Home Equity Provides Flexible Options

By Karen Lawson
Local Lender Columnist
Nov 26, 2007
A wide variety of home equity financing options can help you meet long and short term goals, take care of unexpected expenses, or remodel and update your home. Refinancing your mortgage, taking out a home equity loan, or establishing a home equity line of credit can provide extra cash.

Refinancing: Getting the Most from Your Mortgage and Extra Cash

If you want to change your mortgage terms, cash out refinancing can help you get the mortgage terms you want while providing extra cash. Of course, the amount of cash you can take out depends on how much home equity you have. Mortgage lenders order will order an appraisal of your property, and consider how much your home is currently worth to determine your home equity.

In Debt up to Your Ears? A Home Equity Loan Can Help

If you have high interest rate credit card balances, you can clean up your finances by getting a second mortgage, also called a home equity loan. These loans are generally fixed and feature monthly payments that don't change. Terms range from 10 to 30 years.

Home Equity Lines of Credit Provide Flexible Financing

A home equity line of credit (HELOC) is designed to provide ready cash when needed. You are approved for a credit line that is secured by your home. HELOCs typically have variable interest rates, which means it's important to understand how they can adjust. A home equity line of credit can come in handy for unexpected expenses or any situation where you want to "pay as you go."

Whichever home equity financing you choose, you can enhance your Florida home and lifestyle with flexible home equity loan options.

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.