Home Improvements Loans
Click here for best home improvements loans
( and other loan types ) at Quicken Loans.
Make use of their 30 second online solution. It's FREE and without obligation.
It's an easy way to get informed about rates mortgages and the most attractive available homes loans options for you in case of Purchase or Pre-approval or Refinance or Debt Consolidations
or Home Equity Line of Credit.
What's the best Home Equity Loan for You?
Thinking about a home improvements loan or other homes loans type? If you are, there are a couple of things to think about. Will you want your cash in one
lump sum? Is the interest rate on your first mortgage close to the current interest rate? Or is it much lower? The answers
to these two questions will guide you in making the right loan decision for you.
Loan Options
If you have decided that you definitely want to use the equity in your home to pay for home improvements, your child's education,
pay off other bills, then you really just need to decide whether you want to refinance, get a home equity loan or home equity line of credit.
Refinancing the Mortgage or having a Second Mortgage
The first thing to understand is that while all three of these homes loans have costs associated with them, the interest rate (rates mortgages) is
typically higher on a home equity loan or line of credit. This is because a second mortgage carries higher risk to the lender.
In the event you were unable to pay off your loans, the lender on the first mortgage would get paid first and the lender of
your second mortgage would be paid whatever amount was left over. The higher the risk, the higher the interest - therefore
second mortgages have a little higher interest rate.
So, if you have a great rate compared to the current interest rate market, then you probably want to get a second mortgage at a little higher rate rather than lose your great
rate on your first mortgage.
When you are ready, have your lender run different financial scenarios for you to help you figure
out if refinancing your first mortgage is the best way to access your equity or whether a second mortgage is better for you.
Lump Sum or Line of Credit
Depending on what you want to do with your cash, you have two options when it comes to second mortgages - a lump sum at closing
or a line of credit. If you are paying off credit cards, it will be easiest to get a check at closing and pay them off immediately.
A line of credit works like a credit card. If you are paying for your child's tuition for example, it makes more sense to
not borrow all of the money at once but to use it over the next few years on an as-needed basis.
What ever you want, make sure to get the information you need about homes loans and rates mortgages.
Click here to do the 30 seconds free online request at Quicken Loans.
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