Today I was chating with a friend and suddenly a conversation about some school projects for our weekend ended up talking about loans.

As young adults we both think about getting our own houses someday but we are forced to contract loans with banks for that.
One interesting aspect further on the conversation was Home Equity and home equity loans.

A Home Equity Loan, or HEL(L) as you prefer, is a loan that uses home equity value as collateral. Basically meaning if something goes wrong you are f#c%ed.
This type of loan is manly used to pay for college education, medical bills and major home repairs. You may use it for other aspects but it’s harder to get approval.

This loan will create a lien on your house and if something goes wrong you might loose it. So be careful before applying for one. As you contract this loan your property will loose value, and it’s not just hundreds of dollars.

Some countries like the USA make it possible to deduct home equity loans on personal income taxes as this type of loans is considered as a second mortgage on the house.

If you wish to know more about home equity loans visit Wikipedia and remember:

Home Equity Loans

are a dangerous ground to walk on…

Tags: money

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Posted in Geral by Lounge22 No Comments Yet