If your current mortgage is already low and you really don’t want to break it, or simply can’t pay the penalty, you may want to add a home equity line of credit.
In most cases our line of credit programs can lend a little more than your conventional bank and when you compare apples to apples, the interest rates is always much lower than your current credit cards. For example many banks can only extend a line of credit secured to your home equity up to 70 to 75% loan to value or LTV for short. With Freedom Lending’s network we are able to extend lines of credit over 75% and at much higher guidelines than most banks.
Need to expand your business, but cannot qualify for personal loan? Or if you are tired of juggling your monthly bills and credit card payments and do not want to borrow more than $100,000.00 then perhaps a lower interest equity line of credit makes sense.
How it works. A Home Equity Line of Credit lends against the equity in your home and allows you to access the loan through the use of a credit card. You use the credit card just like a line of credit, but the loan amount is determined by the equity amount you qualify for. You should note that this loan or credit line is secured against your home and act’s just like a mortgage. The loan amount is registered on title in second position and is treated like a second mortgage – something home owners don’t always know.
You can use the credit card to pay down other loan or higher interest credit cards, make a larger purchase to help expand your business or take a much needed vacation. You simply make a payment on the balance used, not the full amount and you will always have access to the line as you make regular payments.
Why use a Home Equity Line of Credit over a bank consolidation loan?
- You can consolidate your debts into a lower payment and pay less
- Bank consolidation loans are fixed over a period of time and carry a larger monthly payment
- You can borrow that extra cash for renovations or one of life’s unexpected expenses
- You can borrow up to 80%* of your home’s value where the bank may not be able to extend higher than 70%