Home equity loans provide peace of mind...
Home equity loans can provide a lot of peace of mind when debts get out of hand, or credit card bills start to run too high. They provide some breathing space in debt consolidation, extra funding when you need the cash and better interest rates than you can get in unsecured loans.
The advantages of a home equity loan
When you apply for a home equity loan, there are many advantages attached.
- Consolidate your debt
- Get cash to pay for a child’s tuition
- Renovate your home
- Replace that old car
- Start a new business
- Pay off credit cards
- get cash if you lose your job
And these are just a few. Since the equity is based on your home, you may also be eligible to get lower interest rates than other types of loans. Too often people carry multiple loans at varying rates and it gets harder and harder to keep track – a home equity loan can bundle all those loans into one and simplify the way you pay for your debts. Since you use the value of your home as collateral, it makes it more possible to get a lower rate.
How does it work?
You have a mortgage, and you’ve lived in your home for a number of years. As you pay off your mortgage a certain percentage goes into the principle, and the rest goes into interest. When you pay down the principle and the value of your home goes up with the natural increases in the market, so does the equity in your home. Imagine if you could use your home as your own bank? This is the power of a home equity loan.
Of course, you want to be careful and make sure you don’t use up all your home equity, but this type of loan can really come in handy. Say that you bought a new truck for your job to replace your old one. Having a new vehicle is important for the business image, plus repairs can cost too much. It works fine, as long as you are working, but what happens if you get injured and you need to take a few weeks off? Car payments can feel like a real burden if you have to take time off, not to mention they usually have a high interest rate. If you sell your new truck, you lose 30% of the value right away - seems like a waste! If you can hold on and make your payments, you not only get your business write-off, you also get to keep that new vehicle and use it once you are back on your feet. Instead of losing it, why not pay it off with a home equity loan and get a lower interest rate to cover you until you are back on the job?
This is just one of many scenarios that we come across every week. People suddenly need money for repairs to their homes, they need quick cash to get them through sickness, or they need to invest in their business or children’s education expenses; each case requires money fast and going to the bank to get credit can sometimes feel like it takes forever. A home equity loan can help you get the money you need quickly.
Work with a Mortgage Broker
Debt should always be handled carefully. Most people carry debt and getting help in setting it up in a way that works best for you is often hard. If you have a mortgage, you can usually get a home equity loan, depending on the equity in your home and the health of your credit-rating (see our helpful article on credit-rating to learn more). You see the ads on TV and you hear them on the radio offering a home equity loan fast and easily. However, you need someone on your side that can provide you with the best solution.
This is where a Mortgage Broker can help. You don’t want to get a home equity anywhere. If you can work with someone who is interested in helping you, and wants to assist you in getting the best deal just for you based on your credit rating, it takes a lot of stress out of the process. Perhaps it might also be good to review your mortgage at the same time and see if remortgaging your home would be a better option. A Mortgage Broker can help you sort out your best options and find you the best deal for your particular situation.
Contact the One Stop Mortgage Team
If you are thinking about a home equity loan, contact the One Stop Mortgage Corp. team today and see what they can do for you. A simple phone call to one of their Mortgage Brokers can help you find a solution and money quickly.
You can also fill out the quick application form and see how much money you are eligible to take out. Don’t carry debt on your credit cards when you have equity in your home to use right away at lower interest rates!
Even if the bank turns you down, or your credit-rating is not accepted elsewhere, we can help.