CARTOONS BY CHRIS BRITT
StartUp_Wisdom_online2
StartUp_Wisdom_online2
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
– HOME EQUITY –<br />
This type of loan allows you to tap into the equity in your home. Theoretically, you can<br />
borrow up to 100% of the value of your home, depending on the type of loan you get and<br />
how much you’ve paid down the mortgage. Just remember, if you fail to make payments<br />
on the loan, the lender<br />
can foreclose on your<br />
home, even if you’re<br />
making the mortgage<br />
payments because they<br />
are different loans.<br />
There are two types of<br />
home equity loans: fixedrate<br />
and a home-equity<br />
line of credit (HELOC).<br />
The fixed-rate loan is<br />
similar to the one you<br />
have for your mortgage.<br />
The interest and term are<br />
set in stone and you make There’s no place like home if you don’t have the money to go out.<br />
monthly payments on it.<br />
A home-equity line of credit works more like a credit card, but with lower interest rates.<br />
In contrast to the fixed-rate loan, you only pay interest on the amount you’ve actually<br />
borrowed rather than on the credit limit itself, which may be higher. This type of loan<br />
also has a set term in which the loan needs to be paid back.<br />
41
Change language