Home Equity Loans 101

A secured home loan differs from an unsecured loan in that the secured loan borrows against one's home as collateral, thereby reducing the risk to the lender.

As such, secured home loans often offer better interest rates than unsecured loans, but offer higher risk to the borrower, as defaulting on these loans can have greater consequences, such as fines, or even possible repossession of the home originally put up as the secured collateral (subject to the amount of the loan, of course).

As the interest rates for secured home loans are usually significantly lower than unsecured loans, more of the monthly payment goes towards paying off the capital, rather than paying the accrued interest.

The monthly payments are often more flexible in secured loans, affording the borrower more leeway in working out a payment plan that fits his or her needs. However, care must be taken not to use this as justification for taking out such a loan, as it is a financial contract between lender and borrower.

There can be a number of reasons for taking out a secured loan, such as debt consolidation of high-interest loans, financing for remodeling, or repayment of college or car loans. Most lenders offering these types of loans recommend loan repayment insurance, to guard against an inability to pay on the loan for a time due to factors such as illness, losing a job or other unexpected occurrences.

Before taking on a substantial loan such as a secured home loan, a careful analysis of personal finances is in order. Having a friend or an accountant or finance officer assist in this process can save trouble and headaches later, as they may bring up issues and/or expenditures unthought-of, issues such as examining how much is spent on morning mochas at a favorite coffee shop? An outside perspective can often help clarify these matters so a better-informed decision can be made.

If proper planning and care is taken, a secured home loan can be a valuable tool for managing personal debt. Talking to a loan officer or financial advisor at a major lending institution can help make these possibilities a reality, and can be a step towards the realization of financial freedom.

Frank Kelly is a freelance writer. Years ago he was an employee who regularly used payday loans to get thro the month. Then he disocvered the better alternative of a home equity loan.

Discover useful advice and information about home equity loans. Website contains articles and advice about home equity loans. http://www.homeequityloans-cheap.com/

---

How To Choose Your Mortgage Loan

Are you excited about purchasing your first home? Or maybe... Read More

Home Loan Applications Made Easy

You have finally found the home of your dreams. You... Read More

Bad Credit Mortgage Loans - Are You Killing Your Chances of Getting Approved?

When you have poor credit, your list of lenders that... Read More

Home Equity Loan ? A Reverse Mortgage Could Provide a Comfortable Retirement!

While only comprising about 1% of all mortgages, the reverse... Read More

Refinancing Your Home - How and Why?

Chances are you may need a little extra money to... Read More

What On Earth are Home Equity Loans?

Home equity loans are one of the most common types... Read More

Home Equity Loan - Is It For You?

A Home equity loan has become an easy way to... Read More

Bad Credit Home Equity Loans

A home equity loan allows you to borrow against the... Read More

Refinance After Bankruptcy

Refinancing your mortgage after bankruptcy is actually the same as... Read More

How to Use a Home Equity Line of Credit Calculator

Most home owners know that the lower the interest rate,... Read More

Home Equity Lines of Credit Vs. Other Conventional Loans

When it comes to getting money, you have two basic... Read More

Consolidate Debt With A Home Equity Loan

If you are a home owner who is having to... Read More

Essence of Self Certified Mortgages

Your search for a mortgage isn't leading results.Check for any... Read More

Residential Mortgages ? a Step Ahead on the Property Ladder

Doesn't Residential mortgage give the impression that they are a... Read More

What is a Mortgage?

A mortgage is a loan, usually from a bank, finance... Read More

Home Loan Lenders - Finding the Best Home Mortgage Lender

The process of obtaining a mortgage or home loan can... Read More

A Home Equity Loan - What You Should Know?

Asking yourself, "Is a home equity loan right for me?"... Read More

Borrow on a Budget: Getting the Cheapest Home Improvement Loans

Getting the cheapest home improvement loans isn't always easy. It... Read More

Subprime Mortgage Lenders - Helpful Tips When Getting a Subprime Mortgage Loan

If you have bad credit history, no down payment or... Read More

Is an ARM Right For You?

Let's start by taking a look at 7 key elements... Read More

Refinancing Mortgage Loan - Get The Lowest Interest Rate You Can When Refinancing

Refinancing can be a very simple process. You fill out... Read More

Home Equity Loan ? Not Just For Home Repairs, And Tax Deductible, Too!

Thanks to the combination of low interest rates and skyrocketing... Read More

Home Mortgage Quotes Online - How Do They Compare To a Quote From a Broker in The Real World?

Online home mortgage quotes are very similar to the quotes... Read More

Self Employed Mortgage Loans - A Survival Guide

When you're self employed you have numerous advantages. As you... Read More

Home Loans ? Lenders Continue to Offer High-Risk Loans

Home prices in the Untied States continue to soar, and... Read More

A Mortgage Loan For Homes

Everybody wants to own a house because it is something... Read More

A Guide to Getting a Bad Credit Remortgage

There are several reasons why you might be in the... Read More

Home Equity Loans 101

A secured home loan differs from an unsecured loan in... Read More

Home Loans For People With Bad Credit - Tips To Getting Approved Online

Buying a home with bad credit doesn't have to stop... Read More

Shopping for A Mortgage? Do Your Homework First

If you happen to be shopping around for a mortgage,... Read More

What is a Reverse Mortgage?

Simply stated, a reverse mortgage is a loan that enables... Read More

Kippers or Red Herrings?

Recent news has made much of parents stretching their finances... Read More

Best Buy to Let Mortgages

Are you looking for the best buy to let mortgages... Read More