All About Home Equity
Home Equity is the portion of the house value a homeowner actually owns. It is the value of the house
minus any liens and mortgages.
In the past decade, homes in most neighborhoods have seen sizeable appreciations in value.
Homeowners who want to capitalize on the equity built in their homes, but do not want to sell their
residences, have the option to do a Cash-Out Refinance. But a Cash-Out Refinance may not be the best
option, if the interest rate on the new mortgage is higher than the existing loan. Since the new loan
amount would definitely be higher, a Cash-Out Refinance with a higher interest rate costs much more in
the long run. In come the Home Equity Loan and Home Equity Line of Credit (HELOC). Home Equity Line
and HELOC are not refinances. They are second mortgages that stand behind the current mortgage.
They do not change or alter the current mortgage in any way.
minus any liens and mortgages.
In the past decade, homes in most neighborhoods have seen sizeable appreciations in value.
Homeowners who want to capitalize on the equity built in their homes, but do not want to sell their
residences, have the option to do a Cash-Out Refinance. But a Cash-Out Refinance may not be the best
option, if the interest rate on the new mortgage is higher than the existing loan. Since the new loan
amount would definitely be higher, a Cash-Out Refinance with a higher interest rate costs much more in
the long run. In come the Home Equity Loan and Home Equity Line of Credit (HELOC). Home Equity Line
and HELOC are not refinances. They are second mortgages that stand behind the current mortgage.
They do not change or alter the current mortgage in any way.
Home Equity Line
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What is Home Equity?
Why Home Equity Loan?
There are several advantages to Home Equity Loan and Home Equity Line of Credit over
Cash-Out Refinance:
Cash-Out Refinance:
 | After Cash-Out Refinance, new interest rate may be higher than that of old mortgage | |
| High closing costs often associated with Refinance | |
| Homeowner withdraws from HELOC when needed and pays interest on only the | |
| amount owed |
A HELOC works very much like a credit card. Funds are borrowed when the homeowner
has the need. Interest is accrued and paid only on the amount owed. It often has an
adjustable interest rate, and is usually pegged to the Prime Rate, sometimes with a
margin.
A Home Equity Loan works like a home mortgage. It usually has a fixed interest rate and
fixed payments throughout the term of the loan.
To find out more about Home Equity Loan and Home Equity Line of Credit, visit our Line vs
Loan page.
Cannot decide which is right for you? Visit the Help Me Choose page.
has the need. Interest is accrued and paid only on the amount owed. It often has an
adjustable interest rate, and is usually pegged to the Prime Rate, sometimes with a
margin.
A Home Equity Loan works like a home mortgage. It usually has a fixed interest rate and
fixed payments throughout the term of the loan.
To find out more about Home Equity Loan and Home Equity Line of Credit, visit our Line vs
Loan page.
Cannot decide which is right for you? Visit the Help Me Choose page.
Home Equity Loan versus Home Equity Line of Credit
Home owners with excellent credit profiles can get a No closing costs Home Equity Loan or
Home Equity Line of Credit. With a no closing cost Home Equity Loan, you pay NO appraisal
fee, NO credit report fee, NO title search......in short, ABSOLUTELY, POSITIVELY, NO fees!
That's right. You can get a Home Equity Line/Loan with NO settlement costs.
Apply online, get approved today and secure a No Cost Home Equity Line of Credit or a No
Cost Home Equity Loan within days..
Home Equity Line of Credit. With a no closing cost Home Equity Loan, you pay NO appraisal
fee, NO credit report fee, NO title search......in short, ABSOLUTELY, POSITIVELY, NO fees!
That's right. You can get a Home Equity Line/Loan with NO settlement costs.
Apply online, get approved today and secure a No Cost Home Equity Line of Credit or a No
Cost Home Equity Loan within days..
No closing cost Home Equity Loan/Line.