Home Equity Loan/ Line of Credit
Need money for an emergency? For an investment or business opportunity?
If you own a property and are looking to borrow funds at lower interest rates than your credit cards or other loans/lines of credit, a home equity loan or home equity line of credit could be a good solution for you.
Equity is the amount of ownership that you have built in your house. It is calculated by subtracting your current mortgage amount from the current value of your home. This equity is available to you and can be accessed when you need funds for things like home renovations, helping your children with their education or wedding expenses and much more.
EQUITY = HOME VALUE - MORTGAGE AMOUNT
A home equity loan and a home equity line of credit both uses the equity of your home as collateral. The main difference between the two is when you have access to the funds approved. With a home equity loan, your approved loan amount is advanced to you all at once and you pay it back in installment. With a home equity line of credit, you are approved for a 'revolving' limit, and you can advance funds at any time, and when you pay it back, that amount becomes available for you to use again.
Solutions we can offer:
If you need access to your equity quickly, you can apply for a Home Equity Loan. We have access to lenders that can give you up to $30,000.00 within 48 HOURS of approval.
If you need access to more equity, lower rate and the flexibility of when you can advance the funds, a Home Equity Line of Credit (HELOC), maybe better suited for you. The benefit of using a HELOC is you can advance funds when you need it and not pay interest when there is no balance in the account. This type of line of credit has a better interest rate than your regular ‘unsecured’ line of credit as it uses your home as collateral.
Please keep in mind that the maximum HELOC you can put on your property is 65% of its value. The HELOC and mortgage together cannot exceed 80% (maximum limit) of the value of your property.
If you have any questions, we would love to hear from you. Contact us.