Equity mortgage loans can help you in a variety of ways and your property is often your biggest asset. In fact many people do not realize just how much cash they can leverage without significantly affecting their financial situation. Fidelity Mortgage Solutions prides itself on releasing this hidden asset and making it generate additional financial gains for both you and your family.
If you are looking for ways to generate extra funds, either for a new car or to give your kids a kick start for college, consider an
equity loan on your property. This can be structured in a variety of ways depending on what you need and our expert team is always on hand to walk you through the various options. So if you need a burst of capital and are not sure of the right way to go, give us a call and schedule an appointment.
Our experts will lay out your options so that you can decide.
HELOC
Equity mortgage loans are a good way to receive extra funds to renovate your home. While there are some possibly good solutions for using an equity mortgage loan, it’s important that you think hard about what you’re using it for.
If you want to take a vacation, pay for school, or buy a car, then selecting an equity mortgage loan is the way to go. This allows you to borrow money, using your home’s equity as collateral.
Collateral promises that you’ll pay the money back. If you can’t or don’t pay back all of what’s owed, you can lose the home or be forced to move out if you don’t repay the debt.
An equity mortgage loan is also called a home equity line of credit, or HELOC. If you want to renovate your home, but need to access some of the finances within your home to do it, this is a good use of HELOC. But if you want to use that money to pay off credit card debts or student loans, that sometimes is not a wise move. However, the interest rates are often lower on what you owe on your home than they are on what you owe for your credit card. Although it’s not wise to take out money that you owe and use it to pay off a different type of money that you owe, because of the variation in interest rates, it just might be a good choice.
Does the term “equity mortgage loans” have you wondering what equity is? A home equity is the value of your home, minus how much you owe. Say you decide on a house that’s $300,000. You have the funds to make a $30,000 down payment. That means you owe $270,000. Your equity would be the same amount as your down payment, so $30,000. When you own a home, there are two ways that you can refinance paying for your property: equity mortgage loans and debt restructure loans. In order to help alleviate some of the difficulty and confusion between these two steps, we explain below. Feel free to call Fidelity Mortgage Solutions with any questions you might have.
Debt Restructure
Debt restructure mortgages (also known as
refinance mortgages) are a way to help you reorganize your debt so that it can fit your financial lifestyle better. They change the terms of your mortgage agreement so it meets your needs.
Debt restructure mortgages or refinance mortgages is a process taken to strengthen an individual’s or company’s financial outlook. For example, if you had a home loan at 5%, and wanted to lower it to 4%, that would be debt refinancing. Your finances will be protected from possible bankruptcy by modifying how you owe the money. There are benefits of refinancing your home. “If you want a lower interest rate, refinancing can help also lower the payment due on your mortgage,” says Quinn White, president of Fidelity Mortgage Solutions.
By lowering the interest rate on what you owe, you’ll be able to tackle those home improvements you’ve had to put off. Those with financial difficulty also use refinancing, yet that doesn’t always have to be the case. You can refinance your loan simply to lower the interest rate, thereby saving money in the long run. Or, you might want to decrease the length of time on your loan, changing it from 30 years to 15 or 20 years. According to White, “you only pay interest on your current balance, so the faster you’re paying off your loan, the less interest you will pay overall.” When you owe money on a home, there are many solutions for how to approach paying off your debt. Saving time and money are both reasonable expectations while selecting one of these loans.
Fidelity Mortgage Solutions will be able to answer any of the questions you may have, as this is a complicated and confusing process that you need all the answers to before you move ahead.
