Understanding This Loan Product

You have put a significant amount of your financial energy into building up the equity in your home. Why is it, then, that you are not able to access this equity when you need it?

Fortunately, mortgage providers understand this struggle and have created a product that allows you to use the value you have put so much into building. A home equity loan is a type of loan that uses the equity you have built in your home as its collateral.

If you know you need a certain large sum of money for college tuition, home repairs, medical bills, or another significant purchase a home equity loan can provide you with the capital you need. This loan product allows you to take out a definite amount of money against the equity in your home. (Of course, doing so reduces your equity in the house). You can get a single lump-sum payment and pay it back over time at a specific interest rate. This fixed rate allows you to use a home equity loan as part of your long-term financial planning for your family (e.g. using it to renovate your home to boost its value).

A further benefit of this type of loan is that in most cases, the interest you pay is deductible on your income taxes. Because you know your payments will never increase and you can enjoy tax benefits, you can take out this loan with a clear picture of how it will affect your family.

Are you unsure if a home equity loan could help you meet your short- and long-term financial goals? You deserve to connect with a team of experts for the guidance they can provide. The Ranch & Coast Mortgage Group Inc. in Solana Beach is here for all of your California mortgage needs. Contact us today!