| Home equity loans Info | |
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Home equity loans |
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| Home equity loans and lines of credit: Similar
loans, different purposes. Yet consumers should consider several things
before jumping into either financing product, experts say. That's because
home equity lines of credit typically are a good deal for those who want a
lower up-front rate and access to money at unpredictable times. However,
home equity loans are better suited to those who need a specific amount of
money and payment stability.
"With a home equity line of credit, you can open it and you're only going to pay for the amount of money you use," says Peter Traum, a Morristown, N.J. branch manager for KeyCorp's Champion Mortgage lending subsidiary. "With a second mortgage, you're going to get a check, and you're going to make payments until you pay that amount off."
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