Private lenders follow different rules from banks, and this allows them to issue home equity loans. While bank loans are approved according to credit scores, home equity lenders prefer using equity as a way of approving loans. We are a team of experienced lenders who have been offering home equity loans in Timmins for many years now.
Interest Rates and Payment Terms for Home Equity Loans in Timmins
These loans are offered at an interest rate of 7%-15% for a general period of one year. Standard home equity loans are actually first or second mortgages on a property that can be ended early if the customer so wishes. Paying early can be convenient, but there is a fine of three months interest fees to go with this decision. The terms may be strict but home equity borrowers still choose home equity loans that can be customized to their desires. Our home equity lenders in Timmins are ready to listen to you and recommend the most suitable product for you.
Examples of Tailored Home Equity Loans:
- The Interest Only Mortgage: The principal is unaffected, as the borrower is only required to repay interest for this special product.
- Construction Draw Mortgage: If you are building, we can pay your contractors to finish the project without a hitch.
- Blanket Mortgage: Multiple products are fronted as security to increase the odds of getting more funds.
Our loan experts understand that everyone has unique needs and are therefore always prepared to include more options in the loan agreement. Feel free to discuss you are your circumstances with the officer so that they may deliver a home equity loan that is perfectly tailored to your needs.
How Much Can I Borrow with this Loan
The amount you receive ultimately depends on how much equity there remains in your property. To assess the risk posed by different borrowers, the creditors have to calculate a metric known as loan to value (LTV) ratio. It is obtained by dividing the total of debts on the property with its current selling price. In so doing, lenders hope to get a value that doesn’t exceed 75% LTV on the property. Our home equity lenders will issue loans on up to 75% LTV to make sure that they can get compensated if you default on the loan.
Our home equity lenders in Timmins offer such reasonable amounts that can be used to pay for living expenses or meet important financial goals.
Common Uses of a Home Equity Loan
Our loan experts in the city believe that the borrower knows how best to use their money and because of that, they do not place restrictions on how it should be used.
- Education: Home equity loans are a useful source of school fees for children or adults pursuing higher education.
- Debt Consolidation: People are often burdened by multiple debts with high monthly payments, which do great harm to their credit. Instead of dealing with so much pressure, experts advise people to take a home equity loan use it to repay expensive loans.
- Home renovations: Instead of building new properties, many people prefer taking a loan to finance repairs and upgrades to the home. The main purpose of renovation is to make the home more habitable and increase its value in the real estate market.
- Business Investing: Many people shelve their dreams due to lack of capital but if you own property, there isn’t a need for that. You can access the equity in your home to get a loan as capital for that dream business.
There are countless possible ways the loan money could be used but you must repay the debt on time and according to the agreement if you want to avoid dire consequences.
Home Equity Loans vs. Home Equity Lines of Credit
For both, it is evident that approval is based on equity (value of the property minus its debts) but that is where the similarities end. Home equity loans have fixed interest rates while those of an HELOC tend to fluctuate with time. The home equity line of credit is accessible whenever a client needs it but you must stay within the credit limit.