Check This Out - A Home Equity Line of Credit Calculator

Check This Out - A Home Equity Line of Credit Calculator
By Peter Kirkham

If you are interested in obtaining a home line of credit or an equity loan of another type, there are a great many resources at your disposal which can help you to prepare for the application process and let you know what you might expect if you decide to go ahead.

There are a great many banks and lenders who offer these financing options, but each of them will also have their own limits and restrictions that you will need to be aware of. Using the home equity line of credit calculator is a great way of knowing what you might expect of any bank that you approach when the time is right.

You will first need to have your home appraised officially, and this will cost you anywhere from $250 to $500 out of pocket.

This is a necessary expense, and any bank that you approach will acquire you to have one done. If you run into an issue where you are working with a lender and have your own appraisal in hand, only to learn that they want a new appraisal done by their own recommendation at your additional expense, it may be best to find another lender.

Closing costs and fees are usually enough of a load to bare for you, so adding more debt on top of this is just not fair to you.

The things that you will be asked to enter into the home equity line of credit calculator will include the current appraised value of you home, the total amount that you currently owe on your home, and the loan to value ratio you are hoping to pull out of your house with this loan.

Be sure to remember that each bank is different, and while one will only ever loan you the amount of money that would top your lien out at 80%, others are willing to exceed 100% of your home's worth. It is important that you decide how much you need in order to accomplish your goals with this loan, and try not to be carried away by the thought of extra money.

You may or may not be asked to leave some basic personal information, such as your first name and your email address. You may also be asked for your phone number on some sites which offer a home equity line of credit calculator.

If you do not wish to divulge this information, you have other options just a few clicks away from the original tools that you found.

Remember that this loan is meant to help you, and if it doesn't look like your situation will be improved by moving forward with a high interest, low loan to value ratio loan, then you might want to hold off just a bit longer before moving forward.

Be careful not to give your social security number until you have made your final decision about a lender and are ready to commit to the loan process with the bank of your choosing, as this will save you from extra hits on your credit report.

To discover more information about credit calculator have a look at Equity Credit Calculator

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Check This Out - A Home Equity Line of Credit Calculator

Fixed Rate Home Equity Line of Credit - Sounds Good, But Is It?

Fixed Rate Home Equity Line of Credit - Sounds Good, But Is It?
By Peter Kirkham

Sometimes you can save a little money on the front end with a variable rate home equity line of credit, but a fixed rate loan will be more predictable, and you'll always be able to budget for your loan payment every month because the minimum payment will be unchanging. There are several different reasons that people will take out a fixed rate home equity line of credit, so if you're thinking about doing any of these things, this is an option you might consider.

One traditional reason that people take out a line of credit on their home is for home improvements.

If you moved into your home several years ago and are ready to start laying new flooring, replacing kitchen appliances, or doing more major repairs and renovations like adding on or knocking out walls, a fixed rate home equity line of credit could be a good way to go. One way to be sure that this line of credit pays off is to insure that the improvements you're making will actually increase your home's value.

This way, you're taking out a line of credit against your home's current value, but you're making your home worth more, which actually raises the equity you have in it. Don't, however, improve your home for more than it would sell for in your neighborhood; even if you plan on staying in your home for a while, you'll still want it to be salable just in case, and you can't sell a house that's worth much more than those in the surrounding neighborhood.

To be sure that you aren't putting more money into your home than you'll get back out of it, check out the average prices of the homes in your neighborhood, and don't add a lot of features that your neighbor's homes don't have.

Another reason to take out a home equity line of credit is to make a major purchase. Maybe you want to take the vacation of a lifetime, or maybe you want to put a pool in the backyard. Either way, be sure that you're making a wise financial decision and that you'll be able to pay back the loan easily.

Also, see what you'll end up paying once the interest rate is added in. You don't want to end up paying $15,000 for your $10,000 vacation when you could have saved up for part of it in the first place!

One final reason that some people use a fixed rate home equity line of credit is to consolidate existing debts.

While a line of credit isn't the exact same thing as a home equity loan, it can be used in much the same way. You'll use the credit you get because of your home's equity to pay off higher-interest debts like credit cards and cars. Then you'll be left paying off the line of credit on your home, which probably lowers your monthly payments and certainly lowers your interest rates.

Article Source: http://EzineArticles.com/?expert=Peter_Kirkham
Fixed Rate Home Equity Line of Credit - Sounds Good, But Is It?