Flush With Home Equity? Careful How You Spend It

It turns out that "during the second quarter, 74% of mortgage refinancings were 'cash-out' refinancings, the highest level since the fourth quarter of 2000, mortgage giant Freddie Mac said."

This has been attributed to multiple factors: low long-term rates, rising short-term rates which means less loan competition from credit cards, and from the general rise in real estate prices.

As usual, one should be cautious when deciding if the home eguity loan is right for you. This article explains some important questions you should ask yourself before you go ahead.

Flush with home equity? Careful how you spend it [USA Today]

Tapping Home Equity for College

The consensus is that home equity can be a good option, yet should be used with caution and only as a last resort. Typically, student loans provide a better deal yet in this day and age of rising college costs, student loans aren't always sufficient. One benefit of the home equity loan is that it might help you receive more financial aid as many private schools take into accound home equity in their financial aid formula.

Tapping home equity for college [MSN Money]

How Can I Use My Home Equity Loans?

Most people use home equity loans for loan consolidation or home improvements. If used rightly, these options can be substantially beneficial.

Debt consolidation is a popular option if you can prevent yourself from getting into further debt. Home equity loan interest rates are typically multiple percentage points less than credit card interest rates.

Loans for home improvement are another popular option. You can make your home more comfortable and more valuable with equity from the home itself.

Comparison Shopping for a Home Equity Loan Worksheet

If your currently shopping for a home equity loan be sure to write down all the important details from each lender. All sorts of small fees -- such as appraisal fees, lender fees, and document fees -- can add up and make a difference after everything is finalized.

This Home Equity Loan Worksheet can help sort everything out and find the best deal:
http://communitydispatch.com/artman/publish/article_1477.shtml