Paying off credit card balances and consolidating debt are some of the most common ways homeowners use their home equity, but there are plenty of alternative ways to get equity out of your home.
The longer you make payments on your mortgage, the more your equity grows - giving you more power to use that value to your advantage.
Here are some other great ways you can benefit from building equity:
Cash out refinancing lets you use equity by getting a new mortgage. Essentially, you replace your current mortgage loan with a higher amount, and receive the difference in cash. The cash is tax-free and can be used for anything you need.
A home equity line of credit or HELOC is a second mortgage with a credit amount you can draw from when needed. HELOCs are similar to credit cards in that you only pay for what you actually use until the designated draw period ends.
A home equity loan is another second mortgage option, complete with a separate monthly payment. These loans often have higher interest rates than your initial mortgage, but use your home's equity as collateral.
While similarly named, home equity loans and HELOCs function differently. With an equity loan, you get a lump sum of money at the beginning and make payments back over the life of the loan. A HELOC, by contrast, lets you draw whatever amount you need during a fixed period.
The key difference is with a loan, you'll have a regular monthly payment with a locked-in interest rate. With a HELOC, your payments and interest rates can vary.
When is it better to use a HELOC versus a loan? The important difference is flexibility. A HELOC allows you to pay for variable expenses and emergencies, and can be a great benefit for long-term costs like ongoing remodeling or renovation projects.
Consider all details of your financial situation when deciding how to use your home equity. Based on your goals and limitations, you can find the best possible way to benefit from your investment.
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First Albert would like to thank you for the opportunity to offer his services.
Albert originally from New York City enlisted to the U.S Marine Corps from 1992 to 2004 receiving the Navy & Marine Corps Achievement Medal Combat Valor serving in the Iraq War and earn a Bachelor Degree in Business Administration from University of Hawaii. Started getting involved in the Real Estate business from 2004 to present as a full time agent. Albert have found home owners and buyers really want two things from their REALTOR®, Executive Service and Results....
Albert specializes in the Los Angeles County, Ventura County and Orange County area and licensed in California. His services include being bilingual in Spanish, making it a point to keep his clients well informed at all time.
Albert vision of commitment is based on hard work, tireless determination, and a genuine love of helping people reach their goals with a successful tenure in the real estate industry. Albert know by sharing a strong work ethic, a tireless drive to succeed and a dedication to achieving goals, that anything in life is possible. For Albert, it is a Matter of Duty.
Albert's skills are Excellent Communication, Great Analytical, Critical Thinking ( thinking outside the box), Problem Solving Abilities, Strong Time Management, Organizational, Public Speaking, Negotiator, Team Player, Technology User.
That way, when you do meet, Albert can place his full concentration on your special needs and what's most important to you and your family. Together you and Albert will work as a team.
Albert is really looking forward to the very special opportunity to serve you in your Real Estate needs.
When the time comes for your next Real Estate decision, give Albert a call for a FREE consultation. You'll be glad you did.
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