Home Equity Line Of Credit
Home Equity Line Of Credit. Should you use a home equity line or loan to pay off your outstanding credit card bills or other debt? Maybe. But before you borrow, consider the pros and cons.
There are two kinds of home equity mortgages. With a home equity loan you get a set amount all at once. With a home equity line, you get access to line of credit that you can spend as you need it.
Loans and lines are secured by the equity in your home (that’s the difference between what you owe on your first mortgage and what your home is worth). If you fail to make your monthly payments, your lender can foreclose on your home.
Many homeowners will take out a HELOC (home equity line of credit) to finance home improvements, to purchase a vehicle or to pay off debts.
Because the interest you pay on a home equity loan may be tax deductible, a home equity line can be a relatively inexpensive way to borrow money.
Suppose you have a $10,000 debt. You’re offered a HELOC for $10,000 at 5 percent interest or you can pay the debt with a credit card that charges 12 percent interest.
The advantage to using the HELOC instead of the credit card is clear. You pay less for the HELOC because the interest rate is 7 percent lower.
But, like any loan, it’s important to remember that a home equity loan is just that – a loan, or debt guaranteed by your home. Your lender will likely let you stretch out repayment over 10 years or more and you’ll be paying interest that whole time.
If one of your major problems is that you spend beyond your means, a HELOC may help you overspend. As a result, a home equity loan may actually make your fundamental problem worse, rather than better.
But, if you have made a commitment to control your debt and are seeking ways to reduce your overall expenses, a home equity loan can be a sensible solution.
One essential exercise is to actually calculate how much money you would be spending per month – and over the life of the debt – in one scenario versus the other. There are debt calculators readily available online to help you do just that. Home Equity Line Of Credit.
About Deborah Laemmerhirt
Let me assist you in finding everything you need to know about buying or selling a home! As the preeminent real estate professional in my community, I am dedicated to providing the finest service available while breaking new ground.
Because the real estate industry is becoming more sophisticated and challenging every day, you need a professional that understands the industry and is positioned to stay ahead of the game.
I go the extra mile to help you achieve your goals. That’s why I constantly research the home, market and estate values so your home is priced effectively from day one. I also make sure the public knows your home is for sale by using innovative marketing techniques to attract potential buyers.
As an Internet-savvy real estate representative in Connecticut, I’ve had the opportunity to help many home buyers find their ideal homes and many sellers obtain top dollar for their homes. Buying or selling a home is one of the largest financial transactions that most people ever undertake, so I will help you through every step of the process. My goal is to make your home selling or buying experience as easy and enjoyable as possible.
My services include:
Explaining the home selling and buying process thoroughly
Diligently selecting homes that meets your criteria
Pricing your home correctly and implementing a unique yet proven marketing plan
Negotiating on your behalf
Tracking the closing process to ensure a smooth transaction
I welcome the opportunity to address any questions you might have about buying, selling or current market conditions. Please call or e-mail me any time, and I will be happy to discuss your next steps in the buying or selling process.
I specialize in both Residential and Commercial Properties.
I also head a Real Estate Group to provide you with expert service and support.
Areas of Expertise
Making transitions in your life is challenging. You may be moving from out of town, a different state, internationally or just next door! Regardless of the distance I am prepared to respond to your unique needs.If you are a BUYER looking to downsize, up-size, want a new construction, desire a condominium, to invest, even if this is your first home, I will design a unique plan to fulfill your needs in a reasonable time frame, with the best negotiated price and the least amount of inconvenience.For my Home Sellers, I have an innovative marketing plan that will leave nothing to chance. Just call, and I would be happy to share the DIFFERENT and SUCCESSFUL TOOLS I utilize on each of my listings.
I have lived in Connecticut for over 35 years. I practice Real Estate in Fairfield County, New Haven County and Litchfield County. This includes, but is not limited to Bethel, Bridgewater, Brookfield, Danbury, Harwinton, Kent, Litchfield, New Fairfield, New Milford, Newtown, Oxford, Ridgefield, Redding, Roxbury, Sherman, Southbury, Warren, Washington, Westport and Wilton.
