Breanne asked:
we have lived in our house for 5 years and have been fixing it up the whole time were looking at putting an addition on but need about 15,000 to do that what would be best a home equity loan, refinance our morgage (currently at 5.25 interest rate) and if we do go with the home equity loan how do we pay that off? does it go through our morgage or a seperate bill is it wise to use the money to also pay off our 2 cars plus the addition? ive also been hearing of an equity line i know nothing about this sort of stuff and dont want to make a decision that we will regret all help is appreciated
Mortgage Finder
we have lived in our house for 5 years and have been fixing it up the whole time were looking at putting an addition on but need about 15,000 to do that what would be best a home equity loan, refinance our morgage (currently at 5.25 interest rate) and if we do go with the home equity loan how do we pay that off? does it go through our morgage or a seperate bill is it wise to use the money to also pay off our 2 cars plus the addition? ive also been hearing of an equity line i know nothing about this sort of stuff and dont want to make a decision that we will regret all help is appreciated
Mortgage Finder
Tags: Money, Morgage, Whole Time



2 responses to what is a home equity loan or line excatly?
Credit Report
a equity line is based on the current value of your home, less mortgage owed. they will lend you anywhere from 50-80% of that value. It is a little bit more complicated than that, it is a entirely separate loan, you do not have to go where you got your mortgage, shop around for rates.
speak to a banker they will be happy to assist you.
what is a home equity loan or line excatly?
Unsecured Loans
A home equity loan is usually a fixed-rate mortgage but will probably be at a higher rate than a home equity line of credit (HELOC). The HELOC will be adjustable rate so I advise against it since interest rates are expected to rise over the next several years.
If you have a mortgage and two car loans, you may be better off paying off the car loans before proceeding on the home addition. You are in danger of overextending yourselves financially and you don’t want to jeopardize keeping your home.
what is a home equity loan or line excatly?
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