Home Equity: How to Use It

Real Estate

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!