Home Equity Loans Explained - Beware the Risks

In short, if youre a home owner and are after some serious cash, then a home equity loan could be the best option for securing it. Home equity loans, also known as equity release, are calculated from what your house is currently worth to what has already been paid back.

There are many reasons why people may choose to go the home equity loan route, including: buying a new car, putting the kids through university, consolidating old debts and indeed, building a new extension to the house.

You could even re-invest the money from the home equity loan into an annuity-based plan to hopefully earn you some extra cash and at the same time cover the loan repayments. Simply put, the choice is yours what you do with the money.

It pays, however, to do some research in order to find the best lender with the most favourable repayment options. Interest rates may differ from lender to lender, yet rates are generally much less than the interest rates for standard loans, as there is minimal risk to the lender.

Common Sense

Now heres the bad part; you may also be putting yourself at risk when borrowing money based on the equity of your home. Unfortunately there are some unscrupulous lenders out there who know you cannot even afford your mortgage repayments, yet will still try to sell you a home equity loans package.

They will often advise you to pad out your income on your application form so that you will get the loan approved. Furthermore, there may even be hidden charges in the loans package. What these people are trying to do is to get you to put your house on the line and struggle on your repayments so that you lose the house.

So, keep your head; if you are already struggling to meet mortgage repayments and are offered a home equity loans package, you are more than likely being set up.

David R is senior editor of the site http://www.prestonloans.co.uk, a user-friendly loans website offering invaluable information and advice on loans schemes, including home equity loans, payday loans, credit card consolidation, and debt negotiation.

Snow and Your Car

Welcome to Winter! Snow, ice, and cold can be especially challenging to the body and mind, as well as to important items in your life, including your car. Is your vehicle ready for winter? If not, there are some things you can do to help ensure that your car will start on cold mornings and survive even the nastiest winter weather.

Check under the hood. Make sure that your battery and all of its connections are clean and fastened; hoses and belts securely in place; your oil and oil filter changes up to date; your air filter clean; the radiator flushed and refilled; and your engine well tuned. One of the biggest contributors to a car not starting is the battery. If it is old and needs to be replaced, do it now before you take that long trip.

Look at the windshield. Besides obvious cracks in your windshield which you can have replaced, make certain that the wiper bay is free of debris. Ice and snow can freeze your wipers in place making them completely ineffective. Never pour hot water on a windshield to remove ice. You will remove ice all right...and crack the glass in the process!

Observe the tires. Properly inflated all season tires are usually all that you need for winter driving. In some areas, however, chains may be required. Keep a set in your trunk for emergency purposes.

Carry an emergency kit. It doesn't take much to get stranded during winter. Even the best maintained vehicle can get caught in a snow bank or stuck in a ditch. Carrying a fully charged cell phone for emergency purposes is essential when driving anywhere uninhabited. The following items should be a part of an emergency kit you have stored in your vehicle at all times:

*Flash light with spare batteries

*Jumper cables

*Tire chains

*Ice scraper/brush

*Sand or kitty litter for traction

*Auto tools

*Wire coat hanger

*Flares

*Candles, matches

*Distress sign

*Medical kit

*Gas line antifreeze; ice lock antifreeze spray

If you frequently travel back roads and find yourself in remote areas, carrying an extra set of hats, gloves, and coats as well as several blankets is wise. Some people carry chocolate with them at all times which can be a great [and delicious!] energy booster as well as fresh water [don't leave it in the car as it will get frozen].

If you find yourself stuck in snow, make sure that the exhaust pipe is free of all snow if you run your car while idled. Keep a window cracked open to allow for air to circulate; turn the engine off every ten minutes for a half hour or more to prevent carbon monoxide build up inside of the car.

You can survive the hazards of winter by taking a little extra care and caution. Properly equip your car today to ensure that your next trip is a safe one regardless of the prevailing road and weather conditions.

Copyright 2006 -- Matt Keegan is a contributing writer for the Auto Parts Warehouse {APW}. At APW, we encourage drivers to properly prepare their cars for winter by keeping your grille free of snow and ice; ensuring that your car fog lights are working; and your cargo liner hasn't been cracked by ice.

Mortgage Refinancing to Pay for a Child's Education

Paying for your childs college tuition is very expensive. Many parents save for college throughout the childs life; however, the rising costs of tuition is stretching many families savings to the limit. If this describes your financial situation, refinancing your mortgage and taking cash back could be the answer to your childs tuition expenses. Here are several tips to help you refinance your mortgage without losing your shirt in the process.

For many attending college, student loans are the only options available to them for financing their education. There are other options available for parents that will not place a financial burden on their children upon graduation. Refinancing your mortgage has many advantages over taking out student loans; because the mortgage is secured by your home the interest rate will lower.
Homeowners refinance their mortgages for a variety of different reasons; paying for college is a common reason for refinancing the loan. There are risks associated with refinancing your mortgage loan. If you fall behind on the payments the lender will foreclose on the mortgage and take your home.

If you have decided to finance your childs education using the equity in your home, refinancing will save you money over other types of home equity loans. It pays to comparison shop from a variety of different mortgage lenders. When you compare loan offers, make sure you compare all aspects of the loans, not just the interest rates. You can learn more about your mortgage refinancing options by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Claim your free guidebook today at: http://www.refiadvisor.com

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