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Maximizing Your LA Home Equity: What to Know About Getting a Home Equity Loan

By Gil Mackey
Local Lender Columnist
Apr 4, 2008
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Accessing home equity can be accomplished in several ways. By understanding the various methods for turning equity to cash, you can find the best program to access what equity you have in your LA home and best achieve your goals.

Home Equity Loans and Mortgage Refinancing: What's the Right Move?

There are a number of reasons LA homeowners start considering a home equity loan. Whether it's to finance another investment, make home improvements, or pay for college tuition, the equity in your LA home can be an excellent resource. But how do you take out the loan?

Understand Your Mortgage Options
Consider refinancing your current first mortgage if you think you can improve the terms you have now and if you will keep the home long enough to recoup the cost of refinancing. You pull cash from your home equity through refinancing and this gives you the chance to replace your mortgage with one that will better fit your needs.
If your first mortgage is working well for you, then leave it alone--take out a home equity loan. Here are some top facts about home equity loans.
  • Limits range from 80% to 125% of the value of your home.
  • Can carry a higher interest rate than a standard LA mortgage, depending on your credit but costs of originating are substantially less.
  • Can have terms of 5, 10, 15, or even 25 years, depending on the mortgage lender
  • Home equity fixed second mortgages deliver you one lump sum at closing, good when you need all your money up front.
  • Home equity lines of credit are revolving accounts like credit cards, good when you need flexibility.
Your best bet to get the right home equity loan for you is to shop around with a few LA mortgage lenders. By comparing home equity loan products you are more likely to get the best possible deal.

About the Author
Gil Mackey has been a writer and artist for the past twenty years. In addition to freelance writing, Gil writes for his local paper, and lives with his two children in Nevada.