Let the Equity in Your Home Work for You APPLY NOW your lowest rates are available!
- Get that renovation project done
- Pay off your debt
- Reduce your monthly payment up to 50%
Your home equity is based on
- Current value of your property
- The balance owing on your mortgage
- Any other debts secured by your property
What Is Home Equity, Home Equity Loan & What Can it Be Used For?
Home equity is the real property value of your house, the difference of your home’s fair market value and the outstanding balance of all liens on the property.
Home equity loan is a type of a loan in which the borrower uses the equity of his or her home as collateral. The loan amount is determined by the value of the property and the value of the property determined by an appraiser from the lender’s party.
Mostly people use their home equity loan to clear large payments, such as credit card payments, outstanding debts, school tuition fees and/or renovation of your home. Because in essence, it is still a loan and you can use it like any other loan the advantage is that the interest rates are not as high as other debts.
Why Get A Home Equity Loan?
Why not take a regular loan from a bank or some other place. Why take a home equity loan?
There are three major advantages that home equity loans have over regular loans. Firstly, they have lower interest rates. Home equity loans typically have much lower interest rates than credit card APRs. This type of loan is considered “secured” by the collateral of your home, so lenders are more confident in your ability to pay your debt. Lower risk means lower rates. Secondly, there is also the benefit of potential tax deduction. 100% of your home equity loan interest payments may be tax deductible, which may not be the case with credit card debt. You will need to check in with your tax advisor to see if you qualify, as this is a conditional benefit. Lastly, we have the benefit of large amounts of money that the home equity loan gives. This allows you to easily clear any outstanding bills, debts and other payments you may have.
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