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We will explain what home equity is, what collateral is, how these loans and lines of credit work, why people use them, and what pitfalls to avoid.
In many instances, a home equity loan would not be available.Using the above example, let's say you buy a house for $200,000.

During the next five years, you paid down $13,000 of your mortage debt.As home prices fell and homes in your neighborhood went into foreclosure, your home's value dropped by 30 percent, or $54,000, to $126,000. Both are sometimes referred to as second mortgages, because they are secured by your property, just like the original, or primary, mortgage.Home equity loans and lines of credit usually are repaid in a shorter period than first mortgages.

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Author: admin | 31.05.2015 | Category: Best Stock Trade Sites

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