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Home Financial Planners Bloomfield CT

Using a home-equity credit line to borrow against the equity in your home has become a popular source of consumer credit in Bloomfield. Depending on your creditworthiness and the amount of your outstanding debt, home-equity lenders may let you borrow up to 85 percent of the appraised value of your home, less what you still owe on your first mortgage.

Martha Kapouch
More For Less Financial Solutions, L.L.C.
(860) 521-7779
88 Van Buren Avenue
West Hartford, CT
Expertises
Ongoing Investment Management, Estate & Generational Planning Issues, Retirement Planning & Distribution Rules, Helping Clients Identify & Achieve Goals, Women's Financial Planning Issues, Hourly Financial Planning Services
Certifications
NAPFA Registered Financial Advisor, BA, MBA

Alan Rothstein
Asset Strategies, Inc.
(860) 673-5500
80 W Avon Road
Avon, CT
Expertises
Planning Issues for Business Owners, Tax Planning
Certifications
NAPFA Registered Financial Advisor, BS, CPA/PFS, MS

Lawrence Annello
DHAS Financial Planning, LLC
(860) 255-0103
6 Executive Drive, Suite 111
Farmington, CT
Expertises
Tax Planning, Helping Clients Identify & Achieve Goals, Retirement Planning & Distribution Rules, Middle Income Client Needs, Planning Issues for Business Owners, Planning Concerns for Corporate Executives
Certifications
NAPFA Registered Financial Advisor, CFP®, CPA/PFS

Mark Briggs
Briggs Wealth Management, LLC
(860) 633-8988
59 Sycamore Street
Glastonbury, CT
Expertises
Ongoing Investment Management, Helping Clients Identify & Achieve Goals, Retirement Planning & Distribution Rules, High Net Worth Client Needs, Tax Planning, Financial Issues Between Generations
Certifications
NAPFA Registered Financial Advisor, CFP®, CPA/PFS

Mr. Bichop J. Nawrot, CFP®
(860) 242-6797
2 Barnard Ln
Bloomfield, CT
Firm
Capital Strategies Inc

Data Provided by:
Rick Shapiro
Investment & Financial Counselors, LLC
(860) 232-4121
998 Farmington Avenue, Suite 202
West Hartford, CT
Expertises
Estate & Generational Planning Issues, Ongoing Investment Management, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, CFP®, CMFC, CPA/PFS, MST

Kathryn Norris
Asset Strategies, Inc.
(860) 673-5500
80 W Avon Road
Avon, CT
Expertises
Ongoing Investment Management, Retirement Planning & Distribution Rules, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, BA, CFP®, MA

Panfilo Guglielmi
Advanced Capital Advisors, LLC
(860) 633-5559
628 Hebron Ave., Bld. 2
Glastonbury, CT
Expertises
Ongoing Investment Management, Helping Clients Identify & Achieve Goals, Estate & Generational Planning Issues, Retirement Planning & Distribution Rules, Advising Medical Professionals, High Net Worth Client Needs
Certifications
NAPFA Registered Financial Advisor, CFP®, CPA/PFS

Clifford Straub
Lifestyle Financial Strategies, LLC
(860) 344-8356
100 Riverview Center, Suite 316
Middletown, CT
Expertises
High Net Worth Client Needs, Tax Planning, Ongoing Investment Management, Planning Concerns for Corporate Executives, Retirement Plan Investment Advice, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, MBA

Mr. Bradley M Underwood, CFP®
(480) 580-8098
1300 Hall Blvd
Bloomfield, CT
Firm
MetLife Investors Distribution Company
Areas of Specialization
Business Succession Planning, Charitable Giving, Estate Planning, Insurance Planning, Risk Management, Small Business Planning, Special Needs Planning
Key Considerations
Average Net Worth: Not Applicable

Average Income: Not Applicable

Profession: Self-Employed Business Owners

Data Provided by:
Data Provided by:

Tapping Your Home's Value

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Using a home-equity credit line to borrow against the equity in your home has become a popular source of consumer credit. Depending on your creditworthiness and the amount of your outstanding debt, home-equity lenders may let you borrow up to 85 percent of the appraised value of your home, less what you still owe on your first mortgage.

The interest rate on a home-equity loan tends to be lower than credit cards and personal loans because your home is collateral for the loan. The interest is also a tax deduction in most circumstances. Regular interest on cars or credit cards is not tax deductible, making this option much more appealing. This type of loan has increased in popularity since the late 1980s, when the IRS phased out the deduction for interest on consumer loans. Lenders offer home-equity credit lines in a multitude of ways.

You can obtain a home-equity credit line that offers a variable interest rate or a fixed interest rate. Some come with attractive low introductory rates. You may find that some loans have large one-time up-front fees, others have closing costs, and some have continuing costs, such as annual fees. You can find loans with large balloon payments at the end of the loan and others with no balloons but with higher monthly payments. Ask the lender about the length of the home-equity loan, whether there is a minimum withdrawal requirement when you open your account, and whether there are minimum or maximum withdrawal requirements after your account is opened. This variety of offerings makes it especially important to understand the advantages and disadvantages of each offering. No one loan is right for every homeowner. The challenge is to contact different lenders, compare options and select the home-equity credit line best tailored to your needs.

Is It Right for You? If you need to borrow money, home-equity lines may be a useful source of credit. Initially at least, they may provide you with access to large amounts of cash at relatively low interest rates. And they may provide you with certain tax advantages unavailable with other kinds of loans. They work like a credit card or a revolving credit line. Your lender provides you with a checkbook that is used to draw against your line of credit. You can write checks for a car, medical expenses or for your personal use, like going on a vacation. But remember, home-equity lines of credit require you to use your home as collateral for your loan. Equity lines of credit must be used wisely, because your home is on the line. If you are late or cannot make your monthly payments, you may end up losing your home. Don't let anyone talk you into using your home to borrow money you don't really need. Knowing just the amount of your monthly payment or the interest rate is not enough. Pay close attention to fees, including: the application or loan processing fee, origination or underwriting fee, lender or funding fee, appraisal fee, document preparation and recording fees, and broker fees, which may be quoted as points, origination fees or interest-rate add-on.

If points and other fees are added to your loan amount, you'll pay more to finance them. A loan with a large final payment, or balloon, may oblige you to borrow more money to pay it off, and this could put your home in jeopardy if you cannot qualify for refinancing. And if you sell your home, most lenders expect you to pay off your loan at that time, which may not be to your liking. In addition, because home-equity loans give you relatively easy access to cash, you might find yourself borrowing money too freely. There are other ways to borrow money from a lending institution while using your home as collateral. For example, you may want to explore a second-mortgage loan. Although a second mortgage places an additional mortgage on your home, the proceeds of a second-mortgage loan are usually disbursed in a lump sum, rather than in a series of advances made available by writing checks on an account. Second mortgages usually have fixed interest rates and fixed payment amounts, which serve to discourage excessive borrowing. Not all loans or lenders are created equal. Some unscrupulous lenders target elderly and low-income homeowners and those with credit problems. These lenders may offer loans based on the equity in your home, not on your ability to repay the loan. Consult with your attorney or financial adviser before making any loan decisions. Non-profit credit and housing counseling services can also be useful in helping you manage your credit and make decisions about loans. Trouble Signs Avoid any lender who:

Asks you to falsify information on the loan application, like saying that your loan is primarily for business purposes when it's not, or "padding" your income on your application to help get the loan approved.

Pressures you into applying for a loan or applying for more money than you need.

Pressures you into accepting monthly payments you can't make.

Fails to provide required loan disclosures or tells you not to read them.

Misrepresents the kind of credit you're getting, like calling a one-time loan a line of credit.

Promises one set of terms when you apply and gives you another set of terms to sign.

Tells you to sign blank forms, since he'll fill them in later.

Says you can't have copies of documents that you've signed. Shop around if you are looking for a loan. Costs can vary greatly. Contact several lenders - including banks, savings and loans, credit unions, and mortgage companies. Ask each lender about the best loan for which you qualify. Compare the following:

The annual percentage rate (APR). The APR is the single most important thing to compare when shopping for a loan. It takes into account the interest rate, points (one point equals one percent of the loan amount), mortgage broker fees, and certain other credit charges the lender requires you to pay. Ask if the APR is fixed or if it will change.

Points and fees. Ask about points and fees that you'll be charged. These charges may not be refundable if you refinance or pay off the loan early. Points are usually paid in cash at closing, but if you finance the points, you'll pay additional interest and increase the total cost of your loan. The term of the loan. How many years do you have to make payments on the loan? If you're getting a home-equity loan that consolidates credit-card debt and other shorter-term loans, the new loan may obligate you for a longer period.

The monthly payment. Will it stay the same or change? Is there a balloon payment? This is a large payment, usually at the end of the loan term, often after a series of low monthly payments. When the balloon payment is due, you must come up with the money. If you can't, you may need another loan, which could mean new closing costs, points and fees.

Is there a prepayment penalty? These are extra fees that may be due if you pay off the loan early by refinancing or selling your home. Prepayment penalties may force you to keep a high-rate loan by making it too expensive to cancel your loan. Try to negotiate this penalty out of your loan agreement. Finally, ask each lender to provide a written good-faith estimate that lists all charges and fees you must pay at closing. Although they are not always required, these estimates make it easier to compare terms from different lenders. After choosing a lender, negotiate. It never hurts to ask if the lender will lower the APR, take out a charge you don't want to pay, or remove a loan term that you don't like. Ask the lender for a blank copy of the form(s) you'll sign at closing. Take the forms home and review them with someone you trust. Feel free to ask the lender about items you don't understand. Be sure you can afford the loan. Figure out whether your monthly income is enough to cover each monthly payment in addition to your other monthly bills and expenses. If it isn't, you could lose your home - and your equity - through foreclosure or a forced sale. At closing, don't sign a loan agreement if the terms differ from what you thought they would be. For example, a lender should not promise a specific APR and then increase it at closing. If the terms are different, negotiate for what you were promised. If you can't, be prepared to walk away and shop elsewhere. Make sure you get a copy of the documents you signed before leaving the lender. They contain important information about your rights and obligations. Having second thoughts about the loan? The Truth in Lending Act gives most home-equity borrowers at least three business days after closing to cancel the deal. This is known as your right of rescission. In some situations (consult with your attorney), you may have more time to cancel. If you think your lender has violated the law or you want information about a right to rescind, contact a private attorney, your state's Attorney General's office or banking regulatory agency, or the Federal Trade Commission. n Milton Zall is a certified internal auditor and registered investment adviser.

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