Alabama Home Equity Mortgage Loans
Get a great interest rate with our Alabama Home Equity Loan/ HELOC Financing program. We can also refinance your current California mortgage. Apply Online or call one of our California brokers toll free at 888-694-0455.
You may literally be sitting on a pile of cash. A California Home Equity Loan can help get the cash out of the ground and into your hands thanks to a little thing called equity.
What is home equity?
Home equity is the difference between the amount you owe on your home and the amount your home is worth. Homes appreciate in value over time as you continually pay off the principal of the loan. These two factors increase the "equity" of your home. There have been times where the value of a home has doubled or tripled in value in a few short years. This can drastically increase your home equity.
What is a home equity loan or HELOC?
A home equity loan or home equity line of credit (HELOC) is a second mortgage that allows you to borrow the money tied up as equity. What you do with the money is up to you. You could spend it on improvements and further increase the value of your home or put it into a high yield investment account and have it make you even more money. It is also not uncommon to see the money go to higher education costs or medical bills.
Home equity loan vs. HELOC, what is the difference?
A home equity loan is a one-time sum of money that is paid back in fixed amounts over the length of the loan. A HELOC is a line of credit and money can be withdrawn at intervals and works much in the same way as a credit card. You can pay only the interest, or you can pay off the principal as you see fit. Lenders will often issue a credit card for a HELOC and it works the same way. The difference is that you are borrowing money from your own equity.
HELOC vs. a credit card?
If a HELOC works just like a credit card, why not just continue to use credit cards? There are some key differences that make a HELOC more attractive.
- Interest paid on a mortgage is tax deductible; interest paid on a credit card is not.
- Interest rates are typically lower on a HELOC because it is secured with your house as collateral. This makes it less of a risk for lenders and they can in turn provide better rates.
- Mortgage debt is considered good debt, if fact, it is the best debt you can hold. Maxed out credit cards have and adverse effect on your credit score while mortgage debt will actually help your credit score
Is it difficult to get this type of financing?
The short answer is no, not with our help. You will need an appraisal to get an accurate estimate on your property value. You also will need to have your income verified, but since you already have a mortgage out, it is not a big deal to secure additional financing.
As professionals in the mortgage lending industry, we have built our reputation on providing outstanding service to our clients. This means you can count on us to always look out for your best interests, and to keep you informed throughout every step of the lending process. Customer satisfaction is the cornerstone of our business. Please do not hesitate to call if you have questions about the information you find here on our web site.