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Making the Most of Your Home Equity with a Home Equity Mortgage
Put your home equity to work for you with a home equity mortgage arranged by trusted mortgage providers like the CVE Mortgage group
What is Home Equity?
Home equity is the money that you have put into your home through your payments on it over the years that you have owned it. It is the excess money over and above what you owe on the home now. You may be thinking that it doesn’t amount to that much but this is all going to depend on what the value of the home is today. It is not based on what you paid for the home, or how much actual money you have paid on it since you purchased it.
What is HELOC?
This may be a new term to you if you have been checking out some alternative financing options. This stands for a Home Equity Line of Credit, or is sometimes called a home equity mortgage.
Why consider borrowing on you home?
There are many reasons why you may want to consider using the equity you have built up in your home to obtain money that you need or want. If you have been looking into other forms of loans you have probably noticed that the interest rates on borrowing are quite high. One of the main advantages to using a HELOC for your financial needs is because they usually offer lower interest rates than that of an unsecured line of credit.
There is also less hassles when applying for this type of loan because you have your home equity backing it up.
When is it a good idea to use a Home Equity Mortgage?
Many people dream of having a wonderful vacation and they really try to put away a few dollars whenever possible to do this. There always seems to be something that crops up and those small savings end up getting used. Before long the years seem to fly by and as yet that dream vacation is yet to be realized. By arranging for a loan against the equity in your home you can get to enjoy that much needed vacation when the time is right and you are able to enjoy it.
It may be that you want to buy a new vehicle. The interest rates are pretty high on this type of financing and this may restrict you in regards to what vehicle you want to buy. You may really have your heart set on a better make or model but can’t justify the interest expense that is going to come with it. With a HELOC that may bring you lower interest costs it may just pave the way for you to get the vehicle you really want to have.
Then there is always the unexpected that surfaces. You may end up with a leaky roof, or a furnace that just doesn’t want to work any longer. Again there may be a possibility that you can finance the costs for this through the dealers doing the repairs, but again they will be quite substantial. Which also may mean some hefty monthly payments that are surely going to put a strain on the budget. A great alternative in this situation is to use your home equity.
It may be that you have been saving for the kid’s education but with the rising cost of education you just don’t have enough saved and the time has arrived. Now is an ideal time to put your hard work of building your equity to work for you. It may mean that the kids don’t have to be straddled with student loans that will take them years to pay back.
Choose a trusted mortgage broker
Once you have realized that the equity in your home can be used for some great purposes you want to take the time to seek out a mortgage broker that is going to be able to get you the best deal on your home equity mortgage. You want to deal with a company that is going to answer your questions and make sure that the mortgage is going to be structured to best suit your needs.
Don’t consider that you are putting your equity at risk when you are using it for some of the good purposes that we have outlined here. What you are doing when utilizing a HELOC is being money smart. Why pay out a ton of money in interest when you have the opportunity to borrow money at a much lower rate. Your diligence in building up your equity has put you in this position of being able to enjoy low cost borrowing.
Putting you into the right Home Equity Loan/Mortgage can go a long way in helping your family’s current financial situation. To get more information, simply give CVE Mortgage Group a call today, or complete our simple contact form and someone will be in contact shortly.