Wealth Creation graphic
Wealth Creation symbolWealth Creation picture
Wealth Creation image

 

Welcome to Universal Wealth Creation.com

 

This site have been developed as a resource for people

searching for the best ways to create wealth and increase the

quality of their lives. Inside you will find reviews of the latest

Investment strategies available.

Wealth Creation 

Home Page

 

 


 

 

Wealth Creation

Wealth Finance & Property Articles

 Home Equity Loans - Are They Right For You?
 By: Dean Shainin

  Copyright 2005 Dean Shainin

The bills are out of control and you need a new car. ďMaybe we can get a new carpet and paint the houseĒ, you say to yourself. These are just a few reasons why home equity loans can seem like the solution to all your problems and are so popular.

Home equity loans can be a fantastic way to start your own business or to take advantage of an investment opportunity. They can also make your situation worse than it was before you got the home equity loan.

The reasonís for taking advantage of home equity loans are the most important part of the process. Take the time to sit down and ask yourself, ďDo I really need a home equity loan? Do I want to go on a spending spree or am I really trying to improve my life?Ē

A home equity loan is like having a second mortgage on your home. Suppose your home is worth $200,000 and you have a mortgage against it at $150,000, you will have $50,000 of equity available. Home equity loans allow you to borrow up to 80%, and sometimes more in certain situations, of your home value. In this situation you could borrow $80,000 as a home equity loan and still have only borrowed 80%.

This is why it is so important to take a good look at your situation before making a decision. You can see how easy it could be to get carried away with home equity loans.

Letís say you only need $20,000 for that new car and some home improvements. You decide to borrow another $15,000 of equity for that vacation to Hawaii you have been dreaming about. First of all, a vacation to Hawaii would not cost $15,000 unless you went on a first class, spare no expense vacation.

Using a home equity loan to buy a car may not be a great idea with todayís 0% interest rates and no money down loans. There is no sense in risking losing your home to buy a new car with these type of loan programs that are available in todays market.

On the other hand, a home equity loan for home improvements may be a great idea. This will add value to your home as long as you can afford the higher loan payments.

A business thatís doing great that you want to expand may be another good use of a home equity loan. As long as the business is already in profit and is not losing money.

Some solid investments can be a good idea if you have done your research before hand. The latest IPO may or may not be a great idea.

Consolidating high interest credit cards may be a great idea as long as you close the accounts and donít run them back up. You really only need one or two credit cards in case of an emergency.

Educational expenses may be a good reason to take a home equity loan to get your children started in the right direction. Someday this type of an investment can pay off.

These are just a few things you can do with home equity loans. Itís very easy to borrow too much, only to find yourself having a tough time making the new payments.

The important thing to remember with home equity loans is to be logical and donít let your emotions get the best of you. Again, take the time to sit down and research all your options. This way you can rest well at night and not have to be concerned about losing your home. You can enjoy the things you do with your home equity loan knowing youíve made a wise decision.


About the author:
Dean Shainin is a consultant specializing in home equity loan strategies and home mortgage loan information. To see a list of recommended home equity loans, advice and information, visit this site: http://www.homemortgageloantips.com


Circulated by Article Emporium



 

http://www.universalwealthcreation.com   Wealth Creation | Financial Wealth

Copying or republishing this article is permitted with this footer included

 

Collect a Free 260 page ebook here: Universal Wealth          Earn up to $1,000 per referral: Wealth Creation Affiliate

 

These property, finance, stock market & business articles have been supplied in the interest of Universal Wealth Creations visitors who want to expand their knowledge in the wealth creation & investment fields.  All the business, finance, stock market & business articles have not been read as they are submitted remotely, so if you find any questionable facts in here or simply do not like it, please email webmaster@universalwealthcreation.com and we will review the material. As we find time to do so, we will go through all articles and remove any that appear not suitable. Other sites we recommend here at Universal Wealth Creation are: 21st Century Academy with Jamie McIntyre, Investor Finance, Universal Trading Solutions which promotes great wealth creators like: Kim Reilly, Simon Martin, Justin Beeton, Louise Bedford, John Kaye, Daniel Kertcher & more. They run great seminars across the country. At times we will publish dates for these seminars as they are made available around the counrty. Meanwhile, there is a great opportunity to learn about the finance, stock market & property investment field through reading these kind of articles. Learn about share trading, options, futures, CFD's, derivatives, warrants, indices & more in the stock market. You will also learn plenty about business, finance & property investing through authors opinions in the marketplace.  Enjoy your journey towards financial freedom. We hope you will enjoy your visit.

Regards    Sean Rasmussen - Universal Wealth Creation Pty Ltd

Financial Wealth | Wealth Creation Ebook | Wealth Creation Ezine | Financial Investment Books | Kim Reilly | Jamie McIntyre DVD | Jamie McIntyre Homestudy  | FAQJamie McIntyre Testimonial | Wealth Creation Forum | Wealth Creation Affiliate | Bourse Data | Australian Property | JB Global | Justin Beeton | Investor FinanceRenting Shares | 21st Century Academy | Pacific Investor Group | Forex Currency Trading | Property Investment | Australian Property | Covered Calls | Property Sourcing | Property Articles | Business Articles | Finance Articles | Resource Directory | Jamie McIntyre | Business Opportunities | Property Investing | Share Trading | Renting SharesStellar Property | Investor Finance Articles | Property & Finance Links | Wealth Creation DVD | Perth Property | Adelaide Property | Brisbane Property | Hobart Property | Melbourne Property | Sydney Property | Australian PropertyASX Links | Work From HomeMaking Money | CK Locke | IPO | Finance Review | Deposit Bonds | Bank Guarantees | Investment Tutorial |

Site Map

 

Return to Index

Return To Universal Wealth Creation Home Page

 

 

 

 

Copyright © 2004 & 2005 Universal Wealth Creation