Home Equity LoanA home equity loan is one way to pay for an international adoption, and while you should look at other ways to pay for your adoption, including fundraisers, taking out one of these loans makes sense, if you use money from your adoption tax credit to pay the loan back.
What Is a Home Equity Loan?It's a line of credit that allows you to borrow money and use your home's equity as collateral. Generally, a bank or other institution won't loan you money unless you have something of value that they can seize should you forfeit - or fail to pay back - your loan.
Putting something up as collateral means you are pledging that should you default on payments, you will give up something of equal value to what you owe on the loan. With a home equity loan, that property of value is your home.
Mind You...Your collateral will not be based on what the property is worth, but rather how much of the property you actually own outright.
For ExampleLet's say you bought a home five years ago for $150,000, and put $2,000 down. In the past five years, you have made monthly mortgage payments of $1,000. Out of each of those monthly payments, $100 has gone toward interest, and $900 has gone toward repaying the loan. Now, 60 payments later (5 x 12 months), you have a total of $56,000 in equity (the $54,000 you have paid back on the loan plus the $2,000 down payment.
When you take out a home equity loan, you are taking out a loan and using that $56,000 in collateral.
How Do You QualifyYour home will have to be worth more than what you owe on the loan. In the above example, let's say you bought your home for $150,000, but property values in your area have dropped dramatically in value, and your home is now worth only $93,000. You still owe $94,000 on the property, so you won't qualify for a loan.
How to Determine Your Home's ValueTo get an idea of how much of a loan you can obtain, see if you have any value in your home. One way to get a rough estimate is to check the sales of similar homes in your neighborhood. This is called a comparative market analysis, and while it's not pinpoint accurate, it can give you ball park figure. You can also use a home value calculator. Just Google the phrase or click here.
Other Helpful SourcesAsk many couples why they don't adopt, and they'll say finances are what are holding them back. But it doesn't have to be that way. My husband and I had a limited income, yet we were able to adopt three children, including one child from Guatemala without going into debt. You can too. Here's how.
Are you thinking about pursuing an international adoption? Developing a plan for how you'll pay for that adoption is the first step you should take. Here are some ways to get started.
There are many ways to fund an international adoption. Learn different ways by clicking here.
Uncle Sam also wants to help you with your adoption costs through a tax credit. Learn more.
If you're looking for more details about the tax credit, you can read more by clicking here.
Grants are a great way to help with adoption costs. Find agencies that offer grants by clicking here.
Want to learn about more places for grants? Here are some more great places to apply.
It is possible to find an international adoption you can afford. Here are some ideas to help save money.
Still wondering how you're going to pay those adoption expenses? Find more ways to raise funds by clicking here.
A garage sale is a great way to raise adoption funds. Learn how to finance your adoption by clicking here.
Intimidated by high adoption costs? Don't be. Paying for your adoption involves taking one step at a time. Find some more tips by clicking here.
So how much will your international adoption cost? The answer will depend on the country you choose and whether you choose to go through an agency or pursue an independent international adoption. Learn more here.
Fundraisers are a great way to pay for your adoption. Learn about some fun ones by clicking here.
The best kinds of fundraisers are fun, fairly simple to organize and - naturally - bring in the most funds for your international adoption. Learn more.
Making and selling gift baskets are one creative way to raise funds for your international adoption. You can read some tips on making an appealing basket by clicking here.
Thinking about taking out a loan to pay for your adoption? Read this article first by clicking here.
If you want to pursue a loan using your home as equity, there are important things to know upfront. Learn more here.
One of the easiest and most effective ways to pay for your international adoption is to learn to cut back on costs. Here are some easy ways.
Do you love doughnuts? You're not alone. Help pay for that adoption with a doughnut fundraiser. Learn more here.
When making plans for raising funds for your adoption, don't forget to include friends and family. Learn how to write a letter to solicit funds and help by clicking here.
More and more companies are now offering adoption benefits, so it's definitely worth your while to check and see if your company offers such benefits. Learn more.
Great Fundraisers!Use a raffle to raise funds for your adoption. Learn more.
Sell t-shirts and pay for your adoption with a t-shirt fundraiser. Read more.
Read one person's story about raising funds for her adoption with a Garage sale fundraiser.
A benefit gala is a fun way to pay for your adoption. Read more.
How about a chicken dinner for raising funds. You can read all about it by clicking here.
One adoptive parent used a roller skating fundraiser to help with adoption costs. You can read her story by clicking here.
While you're doing one fundraiser, why not combine it with another one? Learn how.
Looking for a low-cost, simple way to raise funds? How about the pasta fundraiser? Read more.
A taste test party is another great way to raise funds. Learn more about it by clicking here.
Using the cash bash to raise funds for your adoption. Learn more.
A jigsaw puzzle fundraiser is a fun way to raise money for your adoption. You can read about it by clicking here.
Pay Adoption Costs
Adopt Debt free will provide you with the tools and techniques to completely pay for your adoption and bring your child home without having to go into debt!
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