Unlike banks, private lenders are ready to bend the rules so that they can provide home equity loans. Rather than look at credit score, they calculate equity in order to decide who is worthy of a loan. Private lenders allow people to access the money tied up in their homes so that they can meet important obligations. Our team of experts has been offering home equity loans in Brant and other cities in Ontario, for many years.
This is really an open mortgage taken for the first or second time on a single piece of real estate. It is offered at an interest rate of 7%-15% for one year but you can finish early if possible. This can allow you to not pay future interest fees but you must pay the next three months interest fees as a penalty. Private lenders offer loans at high interests to cushion against the risks of dealing with low credit clients. This said home equity loans are still popular for their flexibility compared to traditional mortgages. Our home equity lenders in Brant are pleased to help you customize a loan after hearing about your situation.
Custom Loans Sometimes Include:
Our experts appreciate the diverse needs of all clients who need a loan and for that reason, they will work your desires into the loan agreement.
Loan amounts vary according to the equity in the property presented to cover a loan in case of default. Home equity lenders must calculate LTV or loan to value ratio to make a clear decision on who to lend. Our loan officers follow the general rule of thumb to issue loans to the property with 85% LTV. This is because taking on more risk than that diminished the likelihood of compensation should a borrower fail to repay. Loan to value ratio is obtained by dividing mortgages by the price of a home. Once approved, the home equity loan you receive in Brant will certainly help to accomplish some financial goals.
Common Uses of a Home Equity Loan
You are the best person to decide on best uses of the money and this is why home equity lenders avoid setting conditions on how it should be spent. They will ask why you need the loan to keep records but not to make an approval decision. This way, you can use the money for paying bills, stopping emergencies or purchasing vacation packages.
There are many ways this money could be put to use and the lenders do not issue any restrictions. All that is required of you is to pay the loan as agreed to avoid consequences that include losing your valuable property.
Application for both loans is consented to according to equity presented but there are stark differences between them. As an installment loan, the interest rates for a home equity loan are fixed. The HELOC boasts flexible rates and it can be used at any time as long as the borrower stays within the credit limit. All loans must be repaid according to the agreement to avoid damaging your credit score. Our home equity lenders are available to help you choose a suitable product that will meet all you needs.