These are loans secured by real estate property and they are different from regular bank loans in that they are issues based on equity. Equity is just the price o a home minus the debts in it. It is an important value to lenders as much as banks value the credit score. Even if credit score does not bother home equity lenders, they are very sensitive to equity as it defines risk for them. We are a team of expert lenders with years of unrivaled experience in providing home equity loans in Georgina.
Terms and Payment Conditions for Home Equity Loans in Georgina
The home equity loan is given at an interest rate of 7-15% that should be finished in one year. As an open mortgage for the first and second time, it is possible to end the loan early but this comes with a penalty. Borrowers who want to pay early must part with three months interest fees as a fine. This shouldn’t deter you as out of paying early, your credit score improves by a wider margin. Home equity loans are very popular among residents because of more flexibility compared to the regular bank loan. A loan by our lenders can be customized to meet your needs.
Custom Home Equity Loans in Georgina Include:
- Blanket Mortgage: More than one property is used as security for the same loan as borrowers try securing more funding.
- Construction Draw Mortgage: This is taken to pay construction workers and ensure the completion of your building project.
- Interest Only Mortgage: The principal doesn’t change as only interest is paid.
Our lenders are ready to listen to your wishes and include more options in the agreement. This is all done to grant you a fully customized home equity loan in Georgina.
How Much Can You Borrow
You need to present property with enough equity in order to qualify for this loan. The lenders must calculate a value known as LTV to make the final lending decision. It is obtained by dividing the debts on a property by its selling price. Our home equity lenders will give up to 75% LTV on the property. Being in the real estate business, home equity lenders cannot take on risk above the maximum 75% as it only reduces their chances of recouping in the event of default. While loan to value is important to a home equity lender, some still rely on credit score and job history to decide who qualifies.
Our home equity experts approve reasonable loan amounts to be used in securing one’s financial future. It is a rare opportunity of utilizing personal assets to reach immediate financial goals or save you from loss of a property.
Common Uses of a Home Equity Loan
We do not restrict how the loan money is used because each customer has unique priorities. As long as you will repay the money, home equity lenders are always ready to help you choose a suitable loan that will meet your needs. Our loan officers have seen many uses of the money including business investing, home renovation and even education.
- Renovation: The money is often used to renovate a home or make repairs.
- Education: This loan may be a good source of school fees for your children.
- Business Investing: You can put the money in a startup or expand to new premises accessible by many customers.
The money can be used to help loved ones, stop foreclosure or pay for your dream vacation.
Differences between Home Equity Loans and Home Equity Lines of Credit
A home equity loan is given to be repaid according to fixed terms of payment and interest fees. It is an installment loan unlike the home equity line of credit, which has flexible payments. An HELOC or home equity line of credit is accessible at any time when it is needed but a home equity loan is a single lump sum payment. People probably confuse home equity loans and home equity lines of credit because both are approved based on LTV. A home equity loan if utilized properly can help you get out of a financial rut by simply utilizing assets that you already own.