Home Equity: How to Use It

Real Estate

Real Estate Matters with Tim Bro

Home Equity: How to Use It

A refinance pays off your current mortgage and gives you cash based on your equity. These are good for:

·         Lowering or locking in your mortgage interest rate

·         Getting large sums of money ($30,000 or more)

Home equity loans (second mortgage) are installment loans that are paid out in one lump sum. They’re good for:

·         repaying credit card debt

·         remodeling projects

·         buying a new vehicle

A home equity line of credit works like a credit card – you agree to a pre-set limit and then borrow as you need to, or in the event of an emergency, usually for up to 10 years, repay/reuse. Good for:

·         debt consolidation

·         major home improvements

To get started with your home sale or purchase, call Tim @ 858-354-2354, “The Right Choice in Real Estate”. BRE #01224576