Home equity loans are secured by capital and are different from traditional loans because consent is determined by how much equity is left. Equity is basically the value of a home without the total debts in it. We are a competent team of lenders with years of experience issuing home equity loans in Stouffville and other cities in Ontario.
Payment Options and the Interest Rates of Home Equity Loans in Stouffville
For this loan, you will need to pay monthly interest of 7%-15% for a whole year. Payments can take less time if you are ready to pay three months interest as a fine. Generally, home equity loans are more flexible than other products. This is much different from traditional mortgages whose pre-determined terms are non-negotiable. Our private lenders in the city are willing to discuss your situation and help in designing a custom loan.
Common Customized Options Include:
- Blanket Mortgage: More than one property is put up as security for a loan as borrowers try to acquire more money.
- Interest Only Mortgage: Principal amount remains the same, as you only need to repay interest.
- Construction Draw Mortgage: We can pay your construction site workers as they complete your project.
Our loan equity lenders are ready to include more options in your agreement to make sure that the end product is perfectly tailored to you.
How Much Money Can You Get
Different people qualify for varying loan amounts depending on the equity in your property. For a clear assessment of risk, lenders must calculate LTV or loan to value ratio. This is done by dividing the total of debts on a home by its current selling price. The creditors hope to get a result not more than 85% in order to provide loans. The home equity loans we provide in Stouffville can be used to meet financial obligations of any magnitude.
How Are Home Equity Loans Used
It doesn’t matter to the lender how you use the loan money as long as you can repay according to the contract. We have met many people who use this money to pay debts, run a business, pay school fees, or renovate the home. Some people use their loans to pay for expensive vacations while others simply need it to purchase expensive vehicles.
- Business Investing: The loan money can be used as capital for a startup venture. Some entrepreneurs use their loan to buy more inventories, pay suppliers, or finance a move to new premises.
- Education: With a home equity loan, your kids remain in school even if your check is late to arrive.
- Debt Consolidation: Having too many loans with expensive monthly payments is a major problem for residents. They can be expensive and are easy to forget so you are better off with a single loan that charges average rates that you can afford to pay on a monthly basis.
- Renovation: You can make repairs or home improvements using this money so that you can sell it at a higher price than similar properties in the city. It could be an extra room, a new coat of paint, or simply repairing the roof that eventually adds value to your property.
Our loans that we offer in Stouffville can help you meet any of your needs including emergencies like stopping foreclosure, paying emergency bills, or helping friends. Some people have managed to stop a power of sale by utilizing assets that they already own. The banks and credit unions might reject your request according to your explanation but not private lenders who understand that the borrower knows best.
Disparities With Home Equity Loans and Home Equity Lines of Credit (HELOC)
Payments for a home equity loan are made in fixed installments while an HELOC boasts rates that are more flexible. Bearing in mind the credit limit, a home equity line of credit can be withdrawn at about anytime money is needed. The only likeness between these loans is that they are approved based on loan to value ratio.