Home Equity Loans
Pheonix Arizona Mortgage Loan Brokers
Interest rates are at historic lows. Now is the time to get a home loan. The time to act is now--low rates won't last forever.
Home equity loans are a popular option for homeowners in these days. Leveraging the equity you have in your home can be a wise financial move, especially if when interest rates are low.
What is a Home Equity Loan?
A home equity loan is a loan in which you borrow against the equity you have in your home.
How do you know if you have equity in your home?
Equity is simply the difference between the current market value of your home and what you owe on your mortgage. In order to find out your home's equity you must find out the following:
- Your home's current market value. This will be determined by the price of the homes selling currently in your area as well as the assessment made by your local property tax office.
- Remaining balance on your mortgage. This is easy. Just look at your last mortgage statement to see what you owe on your mortgage.
The difference between the value of your home and what you owe on your mortgage determines the equity you have in your home. The amount of money you can get on a home equity loan is determined by the lending institution you choose.
Contact us today for more information.
972-398-6370
Uses for Home Equity Loans
There are many options for which you can use your home equity loan. Here's four to consider.
1. Debt Consolidation: One of the most popular uses for home equity loans is debt consolidation. If you've racked up bank credit card debt, retail credit debt and other debts, home equity loans can pay them all off leaving you with one monthly bill that's likely smaller than the others combined. It's also a good chance the interest rate will be half what you were paying on just one credit card. The rate on home equity loans is cheaper because, unlike credit cards, the debt is secured by your home.
2. Home Improvements: Home equity loans are also used for home improvement purposes. It's a way to put the money you borrow back into your home and also being able to enjoy the fruits of the loan. It's important to be very careful in what home improvements you make to your home. Pick the right contractors and make sure the improvements you make increase the fair market value of your home, otherwise the improvements you make can be lost when you go to sell your home.
3. Children's education. People use their home equity loan proceeds to finance their children's education because of the skyrocketing cost of education for those higher-income families not eligible for grants or educational loans.
4. Disposable goods and services: No matter what you do with your home equity money, it's good to know you can deduct the interest. That's a good reason to use your home equity loan to buy big-ticket items you've always wanted, a new car, boat, recreational vehicle. Home equity loans are also good if you encounter some type of emergency.
Contact us today for more information.
972-398-6370
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