In a world of have’s and have not’s, only in a privileged country like the USA, can we have a financial caste system as seemingly innocent as a credit score. There are those with great score and those with poor scores. A good score goes relatively unnoticed, it’s only when you have […]

So what exactly is wrong with these loans? To start with, the interest rates are extraordinarily high. They typically run two to six percentage points more than the rates for traditional home-equity loans. Then there are the fees, which are also higher than those for a traditional home-equity loan.
Of course, just how much you’ll […]

Of special concern, millions of homeowners have taken out new loans against their dwellings, raising the risk of foreclosure. Mortgages accounted for 80 percent of the $3.5 trillion in debt assumed by consumers over the past five years.
With interest rates that are typically lower than many credit cards, a home equity loan can be the […]

No-equity home-equity loans were most popular back in the late 1990s, when many lenders boldly offered high-risk loans and borrowers felt comfortable taking on additional debt. More recently, rising home values and attractive interest rates for mortgage refinancing have helped even cash-strapped homeowners avoid such excessive borrowing.
But these loans are still available from DiTech […]

More lenders are offering home equity lines of credit, which allow homeowners to draw off their loan as they need it, usually by writing a check. The monthly payment is usually a percentage of the total outstanding principle.
Because this flexibility is the key benefit, be aware that some home equity lines specify a certain […]