Re-Financing with a Line of Credit Loan

Some homeowners might consider re-financing with a home equity line of credit as opposed to a traditional loan. There are definite advantages and disadvantages to these types of situations. The key to understanding whether or not re-financing with a home equity line of credit is worthwhile involves understanding what a home equity line of credit is, how it differs from a home loan and how it can be used. This article will briefly cover each of these topics to give the homeowner some useful information which may help them decide whether or not a home equity line of credit is ideal in their re-financing situation.

What is a Home Equity Line of Credit?

A home equity line of credit, sometimes called a HELOC, is essentially a loan in which funds are made available to the homeowner based on the existing equity in the home. However, in this case, it is not really a loan but rather a line of credit. This means a certain amount of money is made available to the homeowner and the homeowner may draw on this line of credit as funds are needed. There is a specified period in which the homeowner is able to make these withdrawals. This is known as the draw period. Additionally there is a repayment period in which the homeowner must repay all of the funds they withdrew from the account during the draw period.

How Does a Home Equity Line of Credit Differ from a Home Equity Loan?

The difference between a home equity line of credit and a home equity loan is really quite simple. While both loans are secured based on the existing equity in the home, the manner in which the funds are disbursed to the homeowner is rather quite different. In a home equity loan the homeowner is given all of the funds immediately. However in a home equity line of credit the funds are made available to the homeowner but are not immediately disbursed. The homeowner is able to draw against this line of credit as he sees fit. There are limits to the amount which can be withdrawn and there is also a limit on when funds can be withdrawn. A home equity has a draw period and a repayment period. Funds can be withdrawn during the draw period but must be repaid during the repayment period.

How Can a Home Equity Line of Credit Be Used?

One of the biggest advantages of a home equity line of credit is that the funds can be used for any purpose specified by the homeowner. While other loans such as an auto loan or even a traditional mortgage might have strict restrictions on how the money lent to the homeowner can be used, there are no such restrictions on a home equity line of credit. Common uses of a home equity line of credit include the following:

* Home renovations or improvement projects
* Opening a small business
* Taking a dream vacation
* Pursuing higher educational goals
* Opening a small business

In some cases the interest paid on a home equity line of credit may be considered tax deductible. This may apply in situations where the funds are used to make repairs or improvements to the home. However, these expenses are not always tax deductible and the homeowner should consult with a tax professional before making decisions regarding which interest payments can be deducted.

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Roofing shingles are something that most every homeowner has, but

Roofing shingles are something that most every homeowner has, but few spend enough time thinking about them. The purpose of roofing shingles are to provide a single layer solution to a leak proof top for a home or structure. Shingles are generally laid out from the bottom edge of the roof upward, with each higher row overlapping the lower row. Traditionally shingles were made of wood and were capped at the top with a row of copper or lead sheeting. In modern shingle roofs this has been replaced by a row of shingles with plastic underlay.

Back to the make up of shingles, wood was considered good. But in time modern materials such as asphalt and asbestos cement replaced wood as common materials. Fiberglass based asphalt shingles are now the most popular shingle used in the United States. The obvious issue with wood is fire, and fire is the reason wood and paper backed shingles are used infrequently in modern construction.

Most people have seen a type of wood shingle, but wouldn’t be able to identify it. It’s called a shake, which is a wooden shingle made from split logs. Shake roofs were common with log cabins, and with many wood frame homes. They’re still in use today, most commonly transported by helicopters, but it wasn’t always done that way. Before the invention of helicopters the shakes were tied into packs and transported by pack animal or even by human power. Often cut in hilly areas, they were carried down the slope with the help of a long line run from the bottom to the top. This line served as a hand hold so people carrying the shake packs wouldn’t fall.

The main difference between a shingle and a tile is flexibility. Tiles are generally made from ceramic. They’re brittle and ill suited to locations where tree limbs might fall on a roof. Shingles are flexible and therefor better able to stand up to tree limbs. Wood shingles rot, while ceramic tiles don’t., but modern materials such as the asbestos base for most shingles don’t rot. Another difference is the shape. Shingles are flat, while ceramic tiles commonly have an S profile to allow them to interlock for strength.

One of the more unique materials for roof shingles is slate. Because of both cleavage and grain slate can be easily split into thin sheets. Such sheets, the slate shingles, make for an old world look for a roof. Slate roofing shingles are installed by a slater, a tradesman trained to work with slate. The same qualities that make slate excellent for roofing shingles, they are fireproof and an electric insulator, made them useful for early 20th century switchboards and relay controls on large electric motors. Imagine that, making a phone call on your roofing shingles.

Re-Financing to Consolidate Debt

Some homeowners opt to re-finance to consolidate their existing debts. With this type of option, the homeowner can consolidate higher interest debts such as credit card debts under a lower interest home loan. The interest rates associated with home loans are traditionally lower than the rates associated with credit cards by a considerable amount. Deciding whether or not to re-finance for the purpose of debt consolidation can be a rather tricky issue. There are a number of complex factors which enter into the equation including the amount of existing debt, the difference in interest rates as well as the difference in loan terms and the current financial situation of the homeowner.

This article will attempt to make this issue less complex by providing a function definition for debt consolidation and providing answer to two key questions homeowners should ask themselves before re-financing. These questions include whether the homeowner will pay more in the long run by consolidating their debt and will the homeowners financial situation improve if they re-finance.

What is Debt Consolidation?

The term debt consolidation can be somewhat confusing because the term itself is somewhat deceptive. When a homeowner re-finances his home for the purpose of debt consolidation, he is not actually consolidating the debt in the true sense of the word. By definition to consolidate means to unite or to combine into one system. However, this is not what actually happens when debts are consolidated. The existing debts are actually repaid by the debt consolidation loan. Although the total amount of debt remains constant the individual debts are repaid by the new loan.

Prior to the debt consolidation the homeowner may have been repaying a monthly debt to one or more credit card companies, an auto lender, a student loan lender or any number of other lenders but now the homeowner is repaying one debt to the mortgage lender who provided the debt consolidation loan. This new loan will be subject to the applicable loan terms including interest rates and repayment period. Any terms associated with the individual loans are no longer valid as each of these loans has been repaid in full.

Are You Paying More in the Long Run?

When considering debt consolidation it is important to determine whether lower monthly payments or an overall increase in savings is being sought. This is an important consideration because while debt consolidation can lead to lower monthly payments when a lower interest mortgage is obtained to repay higher interest debts there is not always an overall cost savings. This is because interest rate alone does not determine the amount which will be paid in interest. The amount of debt and the loan term, or length of the loan, figure prominently into the equation as well.

As an example consider a debt with a relatively short loan term of five years and an interest only slightly higher than the rate associated with the debt consolidation loan. In this case, if the term of the debt consolidation loan, is 30 years the repayment of the original loan would be stretched out over the course of 30 years at an interest rate which is only slightly lower than the original rate. In this case it is clear the homeowner might end up paying more in the long run. However, the monthly payments will probably be drastically reduced. This type of decision forces the homeowner to decide whether an overall savings or lower monthly payments is more important.

Does Re-Financing Improve Your Financial Situation?

Homeowners who are considering re-financing for the purpose of debt consolidation should carefully consider whether or not their financial situation will be improved by re-financing. This is important because some homeowners may opt to re-finance because it increases their monthly cash flow even if it does not result in an overall cost savings. There are many mortgage calculators available on the Internet which can be used for purposes such as determining whether or not monthly cash flow will increase. Using these calculators and consulting with industry experts will help the homeowner to make a well informed decision.

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The life cycle of the bean plant is important for

The life cycle of the bean plant is important for those who are interested in sprouting or harvesting beans for consumption. As beans are a low-cost food source, many people who are interested in healthy living have invested time and effort in the growing of beans.

The best way to get a full view of the life cycle of the bean plant is through a diagram showing all stages of life. For those who are interested in sprouting, you will already possess the seeds, so the germination and seedling stage is what you should focus on. For those who are harvesting fully grown beans for food, the entire cycle is important. When you harvest beans, you will be seeing the plant through to almost the end of its life cycle.

The life cycle of the bean plant begins with the seed. The seed is generated after the successful reproduction of the plant. If your plant has successfully bred, the seed will be viable and sprout upon introduction to water. The time between exposure to water and sprouting is dependant on the type of bean. However, many beans sprout within three or four days. There is a short period of time where the sprouts can be eaten in salads. Bean sprouts are commonly used in salads, as well chinese dishes such as chow mein.

Sprouting a bean in order to eat it as a sprout is done differently than growing beans for consumption after they have turned to proper beans. Bean sprouting is usually done in tubs or containers specifically assigned to that process. As you do not want dirt on your sprouts, and sprouts do not require dirt for survival, this is a much more sanitary method of growing your sprouts. This is why knowledge of the life cycle of the bean plant is so vital. Without it, you will not know when your sprouts will be ready. Once they have grown into proper seedlings, the sprouts are no longer desired for food, and your effort will have been wasted.

Growing beans for the full plant requires an indoor or outdoor garden, space, and consistent access to water. As bean plants can grow several feet tall, it is best suited for outdoors. Unlike sprouting which can be done year round indoors, you will be limited to the natural growing seasons of beans. This makes having access to the life cycle of the bean plant is invaluable, as a good cycle will also include at what times of years beans are best grown.