If you’re looking for a great way to turn your to-do list into a checklist, consider a Home Equity Loan.
This loan option allows you to borrow against the equity in your home. You can finance that home improvement project you’ve been thinking about, education costs, or any item on your to-do list. Now is the perfect time to take advantage of a Home Equity Loan, enjoy a low fixed-rate.
What Does It Mean to Borrow Against Your Home’s Equity?
With these loans, you are using your home as collateral. Here’s how it works:
You might be a good candidate for this type of loan if you’ve significantly paid down what you owe on your home, or if your home’s value has appreciated well above the remaining loan amount that you owe.
Smarter Way to Borrow
Since the rates are usually lower with a Home Equity Loan than a credit card or personal loan, you can enjoy a lower monthly payment. Save even more money by consolidating your debt and reducing your total interest costs.
When Should You Refinance a Home Equity Loan?
There are certain things homeowners should take into account when they consider refinancing. Again, to pursue this option, you need adequate equity in your home. To make that determination, you need to know the ratio of equity in your home to your income. This ratio shouldn’t exceed 85 percent.
In other words, when you calculate your remaining mortgage balance, it shouldn’t equal more than 85 percent of the total value of your home.
If you currently have a Home Equity Loan with another lender, consider refinancing your loan with 1st Advantage. Refinancing may provide some key advantages including reducing your monthly loan payment, shortening your payoff terms, a switch from fixed to variable interest rates, and additional potential to borrow money to fund a new project.