Life has always come with unexpected expenses, but it’s an especially acute problem amid rising interest rates and inflation. It doesn’t matter what level of debt, credit, or income you have.
Homeowners that have built up equity over the months and years may not realize they have a valuable asset they can borrow against in different ways. Please read on to learn more ways homeowners can leverage their property.
Home Equity Line of Credit (HELOC)
One of the most popular options for homeowners to get needed financial insistence involves a Home Equity Line of Credit, or HELOC. A HELOC from industry leaders like Burke Financial loans allows the homeowner to use the equity they’ve built up as collateral to get a surge of cash on short notice.
An independent appraiser will determine your home’s current market value, and you get to borrow against the difference between this total and what you’ve paid. HELOCs are commonly used when people need to pay for important big-ticket items, such as a renovation, investment opportunity, education, vehicle, or something else.
Homeowners can tap into the line of credit as needed, meaning they don’t pay for cash they don’t borrow. The rate is pre-approved, but people can use the credit when they need it. Speak to your mortgage broker about the flexible terms and payment options today.
Home Equity Loans
Home equity loans are similar to a HELOC in that the homeowner can leverage their equity to access funds, except they get a bulk sum at once.
Home equity loans usually have fixed rates, which provide predictability. If you need to borrow a small amount of money, a home equity loan may not be the best option since non-payment comes with risks and there are closing costs like that of a first mortgage.
Home equity loans can provide necessary funds at excellent rates when used judiciously. Paying back the rates can also improve your credit score.
Speak to a leading mortgage broker about squeezing the most you can from the money you’ve invested in your home, no matter your credit score.
It may seem daunting at first. But taking out a second mortgage has been a popular way for homeowners to get financial relief for decades. A quality mortgage broker can help homeowners avoid bad credit and save up to $1,000 every month, which adds up over time.
There are no limits or laws about what you can use the money from a second mortgage towards. Many people invest the money from a second mortgage back into their home, increasing its value in turn. Therefore, their investment grows more valuable over the course of repayment.
People’s personal finances are just that — personal. We have lives to live, things to do, and purchases to make, and no two people have the same circumstances. Speak to a mortgage broker near you with experience helping homeowners of all income brackets and credit ratings. Their expertise and industry connections will get you financially stable once again.