Good Information Articles

Interest-only Home Equity Loans - Is It Smart?

When applying for a home equity loan, homeowners have several options. Usually, loan applicants select loan packages that offer affordability, which generally consists of low monthly payments. For this reason, adjustable rate home equity loans are popular because they offer low initial rates. Homeowners may also choose an interest-only home equity loan because they offer similar low rates.

What is an Interest-Only Home Equity Loan?

Second mortgages or home equity lines of credits are types of home equity loans. Both options pledge your home as collateral. Ordinarily, home equity loans have fixed terms and interest rates. Because of low rates, these loans are more ideal than credit cards.

Interest-only home equity loans offer the same benefits. The only difference is that homeowners are allowed to make interest-only periods for a specified time frame. During this period, the monthly payments are considerably lower. Interest-only periods vary. The average length is usually one to seven years. However, some lenders will offer interest-only periods up to ten years.

Advantages of Interest-Only Home Equity Loans

If borrowing a small amount of money and selecting a short interest-only period, these loans may not present future risks. In some instances, homeowners who intend on selling their property will apply for an interest-only home equity loan, use the money to improve the property, which boosts the value, and then re-sell. In this instance, interest-only home equity loans are beneficial.

Disadvantages of Interest-Only Home Equity Loans

Many homeowners are attracted to interest-only home equity loans because of low monthly payments. Yet, it is vital to consider the pros and cons before selecting this option. Eventually, homeowners will have to begin paying the principle balance. If opting for an interest-only home equity loan option, it's better to select a shorter period, perhaps one or two years.

Those who choose a longer interest-only period may be hit with significantly higher monthly payments. If this happens, affording the payments may prove challenging.

Of course, homeowners also have the option of refinancing for a standard fixed home equity loan at the conclusion of the interest-only period.

Visit http://www.homeequitywise.com for more information on an Interest Only Home Equity Loan.

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

MORE ARTICLES:

Low-Income Families in Portland Will Soon Have Free Broadband Internet at Home
Cricket Will Provide Free High-Speed Wireless Internet to 100 Portland Families in Pilot Program with One Economy

Business & Family Safety and Health Rating
For good reason, practically every endeavor in life is rated. I've seen ratings on who or what's #1 in business, industry, NFL, NBA, MLB, person of the century, athlete of the century, technology, restaurants, university, neighborhoods, travel destination, best looking, best movie, best book, etc.

Children's Home Society & Family Services Receives Reaccreditation to Once Again Facilitate Adoptions in Russia
Children's Home Society & Family Services, a Minnesota-based international adoption service provider, announced today it has been re-accredited by the Ministry of Education and Science of the Russian Federation to facilitate adoptions in that country.

Internet Home Based Business : Legitimate Work at Home Jobs Opportunities and Advantages
There are many advantages involved in choosing an internet home based business as your primary or secondary source of income Use these benefits to find a legitimate work at home jobs that suits your needs and desires

Home Internet Business Opportunities: Reinvent Your Family
Think about your daily job, daily responsibilities, time spent at meetings, driving your kids to this activity and that sporting event, meal planning and preparation, house cleaning, on and on with our grossly busy lives, and what time is left for our family? Do you really think that 9-5 JOB is the answer to all of our hopes and dreams? Do you really think it was our personal goal to spend the majority of our lives at work? When was the last time you saw your son/daughter play in that school volleyball game or run in their cross country meet? Isn?t it time to put your family first?

SoGoNow.com -- Home of the Best Travel Article Written for the Internet in 2006
SoGoNow.com travel magazine announced that frequent contributor Linda Fasteson has won First Prize for the Best Travel Article Written for the Internet from The North American Travel Journalist Association.

Home Based Internet Marketing Business - Staying Organized In Your Home Office
When working from home there is nothing more frustrating than not being able to find things when you need them. While most home business entrepreneurs see themselves as never having any time, you have to spend some of your time to organize things. If you can't daily, you should at least try for once a week, you should set aside some time to put things where it should be. Allot of people have a saying that there is a spot for everything and everything must be in its assigned place.

Internet Based Business: How Single Parents Could Earn Extra Income For The Entire Family
Are you a single parent who has been trying to support your children on a single income? If you have been having so much trouble making both ends meet with your present income, you might want to earn some extra money by setting up an internet based business. A big family with children can be very expensive and you definitely will need to earn some extra money to keep everyone comfortable. Having some extra money could really do wonders for you and your small children so you better start exploring other means of getting extra money for your children through an internet based business.

Internet Marketing Business - Your Home Based Internet Marketing Business and the Freedom Attached with it
There are various reasons why there are many individuals who want to start their own home-based Internet marketing business. Some are saying that the amount of money that they are earning from Internet marketing is higher compared to their monthly salary from their regular work. It even comes to a point that they are earning money similar to or more than the salary of their managers and department heads! This is relatively true, since there are Internet marketers who are earning as much as a hundred thousands of dollars within a month.

Family Travel at its Finest - European Villa Rentals Perfect for the Whole Family
Parents can easily find family friendly villa rentals in Europe with Rentvillas.com.

Online Magazine is Home to the Best Travel Writing on the Internet
For the second year in a row, SoGoNow.com is the home to the best travel article written for the internet as judged by the North American Travel Journalist's Association.

Sales of Children's Travel Bed Soar as Summer Travel Hits
Gentle Air has seen an increase in summer travel sales due to hotels at popular summer attractions charging high prices for rollaway beds and cots.

The Best Internet Connection For A Top Home Internet Business
When it comes to working at your home business one of the most important things you will need is internet access Having a fast and relatively error free Internet connection is imperative for a person to be successful in working at home

Work From Home - Online Resource Center for Home Based Online Jobs and Internet Based Business
Welcome to Work from Home?s ?an online guide and resource website to help you Start and grow your Home based Job and Business. Please note that we are only offering information on Work from Home Jobs and Business opportunities. We are not offering you a job or a business tie-up. Please read through the website as you will find valuable information and resources to start and grow your home based business. www.homebasedonlinejobs.com