Learn the most important things you can do to get "credit ready". From paying your bills on time to paying down your level of debt, these are tried and true practices that can pay big dividends.
Learn how the information in your credit report is "weighted" to help determine your credit score. By looking at your credit the way a lender does, you can take steps to improve the "credit snapshot" you present to lenders.
Your credit report changes on an on-going basis. To make sure everything is accurate and to get the credit you deserve, it is recommended that you monitor key changes to your credit report. Monitoring your credit can also be your "first line of defense" against identity theft.
Home Equity Loans are sometimes referred to as "second mortgages" With Home Equity loans, your house is used as collateral. The equity you have in your house is the difference between the market value of your house and how much you owe on your original mortgage. For instance, if you owe $200,000 on your first mortgage and your house is appraised at $300,000 current market value, the lender may allow you to borrow up to $100,000 or 100% of your equity. Many lenders protect themselves by allowing you to borrow only up to 80% of your equity.
The advantages of Home Equity Loans are:
Allow homeowners to borrow against the equity in their home
Fixed payment terms over the life of the loan
May provide tax advantages to the owner.
The disadvantages of Home Equity Loans are:
Interest rates are typically higher than first mortgages
Borrowers may not "pay down" and borrow additional money
Homeowners equity is "tied up" and not available if needed
