Sean McClay

A home equity loan is for a fixed amount normally with a fixed interest rate. For example the home equity loan would get 2nd position on the title of your home (assuming you dont already have a 2nd mortgage), and you would recieve a fixed amount from the bank/mortgage company, even if you do not need all of it or possibly need more to finish the renovations. The Home Equity Line is more like a credit card secured by your home normally entitling you to a lower interest rate because it is secured. It like the Home Equity Loan takes 2nd position behind your first mortgage. You normally have a certain time frame to pay this off but how you go about doing so varies depending upon the product you choose. Sometimes it is interst only for 5 years and then the bank/mortgage company starts requiring you to pay down the principal. Also on the Home Equity Line you have checks that allow you to control the amount of the loan up to a certain amount (ie limit on a credit card). In regards to which is better, that really depends upon your personal situation and wether you want a fixed rate that may be a little higher now or wether you want a variable rate that by the end of your term may be much higher. It really depends also on how long you plan on the renovations taking, because with the Home Equity Line you are not having to pay interest on what you have not borrowed yet. I hope this helps. Also it may be prudent for you to look in to refinancing your first mortgage and getting cash out (depending upon your 1st mortgage interest rate), as you may be able to kill 2 birds with one stone (lowering your interest rate and getting the cash you need). Please make sure though to do everything you can to avoid PMI (when you borrow more than 80% of the home value in one loan) as it will make your payments go up substantially. I hope this helps and please let me know if there are any areas I can clarify for you.

First off I would recommend you talking with an Attorney to make sure the company is set up correctly (ie LLC, Inc, etc), as to make sure you have taken as much liability off you individually as possible. Also I would recommend making sure your auto insurance covers "business" activities, and if it does not make sure you get that covered. You probably need to sit down with an individual in your are that specializes in insurance for small business. I would recommend an independent insurance agent so they can get you quotes from several different carriers. Also make sure to get some suggesstions from the insurance agent and then go home and google the type of insurance you talked about to make sure that is exactly what you desire to cover, because alot of times you could be insurance rich and cash poor. For a new business that could spell disaster, so I would have the insurance agent rank what you need in order of necessity. Also it may not be bad to check with someone who does the same thing as you wether in your town or in a different town near by to find out what they do. Best of luck.

I have always been told it that the best way to teach children about money is to have then earn money for the things they want. For instance show them by example how your family operates on a budget and then create a budget for them with their income (allowance/bday money/ job/ etc.) and what their goals are with their money. Essentially you are helping your children create a plan now so they can visualize their long term and short term money wants and put it on paper (put is somewhere where you all can review it weekly/biweekly ie fridge). If you help them put it on paper I think you will see that they will have more purpose behind trying to earn money towards their goals. I hope this helps. I commend you for teaching your children about money as it will be so valuable to them later in life. Best of luck.