Home Equity Products Every month when you pay
your mortgage, some of that payment goes toward the principle,
increasing the percentage of your ownership. Additionally,
the value of your home appreciates an average of 3%-5% per
year. The combination of appreciation and decrease in principle
compose your home equity.
There are two basic kinds of home equity loans:
- Home Equity loan –
A one time lump sum disbursment with a fixed rate and term - much like a car loan.
- Home Equity Line of Credit
(HELOC) – A certain amount of the equity in the home is made available to the borrower, who can use the money all at once or draw on the loan over time much the same way a credit card is used. The interest rate is based on the Prime Rate and is variable. During the first 10yrs, the minimum payment is interest only.
Determining which kind of equity product is best for you
is an area where your loan officer excels. Call Tammy Wilt
today for expert advice and quick action.
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