Accessing the Equity in Your Home

Using equity from your home to consolidate debt, finance an investment or home improvements is an option that many people exercise at some point in their lifetime. Another common reason for refinancing is to switch out a higher rate mortgage for a lower rate option.

If you’re going to use your equity to make an investment in another real property, it’s imperative that you organize your refinance ahead of making any offers on a second (or third, etc) property. Not only is this an important step for logistics and ensuring a smooth closing, but also from the viewpoint of the lender. To avoid unnecessary stress, give me a call the first time this thought enters your mind!

Here’s the deal with refinancing:

If you have multiple credit cards, lines of credit or a style-cramping car payment, using equity from your home to pay these loans downs will increase your quality of life. One simple low-interest mortgage payment is a lot easier to manage than juggling minimum balances and risking your credit when those payments become difficult to meet.

If you’re planning on increasing the value of your home by doing improvements to it, we can look at different options for construction mortgages and home improvement lines of credit. Creating your dream home is not as hard as you think – as long as you have the right tools, and the right mortgage expert!

Lastly, if your mortgage interest rate is significantly higher than the current market rates (or your friends’ rates!) give me a call. I will evaluate your current mortgage statement and see if it’s worth your time to switch it up for a current rate.