If you're looking for a way to consolidate your debt into one monthly payment, a Home Equity Loan may be the right choice for you. It offers benefits like a low interest rate and a choice of loan terms, plus the interest you pay is usually tax deductible.

To get a Home Equity Loan, you must own your home. Other qualifications vary depending on the lender, but can include:

Your Home's Value

Depending on the lender, you may borrow a certain percentage--usually 80%, 90% or 100%--of your home's market value (after subtracting the amount of mortgage you have left on the property). For example, let's say your lender allows you to borrow 100% of your "home equity." If your home is appraised at $300,000 and you have $200,000 left on your mortgage, that means you have $100,000 in "home equity," so you can borrow up to that amount.

Your Credit History

Most lenders will check your credit report when you apply for a Home Equity Loan. Generally, you don't have to show perfect credit to qualify for a Home Equity Loan, but your credit history should at least demonstrate a reasonable ability to handle a large loan. Before you apply, it's a good idea to check your credit report and make sure there aren't any errors.

Your Employment and Income

Before a lender commits to giving you money, he/she first wants to make sure you have the means to pay it back. You'll have to describe your employment and your monthly income. Self-employed folks can still qualify for a Home Equity Loan, but they usually have to provide additional proof of their income, such as tax statements.

If you apply for a Home Equity Loan online, the documentation process is typically simple, since most online lenders have an application form directly on their website. Once you submit the form, you'll be contacted by the lender and you may need to mail or fax additional documentation. However, in most cases you can expect to have your money within ten days to two weeks.