Online Home Equity Loans: A Basic Glossary

Home equity loans can be a great idea for individuals looking to get out of debt or make necessary repairs on their homes. During the process, you will come across a variety of terms and acronyms. We have gathered together some of the basic terms that you come across during your home equity loan. If you have any questions about any of these terms, make sure to consult with your mortgage lender.

Adjustable Rate Mortgage (ARM): This type of mortgage has an interest rate that will change over time. Typically the interest rate will be lower than fixed mortgage products.

Amortization: Loan payments that will cover both principle and interest in one payment. Your lender will likely give you an amortization schedule outlining your payment schedule.

Annual Percentage Rate (APR): This is the cost of credit on a yearly basis.

Appraised Value: An appraiser will determine the value of your home based on experience, market data, and other information.

Cap: This is the limit on how much an interest rate can increase over the life of your loan.

Closing/Closing Costs: This is the final step in the real estate transaction. This would include the delivery of the deed, signing of the notes, and final disbursement of the funds. There will be various fees associated with a closing, such as attorney fees and taxes, that are called closing costs.

Depreciation: An overall loss on a property due to age, physical deterioration, and economic factors.

Discount Point: A buyer can pay the lender a set fee for a lower interest rate. This is usually a percentage of the loan itself.

Equity: This is the amount of money that you have vested in your home. This can be determined by subtracting the lien amount from the property's value.

Equity Loan: A loan or line of credit that is based on the amount of equity that you have in your home. Your home is essentially used as collateral.

Fixed Interest Rate: An interest rate that remains constant throughout the life of the loan. A fixed-rate mortgage will have the same interest rate and payments for the length of the loan.

Home Equity Line of Credit: Similar to a home equity loan, but you receive a line of credit that you can draw upon at any time.

Home Equity Loan: A loan based on the amount of equity you have in your home.

Interest: This is the cost for borrowing money.

Interest Rate: This is the percentage of the loan amount that you must add to your principle, for the privilege of borrowing money.

Loan-To-Value Ratio: This is the ratio between the amount of the loan and the actual value of the home. Some loans can give you up to a 125% Loan-To-Value Ratio.

Market Value: This is the price that buyers would be willing to pay for your home, at the present time. This can vary from the actual sale price of the home.

PITI (Principal, Interest, Taxes, and Insurance): This is the usual breakdown for mortgage payments.

Principal: The amount of your original loan before interest was added.

John Ross is a freelance author who writes articles about financial loans including: home equity loans company, online home equity loans, and fixed rate home equity loans. The Loanchbox is a user friendly website designed to inform beginners about home equity loans.

---

Google News Updated : Tue, 07 Oct 2008 20:50:00 GMT AIG's ex-CEOs blamed for crisis - CNNMoney.com Los Angeles Times AIG's ex-CEOs blamed for crisis CNNMoney.com - 1 hour ago House panel chairman says executives got undeserved riches, while ex-CEOs blame accounting rules and market conditions for leading to $85B bailout. Joe Cassano: The Man Who Brought Down AIG? Washington Post AIG CEOs Blame Each Other, Accounting for Insurer's Downfall Bloomberg Wall Street Journal - Financial Times - New York Times - Forbes all 768 news articles Publ.Date : Tue, 07 Oct 2008 19:11:18 GMT Sleuth's Presidential Debate Watch Game - Washington Post Sleuth's Presidential Debate Watch Game Washington Post - 41 minutes ago Tonight's debate watch games probably won't be as much fun as last week's Palin Bingo. But don't fret, there are still games to be played during this second presidential debate between John McCain and Barack Obama. 'Aggressive' debate expected between McCain, Obama CNN * McCain looks for way to stop Obama's momentum Reuters The Associated Press - MSNBC - U.S. News & World Report - TIME all 1,199 news articles Publ.Date : Tue, 07 Oct 2008 20:08:21 GMT Bernanke hints at possible interest rate cut - MarketWatch The Associated Press Bernanke hints at possible interest rate cut MarketWatch - 31 minutes ago By Greg Robb, MarketWatch WASHINGTON (MarketWatch) - Federal Reserve Chairman Ben Bernanke opened the door on Tuesday for a possible interest rate cut to help rescue the economy from a severe downturn, admitting that the global panic in the financial ... Video: Bernanke signals possible rate cut ReutersVideo Bernanke: Economic outlook weaker CNNMoney.com New York Times - Forbes - Reuters - MSN Money all 988 news articles Publ.Date : Tue, 07 Oct 2008 20:18:10 GMT Qantas Involved in Another Air Incident - New York Times NEWS.com.au Qantas Involved in Another Air Incident New York Times - 25 minutes ago By Liz Robbins It has been 20 years since Dustin Hoffman’s character Raymond Babbitt in “Rain Man” made Qantas synonymous with air safety, claiming he would only fly the Australian airline because it had never crashed. Qantas passengers arrive in Perth after mid-air ordeal ABC Online Fifteen badly hurt as Qantas jet drops Sydney Morning Herald The Standard - Taipei Times - United Press International - NEWS.com.au all 366 news articles Publ.Date : Tue, 07 Oct 2008 20:24:06 GMT Wells Fargo may get lion's share of Wachovia deposits: report - MarketWatch Sify Wells Fargo may get lion's share of Wachovia deposits: report MarketWatch - 32 minutes ago By John Spence, MarketWatch BOSTON (MarketWatch) -- Wells Fargo & Co. may get as much as 80% of Wachovia Corp.'s deposits, with the remainder likely going to Citigroup Inc., according to a published report Tuesday. Citi, Wachovia, Wells temporarily halt litigation Bizjournals.com Wachovia shares waver as Citi, Wells Fargo wrangle Forbes BloggingStocks - Washington Post - New York Times - CNNMoney.com all 7,781 news articles Publ.Date : Tue, 07 Oct 2008 20:17:51 GMT Cough, Cold Drugs Not for Kids Under 4 - WebMD CBS News Cough, Cold Drugs Not for Kids Under 4 WebMD - 2 hours ago By Miranda Hitti Oct. 7, 2008 -- Don't use over-the-counter pediatric cough and cold drugs in kids younger than 4. Leading makers of over-the-counter pediatric cough and cold drugs are putting that message on the products' labels, according to the ... Cold, Cough Medicines for Children Get Added Warnings (Update3) Bloomberg Drug Companies Say No Cold Meds for Kids Under 4 Washington Post Chicago Tribune - New York Times - Bizjournals.com - The Associated Press all 1,485 news articles Publ.Date : Tue, 07 Oct 2008 18:48:20 GMT Thai Army Sends Troops to Help Police Keep Peace - Washington Post Voice of America Thai Army Sends Troops to Help Police Keep Peace Washington Post - 4 hours ago Thailand's military agreed Tuesday to deploy hundreds of unarmed soldiers to the streets of Bangkok to help police restore order after violent clashes between police and protesters that left at least 1 person dead. Video: Raw Video: Tear Gas Fired at Thai Protestors AssociatedPress Troops deployed as one dead, hundreds hurt in Thai protests AFP Reuters UK - Hindu - eTaiwan News - The Standard all 1,327 news articles Publ.Date : Tue, 07 Oct 2008 16:12:03 GMT RSS Software Increase Web Traffic

PARLOT::Ebooks, Scripts, Websites, and more...

Adsense websites

Home Equity ? Let the Market Eliminate Your Private Mortgage Insurance

In decades past, most people who were interested in obtaining... Read More

Thinking About Re-mortaging? Read These Tips First

More and more of use are signing up for limited... Read More

Stock Market, Bonds, Deposit Account, Cash, Equities, Unit Trusts - Few, Just Few of the Ways of Sav

Man has been known for continually simplifying things in his... Read More

Refinancing Your Home - How and Why?

Chances are you may need a little extra money to... Read More

How to Find the Best Mortgage

The purchase of a new home is one of the... Read More

First-time House Buyers: to Buy or Not to Buy; that is the Question

Buying your first house is always a difficult time. There... Read More

How To Save Thousands in Interest on Your Home Mortgage!

So you have a mortgage on your home or planning... Read More

Bad Credit Home Equity Loans

A home equity loan allows you to borrow against the... Read More

Mortgage Loan Most Bankers Wont Give May Be Exactly What You Need to Buy or Refinance Your Home

A few years ago, a loan officer who worked for... Read More

Home Mortgage Interest Rates: How to Compare

Whether you are looking to purchase your first home, sell... Read More

Home Equity Lines of Credit Vs. Other Conventional Loans

When it comes to getting money, you have two basic... Read More

Is It Time To Buy A House?

At some point as you're writing out your rent check,... Read More

Some of the Available Loan Types

There are many mortgage products available on the market today.... Read More

Home Mortgage Loan Information - Which Type of Home Loan is Best For You?

If you are considering buying a home, then you may... Read More

What is an Interest Only Mortgage?

An Interest Only Mortgage is one where the repayments are... Read More

Home Mortgages: Does a No-closing-cost Loan Make Sense for You?

I have heard a number of radio ads and have... Read More

Home Equity Loan Information - How to Use One Wisely

Using a home equity loan to get out of debt... Read More

Poor Credit? Get a Sub-Prime Mortgage Now, and Refinance to a Conventional Mortgage Later

There are great mortgage loans for people with poor credit,... Read More

A Simple Way to Save Thousands on Your Mortgage Charges

How many times do you check you restaurant bill? If... Read More

How to Find the Best Home Improvement Loan

If you're looking for the best home improvement loan for... Read More

What Your Mortgage Lender Is Not Telling You About Accelerated Mortgages

For years, mainstream banks and financial advisors have been recommending... Read More

A Guide to Getting a Bad Credit Remortgage

There are several reasons why you might be in the... Read More

Flexible Mortgage Guide

Here is a useful flexible mortgage guide. Flexible mortgages are... Read More

Option ARM Mortgage Loan - Is This Really for You?

What happened to the days of a 15 or 30... Read More

Reasons To Get A Home Equity Loan

Using a home equity loan really depends on what your... Read More