No Equity Home Loans Could Fix Leaking Roofs But Cost You A HousePosted by Nick Niesen on October 29th, 2010 If you could wish yourself somewhere else, you would. Bills are mounting, the roof is leaking, and you're in the middle of the worst rainy season in recent memory. For the moment, however, you're pressed for time and strapped for cash, and there's not much you can do about these. Then, out of the blue, a lender shoves a mouth-watering offer at you, in the form of a no equity home loan. ?Salvation,? you think. Before you jump in and take as much as the lender can give, take the time to mull over this question: is a no home equity loan truly the answer to your financing needs? There is a big gulf of difference between drawing on the value of your home when you get a no equity home loan and exceeding this value. Consider the following before signing anything: 1. Can you take the risk? 2. Can you handle the interest rates? 3. Can you take on the added requirements? 4. Can you manage the tax implications? 5. Can you live with the inconvenience should you ever have to sell you home? So, what now? Water still trickles down the roof, and your bills continue to pile up with clockwork precision. Loans may seem the only oasis in the financing desert, but applying for no equity home loan is not a practical solution to your financial woes. If you truly have to take out a loan to get that roof fixed, look for a hybrid of traditional home equity loan and unsecured personal loan. No equity home loans could fix the leak, but it might cost you a whole house later on. Like it? Share it!More by this author |