A Guide on Home Equity Loan

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A home equity loan, often described as second
mortgage allows home owners to borrow money by
leveraging the equity in their home. Here we can
discuss about how these loans workout and what
are their benefits.
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• Types of Equity Loans
• Fixed-rate Loans
• This provides a single, lump-sum payment to the
  borrower.
• Repaid over a period of time at an agreed-upon
  interest rate.
• The payment and interest rate remain the same.

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• Home-Equity Lines of Credit
• Variable-rate loan
• Monthly payments are based on the amount of money
  borrowed and the current interest rate.
• When the end-of-the-term is reached, the
  outstanding loan amount must be repaid in full.

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• Reverse Mortgage
• Its a special type of home equity loan only
  available to senior citizens of ager 62 and over.
  
• Either borrow a lump sum of money initially or
  receive monthly amounts.
• More expensive than other loans.

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• Benefits for customers
• Easy source of cash.
• Interest rate is lower than interest on credit
  cards and other consumer loans.
• Interest is tax deductible.

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• Right Way to Use Home Equity Loan
• Home equity loan is a valuable tool for
  responsible borrowers.
• Fixed rate loans are suitable to cover the cost
  of a single purchase such as a new roof or a
  medical bill.
• HELOC is a convenient way to cover short-term
  recurring costs.

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Want to get out of the debt? Visit
www.ellisequity.com for an expert solution.
Call 713-952-8022 E-mail sales_at_ellisequity.com