Tapping Into Home Equity: Which Way Is Best?

March 16, 2009 by · 3 Comments
Filed under: Blog 

If you’re thinking about tapping into your home equity, here are your options and things you should be considering –

Refinance Option: Is the interest rate on your mortgage higher than the current interest rates? Then you may want to refinance to a larger loan amount. The difference you take, in cash, will be from your home’s equity.

Home Equity Loan Option: An option you may want to consider if you’d like cash in a lump sum, and you already have a good rate on your first mortgage, is the home equity loan. Often called a second mortgage, a home equity loan lets you tap into your home equity without refinancing your first mortgage.

HELOC Option: HELOC, which stands for Home Equity Line of Credit, gives you access to your home equity when you need it. A HELOC is similar to a credit card, but it uses your home equity as a revolving line of credit. Make monthly payments only if and when you use the money. One advantage of a HELOC over a credit card is that the interest is usually tax deductible. Do you want to take a portion of your money, drawing the remainder as you need it? You can do that with a HELOC. Or would you like to get a lump sum at closing? You have that option with a HELOC as well. One other HELOC advantage: it’s possible to get a home equity line of credit in as little as ten days – unlike a home equity loan or a refinance – which take longer.

Reallygreatrate can help you by providing more tips and news at our site. We welcome you to take a look, and also to find out what rates are available in your local area.

We are also available by phone to answer any questions you might have.

Matt Schaub
http://www.articlesbase.com/real-estate-articles/tapping-into-home-equity-which-way-is-best-132124.html

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Comments

3 Responses to “Tapping Into Home Equity: Which Way Is Best?”
  1. Vince R says:

    Tapping into your home equity?
    I recently purchased a home that has approximately $150,000.00 worth of equity in the property. How long do I have to own the property before I can tap into the equity? Help anyone?
    I guess I should state, House cost $750,000.00 Estimated market Value 905,000.00-935,000.00. I am curious to borrow 50,000.00 to eliminate all debt….EVERYTHING!

  2. Donald D says:

    That would be up to the lender. It depends if that equity is based on your opinion of the value or on the amount of cash you invested. Call your bank, use the bank you do your business with regularly they will do anything to keep a great customer.
    References :

  3. Colin says:

    I don't think there is any time limit as long as you can prove the equity through an appraisal
    References :
    http://danogo.com/home-loan

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