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5 Things about Home Equity Loans You Must Know

5 Things about Home Equity Loans You Must Know

Home equity loans are unique in the sense that they can help you get excess cash against the value of your home without actually giving your home to anyone else. This option is particularly good for people with bad credit history, low-income level, or if they are of higher age.

Home equity loans have both their positive and negative aspects, but despite this, a lot of people exercise this option. If you want to avail home equity loan in the future or just curious to know more, here are some really great information bits for you:

1. They are good for tax purposes

Home Equity Loans exploded in popularity during the 1990s when there were certain deductions on consumer purchases.

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Interest paid on the home equity loans are tax deductible, therefore, many tax savvy individuals tend to take the second mortgage to save tax on the interest paid on such loans.

2. Interest rate is lower than charge by credit cards

The normal interest rate charged on home equity loans is higher than your first mortgage but it is a lot lower than what you may be paying on a credit card.

You can easily calculate how much it would cost you by using online calculators for home equity loans. Using online calculators can help to do comparison shopping before deciding on which home equity loan provider to choose.

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There are also reviews available online that can help you to make an informed decision on whether to go for a home equity loan or not.

3. They can be great for bad days

It is a fact that we all face financial troubles. Periods of financial insecurity often happen due to bad economic situations, job loss, or other events in our lives.

In bad days, normally people sell out their homes if they fail to pay their mortgage payments. You can easily find local, as well as national buyers of property on cash, who will be ready to buy them at a fair price. For many, it could be a good option to sell the property outright if they have alternative plans, but for many selling their home under difficult conditions may not be the option.

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Home equity loans are best for such people who are in distress and do not want to sell their properties to pay for their genuine needs. Instead of selling a home, it is always a preferred choice to take a second mortgage loan on the same property by leveraging the increase in the value of your home.

4. Home equity loans are good funding sources to pay off legal liabilities

Accidents happen every day, and so do medical emergencies. Instead of engaging a lawyer to fight long cases, you can easily use the proceeds obtained from home equity loans to pay off your lawyers’ fees, and any other legal liability arising due to undesirable events.

Since home equity loans are mostly obtained by people at the later stage of their lives, and it is normally paid off when the borrower dies, therefore, most of the times such loans are used to pay for medical and other emergency expenses.

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In the UK, there was also a trend where parents took home equity loans to help their kids to pay for down payment on their own first home.

5. Fixed vs Line

Home equity loans can be availed either as the fixed loans or as credit lines. Fixed loans are paid in each amount in one go and you cannot redraw it. However, in the case of a credit line, you get a sort of overdraft limit where you can draw and redraw the amounts when you desire.

Credit lines are especially good if you are willing to use home equity loans for paying the college expenses of your children, or even for your recurring medical expenses.

Featured photo credit: Guarantee Bank via gbankmo.com

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Last Updated on August 15, 2018

30 Fun Things You Can Do This Summer Without Spending Much

30 Fun Things You Can Do This Summer Without Spending Much

Summertime can be a real strain on your wallet. The sun is out, there are people to see, places to be; it’s no wonder you might be short of funds during these sunny months. Not everything has to cost you an arm and a leg.

Take some time to go through this list of 20 cheap summer activities and make some realistic goals to complete as many as you can.

Video Summary

1. Visit a strawberry festival

Summer is prime time for tasting strawberries. More often than not, an area that grows strawberries will have a strawberry festival. Indulge yourself in strawberry pies, jams, cakes and more!

2. Have a picnic

Take your partner or your family to the local park and enjoy a relaxing picnic. Designate each person to bring one food item of their choice to add to the fun.

3. Camp in your back yard

    The summer heat can sometimes make it hard to sleep. Why not enjoy the heat outside in the yard? Pitch a tent or gaze into the night sky.

    4. Take long walks

    Discover something new where you live. Take the afternoon off from your chores and go for a long walk. You may be surprised by what you discover.

    5. Break a world record

    Breaking a world record doesn’t have to be time-consuming. You could even break one on your lunch hour. Give it a go!

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    6. Go on a bike ride

    The number of bike paths on roads in big cities has increased dramatically over the years. Take advantage, and enjoy the summer breeze.

    7. Join a gym class

      The gym is not everyone’s idea of a good time, but why not go with a friend a join a class? Spinning, yoga and step classes are always more fun with friends, and a lot of gyms allow you to pay-as-you-go.

      8. Find a new hobby

      The summer is the perfect time to find a new hobby. Serotonin (our body’s natural “happy” hormone) is produced by the sunshine and will be at a yearly high, which is great for when we want to tackle something new.

      9. Join a sports team

      Not all sports teams are competitive and require huge amounts of your time. Join in the fun with like-minded people, get fit, stay healthy and make some friends along the way.

      10. Make a slip ‘n slide

        Gather your friends, some plastic sheeting, a hose, washing up liquid if desired, and make a huge slip ‘n slide just like these guys. Granted, yours won’t be as big, but you get the idea… it’s fun!

        11. Make a treasure hunt for your kids

        Today’s digital world sees our children more often than not playing inside than outside. Why not create a sense of adventure by making a treasure hunt? Only rule? It has to be outside.

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        12. Visit a free festival

        Towns and cities are awash with free festivals, with themes from film to science. Scout your local area and discover something new.

        13. Visit the zoo

          Let’s face it: we love animals. While browsing news websites and social media networks you’re bound to come across a few pictures of cats. Take a trip to your local zoo for a better experience.

          14. Take a road trip

          Enjoy the open road with a few friends and take a road trip somewhere–anywhere. Just go out and enjoy the sunshine!

          15. Play ultimate frisbee in the park

            Frisbee is always great fun down the park, but why not turn it into more of a competitive sport by playing ultimate frisbee?

            16. Make your own ice cream

            Ice cream is a very versatile dessert. Make a sandwich, enjoy a cone, or simply just enjoy a bowl full. Better yet, making your own ice cream allows you to create any flavor you want.

            17. Invite your neighbors over for a BBQ

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              When was the last time you invited your neighbors over? Do you even know them? Now’s your chance. Just ask each person to bring a food item so costs don’t mount up for you.

              18. Get a summer job

              For many students, summer is the time for relaxation and fun. But who said earning money and being productive isn’t fun? You only get out what you put into a situation.

              19. Attend a charity event

              Attending a charity event is a great way to raise funds and awareness for a cause, meet new people, and generally have a good time. Search for your local charity event today.

              20. Visit a national park

              National parks are a great way to explore nature and learn something new. You could even volunteer and make a difference in helping restore natural habitats.

              21. Visit your local comedy club

                Local comedy clubs are extremely underrated. They are cheap to attend and no doubt you’ll have a barrel of laughs.

                22. Make your own hammock

                  Hammocks are very relaxing, are perfect for summer afternoons and are surprisingly easy to make.

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                  23. Read in your new hammock

                  Now you have your very own hammock, the only thing left to do is enjoy it. Grab your favorite book and read to your heart’s content.

                  24. Watch a movie outside

                  Movies are great. Relaxing outside in the evening is great. Put them together and you’ve got a perfect combination. In D.C, Maryland and Virginia this summer, for example, you can enjoy a huge number of movies outside.

                  25. Take a hike

                    Hikes are a great way to keep fit and see more of Mother Nature. There are countless trails available for you to explore. Why not try some this summer?

                    26. Learn how to fly a kite

                    As a child, you probably had a kite and haven’t touched it since. Why not dust it off and attempt to fly it? It’s tricky, but well worth the challenge.

                    27. Work out at the park

                    American cities are full of parks with ample space for a work out session. No doubt you’ll be happier to work out in the sun rather than a crowded gym.

                    28. Take your dog to the beach

                      One of the many joys of owning a dog is taking him or her for long walks during the summertime. This joy is enhanced when visiting the beach, for both you and your dog.

                      29. Make a summer smoothie

                      Healthy, delicious and perfect for the summer. Not only that, there are countless recipes ready for you to try.

                      30. Attend a free yoga session at the beach

                      No experience needed and all skill levels are welcome. Take yourself and a buddy down to the beach and try some yoga. You’ve got nothing to lose!

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