loans, store cards, gas cards and back taxes. A debt consolidation loan<!--allows you to condense your monthly payments into a single, simple bill, while lowering your interest rates and helping you pay down your debts more quickly and easily. It is also an essential tool in avoiding the much more serious step of declaring bankruptcy. http://best-loans.awardspace.com/Loan-Consolidation.htm Unlike bankruptcy, in which debts are cancelled and your credit rating collapses completely, debt consolidation loans are essentially a type of refinancing, where several-->old loans are replaced with a new one that has more favorable terms. Your loan consultant will negotiate with creditors on your behalf, so you’ll no longer have to deal with harassing phone calls and daily mail.
