Go Go Mortgage Loan - Home Equity Loans

Home Equity Loans - Penny Saves The Day

Oh no Brain! Uncle Gadget is taking out another home loan - but this time against his own home equity! I wouldn'tr be worried, hes a capable man and knows more about mortagges than anyone I can think of, but i don't think he knows that home equity loans come in two main forms, each one entirely different from the other! Oh no oh no, what will he choose?!?!

Home equiity loans or home equity lines of credit?

When you're lookinmg at home equity loans you ahve two options Brain - loans and lines of credit:

with a home equity loan you recieve a single lump sum at the time of borrowing, with a singlee repayment plan and a siongle rate plan - fixed or adjustable
with a hoeme equity line of credit ( HELOC) you are given only a loan limit, you do not have to take out any set amount of money and you arte not obliged to bvegin repaymeent of the loan until after a period of time when which you can withdraw.

Depending upon what Uncle Gadget ois looking for in his home equity loans, one will be better than the other. But I can't tell! I can't hear what he's talking abouty - hes just pointing to thee bathroom, not thee kitchen, now the roof...Brain! I want you to go down there with this satelite com link and listen into his conversation. I want to know what type of home equity loans he's looking for. Hurry! We don't have much time!

Brain listens to Gadgets mortgage needs

...and what I'm thinking is a closet here, filled with all my gadgets so I don't need to keep tossing them all over my home. And over there I want a jacizzi, and over there a romper room, and a double headed shower! That'll be sweet!

Ummm, inspector? This is all going to cost quite a bit of money - do you know exactly how much you'll be neeeding from your home loans?

Naaa, just give me one of them newfangled home equity loans for - oh I don't know - $100,000?

Penny yells into Brain's ear. Brain jumps.

Sorry Brain, its just that he doesn't need home equity loans, he needs a HELOC! Hurry, you gotta let him know that home equity loans in this instance are a bad idea - I think its a trap.

Brain walks behind the mortgage broker and mimics a " headlock"

Whats that, a head lock?

Excuse me, did you say HELOC?

No, I speciafically said headlock...

Blast! I almost had you with my home equity loans! My plan was perfect! You would have been in financial ruin if it wasn't for your keen detective work and brilliant HELOC insights! I'll get you next time Gadget next tiiiiiiiiiiiiiiime!