If you’re thinking about making some home improvements or looking at ways to pay for your child’s college education, you may be thinking about tapping into your home’s equity. At some point in your financial life, regardless of the reason, you may want to leverage your home equity to improve your financial position.
Home equity is the difference between the value of your home and the unpaid balance of your mortgage. Your home equity increases with time as you pay your mortgage down and/or as the value of your home increases.
Home equity financing can be set up as a loan where your home secures the amount that you borrow through a home equity loan or line of credit. The loan for a fixed amount of money is secured by your property as collateral. After a loan is granted, you will have to repay the loan with equal monthly payments over a fixed term, just like your original mortgage.
Home equity loans can provide many different benefits, and can fit a variety of different needs or circumstances. To learn why the home equity loan is such a favorable option for borrowers, and what exactly all these unique advantages really are, contact First and Second Mortgages today at 403-543-0927 or 18664051228.