Home Equity Loan
Need to borrow money? A second mortgage allows you to pull funds from the equity you’ve earned.
What is a Home Equity Loan?
A home equity loan is a type of loan that allows you to borrow money using the equity in your home as collateral.
Here are some situations when you might consider getting a home equity loan:
- You want to make home improvements: Home equity loans can be a good option if you want to make home improvements, such as adding a room or updating your kitchen. The improvements can increase the value of your home and provide a return on your investment.
- You want to consolidate debt: If you have high-interest debt, such as credit card debt or personal loans, you can use a home equity loan to consolidate your debt into one payment with a lower interest rate.
- You have unexpected expenses: If you have unexpected expenses, such as medical bills or home repairs, a home equity loan can provide the cash you need to cover the costs.
- You want to fund a large purchase: If you want to fund a large purchase, such as a car or a vacation, a home equity loan can provide the funds you need at a lower interest rate than other types of loans.
- You want to start a business: If you want to start a business, a home equity loan can provide the funds you need to get started.
It’s important to note that home equity loans use your home as collateral, so you need to be sure you can make the payments. If you default on the loan, you could lose your home. Be sure to weigh the pros and cons carefully and consult with a mortgage professional to determine whether a home equity loan is right for you.
What are my options?
There are many options. Contact our team to learn which options is best for you.
Direct Mortgage Loans offers two types of Piggyback loan solutions. A Piggyback mortgage is a combination of two loans that is optimal for borrowers looking to avoid private mortgage insurance, or keep their loan under the conforming limit.
HELOC (Home Equity Line of Credit)
A HELOC Piggyback mortgage would encompass both the first mortgage and a HELOC on the property as a second mortgage lien.
Unlike a HELOC, Closed End Piggyback mortgages have specific terms (10 or 30-Years), and a fixed interest rate.
Stand Alone HELOC
Home Equity Lines of Credit (HELOC) give borrowers access to funds up to the equity value of their home.