When looking to take money out of an existing home or other Real Estate borrowers often have a decision to make on what is the best method to do so. There are basically three financing options that are available to home owners. These include a cash out re-finance, home equity loan or a home equity line of credit (HELOC).
Determining which of these type of loan options will work best basically comes down to what purpose the money is going to be used for.
Unfortunately being in the Real Estate field, I often come across folks who have over extended themselves and find that they have created undue hardships .
Going back ten years ago this was not so much of a problem as Real Estate markets around the country were booming and a home was an investment windfall. Every few months the value of homes would continue to rise and did so for over a decade. Of course all good things must come to an end eventually and now we are left with property values decreasing in most areas.
When the economy and Real Estate values are soaring it is hard not to look at a home as a giant piggy bank from which you can tap at a moments notice. When times are tough however, you may regret taking your equity for granted by pulling it out of the home.
If you click on the link below you will find a guide to help you determine whether borrowing against the equity in your home via a home equity line of credit (HELOC), home equity loan or a cash out refinance makes the most sense. To continue reading see home equity loans.
About the Author: The above Real Estate information on home equity loans was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. Bill has helped people move in and out of Metrowest Massachusetts for the last 25+ Years.
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