Alternatives: Home Equity Loans

There are other ways to borrow money from a lending institution. For example, you may want to explore second mortgage loans. However, these plans also place an additional mortgage on your home; second mortgage money usually is loaned in a lump sum, rather than in a series of advances made available by writing checks on an account. Also, second mortgages usually have fixed interest rates and fixed payment amounts.

Other options include borrowing from credit lines that do not use your home as collateral. These are available with your credit cards or utilizing unsecured credit lines that let you write checks as needed. In addition, you may want to ask about loans for specific items, such as cars, boats, or tuition.

Before rushing in, you should consider all your options and see whether you would benefit from a home equity credit line or you would do better with other financial product. And if you decide to request a home equity credit line, request different quotes and compare what each lender has to offer. You’ll soon learn that by bargaining a little you can get great deals on home equity credit lines