Every Home Owner Needs A Home Equity Line Of Credit
How will you deal with sudden unforeseen financial changes in your life? Physical disability is the number one cause of home foreclosures in the United States. What's more, the chances of a homeowner becoming temporarily financially disabled are much greater than becoming physically disabled.
Most homeowners are under the assumption that their homes equity can always be accessed when cash is needed. However, the shocking truth is that in a time of dire need, trying to access the equity in their home is not as easy as they thought. No matter how much equity is in the home.
With out being able to prove employment. It becomes very difficult to get any type of home loan. When it is possible the interest rates are high. Which in turn will create the need to refinance again sometime in the future. Creating an unnecessary cost to the homeowner.
A home equity credit line should be viewed as an extremely cheap insurance policy. In many cases a homeowner with good credit should be able to get a credit line for free. A home equity credit line gives the homeowner instant access to their homes equity. There are no payments on the credit line until it is used.
The majority of financial planners recommend having three to six months of salary as a financial cushion in case financial disaster strikes. Unfortunately Americans are notoriously the worst savers in the world. This fact makes the home equity credit line more important for homeowners than ever.
Believe it or not there are still multiple banks that are offering HELOC's to their clients up to 100% of the homes value. However, if you get a credit line to 100% of the homes value, the interest rate will not be pretty. But if you are only getting the credit line for emergencies then it really does not matter.
Most credit lines are amortized between 15 and 20 years with draws up to 10 years. If you never use the line it will expire and be removed from the title of your home. If this ever happens all you need to do is get another line to replace the one that has expired.
Most homeowners are under the assumption that their homes equity can always be accessed when cash is needed. However, the shocking truth is that in a time of dire need, trying to access the equity in their home is not as easy as they thought. No matter how much equity is in the home.
With out being able to prove employment. It becomes very difficult to get any type of home loan. When it is possible the interest rates are high. Which in turn will create the need to refinance again sometime in the future. Creating an unnecessary cost to the homeowner.
A home equity credit line should be viewed as an extremely cheap insurance policy. In many cases a homeowner with good credit should be able to get a credit line for free. A home equity credit line gives the homeowner instant access to their homes equity. There are no payments on the credit line until it is used.
The majority of financial planners recommend having three to six months of salary as a financial cushion in case financial disaster strikes. Unfortunately Americans are notoriously the worst savers in the world. This fact makes the home equity credit line more important for homeowners than ever.
Believe it or not there are still multiple banks that are offering HELOC's to their clients up to 100% of the homes value. However, if you get a credit line to 100% of the homes value, the interest rate will not be pretty. But if you are only getting the credit line for emergencies then it really does not matter.
Most credit lines are amortized between 15 and 20 years with draws up to 10 years. If you never use the line it will expire and be removed from the title of your home. If this ever happens all you need to do is get another line to replace the one that has expired.
