Home Equity Loan (HEL)
This is a secured debt loan that is backed by your house as an asset. If you own a home and have built up equity in it, this is one loan to consider. It's given to you as a lump sum when you take out the loan. The rates are usually pretty good, fixed at the start of the loan (unlike the HELOC which has a floating rate), and structured to have regular payments over a fixed time period. In addition, depending on your situation, there may be tax benefits with using a home equity
loan.
Some useful links on Home Equity Loans:
Home Equity Loans: Borrowers Beware!
The Federal Trade Commission (FTC) issues warnings about some home equity loans- beware of bad loan terms!
Putting Your Home on the Loan Line is a Risky Business
The FDIC cautions you on borrowing against your home, and urges caution. See what you need to look out for.
Home Equity Basics
BankRate.com discusses how home equity loans and home equity lines of credit work.
BankRate.com Home Equity Loan
Get articles and current rate quotes for HELOCs.
The No-Equity Loan Trap
SmartMoney.com cautions borrowers against destroying the equity in their home with home equity loans.
5 tips for wisely tapping your home equity
MSN Money discusses the tradeoffs of getting a home equity line of credit and home equity loan.
Should you tap home equity?
CNN.Money.com discusses the merits of home equity loans and lines of credit. Which is better, and which should you use?