Tennessee Equity Loan
MEANING OF EQUITY IN THIS CONTEXT: In a very synoptic sense equity
means Fairness and Justice. Equity is the value of a homeowner’s
interest in real state. Equity can be calculated by deducting the
total of the unpaid mortgage balance and any outstanding liens
against the property from the property's fair market value.
Concentrating towards the topic, a question arises that “What
exactly equity loan means”?
DEFINITION OF EQUITY LOAN: “Equity loan is a loan taken against a
home equity, with the concept that the homeowner is taking out a
loan against him or herself, and is repaying into their own
“It can be said that equity loan is a loan which is based on the
equity that you have in your home”.
Tennessee Equity loan is also known as second or Junior Mortgage loan that
means Equity Loan uses the borrower's equity in real property as
collateral for variety of purposes.
For equity loan seekers, there are some basic questions which
grabs their minds .They are:
• How can I know how much equity I have in my property?
• How can I draw credit when I need it?
• Will second mortgage allows me to borrow funds against my
The solution of all this questions basically depends on the type
of equity loan you are taking. The Moment homeowner pays his or
her mortgage or if the value of property appreciates, the equity
of the house increases. When a mortgage and all other debts
against the property are paid in full, then the homeowner has 100%
in his or her property. Through Home Equity Line of Credit you can
draw reserve of funds in future. . You'll have the credit you need
when the need arises - and you make no monthly payments until you
draw on it. So, be ready for future expenses like medical bills,
emergency home repairs, tuition, and more.
TYPES OF EQUITY LOAN: There are certain types of Tennessee Equity loan. they are:
• REFINANCE HOME LOAN
• HOME EQUITY LOAN
• HOME PURCHASE LOAN
• BAD CREDIT HOME LOANS
• SECOND MORTGAGE LOAN
• DEBT CONSOLIDATION LOAN
• HOME EQUITY LINES OF CREDIT
• MORTGAGE EQUITY LOAN
More percentage of people goes for home Tennessee Equity loan.
Home Tennessee Equity loan is a one-time lump sum that is paid off over a set amount of
time, with a fixed interest rate and the same payments each month.
The most common equity loans are home Tennessee Equity loan and home equity
lines of credit. These loans are also known as HELOCs and
sometimes referred to as second mortgages, because they are
secured by your property, just like the original, or primary,
mortgage. Home equity loans and lines of credit usually are repaid
in a shorter period than first mortgages. Most commonly, mortgages
are set up to be repaid over 30 years. Tennessee Equity loan and lines of
credit often have a repayment period of 15 years, although it
might be as short as five and as long as 30 years.
THE FOLLOWING POINTS WHICH EQUITY LOAN LENDER ALWAYS CONSIDERS
• YOUR REPAYMENT ABILITY
• ABILITY TO MANAGE YOU AFFAIRS
• INVESTMENT CABILITY
• SECURITY PROVIDED
• CONTRIBUTION OF EQUITY OR CASH
Tennessee Equity loan is an excellent source of funds as it can free up your
equity in your home and provide you cash for any purpose as