Resources
Here's How to Organize Your Home and Feel Better at The Same Time
By Patricia Wagner
Did you know that a clean orderly home can give you an enhanced sense of well-being? Living in a disorganized mess can make you feel disorganized too. Your home is meant to be a haven from the Read more...
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Resources
Keep Burglars Out With A Home Security System
By John Lenaghan
A home security system doesn't just keep your home and property safe, it also provides peace of mind. Statistics show that your home is three times more likely to be broken into if you have no Read more...
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Resources
Why Uncle Sam Wants You ...To Purchase a Home!
By Nef Cortez
One of the best tax breaks that the United States Tax Code allows for is the deduction of mortgage interest and property taxes paid on one=s personal primary residence. Over 66% of Americans enjoy Read more...
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Serves as a mount point for a file system containing user home directories. The /home file system contains per-user files and directories. In a standalone machine, the /home directory is contained in a separate file system whose root is mounted over the /home directory root file system. In a network, a server might contain user files that are accessible from several machines. In this case, the server copy of the /home directory is remotely mounted onto a local /home file system.
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Securing A Home Equity Loan
By Peter Kenny
If you own a home, then one way to free up extra money to consolidate debt or to make improvements is to take out a equity loan. A equity loan is money that you borrow against the money you have paid towards your property. The amount you can borrow depends on the level of equity that you have, which is determined by your property value minus the amount you have outstanding on your mortgage. The equity is used as collateral to obtain a loan, which is basically a second mortgage. Rates on these types of loans are slightly higher than normal mortgages, but still low compared to other types of loans.
Why a equity loan?
A equity loan has a number of advantages. Firstly, it can be used to get credit even if your credit rating is poor, because you are putting up collateral. Also, there are significant tax savings over normal loans as the interest paid on a equity loan is tax-deductible. Also, you can borrow a lot more money than you usually can through an unsecured loan. You could use your equity loan to consolidate your high interest debts, to make improvements or buy other costly items. However, before you get a equity loan you should look at the possible dangers involved, as some lenders can cost you a lot of money by not giving you all the facts. Here are some of the dangers of equity loans:
Equity stripping
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One problem that can occur with equity loans is equity stripping. If you get a loan knowing that you cannot make the monthly repayments, a lender might give you the loan anyway. The lender is not concerned if you make the payments or not, as they can simply take away the equity in your home. To avoid this, be honest with yourself and only take out a loan that you know you can afford, even if you get offered more.
Balloon payments
If you are struggling with your current payments, then a lender might offer a equity loan at a much lower price than you are paying right now. This may seem attractive, but it usually involves a hidden ‘balloon’ payment at the end. Your payments are lower because you are only paying the interest back, but at the end of the loan term you need to pay the amount in full. This is likely to leave you in financial trouble and you may lose your home. To avoid this, make sure that you can easily afford your monthly payments, and if you do have to refinance make sure you can afford the final payment.
Credit insurance
One of the most costly aspects of a equity loan is credit insurance. You have agreed to a loan that is within your budget, but the lender then adds on extra features that you do not need, such as credit insurance. These items can significantly increase the amount you pay back, and often cover you for a minimal amount of situations. Before you sign anything, check that the terms are for the loan payments only, and not for extra insurance. If you do want insurance, you can usually find it cheaper elsewhere.
If you decide to get a equity loan to consolidate your debts or free up some money, remember to look around for the best deals and to avoid signing anything that will cost you more money than you can afford.
For additional articles and an extensive resource for everything about credit cards and finance, please visit us at Compare Credit Cards and Mortgages UK
Visit www.creditcards-gb.co.uk
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