subject: Home Equity to Upscale Your Home [print this page] Home Equity to Upscale Your Home Home Equity to Upscale Your Home
If you have been thinking about renovating, remodeling, or taking other steps to upscale your home, you may be wondering how you will afford your planned home improvements. In many cases, the solution you need is much closer than you think - you can use your home equity to finance your improvements. First, your home equity is often your most accessible line of credit. The process of obtaining an equity loan is often faster and much smoother than obtaining another type of loan, because you already have a history with your mortgage lender. If you have made all of your mortgage payments on time, and have maintained good credit, your mortgage lender will typically be quite happy to extend a home equity loan
Second, you can often obtain an equity loan at a much lower interest rate than with other types of loans. For example, if you decided to finance your home improvements with a credit card, you could end up paying as much as 25 percent interest on the money you borrowed - paying this credit card debt off will be quite costly. Borrowing through a home equity loan instead of a credit card or line of credit can potentially save you thousands of dollars in interest charges
A third reason for using your equity to upscale in your home is because it allows you to reinvest the amount you have already paid on your mortgage. Finally, making payments on an equity loan is often much easier than paying on another type of loan. If you have set up your mortgage payments on automatic withdrawal, your lender may allow you to have your equity loan payments automatically withdrawn as well. This means that you will have one less bill to worry about paying on time each month.
You simply need to contact your current lender, discuss how much you plan to borrow, and find out how much your lender will charge in interest for your home equity loan. The qualification and approval process can be completed quite quickly, so you can obtain the money you need to complete your repairs or renovations within a week or two. the sooner you obtain your home equity loan, the sooner you can begin enjoying the updates to your home.
