Evaluating South Florida Home Equity Financing Options

By Karen Lawson
Local Lender Columnist
Apr 24, 2008
The potential for building home equity is a significant benefit of home ownership. Home equity is the difference between your home's current value and the outstanding balance of mortgage loans against it. This can provide a source of funds for managing your finances. It can also be used for home improvement projects, or fund career ventures such as starting a business. How and when should you use home equity? The answer depends on factors including South Florida real estate trends, your personal finances, and your goals for the short and long term.

Refinancing Can Eliminate Troublesome Mortgage Terms

If you have a mortgage with adjustable or exotic terms, refinancing can stabilize payments and help you accumulate home equity by eliminating features such as negative amortization or interest-only payments. Contact your mortgage lender to learn more about the terms of your present mortgage and to explore your refinancing options.

Pay off Debt at Lower Rates with Home Equity Financing

Home equity loans and lines of credit can help you access home equity for various purposes. The key here is to evaluate your current finances, and future goals. How can home equity financing help you improve your circumstances? If you carry large balances on high cost credit accounts, a home equity loan can help you refinance your debt at lower rates. This can help you reduce debt faster while eliminating excess fees and charges often associated with credit cards and consumer loans. A home equity line of credit can provide security for emergencies or cash for long term purposes where you want "pay as you go" flexibility. Consulting a financial advisor can help you decide if home equity financing can work for you.

About the Author
Karen Lawson is a freelance writer with more than fifteen years of experience in mortgage banking. She holds a Master's degree in English from the University of Nevada, Reno.