Home Equity Loan
A home equity loan can be an inexpensive and easy way to turn your equity into cash. There are a number of benefits to using a home equity loan – including quicker closings, lower fees and lower interest rates. The amount of money that will be available through a home equity loan will be dependent on the value of your home in the current market and the amount of your existing mortgage.
- Fixed interest rates – a home equity line is a revolving credit that has an interest rate that fluctuates. A home equity loan is a fixed amount of money paid out in a lump some for a limited time and typically involves a fixed interest rate.
- Lower fees – closing costs on a home equity loan are much lower than on traditional mortgages. Usually the lender will forgo origination fees and other costly fees associated with real estate loans.
- Quicker close – because there is usually less paperwork involved in a home equity loan as apposed to a refinance the closing will be able to happen at a much quicker rate.
Getting a home equity loan can be a quick and easy path to turn the equity of your home into usable cash.