There are many benefits to being a homeowner. Once such benefit is taking advantage of the equity in your home, if there is a sizable amount. Most banks require the loan to value not exceed 70-80%, but if your equity is large enough, you may qualify for a Home Equity Loan in Waipahu. There are many advantages to both an equity loan or line of credit. Though both different, they both are similar in the fact they tap into your home equity to provide you with the cash you desire. With both, usually the interest rate is quite low and usually tax deductible, too. The website will help you learn more.
A home equity loan is very similar to a second mortgage. After the home appraisal, you will be informed the amount of loan you qualify for, based on the equity available in your home. When you close on your loan, you will receive a lump sum of cash in the agreed upon amount. At no time will your mortgage and equity loan equal more than 70-80% of the home value, ensuring you (and the bank) will not be upside down in your home. You’ll make agreed upon monthly payments, just like a mortgage payment. Amounts will not vary until the balance is paid off.
A equity line of credit is similar to an equity loan in the fact that it’s based on the home’s equity. Again, you will not be permitted to have your mortgage and potential line of credit be over 80% of your home value. With a line of credit you do not receive a lump sum payment. This loan is instead similar to a credit card or borrowing from your own account. The line of credit allows you to borrow, using checks or a debit card, against your home equity to a specified amount. Payments will vary depending on your current balance. You may borrow up to the full amount allowed. As it’s paid down, you can borrow from it again.
Let the equity in your home work for you. There is no need to pay high interest credit cards, when you can borrow against your own equity. A Home Equity Loan in Waipahu will help you get the money you need to from the equity in your home. Don’t pass it up. Borrow it today for the security you may need tomorrow. You can also visit them on Twitter for more information.
