Why is a Home Equity Loan a Solid Investment?

Real estate and housing property build up a reasonable amount of equity. You can get a loan against this equity which is called an equity loan. Having a home as a mortgage is the most secure way for a lender to give out a loan to the borrower as he can be sure of the getting his money back. Moreover the borrower can get flexible terms and conditions and even a lower interest rate for a better equity level home.

Home equity loans help you get the equity tied up to your home. Normally you may wish to sell your house to get the possible equity out of your home but that may not be the conditions if you don’t have alternate way to live, so it’s good decision to let the house go for the loan. You get the required cash in your hand and don’t even have to leave you house. This is an exciting opportunity to people who require quick cash without selling any of their property.

A home equity loan has lot of opportunity attached to it. The very first is your ability to get good amount of cash for a very low interest rate. But with opportunity there comes risk and problems too. Home equity loans are very risky to borrowers because if you fail to repay your loan within allocated period then you will have to let your house go to the lender. The borrowable amount depends on the equity of your home and which also ascertains the repayment period which is normally longer then any other type of loan and you can repay your loan in monthly installments.

The idea of getting a loan on your home can be a good opportunity to repay your other small credits or purchasing a car or renovating your house. You can even pay for your child’s school and college fees with the equity loans. There are multiple ways you can use the equity of your home loan but the most important things while choosing a equity loan is to read the terms and conditions of the lender before you jump in to get the loan. A wrong strategy can really dent your credit rating and loan tenure if you fail to read the terms and will certainly find yourself paying more than your home equity.

The basic idea of equity loan is that you can lend your home against the current equity of your loan, so the more equity you can get of your home will be better to get a bigger loan. But most individual don’t look the other part of getting the equity home loan. If you are not able to pay the equity in time then your home goes into foreclosure and you are bound to let your home go for the amount of equity. Normally, the amount you get from the loan is less than what you get if you sell it so it is very important that you be alert of timely payments and plan your moves from the start.

The biggest shock most people get when they don’t follow the terms of the loans and get their home gone. It is also very important to find about the track record of the company you are applying for the home. Find out if the company is flexible in repayment structure and can accommodate certain latency in repayment. You surely don’t want your home gone just because you took equity loan to buy a new car.

Be ware of all the risk Read the rest


Old Investment Habits Die Hard in Today’s Market

Can Today’s Market Make Up for the Losses During the Tech Days

I lost everything when the tech stocks crashed in 2001. I had looked like a day trading genius and had turned nothing into a cool mil. As fast as it came, it went. And I went back to my real job.

But that was then and this is now. I never invested again. Whatever I had saved from the scourge is gone and today every penny needs to be accounted for. But I found it irresistible, when I happened upon another online broker, not to open an account for a very small amount of money.

I decided to invest in penny stocks. I looked for stocks that had at one time been worth a lot more then the under a dollar amount they now commanded. I considered the prospect of them going into bankruptcy and also looked at the uniqueness of their product. I felt I really had nothing to lose since the entire amount I was investing was way under $1000. Someone had told me that when companies come out of bankruptcy their stock soars. I made my first penny stock investment for 14 cents a share and shortly after the company did go bankrupt. Still in bankruptcy, I am now making a 365% profit on my investment. Still not a lot of money in dollars and cents, but one hell of a killing in the market.

I put some of my original investment money into AIG. I got a lot of shares and figured that when they recovered I would make another killing. The AIG folks just completed a reverse split and my many shares turned into only 5. I just broke even and will never make any kind of a killing with 5 shares. So before you invest in a really cheap stock see if you can find out about their intention of doing a reverse split.

Then I put some of my last pennies into Citibank only because it is beyond my belief that Citibank won’t recover. I have a 100% return on that investment and so far they have not said anything about a reverse split.

I still don’t have $2000. But this old day trader is getting itchy. I really do not have the funds to risk and the small profit will not make much difference in my life. So I’ve increased my prayers to the Gods of the lottery. I would love to make up the losses of the past. Betcha I could.Read the rest