Access Your Equity with a Home Equity Loan or Line of Credit
How to Refinance Your Mortgage
There are two ways for you to access the equity you have in your home:
- A home equity line of credit (HELOC)
- A home equity loan
What is a Home Equity Line of Credit?
A HELOC, essentially, is a credit card with a revolving line of credit based on the amount of equity you have built up. It provides you with a line of credit you can use to pay for expenses not exceeding your maximum credit line.
Like a credit card, you make monthly payments and interest payments according to the amount of money you spend on your line of credit.
What is a Home Equity Loan?
When you complete a home equity loan, you receive a lump sum payment. You then make monthly payments throughout the agreed upon term (length) of the loan.
Home equity loans are popular because they are an easy tool for turning equity into cash. If like so many other Americans you need an influx of cash to pay for medical bills, upgrades to your home, tuition fees for your children, or some other financial priority, the equity you have in your home could be your best asset.
With interest rates still at near record lows, now is a great time to get a home equity loan. Millions of American homeowners are hurrying to cash out their equity early in 2018 because everything is pointing to an increase in interest rates in 2019 and beyond.
We may not see interest rates this low again for decades. Ready to find out if a home equity loan is right for you:
Home Equity Loan Requirements
Requirement #1 is meeting the standards for minimum amount of equity. You should use a home equity loan calculator to determine if you meet the standard.
Home Equity Loan Fees
Home equity loans have the same set of fees and expenses as a standard mortgage. You’ll probably remember them from your original home loan:
- application fee
- home appraisal
- attorneys’ fees
- title search
- points (based on the amount you borrow)
On the other hand, many HELOC loans do not require any upfront fees.
Top 3 Reasons to Get a Home Equity Loan Now
- Take advantage of low interest rates before they’re gone
- Get the cash you need for your own financial priorities like paying down debt or improving your home
- Get cash to pay your child’s college tuition and prevent them from going into debt
There are many reasons to take action right now!
Trusted House Finance can help you figure out whether or not a home equity loan or a home equity line of credit are good options to help you reach your financial goals.
Tell us a little bit about your current home loan, and we’ll help you find the lenders offering the best rates!
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