Make Your Home Equity Work For You
Home equity refers to the difference between the value of a property and the outstanding mortgage balance. As a homeowner, you can use the equity in your home to access funds for various purposes such as:
- Home Improvements
- Debt Consolidation
- Education
- Tax Debt
- Investments
- Paying Off Back Taxes On Property
- and other large expenses
There are several ways to use your home equity, including:
- Home Equity Loan: A home equity loan (a.k.a Second Mortgage) is a type of loan that allows you to borrow money using your home equity as collateral. This loan has a fixed interest rate and a fixed term, usually 10 to 15 years. Learn more about home equity loans here.
- Home Equity Line of Credit (HELOC): A HELOC is a type of loan that allows you to borrow money using your home equity as collateral. This loan has a variable interest rate and an open-end term. You can withdraw money as needed, up to your credit limit, and make payments on the outstanding balance. Learn more about HELOCs here.
- Cash-Out Refinance: A cash-out refinance allows you to refinance your existing mortgage and take out additional cash for other expenses. This is a good option if you want to use your home equity for home improvements or to pay off high-interest debt.
When using home equity, it’s important to consider the costs and risks involved. You will need to pay closing costs, appraisal fees, and other costs associated with the loan. Additionally, using home equity puts your home at risk if you are unable to make the loan payments.
Mortgage Suite can help you understand your options for using your home equity and find the best solution for your unique situation. Our team of licensed mortgage professionals can help you compare the pros and cons of each option, and guide you through the application and approval process. We can also help you understand the terms and conditions of the loan and find a lender that offers the best rates and terms.
Don’t let the complex process of using your home equity prevent you from accessing the funds you need. Contact Mortgage Suite today to learn more about how we can help.
