Ohio is one of the areas of the United States hardest hit by the struggling economy. Small-business owners may want to consider home equity loans in Ohio as a way to meet business needs during more difficult times.

Ohio home equity lenders offer two types of Ohio home equity loan. The first type, a closed end loan, or second mortgage, allows you to receive the entire loan upfront. In an open end, or Home Equity Line of Credit loan (HELOC), you only withdraw money when you need it. Talk with providers of Ohio home equity loans or your own personal financial advisers to determine which type of loan best fits your situation.

Consider these things when determining which type of Ohio home equity loan works best for you:

1. How much equity do you have available?

2. Do you need your Ohio home equity loan rate fixed or adjustable?

3. What will the home equity loan finance: a major building renovation, company expansion or operating expenses?

4. Can your business, life and family withstand the added risk of losing your home?

Action Steps
The best contacts and resources to help you get it done

Research Ohio home equity loan information and rates online

Before you look into home equity loans in Ohio, evaluate the pros and cons of taking out a loan. Should your business fail, the lender may sell your house to pay off the loan. Make sure all your financial documents clearly show you will be able to pay back what you are borrowing. Research loan rates and calculate your exact monthly payments online.

I recommend: Search Ohio home equity loan rates at BestRate.com, which provides specific resources and Ohio home equity loan information. LocalLender.info offers a list of Ohio home equity lenders.

Meet with providers of Ohio home equity loans and their financial representatives

Set up meetings with representatives from the Ohio home equity lenders you are considering. The best lenders will have informed advisers who will answer your questions.

I recommend: Third Federal Savings & Loan, headquartered in Cleveland, has a lowest rate guarantee on Ohio home equity loans. I also recommend visiting your nearest Dollar Bank; they are local (Ohio and Pennsylvania) and usually offer competitive Ohio home equity loan rates.

Be comfortable with the lender you choose

Evaluate areas like customer service and finalize your choice for your Ohio home equity lender. Ideally you need to be confident in the services offered and receive a competitive rate.

I recommend: Check your Ohio home equity lender's track record for good or bad business at the Better Business Bureau.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Find the equity in your home by taking fair market value and subtracting your remaining balance.