Is a West Virginia Home Equity Loan Right for You?

By: Terry Edwards

If you need extra cash to pay off those nagging credit card bills or medical bills, have you thought about applying for a West Virginia home equity loan? If you have been paying on your home for a while, then you may be able to get a considerable amount of cash from a home equity loan. First, let's look at what a West Virginia home equity loan is.

A home equity loan is a loan against the value of your home and what you owe on your home. For example, let's say you paid $100,000 for your home. You made a lot of improvements to your home and it is know appraised at $180,000. Then you could get a home equity loan for $80,000. This is cash loaned to you on the promise that you will pay it back. If you default on your West Virginia home equity loan, you may lose your home to foreclosure.

It is important to look at your financial situation carefully before you apply for a home equity loan. Will you be able to afford the additional payments easily? If the additional payment is really going to stretch your budget, then maybe a home equity loan is not for you. You don't want to risk losing your home.

If the additional payment is no problem, then do some shopping around for the best rates for you on a West Virginia home equity loan. Most banks are very competitive and you may be able to lock in a very good rate if you comparison shop, whether you are in West Virginia or any other state.

Always make sure that you know what is in your loan contract before you sign it. The best thing to do would be to take it to your attorney and have him look over it thoroughly before you agree to sign it. Make sure that your rates will be fixed so that your payments will not increase over the years.

Be very suspicious of lenders that contact you out of the blue, offering you a great deal on home refinancing. A lot of these lenders are predatory lenders and will do you no favors. They are trying to get as much money from you that they can and they may also be trying to get ownership of your home.

A West Virginia home equity loan can be a great deal for some people because it is tax deductible and may save you a ton of money. If you use the money to pay off higher interest debt then you can only get ahead.

Just always do your research and never jump into a West Virginia home equity loan without the advice of your attorney or someone that is knowledgeable about home equity loans. Always remember the phrase "If it sounds too good to be true, it probably is."

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