Home Equity: How to Use It
A refinance pays off your current mortgage and gives you cash based on your equity. This cash can be used to::
l Lowering or locking in your mortgage interest rate
l Getting large sums of money ($30,000 or more)
Home equity loans (second mortgage) are installment loans that are paid out in one lump sum. They’re good for:
l repaying credit card debt
l remodeling projects
l buying a new vehicle
A home equity line of credit works like a credit card – you agree to a pre-set limit and then borrow as you need to, or in the event of an emergency, usually for up to 10 years. Good for:
l debt consolidation
l major home improvements
If you're starting to fee a bit cramped in your current space, you may have enough equity to use for a down payment on a bigger home. If you're interested in a Comparative Market Analysis to evaluated your current equity situation, contact me anytime at (612) 325-6324
- Kurt