Article provided by: Fairway Mortgage - The Potempa Team
At The Potempa Team, we offer home equity loan in Phoenix. Speak to one of our consultants today to check your eligibility for a home equity loan.
Are equity loans a good idea?
If you own a house, home equity loan can be a great source of capital. If you are in deep debt, then getting a home equity loan can consolidate all your debts into one. Instead of paying interest to 4 or 5 different lenders, you only have to pay one fixed monthly payment to one lender spread over a couple of years.
If you are amidst several loans with high-interest rates, a home equity loan can be a lifesaver. They usually come in much lower interest rates than other types of non-secured mortgages. Furthermore, the interest that you pay on a home equity loan is claimable. However, tax advantages apply only when you use a home equity loan for buying, building, or improving your home. For more information on home equity and other types of mortgage loans, get in touch with us today.
What is a home equity loan, and how does it work?
A home equity loan or a second mortgage allows homeowners to borrow money by using their home as collateral. A home equity loan allows its borrowers to avail a lump sum of cash which they can repay in flat monthly payments over time.
Likewise, the interest you pay will be fixed throughout the loan term, thereby protecting you from any interest hikes. However, like with most loans, borrowers have to pay closing costs and fees on a home equity loan.
Benefits of a home equity loan
One of the biggest advantages with home equity loans is that it allows its borrowers to claim a tax deduction for the amount paid on interests. In addition to that, borrowers of home equity loans pay much less interest than what they would spend on a personal loan.
Homebuyers can borrow a lump sum of cash with home equity loans and can repay the loan amount in the form of fixed monthly payments over time. Furthermore, borrowers with a poor credit score can quickly get approved for a home equity loan, unlike other types of loans. Contact us for home equity loans in Phoenix.
Disadvantages of a home equity loan
Home equity loan borrowers enjoy the liberty of large sums of money at lower interest rates. However, they are at a higher risk of losing their property to foreclosure if they fail to make consistent loan payments.
Furthermore, home equity loan borrowers have to pay their loan off in its entirety as soon as they sell their home. Borrowers also have to pay closing costs with this type of mortgage. For more information on home equity loans, call us today.
We offer home equity loan in Phoenix at affordable interest rates. With an excess of two decades of experience in providing home loans and mortgages, The Potempa Team is part of America's top 1% mortgage originators. Call us to get started on your loan process.Home Equity Loan Phoenix
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