Have You Ever Wondered If Now Is The Best Time To Start Using The Equity In Your Home For Your Benefit?

Have you been thinking about using the equity in your home to invest, pay off higher interest credit card debt, or pay for education or an experience you’ve always wanted, like a dream vacation? 2020 could be the year to take this step, because interest rates on home equity loans are expected to stay at low levels.

If you are 50% optimistic, can you utilize equity in your home for an investment in the present market conditions?

If you’re confident that your investment opportunity will pay more interest than your home equity loan will cost, then of course you can use the equity in your home to fund an investment. You shouldn’t take money out of the equity in your home if you’re not confident that the investment opportunity will pay enough in interest, but if you’ve built up significant equity in your home’s value, you can investigate opportunities for lower-interest home equity loans.

With the new normal we have today, is it possible to pay off a debt with a high annual percentage rate over a home equity loan or through a line of credit?

You can use a home equity loan (HEL) or home equity line of credit (HELOC) any way you choose. With the low interest rate forecasts for 2020, if you’ve paying a credit card bill with a high rate of interest, or even student loans at higher interest rates, it’s a smart financial choice to use a HEL or HELOC to pay off these debts. You could save hundreds, or even thousands of dollars, by paying off a high interest debt through a home equity loan.

Is it beneficial to utilize the equity in your home to pay for an experience or invest in yourself?

More people these days are interested in experiences that produce memories that can last a lifetime than in buying more things. If you’ve always wanted to visit the Galapagos islands, climb Mt. Everest, or visit the great museums of Europe, you could put the equity in your home to good use and pay for these unforgettable experiences. With low interest rates on home equity loans forecast for the next year, it’s much more affordable to use a home equity loan to pay for these experiences than it is to charge them on a high-interest credit card.

Home equity loans are secured by the equity in your home, so you should consider these loans carefully before you take this step. By working with a qualified home mortgage and home equity loan professional, you can decide which amount you would like to borrow, and which loan programs are best for you.



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A Home Equity Line of Credit – HELOC or A Mortgage Loan Refinance? In The Current World of Home Improvement, Learn Their Pros And Cons Today

Do you need extra cash for specific needs like home repairs or college costs? Which should you choose: a home equity line of credit (HELOC) or a mortgage refinance? Which is your best choice depends on how much money you need, how much equity you have in your home, what purpose you intend for the cash, and whether you have an FHA, VA, or other type of mortgage.

Cash Out Refinance vs. HELOC Interest Rates

You’ll pay more interest on a HELOC than you will with a cash-out mortgage refinance. HELOCs can have interest rates two to three points higher than the best rates on mortgage refinance loans.

What is the difference between a cash-out and a straight refinance loan?

A straight mortgage refinance loan will allow you to refinance a percentage of the value of your mortgage. Mortgage refinance programs like the VA streamlined Interest Rate Reduction Refinancing Loan (IRRRL) won’t allow you to take additional cash out of the equity in your home.

A cash-out loan, which is also available as a VA and FHA loan product, and some other loan programs, lets you take cash out of your home’s value. A VA cash-out loan is a unique benefit for qualified veterans. Nearly all cash-out programs limit how much additional cash you can borrow based on your home’s value. A VA cash-out refinance could allow you to borrow additional cash up to 100% of your home’s value.

What’s a home equity loan? Is it the same as a HELOC?

A home equity loan isn’t the same as a cash out refinance and it’s not the same as a HELOC, either. A home equity loan can be a good choice if you need money to pay for home repairs or for another one-time, essential cost. Home equity loan amounts are based on the amount of equity you have in your home.

Why choose a cash-out refinance over a HELOC?

A home equity line of credit has some benefits, which include acting as a revolving line of credit instead of a one-time cash payment. You can have varying payment amounts with a HELOC, but its higher interest rate often makes a straight one-time cash-out refinance more attractive financially. HELOCs are usually better financial deals than high-interest credit cards, however.

A cash-out refinance is going to offer you better loan terms and a more appealing interest rate than nearly all HELOC alternatives. When you’re shopping for a cash-out mortgage refinance, you can save time and compare terms from different lenders by working with an experienced mortgage refinancing professional. An experienced local independent mortgage broker may have multiple resources and lending channels allowing them to find the refinancing product that’s right for you.  If you are interested in learning more about your options get in touch with us here at California Platinum Loans.  We are a Local Independent Mortgage Broker shop with many niche loan products we can custom tailor to your specific situation.



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