Use the equity in your home to relieve you of financial pressure. If financial obligations become overwhelming and just paying your mortgage payments can be daunting. The reasons for facing financial difficulties; reduction in income, high interest debt on many credit cards, sudden and unforeseen expenses, required renovations, life changes in your family dynamics and the list goes on. As a homeowner you have additional options to assist you in managing your debt and relieve the financial pressure, and that answer may be a Home Equity Loan.
What is a Home Equity Loan?
Home equity loan also called a HELOC or home equity line of credit is designed to give you the money you need by borrowing against the equity in your home. If you own your home and have built up equity (see below for calculation), you could qualify. A home equity loan is basically a second loan (after your mortgage) that you take out on your house.
To find out if how much you can afford with a HELOC, here is the calculation. Calculations based on a home valued at 500K with Mortgage Balance of $350,000
(Value of home x 80%) – Mortgage Balance = Maximum Amount to Borrow
($500,000 x 80%) – $350,000 = $50,000
With the above example, if value of your home is $500k and you wish to renovate, most likely you can get a Home Equity Line of Credit for $50K (you also need to take your credit rating into a account). This is based on a basic calculation and is only meant as a guide, a Mortgage Broker or Agent can get the numbers of a loan amount you would quality for.
How a Mortgage Broker Can Help
A Mortgage Broker will have information on the various options available for managing your financial situation and they should be consulted at the first sign of difficulty. It is always a good idea to keep your broker informed of any changes in your financial situation, they are here to help. The sooner you contact a broker, the better. Mortgage brokers have encountered many financial situations from their clients and they are experienced and knowledgeable, not only in best mortgage rates, but also in money management and financial solutions. The more information you have to manage your finances, the easier it will be to make the right decisions and put your mind at ease and if detected early, it could be a very simple solution.
If you need a line of credit, our home equity programs are the answer to your borrowing needs:
- Free Consultation – One of our dedicated residential mortgage experts will offer you a complimentary consultation to get a clear understanding of your goals, provide you with the right answers to your questions, and provide you with a home equity loan individualized to your needs.
- Low Interest Rates – With dozens of financial institutions and private lenders competing for your line of credit, we will shop for the best interest rates to help you save thousands of dollars in interest payments.
- Flexible Lending Terms – With so many lenders to choose from, we offer a multitude of flexible loan options and repayments terms: secured and unsecured loans; variable and fixed interest rates; and short-term and long-term financing.
- Fast Underwriting Process – Unlike the banks, as a boutique residential mortgage brokerage, our experts help to cut down on the underwriting time, providing you with a faster underwriting process and quick loan approvals.
To get started, contact us to speak to a residential mortgage expert today.