HOME EQUITY

CHOOSE FROM EITHER A HOME EQUITY LINE OF CREDIT OR A HOME EQUITY LOAN.

A Home Equity Loan is a fixed rate loan with a fixed payment schedule based on the available equity in your home. You will get your money all at once and then pay it back in predictable fixed monthly payments.

A Home Equity Line of Credit (HELOC) is a revolving variable rate line of credit that uses your home as collateral. Because it is a line of credit you can access the money you need when you want it.

Your home equity money is yours to use as you wish, but most home owners focus on several economic priorities when they cash in on their home equity. They are:

Consolidate Several Bills Into One Payment
Debt consolidation is by far how most home owners use home equity loans. If you've racked up bank credit card debt, retail credit debt and other debts, a home equity loan can pay them off, leaving you with one monthly bill that's likely smaller than the others combined. There is also a good chance the interest rate will be lower than what you were paying on just one of the credit cards. The rate on a home equity loan is less because, unlike credit cards, the debt is secured by your home. Additional debt-cost savings are available because with the consolidation you'll likely pay off your debt sooner. Along the way you'll be able to deduct the interest, up to the legal limits allowed for home equity loans.

Aside from the savings from the loans, a single monthly bill can also improve your cash flow, leaving you with more disposable income to save or invest. And over time, the single monthly payment also improves your credit profile, revealing to lenders that you are a less risky borrower who isn't over burdened by debt.

Put The Money Back Into Your Home
Almost as common as debt consolidations are loans used for home improvements. With carefully planned and professionally completed work, homeowners effectively put loans back into the home by adding more square footage, by bringing the home up to current building codes and by upgrading to contemporary home design and features.

Invest The Funds In Your Children
Using the loans for education is another popular choice. A home equity loan is a great way to afford the skyrocketing costs of post-secondary education.

Disposable Goods And Services
No matter what you do with your equity money you can deduct the interest and that's a compelling reason to use the home equity loan to buy those big-ticket items you've always wanted, such as a new car, a boat or a recreational vehicle. These loans are also helpful if you are hit with large medical bills or some other emergency.

Obtaining a home equity loan can be a complicated and confusing process. At 24/7 Real Estate Loans, we make applying for a loan easier than ever before. The benefits of working with 24/7 Real Estate Loans are the following: