The home equity loan came of age in 1996 when changes in the tax law eliminated deductions for the interest on most consumer purchases. Interest paid on home equity loans, however, remained exempt, up to $100,000 for taxpayers filing jointly.
The two main types of home equity loans are fixed-rate loans and variable-rate lines of credit (called HELOCs). The terms for both range from five to 15 years. With fixed-rate loans, the monthly principal and interest stay the same. Adjustable-rate loans usually start at a lower interest rate聴meaning a lower monthly payment聴but can climb to a predetermined cap based on market conditions.
Most banks and mortgage companies are happy to make home equity loans because the loan is secured by a tangible asset that can be seized and sold to satisfy the debt if necessary Cheap Antonio Brown Jersey , which minimizes their risk. But the ease with which homeowners can cash out their equity聴sometimes up to 125% of the value of the home聴brings with it certain pitfalls.
Reloading Home equity loans are appealing to people who have fallen into a downward spiral of spending and borrowing. The cycle of getting a loan to pay off debt and free up credit that is then use to make additional purchases is called 聯reloading.聰
Reloading leads to accelerated borrowing that can result in homeowners getting upside down on their home loans, e.g. owing more than the home is worth. The loan is no longer fully secured by collateral and if the borrower聮s income goes down or the home聮s market value plummets, the owner could face foreclosure or bankruptcy.
People who consolidate their credit card bills or car loans into a home equity loan are transferring unsecured debt to secured debt and putting their home in jeopardy.
Home Equity Scams Another pitfall is predatory scammers. The Federal Trade Commission warns about, 聯Unscrupulous lenders (who) target older or low-income homeowners and those with credit problems. These lenders may offer loans based on the equity in your home, not on your ability to repay.聰
Avoid lenders who tell you to falsify information on the application, e.g. saying your income is higher than it is to qualify for the loan.
Avoid lenders who don聮t provide the required loan disclosures or who tell you not to read them; or those who won聮t give you copies of the documents they want you to sign.
Avoid lenders who promise one set of terms when you apply Cheap Jerome Bettis Jersey , and give you another set of terms to sign; or who ask you to sign blank forms, saying they'll fill in the blanks later.
Don聮t let anyone pressure you into using your home as collateral to borrow money you may not be able to repay. If you can't make the payments, you could lose your home.
On the Plus Side A home equity loan does have some pluses. Compared to other forms of borrowing, it is easier to get, comes at a lower interest rate, and has tax advantages that other loans don聮t. It can help borrowers clear up outstanding bills while leaving them with a single monthly payment at a lower rate of interest. True Cheap Zach Gentry Jersey , this doesn聮t reduce debt, but it can restructure it in beneficial ways.
Many websites like www.homeequitydebtconsolidation offer helpful information and a free quote. It doesn聮t hurt to see how much you might be qualified to borrow; just make sure you weigh the pros and cons before signing anything.
New York is one of the modern world's greatest cities visited by plenty of tourists every year. It has many attractions that delight its visitors and one of them is the Metropolitan Museum of Art, also known as 'The Met'. This museum, founded in the year 1870, is visited by more than 7 million individuals every year. Seventeen separate departments curate its permanent collection with the help of specialised staff comprising scholars, curators Cheap Benny Snell Jr. Jersey , Department of Scientific Research, and six dedicated conservation departments.
Upon visiting this museum during your New York holidays, you'll be able to explore its geographically designated collections. The Met began collecting arts and artefacts from the Near East in the late 19th century. The collection of art from the Near Eastern world has now grown to over 7,000 pieces, which represent the region's history starting from the Neolithic Age to the end of Late Antiquity. While browsing through this extensive collection, you'll come across some impressive works from the Sumerian Cheap Justin Layne Jersey , Assyrian, Babylonian and other ancient cultures. Major highlights of this collection are the sculptures from the Assyrian kingdom.
While exploring the collections of this museum during your cheap New York holidays, you'll also be able to witness some marvellous collections from various parts of Africa, Americas, and Oceania. The Peruvian antiques were first acquired by The Met in the year 1882, but the works from Oceania Cheap Diontae Johnson Jersey , Africa, and the Americas were not collected until 1969. Towards the late 20th century, Nelson A. Rockefeller, an American businessman and philanthropist, donated over 3,000 pieces of his collection to this museum. This contributed immensely to the growth of The Met's collection. In recent times Cheap Devin Bush Jersey , the museum's collection of pieces from the regions of sub-Saharan Africa, the Americas, and the Pacific Islands has grown to over 11,000 pieces.
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