Home Equity Line of Credit Portsmouth VA

This article is going to tell you about one of the most common secured loans, that is the home equity line of credit. This loan amount is based on how much equity you have in your home.

Local Companies

New Image Real Estate
(757) 271-5611
3206 High St
Portsmouth, VA
Century 21 First Colony Realty
(757) 483-2121
3325 Taylor Rd
Portsmouth, VA
Coldwell Banker Professional Realtors
(757) 484-4400
3210 Academy Ave
Portsmouth, VA
Alphin Tommy Realty
(757) 673-8640
Portsmouth, VA
First Providence Realty
(757) 393-9600
601 Dinwiddie St
Portsmouth, VA
Gregory & Gillespie Realty
(757) 465-2707
118 Wyoming Ave
Portsmouth, VA
Century 21 Nachman Realty
(757) 638-5700
3220 Old Churchland Bch
Portsmouth, VA
Craig R A Rl Est
(757) 397-4661
431 County St
Portsmouth, VA
Sweetbriar Development Corp
(757) 399-7511
700 Crawford St
Portsmouth, VA
Wood William E & Assoc Realtors
(757) 483-0306
3237 Western Branch Blvd
Portsmouth, VA

Home Equity Line of Credit - Perhaps one of the most common secured loans is the home equity line of credit. This loan amount is based on how much equity you have in your home. Once you take out this type of secured loan, your house becomes collateral. The most positive aspect of a secured home equity loan is that the money you borrow is tax deductible. For instance, if you have $5,000 in credit card debt, you can roll that over into a home equity line of credit. The credit card payments are not tax deductible, but the home equity loan is. In contrast, standard debt consolidation loans are not tax deductible.

Interest Rate Advantages - Another advantage of using a secured loan for debt consolidation is the interest rate. For many people, credit cards are the source of their debt problems. Credit cards have enormous interest rates. Since secured loans are "secured" by collateral, they tend to have significantly lower interest rates.

After discussing the pros, it is important to understand the con of using a secured debt consolidation loan. Again, many people use a house or a car to secure these types of loans. If you happen to default on the loan and cannot make payments, your house or car will be in jeopardy. A house is usually the largest asset someone owns. You do not want to put your most valuable asset at risk.

For some people, debt consolidation is the best option for their financial problems. Be sure to carefully weigh the pros and cons before choosing to use a secured loan for your debt consolidation.

About the Author:

Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans.

View her recommended http://www.abcloanguide.com/debtconsolidation.shtml companies.

Article Source: thePhantomWriters Article Submission Service

Related Local Event
Business Education Series: Commercial Real Estate for the B
Dates: 8/6/2009 - 8/6/2009
Location: Hampton Roads Chamber of Commerce-Chesapeake
Chesapeake, VA
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