If you are a single father (dad) or any single parent for that matter, life becomes about making good though out decisions for your family rather than just making quick rapid fire choices. This is extremely important when you are thinking about your financial future. Even though you may have tried to plan for everything in your finances, there may be situations as a single parent that you may not be able to plan for. If this is the case and you own something of very high value, you can take out an equity loan to try and fill the gap while you try to replan all of your finances.
One of the most common types of equity loans out there are home equity loans. How the equity of your home is determined it is the value of your property that is no longer owed to the lender. This could either be that the value of the home has increased since you first purchased it or it could be the amount that you have paid on the principal of your loan.
Part of the reason that home equity loans are very attractive and affordable is they can have a lower interest rate than your typical unsecured loan. There are some other costs with equity loans that you should be aware of. First of all your home equity loan will have the same types of fees that you saw when you had first gotten your mortgage like closing costs and what not. The fees may be rolled into the loan but, be aware and make sure you know that they exist and are ready for them.
As with anything else you are trying to purchase, we recommend that you shop around with a bunch of different lenders. As single parents we should know how to shop around for the lowest prices. So do your best to put your shopping skills to some use and start looking. Things to look for when shopping are what fees are included. The internet is a great place to compare lenders side by side, which will help make your search easier for you. Keep in mind that the lowest interest rate should not be your only deciding factor. A low interest rate will do you no good if the fees are tacked on and make the loan unaffordable.
To close, if you do decide to get a home equity loan, do your best to stay current with your payments. With an equity loan, there is collateral is involved and so if you don’t make your payments then you are putting that collateral at risk. As a single parent you do not want to put yourself or your family into that position. Try to consider all factors because this choice will be with you for a long time in your financial future and can be one of the best ways to get some much needed financial help or financial assistance.