Equity Home Interest Loan
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With a good credit rating, you can eliminate high interest debts with a low rate home equity loan. Borrowing up to 25% of the value of your home, you don’t have to have equity to qualify for a second mortgage.2
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If you take a home-equity line of credit, ask about the cap on the interest rate and find out how high the payment can go before the cap applies. Finally, choose wisely because you are using your home as collateral, it is particularly important that you consider carefully all elements of any home-equity loan prior to taking it.4
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A HELOC gives you more flexibility than a fixed-rate home equity loan. It also is possible to remain in debt with a home equity loan, paying only interest and not paying down principal.6