Equity Home Loans

Is a home equity loan a good idea? Or are they bad?

I understand the concept of equity but can the lender take your home if you fall behind on payments? Is there any real negatives to getting a home equity loan? Is Wells Fargo Canada a good option? Thanks.

Public Comments

1. A home equity loan can be a life saver because of it usually low interest withdrawal on your equity but is still considered a second mortgage on your house and will have to be paid off on top of your original loan to get your title.
2. The whole point of a home equity loan is: "We can loan you money at 15%, but if you promise that if you miss a payment we can take away your house, then we'll loan you the money at 5%." Does that sound like a good deal to you?
3. If the home equity loan is to pay off credit cards it is a bad idea, utilizing settlements would be better, contacting creditors, getting it in writing first, then remitting, then submitting letters to trans union, equifax, and experian, that the debts are paid. If you want to get home equity loan to pay off credit card debt it is a bad idea: consider, credit card debt is unsecured, no collateral. If you pay them off w/a home equity loan, you have now turned unsecured debt, in to secured debt w/collateral, your house. And risk foreclosure, whereas credit card debt, can cause a lien on your home, but can't force sale. Most people who choose home equity loans to pay off credit card debt, now their credit restored, go get new credit cards. Surveys show they are right back in debt, within four years. Now what? You did not state the reason for home equity loan, so this answer may only be a education for others, if home equity loan is for an operation to cure a life threatening disease, that is a different story. Again the reason for the home equity loan is the key, and of course Wells Fargo is a reputable lender. I do not know if this is any help, it is an American organization, you must have something similar in Canada, this is website for Natl foundation of Cr. counseling, American. www.nfcc.org/ Reason for home equity loan the key. If it is to pay off unsecured debt, not a good idea, you are turning unsecured debt to secured debt and risk foreclosure proceedings, if still have the same amt. of debt. Also see below.