Having Your Home Financially Worth

By: Johnty Flemming

Introduction

You have earned bad credit in past and now you need some cash to either buy a new house or renovate the present one. Getting a home equity loan with bad credit may be the appropriate answer for you then. These loans are essentially secured types of loans and are granted against your present house as the security.

These loans can be classified in two types, standard home equity loans and home equity loan of credit. Standard home equity loans grant the loan amount all in beginning in lump sum while in the home equity line of credit, the amount is released in parts and at periodic intervals.

The best feature of these forms is that they are tax exempted, while the sole purpose of this loan is to either buy a new house or improve the present one.

Interest rates and other conditions

The interest rates with bad credit home equity loans are pretty low as you are indeed placing your own house as the collateral against the loans amount. So, you can always get a loan with low rate of interest while the loan repayment also becomes easier with flexible terms. However, the bad credit status of yours does play a role and the interest rates are comparatively higher. Bad credit holders can negotiate with the lender to get better interest rates and repayment terms. The loan term may extend up to 15 years and the loan amount available is available up to ?150,000.

Availability

There is sufficient information available on the internet about the bad credit home equity loans. You can easily apply online for these loans and you can go for an extensive study and comparison of various lenders and their plans, since a large number of lenders are available online.

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