If you need a large loan or want to consolidate debt, a home equity line of credit can be the solution you’re looking for.
Home equity is the market value of your home against all of the liens attached to the property. For instance, if the market value of your home is $300,000 and you owe $100,000… you have $200,000 in home equity.
So, a home equity loan is simply a loan that allows you to tap into that equity you’ve built up in your home. So whether you’re trying to consolidate your debt, help pay college tuition or are just trying to improve your home, you can access the equity in the form of a HELOC (Home Equity Line Of Credit), in which you have access to a pre-approved amount of your equity, and only pay interest on the amount actually borrowed and used. If you have $100,000 but only take out $5000 – you’ll only pay on the $5000.
You can also apply for a home equity loan, in which you borrow money and the loan is secured by your home. You pay fixed monthly payments of principal and interest – and if you don’t pay, the lender has the ability to foreclose.
Depending on which type of equity financing is best for you, there is a vast array of lenders and requirements to be aware of. Some lenders’ programs will allow you to go up to 100% of your equity – others only 60%. If you are serious about exploring your home equity financing options, it’s time to make a move. #MoveToFLiP