It’s the perfect time to look into a Home Equity Loan.
With real estate prices rising and loan rates falling (check ours out — we think they’re amazing) tapping into your home’s equity can be a great way to access cash quickly and easily to pay for home improvement projects, pay off old, high-interest debts, or maybe even finance that Masters Degree you’ve always wanted to pursue.
What is Home Equity?
Home equity is the difference between what your home is worth and how much you still owe on your home loan. For many Americans, equity from homeownership is the cornerstone to building personal wealth over our lifetimes. As your home’s value increases and you pay down your mortgage loan, your home equity grows.
Are There Other Options?
A Home Equity Loan is ideal if you prefer fixed monthly payments and know exactly how much money you wish to borrow. One of the main benefits of a home equity loan is that whether interest rates rise or fall, your monthly payments won't be affected because your rate is fixed for the life of the loan. This makes a home equity loan very competitive when compared to financing with high interest rate personal loans or credit cards.
A HELOC (Home Equity Line of Credit) is a variable-rate home equity loan that works like a credit card. With a HELOC, you’re given a line of credit that’s available for a predetermined time frame. You must begin repaying whatever you borrowed against the credit line based on the terms of your loan.
If you have a project in mind or are simply curious about how a Home Equity Loan might fit into your financial plan, chat with one of our Real Estate Advocates, Jessica, Renee or Leah!