Options for Repaying Your Home Equity LoanBy Karen Lawson
Email a Friend Printer Friendly
You got a home equity loan when rates were low and home prices were at record levels. Now the market is cooling, and your equity is diminishing. If you're concerned about repaying your home equity loan, you may have several options depending on the terms of your loan.
How Real Estate Markets Affect Your Home EquityHome equity is generally defined as the difference between the current market value of your home less the balances of your mortgage and home equity loan. As real estate markets change, the amount of your home equity can also change. As interest rates rise, home values may decrease, as fewer buyers can qualify for mortgage loans. If your home's value decreases, your equity will decrease, too.
Loan Repayment OptionsHome equity loans may offer several repayment options: Depending on the terms of your loans, your financial situation, and market conditions in your area, you may be able to choose a repayment option that best suits you such as:
About the Author
Karen Lawson is a freelance writer with more than fifteen years of experience in mortgage banking. She holds an MA degree in English from the University of Nevada, Reno.
30-Year Fixed Rate -Get Mortgage Quotes In Your Area
15-Year Fixed Rate -Get Mortgage Quotes In Your Area