Home Equity: How to Use It
Hello everyone! I get asked often about home equity and ways of using it. Although I am not an expert in this area I've put together a few things on home equity that may be of benefit to you. Enjoy!
A refinance pays off your current mortgage and gives you cash based on your equity. These are good for:
1) Lowering or locking in your mortgage interest rate
2) Getting large sums of money ($30,000 or more)
Home equity loans (second mortgage) are installment loans that are paid out in one lump sum. They’re good for:
1) repaying credit card debt
2) remodeling projects
3) buying a new vehicle
A home equity line of credit works like a credit card – you agree to a pre-set limit and then borrow as you need to, or in the event of an emergency, usually for up to 10 years. Good for:
1) debt consolidation
2) major home improvements
Call Me for more information or to connect you with the right lender that can help!