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Home Equity Loan

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BUSINESS
By Ilyce Glick | January 25, 2004
If you're an average American consumer, you have a $12,000 car loan with 18 months left on it, and you're probably paying too high an interest rate. We Americans love our cars. That emotional attachment sometimes blinds us to what we're shelling out each month to pay for that shiny hunk of steel. "Refinancing your auto has been one of the best kept secrets for consumers to save money," says Brian Reed of peoplefirst. com, which owner Capital One Auto Finance says is America's largest online originator and servicer of vehicle loans.
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NEWS
By Laura Smitherman and Laura Smitherman,Sun reporter | March 12, 2008
The Maryland Senate gave preliminary approval yesterday to a bill that would allow state-chartered banks to continue to offer a type of home equity loan the state's highest court previously ruled was in violation of consumer protection laws. Sen. Thomas "Mac" Middleton, chairman of the Finance Committee, said that the court had erred in its ruling and that the legislature often steps in to clarify the law. The Senate might take a final vote on the bill this week; the House of Delegates unanimously approved similar legislation last week.
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BUSINESS
By James Gallo and James Gallo,SUN STAFF | May 2, 2004
A new kind of home equity loan has emerged in Maryland that provides cash based on the future value of a house undergoing renovations. The Aberdeen Proving Ground Federal Credit Union began offering a home equity renovation loan in March. The company, which has offices in Harford and Cecil counties, says it is the first lender in Maryland to offer such loans, which have been offered on the West Coast for about two years. Americans spent $130.4 billion remodeling their homes last year, 7 percent more than in 2002, according to a study by the Joint Center for Housing Studies at Harvard University.
NEWS
By Laura Smitherman and Laura Smitherman,Sun reporter | February 2, 2008
A key state lawmaker is working with the banking industry's trade group on legislation that would reverse a Maryland Court of Appeals decision prohibiting certain penalties for borrowers who pay off home equity loans early. The case involved a popular loan program at Provident Bank that enabled borrowers to tap into equity in their homes without paying closing costs as long as they kept the loan for at least two to three years. Maryland's highest court ruled late last year that recouping the closing costs if a consumer refinances or pays off the loan before then amounts to a "prepayment penalty" that's not allowed under state law. Banking industry officials say that without a guarantee that borrowers will pay interest on home equity loans for at least a few years, they can't afford to offer no-closing-cost products, making borrowing more expensive for consumers.
BUSINESS
By Kenneth R. Harney | July 30, 1995
Washington -- If you're one of the millions of American homeowners with a less-than-perfect credit file, you should know about a major legal deadline looming in the mortgage market.Lenders nationwide are gearing up this summer for the High Cost Mortgage Act, which takes effect Oct. 1. On that date, consumers will get new federal Truth-in-Lending protections when they refinance their home or take out a home equity loan with rates or fees that qualify as "high cost."Though aimed primarily at loan-scam artists who prey on unsuspecting homeowners, the law cuts a far wider swath.
BUSINESS
By LOS ANGELES TIMES | October 13, 1998
The days of easy money for many consumers with bad credit may be about to end.In a sign that an emerging global credit crunch may soon affect more U.S. consumers, companies that specialize in so-called "sub-prime" lending to people with blotched credit records -- often via high-interest home equity loans -- are quickly running out of money as banks and investors cut off their funds.The result is that many of the consumers who rely on such loans, frequently as a way to consolidate other debts, may be forced to pay even higher interest rates -- if they can get the money at all.While that could be a hardship for individual consumers, many financial counselors would cheer a trend away from the aggressive marketing of loans they say ultimately will get too many borrowers in trouble.
BUSINESS
By Carla Lazzareschi and Carla Lazzareschi,Los Angeles Times | September 27, 1992
Q: I need more cash, and I want to lower the interest rate on my home mortgage. Should I refinance my mortgage or take out a second trust deed -- or even get a home equity loan? My goal is to repay the money I need quickly, so I can cut my monthly payments. -- J. P.A: How much money do you need? If it is a small amount, refinancing the mortgage may cost you more than it is worth; most refinancings carry fees and points totaling at least $2,000.But if your mortgage rate is 10 percent or more, you might consider a refinancing, because current rates on 30-year fixed mortgages are about 8 percent.
FEATURES
By SUSAN BONDY | July 31, 1994
We've all seen the man on television who claims, "If installment payments or overdue bills are troubling you, we will consolidate all your bills into one low monthly payment. In addition, you will have a long time to pay back this loan." This is a bill-consolidation loan, which lets you pool your debts.But rarely does the TV salesman mention the interest rate you will be charged. His pitch is small monthly payments that seem to be affordable. But are they?First, any money that is very easily available is likely to be very expensive.
BUSINESS
By Kenneth R. Harney | September 29, 1996
ONE OF THE most valuable federal incentives set aside for homeowners -- the ability to borrow money for consumer expenditures and deduct interest payments on federal tax filings -- has become virtually the preserve of baby boomers with higher-than-average incomes.A study of home equity lending by the Consumer Bankers Association finds that the typical borrower with a home equity line of credit is between 35 and 49 and has an annual household income close to $60,000.The No. 1 reason for taking out the credit line, according to the study: to pay off higher-rate consumer debt such as credit card balances and unsecured personal loans with lower-cost home equity dollars.
BUSINESS
By Andrew Leckey | October 14, 1994
Financial flexibility is a wonderful thing, so long as you don't hang yourself with it.Use of home equity lines of credit is on the rise, now encompassing one out of every 12 American homeowners. Heavy promotions offering special deals to sign up should push that figure higher.Borrowers have grown accustomed to this ready source of cash. So much so that 62 percent of the available credit from the nation's home equity lines is currently loaned out, according to a consumer survey by the University of Michigan.
BUSINESS
By James Gallo and James Gallo,SUN STAFF | May 2, 2004
A new kind of home equity loan has emerged in Maryland that provides cash based on the future value of a house undergoing renovations. The Aberdeen Proving Ground Federal Credit Union began offering a home equity renovation loan in March. The company, which has offices in Harford and Cecil counties, says it is the first lender in Maryland to offer such loans, which have been offered on the West Coast for about two years. Americans spent $130.4 billion remodeling their homes last year, 7 percent more than in 2002, according to a study by the Joint Center for Housing Studies at Harvard University.
BUSINESS
By MATT LUBANKO | March 21, 2004
I HAVE a home equity loan with a balance of around $35,000. Can I deduct the interest from this loan? And does the claim of this deduction in any way depend on how I used the money I borrowed? - J.B., Baltimore To be considered deductible, the Internal Revenue Service says, home equity loans must be secured by your home, taken out after Oct. 13, 1987, and not be so-called "home acquisition debt," which we will explain below. If you meet those three requirements, then the question becomes how much interest on the loan you can deduct.
BUSINESS
By Ilyce Glick | January 25, 2004
If you're an average American consumer, you have a $12,000 car loan with 18 months left on it, and you're probably paying too high an interest rate. We Americans love our cars. That emotional attachment sometimes blinds us to what we're shelling out each month to pay for that shiny hunk of steel. "Refinancing your auto has been one of the best kept secrets for consumers to save money," says Brian Reed of peoplefirst. com, which owner Capital One Auto Finance says is America's largest online originator and servicer of vehicle loans.
BUSINESS
By Liz Pulliam Weston and Liz Pulliam Weston,SPECIAL TO THE SUN | June 22, 2003
American homeowners owe nearly $1 trillion on home equity loans and lines of credit, according to SMR Research, and they borrow an additional $100 billion each year through cash-out refinancings. This wave of borrowing has serious repercussions for homeowners' financial health, so this week's column is devoted to dealing with home equity and debt. I've used up all equity in my home to pay off credit card debt, but now my credit card debt has grown again to $40,000. I have $49,000 in a 401(k)
BUSINESS
By Jeff Brown and Jeff Brown,KNIGHT RIDDER/TRIBUNE | April 6, 2003
I would like to refinance my adjustable-rate mortgage to lock in one of today's low rates. But I don't want to pay a lot of fees for a new mortgage that would actually make my monthly payments bigger over the next year. Refinancing would cost thousands, for a loan of only about $80,000. What should I do? You might consider a home equity loan instead of an ordinary mortgage. Many home equity loans are unusually attractive now. Yours is a dilemma that confronts many homeowners with adjustable mortgages, or ARMs: They may be happy with the low interest rates they're paying today - in many cases only 4 percent or so - but they worry their rates will rise in the future.
BUSINESS
By Patricia V. Rivera and Patricia V. Rivera,SPECIAL TO THE SUN | January 26, 2003
A growing number of consumers are choosing to use the equity in their home as collateral for credit, allowing them to do anything from consolidating debt to paying a child's college tuition to funding a trip to Tahiti. If they are not careful, however, what seems like a safe asset could turn into anything but that, experts said. Homeowners could end up losing their home if they can't make the payments. "It's become too easy to deplete the best piggybank available right now, which is your home," said Keith T. Gumbinger, a vice president of HSH Associates, a financial publisher in Butler, N.J. The appeal of home equity loans is easy to understand.
BUSINESS
December 31, 2000
As home equity loans have gained popularity among Americans, the National Home Equity Mortgage Association has offered a number of guidelines for borrowers to follow. They include: Borrow within your income and budget: A home equity loan is a major financial undertaking. Borrow for necessities or to take advantage of lower interest rates: NHEMA does not recommend taking a home equity loan to finance a luxury item or trip. Don't refinance too frequently: Refinancing a home loan can mean additional closing costs and fees.
NEWS
By Laura Smitherman and Laura Smitherman,Sun reporter | March 12, 2008
The Maryland Senate gave preliminary approval yesterday to a bill that would allow state-chartered banks to continue to offer a type of home equity loan the state's highest court previously ruled was in violation of consumer protection laws. Sen. Thomas "Mac" Middleton, chairman of the Finance Committee, said that the court had erred in its ruling and that the legislature often steps in to clarify the law. The Senate might take a final vote on the bill this week; the House of Delegates unanimously approved similar legislation last week.
BUSINESS
December 31, 2000
As home equity loans have gained popularity among Americans, the National Home Equity Mortgage Association has offered a number of guidelines for borrowers to follow. They include: Borrow within your income and budget: A home equity loan is a major financial undertaking. Borrow for necessities or to take advantage of lower interest rates: NHEMA does not recommend taking a home equity loan to finance a luxury item or trip. Don't refinance too frequently: Refinancing a home loan can mean additional closing costs and fees.
NEWS
By Robert Reno | October 6, 1999
THE SAME banking industry that in recent years induced millions of Americans to become slaves to their credit cards, making it easy for working families to saddle themselves with crushing 18 percent debts that can take a lifetime to pay off, is now coming to their rescue.The home equity loan is so easy to get you can practically secure one by yelling out your window. In one recent week, my mailbox was for the first time stuffed with more offers begging me to apply for instant home equity loans than it was with new pitches to apply for credit cards at highly tempting and highly temporary "low annual rates" that go up to near loan-shark levels after six months or a year.
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