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By Robbie T. James

If you have equity in your home right now, you are in an increasingly rare category of homeowners whose home is worth more than the amount they owe on their mortgage.

There are many ways to end up in this situation, but four of the most common paths that homeowners like you generally take to a point where they have equity in their home are:

a. you put enough money down on your home when you bought it to cover the 10%-20% minimum down payment requirement – and you didn’t need to take out a second mortgage to do so;

b. your home value has not declined very much over the past 3-5 years (which would be a rarity in the current housing climate);

c. you bought your home after the late 2000’s housing bubble burst, thus getting it for a relatively low price

d. you have owned your home for well over 10-15 years and have built up equity over this time by consistently paying down your principal balance

Regardless of how you got here, if you currently have equity in your home you may find yourself in a situation whereby you would like to “cash out” some of that equity with the help of a bank. The equity you take out can be used to pay off high-interest credit cards, get needed cash for home improvements or to pay off other debts.

Choosing a Financial Institution for an Equity Loan

In order to apply for a bank equity home loan for a mortgage, you can either choose to apply with the financial institution that holds your current home mortgage, or you can find another institution such as your current bank or another third-party institution.

Here are 3 loan options for you to consider:

1. Home Equity Line of Credit (LOC):

A home equity line of credit (LOC) is available from most major banks. It allows you, the borrower who has equity in their home, to borrow money against that equity at different times in the amount and at the time(s) of their choosing.

For example, if you are carrying out ongoing home improvements, you may need to borrow some cash now, some next month, and some more in 6 months for each phase of the project.

The great thing about this option is that you only borrow (and therefore pay interest on) the amount you need – but no more. Usually, the interest rate is a variable rate, but some banks give customers the option to convert that rate to a fixed rate at some point during the life of the line of credit. Another benefit is that these loans entail no bank closing costs – and in some cases they are tax deductible.

2. Home Equity Loan:

Another option you have is a home equity loan. This is often the best option to consider if you want to borrow a lump sum all at once, then pay it back over a set period of time at a fixed interest rate and fixed monthly payments.

Advantages to this option include the ability to get funded on the full loan amount up front, have the chance to pay a fixed rate from the get-go, and have a predictable pay-off schedule. And, these loans may also be tax deductible.

3. Home Asset Management Account:

If you current mortgage is through a bank that also offers home equity lines of credit, you may qualify for a home asset management account. This simply means that, since you already have an established banking relationship with your bank, you can more easily manage your home equity line of credit.

The main advantage of this option is the ability to access the available funds on an as-needed basis, while being able to have access to one’s equity line of credit and mortgage information all in one place. In many cases, optional credit increases may be made available as the principal balance of the mortgage is paid down. And, like the other two options above, the interest may be tax-deductible.

Consider these 3 options as you look into the option of a bank equity home loan mortgage. To get the best-possible rate, make sure to apply for at least 3-5 banks.

About the Author: For access to low-rate home equity lenders, financial calculators & credit tips, check out:

Approve My Equity Loan

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Submitted by: Joel Teo

Property managers can be a very useful to land owners as the larger property management companies have scale of operations and can run your property for the busy landowner. This would in effect free the busy landowner with more time to look for more real estate deals. This article deals with three things to take note before hiring a property management company to look after your property

Firstly, the most important thing people think about when hiring a property manager would be fees. Spend some time asking what their management fee covers, whether they will be collecting rent on your behalf and deducting their fee from the monthly rental. Also ask what their procedure is like for other expenses like insurance premiums, repair bills and other expenses that the property might incur.

Secondly, you might want to hire a property management for their expertise. Some property management companies may be good at running residential properties but they may not have any experience at managing a commercial property. Thus I would suggest that you spend time asking the manager what is their current class of properties in their stable and go down to those properties and observe the properties and then go and talk to the tenants of the building.

Thirdly, proximity of the management office is one key consideration. For commercial property, you would notice that the management office is always sited within the commercial building itself so as to respond quickly to any complaints by the tenants. For residential property, the management company that you hire should have an office located in close proximity to your property so that they can rectify problems as they arise.

In conclusion, hiring a real estate property management company can be useful to free up time for owners and allow the owners to spend more time looking for more profitable deals. Take some massive action today and look for your next real estate investment property and soon when you have enough properties, you can pass them over to a real estate property management company to manage and then you can go for a well deserved holiday.

About the Author: Joel Teo runs a real estate investing website. Take a look at our

real estate investing resources

today by visiting

the online Real Estate Investment Guide

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