Home Equity Loan Tips

May 13th, 2007 at 11:12 pm (Uncategorized)

Home equity loans allow a homeowner to borrow money by pledging the house as collateral. Borrowers who want to borrow a relatively large amount of money or who don’t have good credit often find the home equity loan to be attractive.
Lenders may be more liberal because they view home equity loans as relatively safe. You can’t disappear with your house or hide it if you default on your loan, so the lender has a good chance of collecting the collateral. Also, you are likely to make your payments a priority if your home is on the line.

Home equity loans are attractive to borrowers for a few main reasons:

  • They typically have a lower interest rate
  • They are easier to qualify for if you have bad credit
  • Payments on a home equity loan may be tax deductible
  • Borrowers can get relatively large loans with this type of loan

Common Home Equity Loan Uses

Borrowers use home equity loans for some of life’s larger expenses, because homes tend to have a lot of value to borrow against.

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Auto Financing

May 13th, 2007 at 11:06 pm (Uncategorized)

A car is one of the “big” purchases you will make. Before you get your heart set on a specific model, you need to know what you can afford.

Often when people go shopping for a car, they begin by looking at dealer or manufacturer Web sites to see what type they’d like to buy. Before that step, though, shoppers should figure out what their needs are, how much they can afford to spend, and decide whether they should buy or lease or choose a used car instead of a new one. This chapter will help you make those decisions.

Begin with a budget
If you don’t have a family budget, you should create one to see how much you can spend on a car. Here’s how.
Check your credit first By checking your credit score months before you buy, you can be sure you’ll get the best interest rate on a loan.
Buying new vs. used
The pros and cons of a new car versus a used car are outlined here. Which one is right for you?
Buying vs. leasing
Here are five questions to ask yourself when trying to decide whether you should buy or lease that new car.
How much can you afford
Experts say you should spend only 20 percent of your monthly budget on automobiles.
Finding the best car for you
Consider your lifestyle and the needs of your family before you choose a car.

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