The Other Real Estate

Thomas Erikson asked:


You should consider using a home equity line of credit to consolidate bills if you have outstanding bills and you don’t know how you’re going to make your monthly payments.

Sometimes with a job loss, medical bills or credit card spending, bills can get ahead of you. If you find yourself in that position, don’t panic. If you own your home, you can use a home equity line of credit to consolidate bills.

Very much like a home equity loan, you can obtain a home equity line of credit and use it to consolidate your bills. The only difference is a home equity line of credit may have a minimum required payment each month but as long as you pay that, you may take as long as you wish to pay back the balance.

When you consolidate bills with a home equity line of credit, you only pay interest on the amount you are using. This can save you money if you need to use your line of credit frequently because of non-steady income.

Home equity lines of credit happen to carry some of the lowest interest rates. Because they are secured by your home, lenders can provide very good rates making this technique one of the least expensive. Over the long run, lower interest rates will save you a great deal of money.

Unlike a home equity loan which ends once you finish paying it off, a home equity line of credit provides you the flexibility of always being available. When you consolidate bills and then pay off your line of credit, you can keep using it to manage other debt. For some, certain types of bills, medical expenses or job loss are not exactly a regularly planned event so having the flexibility of the home equity line of credit to manage these surprises can be a great help.

If you find yourself overwhelmed at the end of the month, you should consider using a home equity line of credit to consolidate bills. It allows you to pay back the balance when you can while only paying interest on the amount you are using and it will be available to use again once you have paid off the balance. This kind of flexibility can be what you need when surprised by a job loss or unexpected medical bills.

Carrie Reeder asked:


Shopping online for a Home Equity Loan lender can make the borrowing process simple and painless. However, you do need to be cautious about potential scammers and low-quality loan companies. To make sure your Home Equity Loan lender is reputable, look for these three things:

A real phone number and address

As a customer, there may be times when you want to actually speak with a live person rather than communicating via email and web forms. Make sure your online lender has a phone number and address where you can contact them during regular business hours. Watch out for companies that only send you to an automated voice mail service, too. Before signing on with a company, have at least one phone conversation with a loan officer.

A specific list of fees and charges

You’ll have to pay fees when you get a Home Equity Loan, so ask your lender for a list of their charges. Be cautious of any company that refuses to give you exact numbers and only offers vague estimations of what your final charges “might” be. After reviewing your employment information, taxes, the amount of your loan and your credit report, your lender should be able to quote you an interest rate and the cost of their fees.

A general “good” feeling

You should feel as if your loan company is working hard for you. In all interactions with the company, you want to feel as though the lender is knowledgeable, supportive and competent. It’s important that you believe you can trust your lender, since you’re entering into a financial contract with the company. If, at any time, you believe they may be pressuring you or trying to tack on extra fees, you may want look elsewhere for your loan.

If you have doubts about an online Home Equity Loan lender, you can check the Better Business Bureau to see if any formal complaints have been lodged against the company. Consider asking for professional referrals from real estate agents, too, to ensure the lender has a positive past record.