Home Equity Loans & Lines of Credit
If you are thinking of buying a new recreational vehicle or a motor-home, putting in a swimming pool or a home gymnasium or just travelling the world looking for adventure, home equity loans or lines of credit could be the most suitable option for you.
What are home equity loans ?
A home equity loan is a type of loan in which the borrower uses the equity of his or her home as collateral. The loan amount is determined by the value of the property, and the value of the property is determined by an appraiser from the lending institution.
This type of loan can be really useful if you are in the position of having assets but not much cash. Many baby-boomers and retirees are in this situation. They may own their own home and perhaps a rental property or two but their cashflow is limited and their savings have been eroded by inflation or even simply have many grandchildren!