Ask yourself these questions before you refinance your home equity loan or line of credit:
1. How Much Will it Cost to Refinance? - Figure the costs of refinancing and the increase or decrease in interest rate over the course of the loan. There are many refinance calculators available online that you can use for free to help you calculate whether or not the cost is worth it.
2. Are You Refinancing For More Favorable Loan Terms? - Sometimes people refinance for better loan terms, like a fixed rate, a shorter term, like from 30 to 15 years to payoff. Sometimes, if refinancing doesn't necessarily save you much money, but you are moving to better loan terms, it can be worth doing the refinance anyway.
3. Are you including the loans closing costs in the loan balance? - If so, realize that not only are you paying those closing costs, but you are also paying the interest on those closing costs over time. Make sure you add those numbers into your calculations when figuring whether or not it's worth refinancing. Add the interest costs and payments for the rest of your current home equity term and compare them to the interest costs of the proposed refinance loan. This will help you determine if there is a worthwhile savings.
4. Will you need your home equity line of credit in the future? - There are definitely benefits to having a home equity line of credit available to you in the future. If you don't have much in savings, and have money available in your home equity line of credit, you may want to consider keeping it. If you refinance it, then if you run on hard times and need to borrow money from your home's equity, you will have to take out a new home equity line of credit. You might not have the option of taking out a new home equity line of credit when you need one.
Refinance or Home Equity Line of Credit (Which Is Better If I Need Cash)
There are two ways to get cash out of the equity of your home.
You can do whats called a cash out refinance which gives you one loan and whatever cash you need.
Or you can keep your existing mortgage and add a second loan which is called a home equity line of credit.
Either one can be beneficial and it really just depends on your situation, your current interest rate, interest rates at the time you refinance, etc.
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Cash Out Refinance Vs. Home Equity Line of Credit (HELOC)
Cash-Out Refinance:
You need to first weigh your current interest rate on your existing mortgage with what the current interest rate is that's being offered. If you're early in the term of your loan and it's possible to refinance into a better interest rate, this could very well be a better option for you right off the bat.
- This is a new mortgage that will replace your existing one.
- Will reset the loan term (i.e. 30 years)
- Lump-sum upon closing
- New mortgage payment will depend largely on how much equity you have and what your new interest rate is vs. what it was.
- Current interest rate near 4.1%
- Fixed Interest Rate
- Cost is approximately $4,000 in closing costs.
HELOC:
- Existing mortgage is unaffected.
- Variable interest rate.
- Current interest rate is near 5%.
- Can draw from it as needed. When paid down, can draw off it again.
- Monthly payment will depend on current balance
- Little to no cost.
HELOC Vs Home Equity Loan: Which is Better?
What is the difference between a HELOC (Home Equity Line of Credit) VS a Home Equity Loan? Are they the same thing? Which is Better? We'll address those questions in this video! Enjoy!
Recommended Video - How To Pay Off Your Mortgage in 5 To 7 Years:
Let's first talk about the Home Equity Loan. A Hom Equity Loan is very similar to your traditional mortgage in ways that:
A.) You get all the money upfront at the loan closing.
B.) It is amortized anywhere between 5 to 30 years,
C.) It is closed-ended loan meaning that you can only pay back the loan and you typically have a fixed monthly payment and
D.) Home Equity Loans are typically borrowed as a 2nd position lien/loan.
I'm personally not a big fan of the Home Equity Loan as it restricts you from being able to access the equity all over again much like the HELOC and unlike the HELOC products, Home Equity Loans are usually a one-off loan product that's often used to spend money on education, home improvement, and personal spendings which can or can't be good.
In comparison, a HELOC (Home Equity Line of Credit) is a revolving line of credit. You can:
A.) Access the funds, pay it back, and re-use the principal portion of the HELOC. This is called being open-ended.
B.) The Draw period of the HELOC is NOT amortized which is useful when using our Debt Free Acceleration strategy to pay off your amortized loans.
C.) HELOCs use a different interest calculation versus the amortized interest calculation which can be used as an advantage when using our Debt Free Acceleration Strategy.
D.) HELOCs CAN be 1st or 2nd position lien on your property which offers some flexibility with the amount of equity you build for later investment purposes.
As you can see, I'm a bigger fan of the HELOC when USED PROPERLY and WISELY... A HELOC can be dangerous and destructive to your financial well-being WITHOUT the proper education on how to use such tool. Remember, no loan product is ever bad. The user of the loan product makes it bad through their lack of financial literacy, awareness, and education.
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Should I Get a Home Equity Loan or a Cash-Out Refinance to Buy a New Property? [#AskBP 078]
On this episode of the #AskBP Podcast, Brandon shares his advice for a listener who isn't sure what the best loan product to pursue for his new property. Discover the major reason Brandon would choose one of those options over the other!
Home Equity Loan vs HELOC (Home Equity Line of Credit) - Which is Better?
Our real estate financing hub:
Home Equity Loans vs. HELOCs: Which One Should You Choose?
0:33 - What is home equity?
1:28 - What is a HELOC (home equity line of credit)?
2:26 - What is a home equity loan?
4:37 - Cash out refinance
There’s often confusion between home equity loans versus HELOCs -- or home equity lines of credit. Both let you tap your home equity for cash but they function quite differently.
Before we go into that, let's first talk about home equity.
Put simply, equity is the share of a home or property you actually own. To calculate how much equity you have, start with your home’s value and then subtract your remaining mortgage balance.
You can use the funds to pay for home renovations, medical bills, tuition costs, or any other expenses you might have coming your way. You can also use home equity products to consolidate and pay off higher-interest debts like credit cards and personal loans.
You can think of HELOCs a bit like a credit card, they act as a line of credit and you can use the money whenever you like. A HELOC can be an alternative to a credit card which could carry a double-digit annual percentage rate.
You can withdraw funds over an extended period of time called a draw period. This can last up to 10 years. During this time, you’ll typically make interest-only payments on only the amount of money you’ve taken out (not your full credit line).
After the draw period is up, you’ll enter the repayment period, in which you’ll start to repay the money you borrowed plus interest. This period usually lasts from 10 to 20 years.
HELOCs typically come with a variable interest rate, meaning the rate will fluctuate over time. You’ll usually get a low promotional rate at the beginning of the loan, and the rate will increase as you get into the repayment period.
A home equity loan is like a traditional mortgage loan in that you’re given a lump sum all at once, rather than a line of credit you can draw from at will.
Home equity loans act as second mortgages, meaning you’ll need to make two mortgage payments each month.
You then pay the balance back month over month across your loan term, which typically ranges from five to 30 years. Because home equity loans can give you access to large amounts of cash at once, they’re often a smart choice if you have a big expense you’re dealing with.
The biggest downside of using home equity products is that you are potentially putting your home at risk. Since home equity products use your property as collateral, you could find yourself in danger of foreclosure if you fall behind on payments.
There are also costs to consider. Home equity products come with closing costs and fees. On HELOCs, you might even see fees each time you make a withdrawal. These can add up over time, especially if you expect to make several transactions over time.
Choosing between home equity loans vs. HELOCs comes down to how much money you need, how predictable your expenses are, and your current financial limitations.
The first thing you’ll want to think about is what you intend to use the money for. Generally speaking, a home equity loan is going to be best if you have a large, predictable, one-time expense to cover, like a new roof, a major car repair, or consolidating other debts.
If your costs are less predictable or you expect them to recur over time (like tuition bills or medical treatments), a HELOC may be a better option, as it allows you to pull funds as needed across an extended period of time.
Next, think about your financial situation. How predictable is your income? Do you need consistent payments that you can easily budget for, or can you afford more fluctuation?
If you need consistency, a home equity loan is your best bet. These come with fixed interest rates and predictable payments for the entire loan term.
If you’re set on tapping your home equity, HELOCs and home equity loans aren’t your only option. You might also consider a cash-out refinance. This allows you to replace your existing mortgage loan balance with a new, larger loan. You then take the difference between the two in cash, which you can use toward home improvements or any other expense, just like HELOCs and home equity loans.
Use your home equity wisely
Tapping into your home equity is not a decision to be made lightly. You probably don't want to use your home equity to finance luxury items.
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Cash Out Refi vs. HELOC | Explained
Today’s video will be all about HELOCs and Cash Out Refis (again). I’ve been getting a lot of questions about HELOC vs. Cash Out Refis since the release of my original videos a few months ago. While I was able to help each individual person asking the question, I felt that if one person had one question, others would probably be wondering about the same.
Thus, I decided to create another comprehensive video covering all the questions I’ve received to date so that it benefits everybody. I look forward to hearing about your thoughts. Happy watching!
Links to videos that compliment this video:
Funding for Real Estate | HELOC vs. Cash-Out Refinance ????
Learn how to invest in real estate without savings and still have enough to expand your portfolio, click here for a FREE training ????
**DISCLAIMER: THIS VIDEO IS FOR INFORMATIONAL AND ILLUSTRATIONAL PURPOSES BASED ON THE INDIVIDUAL EXPERIENCES OF THE PRESENTER. EVERY SITUATION IS DIFFERENT AND YOUR RESULTS MAY DIFFER. YOU SHOULD ANALYZE THE RISKS ACCORDINGLY BEFORE PROCEEDING TO TAKE ACTION**
Should I Refinance a 30 Year Fixed Rate Loan or Do Home Equity Line of Credit?
In this video, we discuss whether you should refinance a 30 year fixed rate loan or do a Home Equity Line of Credit (HELOC). It really depends on your existing interest rate and the current rates.
If you can get locked into 30 years with a low rate, that's the way to go. You want to reduce your risk by having more leverage (debt). The higher loan balance offers protection. It may seem counterintuitive but watch more videos to learn the context.
We also discuss 1031 Tax Deferred Exchanges. If your a rental property investor, look into that.
Lastly, we talk about the GO Zones and the main problems with it.
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Home Equity Lines of Credit : When to Refinance Your Home Equity Line of Credit
Usually when a person refinances an equity line of credit, they combine it with a new first mortgage refinancing. Learn about difference reasons for refinancing a home equity line of credit with help from a financial specialist in this free video on home loans and money management.
Expert: Matthew McKillen
Contact: innovativefg.com
Bio: Matthew McKillen has more than 21 years of industry experience in arranging loans for his clients.
Filmmaker: Christopher Rokosz
Is it best to Re-finance Cashout or get a Home Equity Line of Credit
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Teresa Tims President of TDR Mortgage in Upland CA Breaks down what you should do when considering a Cashout Refinance or a Home Equity Line of Credit (HELOC) in California.
1) Evaluate what your payment and cash out amount would be if you refinanced and got cash out VS. what the payment would be if you got a HELOC loan.
2) Look at the cost of the Refinance also. How much are you paying to access the cash that you are getting, Exclude the Taxes, Insurance, and overall impounds and interest per day. Look at the lender fees and title and escrow ONLY. This is the real cost.
2) Evaluate the Term of the 2nd Mortgage Heloc. Is it adjustable? Is it for a 10, 15, 20, or 30-year term.
3) How long have you had your current loan? Is it worth Starting over with a whole new loan or better with a short term Heloc?
4) Are you the type of person that is ok with the risk of an adjustable rate mortgage or does a fixed rate home loan provide more security for you. Its Widely predicted Home Loan Rates will be on the rise in 2018.
That's it, it's pretty darn easy. Additional Info;
Traditional cash out home loans will only go to 80% Loan to Value. That means you need 20% equity to access any equity in your home.
TDR Mortgage can go up to 89.99 % LTV in certain circumstances where alternative financing options can be used. It's pretty pricey and most people choose not to use this option and wait until they have a little more equity.
I can help you look at all of these options with an open mind and provide an opinion based on a true analysis of what is in your best interest. Call me at 909.920.3500 to get started today.
Teresa Tims, TDR home loan mortgage company is a trusted provider of home loan mortgages and home refinance Compare mortgage rates on a home refinance, VA loans, FHA loans, Jumbo loans, conventional loans, reverse loans, first time home loans, 1st time buyer loans, USDA loans, CalHFA loans and Chdap loans and Calhafa loans. We serve Southern California including Upland, Rancho Cucamonga, Fontana, Rialto, Chino, Chino Hills, Mira Loma, Eastvale, Ontario, La Verne, Claremont, Montclair, Pomona, Riverside, Corona, Glendora, San Dimas, Los Angeles, Orange County, Coachella Valley, the High Desert and San Bernardino.
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Teresa Tims, TDR Mortgage and/or TDR Real Estate Group is an equal opportunity lender and any mention of rate or term is an estimate only and could vary based on many variables such as credit score, equity position, sales price etc. We are an equal housing lender.
Should you do a HELOC or cash-out refi?
Founder + CEO of Mortgage Box Brian Maier shares tips every week to help Realtors grow and individuals to learn more about personal finance. This week, Brian talks about whether a HELOC or cash-out refi is best for you. Subscribe to our channel for the latest videos!
Cash-Out Refinance (The Simple Math Behind A HELOC!)
If you're looking to refinance your home to lower your interest rate, or to invest in real estate, you're probably wondering how a refinance works and the math behind it.
In real estate investing, a powerful strategy is using a cash-out refinance to leverage your built-up equity to use as a down payment for another investment property!
In this video, Jesse Fragale shares the MATH behind a cash-out refinance, and how you can use one for many financial decisions.
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Jay Morrison| Here's The Difference Between Refinance & HELOC (2019)
Just by owning the roof over your head, you'll have power to pull out equity through a Refinance or HELOC. BUT, before you even enter a bank be sure to arm yourself with two things: proper information and a strategy.
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HELOC vs refinance | Mortgage Mondays #115
916-529-7600 In this episode I talk about a home equity line of credit (HELOC) vs a cash out refinance. These 2 products are being used quite a bit as folks have a lot of equity in their homes that they want to access for various reasons. To find out which one works best for you reach out to me or another mortgage professional you like and trust. Any questions please reach out... 916-529-7600
Funding for Real Estate | HELOC vs. Cash Out Refinance
Once again, you have more money than you think. If you don't have cash or money in your credit cards, you can turn your home or rental into a cash cow! In this video, I will tell you about two great strategies to make money instantly, even when you thought you didn't have any anymore.
Using a cash-out refinance (or cash out refi) or a Home Equity Line of Credit (HELOC), you can multiply your real estate investments in no time. I will share with you who you will need in your team to successfully get the funding and close on either one. Don't know where to find out where to get one? Don't worry, you'll see in the video! (hint: Scotsman guide)
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Home Equity Line Of Credit Vs Home Equity Loan
Home Equity Line of Credit vs Home Equity Loan: Which is right for you?
What is the difference between home equity loans vs, home equity lines of credit (HELOC)? Both are options to leverage the equity of your home for cash, but each option works quite differently.
In this video, I'm going to explain what a home equity line of credit and a home equity loan is, and some of the pros and cons of each.
0:00 Introduction
1:38 What is a home equity loan?
2:27 What is a home equity line of credit?
4:07 How does a home equity loan compare to a home equity line of credit?
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They are your one-stop mortgage resource for anyone who is looking to buy, sell, or refinance residential properties in Louisiana, Arkansas, Mississippi, Alabama, and Florida.
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☮️ How to get a great rate
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Home Equity Line Of Credit
Have you ever heard of home equity line of credit? If you're thinking of getting one, this video is for you. I'm going to share with you what it's all about and if it is a good idea to get one.
Watch and Enjoy!
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Kris Krohn is not in the business of providing personal, financial or investment advice and specifically disclaims any liability, loss or risk, which is incurred as a consequence, either directly or indirectly, by the use of any of the information contained in this document. Also, Kris Krohn, this document, and any online tools, if any, do NOT provide ANY legal, accounting, securities, investment, tax or other professional services advice and are not intended to be a substitute for meeting with professional advisors. If legal advice or other expert assistance is required, the services of competent, licensed and certified professionals should be sought. In addition, Kris Krohn does not endorse ANY specific investments, investment strategies, advisors, or financial service firms.
Cash-Out Refinance vs Home Equity Loan
Do you want to convert the equity in your home into cash in your hand? There are a few good options. The tricky part is knowing the difference between the types of loans that are available.
Home Equity in a Nutshell
Home equity loans best suit borrowers who have a substantial amount of equity available to them. You can determine the total amount of equity in your home by subtracting any and all debts secured by your house from the current fair market value of your home. The amount left over is the total equity, or value of ownership, of your house.
Usually, you can obtain between 70-80% (sometimes even 90%) cash value of that equity by providing your home as security for the additional funds you borrow. When you do this, you do add a second mortgage to your home. Your original mortgage remains unchanged, but with a second mortgage, you will have two mortgage payments.
Let me introduce the Cash-Out Refinance Loan Option
The cash-out refinance loan is a loan that refinances your first mortgage into a larger mortgage, and allows you to take the difference in cash.
Assuming you have an adequate amount of equity in your home, a cash-out refinance loan enables you to:
Pay off your existing mortgage.
Negotiate a new term, rate and repayment schedule for your consolidated loan amount.
Obtain a new mortgage in the amount of your existing mortgage, plus the amount you want to borrow.
Receive the borrowed funds in a lump sum.
When you elect to use a cash-out refinance loan to tap your home equity, you enter into a whole new loan agreement. This means the terms, rate and repayment plan for your new mortgage will be different.
Generally, cash-out refinance loans offer up to 30 years for repayment, and you can choose between a fixed or adjustable interest rate. You may even be able to take advantage of potential tax savings depending upon how you are using your loan. Consult your tax advisor for more information.
How a Cash-Out Refinance Loan is Different from a Home Equity Loan
The primary difference between a cash-out refinance loan and other home equity loan options is that a cash-out refinance loan converts one mortgage into a separate larger one. Every other home equity loan option creates a second mortgage on your home.
With a traditional home equity loan, you take on a second mortgage at a fixed rate with up to 30 years for repayment. One thing to consider is the fees associated with each loan. Cash-out refinancing may have fees and closing costs since you are changing your loan.
So, how do you decide?
Give me a call or send me a message and my Team and I will assess your vision and come up with a strategy to make sure you reach your goals.
Home equity loans best suit borrowers who have a substantial amount of equity in their home available to them.
Cash Out Refinance VS HELOC: Which is BETTER for Real Estate Investing?
Cash Out Refinance VS Home Equity Line of Credit (HELOC) which one is better in the context of real estate investing?
In this video, I am going to talk about the differences between cash out refinance and the home equity line of credit (HELOC), what are the pros and cons when it comes to using it for real estate investing, and what are some of the things you should watch out for when using a cash out refinance or HELOC.
A brief summary of what both cash out refinance and a home equity line of credit involves taking the equity out from a real estate property and turning it into reusable cash, essentially borrowing from how much equity you own in a property. BUT cash out refinance and a HELOC are structured differently AND it affects the cost of borrowing!
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A cash out refinance, for example, for real estate investing purposes, benefits those in a high equity position in their property, meaning, upwards 80%-100% in order to have enough cash to use as investment capital. A cash out refinance works the same way as a regular mortgage. During the process of getting a cash out refinance, the bank requires a property appraisal so they can value the home properly. Just like getting a traditional mortgage, the bank looks at FICO scores and credit rating to determine your interest rate. And then typical costs associated with closing on a typical mortgage. Once all the documents are signed and good to go, the bank will cut you a check and send you on your way!
A home equity line of credit is similar to a cash out refinance in the sense that you are borrowing from your property's equity, but instead of refinancing, a HELOC is a line of credit, so its revolving debt as compared to a cash out refinance, where it's installment debt. So it's essentially a line of backed by your property's equity.
So one of the big differences between a cash out refinance and a HELOC is the way the debt is structured. A cash out refinance, being an installment debt, is a one-time use type of loan. So once you get that check from the bank, after being approved for a cash out refinance, you can only use it once. On the flip side with a HELOC, it's a line of credit, so you can continue to use that line of credit since it is revolving debt. So when it comes to using either for real estate investing, the HELOC can be used again and again! So in conclusion, I choose getting a HELOC over a cash out refinance in regards to real estate investing, more flexibility, more opportunity for investing
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Home Equity Line of Credit - Dave Ramsey Rant
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Home Equity Line of Credit vs. Home Equity Term Loan
How do you decide between a home equity line of credit or a home equity term loan? This short video from Dollar Bank explains the purpose and strengths of each.
HELOC or cash out refinance? | Real estate financing
In this video I discuss whether you should get a HELOC (home equity line of credit) or a cash out refinance. There are many different scenarios and so its really advised to talk to a mortgage professional about your specific needs and goals. As a mortgage broker I have this conversation multiple times per week so I have experience with all kinds of scenarios. A local loan officer/loan originator should be able to give you the reasons why they think one is better than the other for you, hopefully this video gave you some general ideas.
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Use Home Equity to Pay Off Debt?
Use Home Equity to Pay Off Debt?
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AMA: Should I refinance my home or use a HELOC to pay off debt?
I was recently asked,
“Hey man, I have some significant credit card debt that I’m trying to liquidate. I do have 160k equity in a property I own. Do I refi or get a HELOC? I am currently renting the property and clearing 900 a month on rents after I pay the mortgage. Thoughts? Thanks.”
Shiny low interest rates may seem tempting, and on paper it looks like a good idea.
But believe me, it is an awful idea to pay off consumer debt with your home.
9 times out of 10, clients who have done this have ended up in far worse postions because they didn't fix the root cause of the debt.
Listen to this video to learn what you can do instead to actually help you and your family become financially free and get rid of the consumer debt that is dragging you down once and for all.
If you find yourself drowning, and need someone to discuss your options with, reach out.
Find me on IG @rondilambeth or give my office a call to speak to one of my friendly credit consultants 800-475-7267
Cash Out REFI - HELOC - Home Equity Loan - why utilize one?
Part 1:
Part 2:
We are covering some derivations of the traditional refinance - ways to extract some equity out of your home in the form of CASHHHHH. Great for home renos, paying off high interest debt, college planning.
My website:
Refinancing Mortgage Explained Australia
In this video CEO of The Loan Room Martin Bennett explains the pros and cons of refinancing your mortgage in Australia.
What most Australian's aren't aware of is that often refinancing takes them back to a 30 year loan term, as opposed to the term of the loan they've already paid off.
This can lead to thousands in additional interest repayments.
So awareness is the key to making the right decision when you refinance your mortgage.
For more videos like 'Refinancing Mortgage Explained Australia' make sure you subscribe to our channel today.
Get in touch with Martin Bennett directly by emailing martin@theloanroom.com.au or visit The Loan Room website to find out more.
How a Home Equity Loan Works!
You're building up equity in your home as you pay down your mortgage each month and the real estate market appreciates. At some point, you may want to tap into your home equity. Let's review how a home equity loan works and what is a home equity loan exactly to see if it's right for you!
#HowAHomeEquityLoanWorks
In practice, I share with my clients to simply #JTAB = Just Take a Breath it'll be alright as we move forward together. Remember, FEAR = False Evidence Appearing Real. What's the best way to replace FEAR? With knowledge and you're doing that right now. Kudos!
What you'll learn:
1. Home equity loan explained!
2. Second mortgage vs home equity loan!
3. Should I get a home equity loan?
NOTE: To adjust video speed for your listening/ viewing pleasure, please use the settings icon on the bottom right of your screen. It looks like a gear. =)
Timeline:
1. 1:30 - How a home equity loan works!
2. 2:01 - Home equity loan vs HELOC!
3. 3:47 - How do you pay back a home equity loan?
4. 5:11 - Pros and cons of a home equity loan!
5. 7:51 - How to get a home equity loan!
6. 8:38 - How to get a home equity loan with bad credit!
7. 10:11 - It comes down to your Loan-to-Value (LTV) ratio!
8. 11:21 - Beware of red flags!
9. 12:56 - Home equity loan alternatives!
Thank you for watching! =)
Enjoy an amazing day!
Andrew Finney
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AndrewFinneyTeam
Disclaimers/ Credits:
At the time of production, Andrew Finney, S.0173260, is a real estate salesperson with King Realty Group in Las Vegas, NV.
Andrew's videos are his own and do not necessarily represent the views and/ or opinions of KRG.
The purpose of Andrew's videos are to educate you and help you make sense of the real estate process. If you have questions about home loans, real estate, taxes, financial advice, real estate law, insurance, professional trades, or any other services where you live, you are advised to reach out to the appropriate professional for further counsel about your own unique situation.
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Refinancing your home vs. Home Equity Line of Credit
Would you like to determine if its best for you to refinance your home or use a heloc...continue to watch this video to know the difference in both. Choose which one is best for you. Pull the equity out in your home is a great tool you can use to invest in other things and make that equity in your home work for you!
HELOC vs Home Equity Loan | How to Use Your Home Equity to Buy More Properties!
Hey guys welcome back!
This video is an introduction into home equity lines of credit (HELOCs) and home equity loans. While they sound similar, these two loan options have some pretty big differences which I'll explain here!
I'll also talk through the basics of each one, and which one I recommend for helping to grow your real estate portfolio (such as financing a rental property) at a low rate.
The best thing about using HELOCs and Home Equity Loans is that you are using an asset you already have, the equity in your house!
- - - - - - - - - - - - - - - - - - - - - - - - - -
EVERYTHING YOU NEED TO KNOW ABOUT BUYING RENTALS AS A BEGINNER:
LEARN ABOUT REAL ESTATE AS A BEGINNER:
If you don't already own a home or property that you can leverage equity in but still want to begin building a real estate portfolio, I recommend my FHA intro video, which explains how you can leverage federal housing programs to buy your first multi-unit rental property:
Should You Use Home Equity or Savings to Pay for a Remodeling Project?
When you’re planning a remodeling project or home renovation, it’s a good idea to start by determining how you’ll pay for it. Usually that comes down to taking out a loan or using your savings.
Some people may have enough cash saved to consider paying for their remodeling project or home renovation out of pocket. But just because you have enough savings to pay for your home remodeling project doesn’t necessarily mean you should rule out either a home equity loan or a home equity line of credit (HELOC). Tapping into home equity can be a smart move, under certain circumstances. Your own individual financial situation will determine what payment plan you should choose. So check out this episode of Big Money Real Estate for my tips on when to tap into home equity and whether to choose a home equity loan or HELOC to pay for a home remodeling project.
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Which Is Better: A Home Equity Loan or Line of Credit?
So you need some money. Which is better a home equity loan or a home equity line of credit?
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