Did you know that your home may be the ideal education-financing solution if you, (or your parents) own a home?

You didn't?

Then read on!

Home equity, to put it simply, is the difference between the fair market value of your dwelling (the price you should get for it if you sell it now) and the total of all the mortgages on the home. That is, it is the amount of your house you own and the lender doesn't.

We asked some sexy volleyball players what they knew about home equity loans...

"Your home's equity is a great asset simply because you can use the equity as collateral towards your loan. That is you can get money from your home without even having to sell it.

Money lenders see a home equity loan as totally secure because the people who own the house (you) are not as likely to default on it--seeing as it is where they live.

On the 'sucky' side-- if you do default on the home equity loan or the mortgage loan, the bank could foreclose on your home (not cool). There may also be additional fees, or other closing costs, for constructing the loan, enforcing the loan, registering the loan, and doing a property survey and title search.

"The normal repayment time-line for a home equity loan is five to fifteen years, depending on:

• How much you borrowed
  
• Your needs
  
• Lender's needs
  

But no matter how far along you are in repayment, the loan is required to be paid in full shoud you sell your home.

"There are basically two varieties of home equity loans:

• The 'Term' type
  
• Line of Credit type
  

Term equity loan :  this offers a one-time payement, which you pay-back over the stated period of time. It often has a fixed interest rate and the amounts are the same each month.

A home equity line of credit: this is more tractable  because it operates like  a credit card. You are ab le to charge (or borrow) as much as your loan limit, as you need the dough, during the specified life-span of the loan (which is a period set by the bank/lender).

In time, as you pay-back the amount, you recycle the funds so that you could actually spend, and then repay, them again. This handy device is labelled "revolving credit." While it is very convenient, the line of credit  solution does have down-points:

• Interest rates can vary
  

• And so monthly payments will be established by the interest rate and the amount of credit you have used up.
  

• You must pay off the loan if the time limit expires.  (The bank may permit you to extend or renew the line of credit.) 

Should you need to borrow funds for more than one semester-period, the home equity line of credit is a superior choice.   You can borrow what you require when you need it. Also, if you are able to repay principal between charge-periods, the line of credit may in the end cost you less than the term equity loan.

So you can find a way to finance that college education if you own or, more likely, your folks own a home.  The home equity loan is the way to go!