Housing Counseling

Home Equity Loans and Lines of Credit

Advantages:

• * Monthly payments may be lower.
  
  
• * You keep control of you finances.
  
  
• * You may find that you can get very low fixed interest rates.
  
  
• * A convenient source of credit.
  
  
• * The loan may be tax-deductible.
  
  

Disadvantages:

• * Home equity loans are secure. If you fall behind on your payment you risk losing your home.
  
  
• * These loans can be complicated. There may be various fees and interest rates can fluctuate depending on the loan. Make sure you carefully read and understand the term of the loan.
  
  
• * Watch out for lenders who prey on financially desperate consumers. Be aware of scams that include balloon payments and equity stripping.

For more information or questions please feel free to contact our Financial Resources Group at 1-800-435-1945.