Need Cash? Denver Homeowners Apply now for a HELOC

here are many options available when it comes time to borrow money to pay for home improvements, college tuition, a much-needed vacation, or unexpected emergencies.  One of the more practical solutions is to use the equity you have built in your home.

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Home equity loans or home equity lines of credit (HELOCs) provide the means to borrow against the equity you have in your home.  Depending on the length of time you have lived in your home, the amount of down payment you made at the time of purchase, the scope of home improvements you have done and the general trend of property values in your area, you may be able to borrow a substantial amount of money at rates lower than many other forms of debt.  As an added bonus, the interest you pay on these loans is generally tax-deductible.

There are three common ways that you can tap into the equity in your home:

Home Equity Line of Credit  This is similar to a revolving credit line.  You pay monthly interest only on the amount you have actually used.   Any payment in excess of the interest amount reduces the principal balance and makes that credit available to you again.

Equity Loan  This is a second mortgage for a fixed amount, and usually has a fixed interest rate.  You begin making payments immediately, even if you don’t use the money right away.

Cash out You can refinance your existing first mortgage to access the equity in your home.  This will increase the balance of your existing mortgage, but if you can secure a lower interest rate, your payment could remain the same, or even be lower.

Contact us today to learn more about home equity loans and lines of credit and let us help you decide which would be the  best for you.

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