Link to a forum : Can equity line of credit be denied?

First comment from this forum :

"I have a home equity line of credit that I can use for ten years. Are there typically any provisions in these agreements that would allow the lender to deny lending on the unused credit before the ten year period ends?"

see this forum at : http://forums.kiplinger.com/showthread.php?t=10219

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Article : 5 Ways to Use Your Home Equity Line of Credit

For most of us our home is our most valuable asset. When a large financial need arises, you can make this asset work for you by securing a home equity loan or line of credit. There are several benefits of a home equity line of credit. For example, this type of loan gives you access to a lump sum of cash for big ticket expenses like home renovations, the purchase of a car or college education. In many cases, the interest is tax deductible.

Home equity loans and lines of credit offer you the flexibility you need to meet a variety of financial needs. If you have an ongoing project or are not entirely sure how much your project will require, you might apply for a home equity line of credit. You can access loan funds via check or a special debit card as the need arises. If the project expenses are more fixed you may choose a home equity loan, which makes available a one time lump sum that can be used for any of a number of expenses. Following are some of the most popular uses for your home equity loan.

* Bill consolidation - credit card spending is on the rise. In fact, in recent years spending has outpaced saving and the average American carries nearly $10,000 in credit card debt. Using a home equity loan to bring your credit cards to a zero balance can save you thousands of dollars, especially when you consider how much interest you might accrue paying only the minimum on high balances each month. If you choose a home equity loan to pay off your credit cards be very careful to then use cash for most or all of your expenses. If not, you might find yourself with the burden of paying new credit card debts in addition to loan payments. Don't forget a home equity loan is secured by your home. If you fail to repay the loan as agreed you run the risk of foreclosure.

* Education - Most parents want to help their children meet educational expenses, but let's face it, with so many other expenses it can be tough. A home equity loan or line of credit gives you access to the money you need to help your with tuition and other educational expenses.

* Renovation or remodeling projects - Your home is probably your greatest investment. A home equity loan or line of credit can help you protect and build on your home's value by completing renovations. Your loan can also make it possible to add that second bathroom or home theatre you have been dreaming of, or even that gourmet kitchen.

* Travel - The vacation of a lifetime awaits. Perhaps you have always dreamed of traveling to Africa or China. Your home can be your ticket. Home equity loans can be used for just about anything you can imagine and the trip you have always dreamed of may be the perfect way to celebrate a 50th birthday or silver anniversary.

* Buy a new car - Using a home equity loan can actually save you money when buying a car. A home equity loan can make it possible for you to approach the dealer with the full amount of the sticker price in hand giving you more power to negotiate and retain incentives. You may also save significantly off of dealer financing interest rates.

Home equity lines of credit make it financially possible to do more of the things that are important to you. These loans can be an important part of building a strong financial foundation for you and your family. But you must proceed with caution. Home equity loans are secured by your home. If you fail to honor the terms of the loan agreement, the lender may exercise the legal option of repossessing your property to cure the default. You could lose your home in as little as 5 weeks in some states. It is important to have a repayment plan you are comfortable with and to understand the laws in your state before you agree to the loan terms. A home equity loan should help you improve your financial picture, not risk homelessness.

source :http://finance.families.com/5-ways-to-use-your-home-equity-line-of-credit

Article : Basics Of Home Buying

By: Pro Content

The most important investment you will ever make is probably the purchase of a home. Finding the right home for you can be a long and arduous process, but there is no getting around that.

Know Your Wants And Needs

Before embarking on your journey of house hunting, you must know what you really want to find. Sit down with pen and paper and list all the features you care most about, such as:

- Location (in a particular city, school district or neighborhood)

- Size -- how many bedrooms and bathrooms

- Parking -- a 1-car garage or 2?

- Style -- 2-story house or ranch style home?

- Heating -- central heating and/or air conditioning?

Equally important, on a new sheet of paper list all the features you absolutely do not want in a house. For example:

- high-traffic area.

- high noise area (airport, train station or highway in close proximity)

- maintenance -- major repairs needed

As you look at houses, keep both lists in mind. Your lists may change over time as you do more looking. You'll want to add or remove features, or perhaps you'll become willing to make compromises. Realize that you most likely will not find the "perfect" home. Experienced homebuyers will tell you, perfect homes are not found, they are made perfect through hard work.

Get Your Credit Report In Order

Prior to looking at properties, you must get your finances in order. This is the time to review your credit report and clean it up, if need be, to maximize your credit score. Many people do not realize how important it is to check your credit report periodically to make sure it is accurate. You should pay off any past due amounts, or negotiate a settlement price to close the debt. Get such agreements in writing, before paying any settlement. Keep all receipts for any settled items from your credit report since it may take months to get the debt actually removed.

Research Your Home-Buying Options

Decide what kind of property you are interested in. Do you want a HUD property, a foreclosure, real estate, or property for sale by owner?

A number of web sites list homes according to city, state, or price range. Visit these sites to see pictures of homes, many with virtual tours, and review the listing features.

Get Pre-Approved For A Loan

You're ready now to find a lender and get yourself pre-approved for the loan. Being pre-approved offers a number of advantages. It will clarify the price range you can afford. Also, once you find the home you want, you can place an immediate offer. If you have to wait for pre-approval, someone could buy the house right out from under you.

Several special programs are often available from lenders, such as the FHA or Ameri-Dream, that can save you money in the closing. Ask the lender about any special programs before you decide on a loan.

Find A Good Real Estate Agent

It is wise for the first time homebuyer to work closely with a real estate agent, no matter what type of property you're looking for. A knowledgeable real estate agent will make your house-hunting much easier. A good real estate agent is usually a good negotiator, and will be able to help you with the complicated paperwork involved in placing an offer on a house or in closing a deal.

It's essential that you have a real estate agent working for you as the buyer, rather than relying on the seller's agent for the house you want to buy. The latter can involve a conflict of interest, which usually works to your disadvantage.

To select a real estate agent, you should check with your friends and neighbors for recommendations. Find an agent you feel comfortable with and who is knowledgeable about the area you hope to buy in.

These are just the basics of home buying. You will find many details you need to master as you move through the buying process, but having these basics under your belt will give you a head start.

source : http://www.articleboy.com/Article/Basics-Of-Home-Buying/261

Link to a forum : Home Equity Lines of Credit Ideas Sought

First comment from this forum :

"I'm interested in hearing ideas about how (financially responsible) people use their HELOCs to save or make money. One idea I've used is to significantly raise deductibles for car and homeowners insurance with the knowledge that I have low-interest cash readily available if needed. I figure I've saved about $1,000 in premiums in 2 years and haven't tapped the HELOC yet. Do others have creative ideas to share on how HELOCs can be put to use?"

see this forum at : http://forums.kiplinger.com/showthread.php?t=2035

Link to a forum : Question Pay off Home Equity Line of Credit?

First comment from this forum :

"My wife and I have a home equity line of credit with a $23k balance. Rate is variable at 1.75 over prime and the monthly payment goes to *interest only*. We have the opporunity to pay most of it off (17k) with $ from a money market account (annual return of 1.5%). Investing in the stock market is not an option for us right now, and it is important for us to remain liquid just in case one of us loses our jobs in the next few years (an unfortunate reality in our neck of the woods).

My theory is that if we put the 17k towards the line of credit, we'll save ourselves about $80/month in interest payments, or about $960/year, which is more than we would see in return from the money market (and also more than the tax benefit if we were to leave the balance on the LOC). The way I see it is that if we hit financial hardship, we can always borrow from the line of credit just as easily as from the money market.

And lastly, we still have our first mortgage of 124k with 29.5 years left to pay, so we still have plenty of interest to write off in order for us to itemize!

Can anyone advise on the pros and cons of the above? Am I missing something?"

see this forum at : http://forums.kiplinger.com/showthread.php?t=1193

Article 06/08/2007 : Home equity line of credit, defined

A "home equity loan line of credit" is a refinance mortgage you get on your home to take an amount of equity (or 'cash') that's in your home, out of your home. Then, that amount of equity is converted into a line of credit for you to draw cash from as you please.

Just like with credit cards, you are only charged interest on the amount you've actually used from your home equity credit line, and not on the total amount. That's the difference between a regular home equity loan, and a 'line of credit home equity loan:' with a regular home equity loan that is not a line of credit, you would be charged interest on the full amount of the loan right from when you first obtained that loan.

But with a 'line of credit' home equity loan, you're only charged interest on the amount you actually use out of the line of credit: making it cheaper than a regular home equity loan, and far cheaper than a credit card.

For example, with a 'regular home equity loan' of $10,000 - you would be charged interest on that full amount right away: so at a rate of 6%, you would start paying $63/month for that home equity loan. But, with a 'line of credit' home equity loan that is also $10,000 - if you only used $1,000 of that amount, you would only make payments of $6/month (yes, 'six dollars') and you wouldn't be charged any interest on the remaining $9,000 unless you used it.

source : http://www.themortgagestoreonline.com/articles/home.php?include=133139