How does a home equity loan work?

I need to know all the details and if it is a good choice. I have payed off my vehicle and credit cards and have none, but I have alot of student loan debt. Our dilema are the student loans. And paying them. I have heard about home equity loans and heard about being tax deductible. How do they work? Do they look bad on your credit? How much can you borrow ? Does it add to the years to pay off your house? We only have eleven years left to pay as it is right now. Just wondering what is a good option. I even thought that after I graduate and am working that my pay checks can go all to my student loans. I am just looking for some good ideas without having to stress out about debt and bills and such. We are trying to pay our bills off and so far have done good. But those student loans are looming in the background

Responses:

a home equity loan is a loan tha you can borrow from. its just like a second mortgage. yes it will add to how much longer you will own you home. you can borrow the difference in how much left you have to pay on your home and what you already paid. shot me an email if you would like me to help you get this loan. depending on what state you live in
Pulling equity out of your house does not sound like a good option to refinance your student loans. You said you are trying to pay your bills off, what you will actually be doing is trading out student loan debt for home equity debt, which is a bad trade off and is not paying off your bills since you will not be reducing your debt. Most likely the student loans will carry a lower interest rate than the home equity loan, but more importantly, if you can not afford to make student loan payments at some point in your life your lender will work with you because it is unsecured debt. If you fall on hard times and can not pay your ORIGINAL purchase money mortgage, the lender can foreclose on your home since that was the collateral but in most cases can not come after your other ets. When you refinance your home, pull equity out of your home, or accrue any non - purchase money debt against your home you are exposing the rest of your ets to your lender. If you elect to do what you suggest and you are unable to make payments at some point in your life, your lender can come after all of your ets as opposed to none, with the student loan. Also, student loan interest is tax deductible
I am not sure why you would want to get a home equity loan to pay off student loans. Typically interest rates on student loans are much lower than home equity loans. It is true that you can use interest paid on a home equity loan as a tax deduction, but you can also use interest paid on student loans as a deduction

Tags: graduate, alot, accrue, tha, payed

Follow this dicussion..

Related Images:

Knowledge Base

Why is home mortgage loan considered a tax benefit ?

i am planning to buy a home and wanted to know why everyone thinks that home mortgage loan is tax beneficial. example: - if we are paying around $15, 000 a year in interest property taxes and in tax refund 15% tax bracket we get back around $2k - 3k (home loan)

Bachelor with kids can be approved for home loan mortgage?

i am a bachelor with 2 kids, i have been divorced for about 4 years now. my income is below 30000 annually. will they approve a home loan mortgage for a bachelor like me?. it will be harder because you have three mouths to feed. if you receive child support, (home loan mortgage)

Bad Credit Home Loan?

my husband and i want to buy a house. we already have 2 houses, they are both being leased to own and we can prove it. my husband has had the same job for 25 years and has a decent income. we will only be using his credit. we have (home equity loan)

Related Images:

Knowledge Base: Home Loan

Where can I find the lowest interest rate for a mortgage refinance?

where can i find the lowest interest rate for a mortgage refinance in arizona? i would like to be able to look for it online. bankrate.com. hi there, try typing in 'home loan interest rates' or 'arizona mortgage' in your google search engine and see which mortgage companies come up (home loan credit)

Why would we be turned down for a credit card when we just p ed a credit check for a mortgage refinance?

the same week my husband looked into a balance transfer credit card i started an application for a mortgage refinance to get rid of some credit card debt. my husband was turned down for the credit card now he is worried about the mortgage finance. we have had our mortgage (home loan mortgage)

Does anyone know any reputable bad credit home loan dealers?

my partner and i both have bad credit. we want to know if there are any reputable bad credit home loan dealers out there that will help us get a home loan with little to no deposit required. we are both employed full time but our finances are being eaten (home equity loan)

when does mortgage refinance make sense?

hello all, i 'd like to know how to best use mortgage refinance, and usually for what reasons people refinance. also does refinance ultimately cost more? i do not need to lower my monthly payment, so i do not have any clear purpose in mind. it is just that i (home loan)

mortgage refinance?

my husband and i bought a house in october with a no documents loan and ended up having to split our mortgage and have two smaller loans. our mortgage servicer recently called and said that they have been unable to sell our mortgage and would refinance our loan at no (mortgage refinance)

Related Images:

Knowledge Base: Home Equity Loan

How does a home equity loan work?

i need to know all the details and if it is a good choice. i have payed off my vehicle and credit cards and have none, but i have alot of student loan debt. our dilema are the student loans. and paying them. i have heard about home equity loans (home equity loan)

Is it better to get a home loan thru home equity line loan?

i am thinking of refinancing and chase bank is ready to give a 10 yr 170k home equity loan. is this a better than my existing home mortgage loan. is there anyone who has suggestions for this. typically home equity loans have variable interest rates. the very same type of (home equity loan)

What exactly is a home equity loan and can I still get one with bad credit?

i do own my own home but am still paying off my mortgage. my son needs more money for college and we have tapped out on student loans and my credit cards are all maxed. i was wondering what i could do and thought that a home equity loan with (home equity loan)

What exactly is a home equity loan and can I still get one with bad credit?

Can I pay off a home equity loan with my credit card lower interest rates! how do I do it?

i have an offer from a credit card co with a low interest rate, 2% lower than my home equity loan interest. i would love to get rid of the horrible 8. 75% home loan interest on $12, 000. what to do?. how long is that credit card rate good (home equity loan)