3 - 3/8 %

Testimonials

"Thank you San Diego

Mortgage Group for

helping me buy my dream

house. You made the
process so easy, I never
thought I would own a
home in California."

-- Jesse Kalima

"Your website is so

helpful, and your
loan officers are too!"

-- Sydney Miller

CB Login

Your Growing Needs Call For A Fixed Home Equity Loan

by EddieLamb

So you find yourself with a few leaky faucets, your ceiling looks like it's about to cave in on you but you have been avoiding the repairs because of the costs. Or maybe the cost of your child's college education is becoming too heavy a burden for you to carry on your own and you need some help. You should think about getting a fixed home equity loan for all of your repairs and this may just be the perfect time to acquire this kind of loan.

If you haven't noticed the economy has been kind of slow, but this case it can work in your favor if you are looking for just about any type of service. If you want workers to fix up your home, well, once very busy construction workers and carpenters are not so busy any more and want your business. What this means for you is better prices for the services you need. This is where a fixed home equity loan may be a practical step for you to take.

What exactly is this kind of loan? Well, a fixed home equity loan lets you borrow the money you have already paid toward your mortgage and value of your home while using your house as a guarantee of payment. That is why this kind of loan is often referred to as a second mortgage.

If you decided to negate on your payment promises the lender can use your home as debt collateral and put it up for sale. This is their right since you signed onto their terms with a fixed home equity loan.

Even though you are using your home as a lien against the loan, you still need to have reasonably good credit score to get the loan approved. You also have to ask for a loan that is comparable to the value of your home and what you have already paid toward your mortgage.

There is a difference between a home equity loan and a home equity line of credit. If you are considering taking out a large sum at one time this would be a home equity loan used for major expenses such as home improvement, college tuition, repaying higher interest rate debt or even doctor's bills. If you do not need a large lump sum you can use your home as a revolving line of credit for major expenses that show up here and there. The rates are variable in this case whereas a home equity loan the rates are typically fixed.

If you are wondering whether or not a home equity loan is tax deductible you should know that it is. Before filing away on your tax returns you may want to ask your accountant because your individual case needs to be considered. Tax deduction, unfortunately, is not an unlimited element.

Staying with the tax deductible theme, the interest rate that accrues on the loan is typically tax deductible and you can get a tax rebate in this case. In addition to this, you should make sure you are aware of how the rates on a loan will add to your monthly fee.

When considering a fixed home equity loan make sure you do your research. When you compare more than one broker you this will give you an idea of what is fair and reasonable. Do not be pressured into a loan when you are not ready, make sure you have done your homework and are prepared to secure yourself the best possible rates on your loan.

About the Author:

If you have been putting off a redecorating or home improvement job, waiting for the right opportunity, this may be your chance. You may want to consider getting a fixed home equity loan with our home equity loan comparison.