Many homeowners have thousands of dollars in available assets just waiting to be utilized for home improvement projects or other needs. In the following question-and-answer session, mortgage experts from TexasLending.com offer insight into home equity loans.
Q: What is a home-equity loan?
TexasLending.com: An equity loan is a mortgage product that utilizes the equity in primary residential property as collateral. These types of loans often come with low interest rates and low to no lender fees. Home equity loans are often referred to as “second mortgages” and may require a reasonable loan-to-value ratio as well as good credit.
Q: Is there a difference between a cash back refinance and a home-equity loan?
TexasLending.com: Yes, a cash back refinance is a program that allows the homeowner to refinance the entirety of their loan. This may be a good option for those with a higher interest rate who do not want to worry about a second monthly bill. A home equity loan, on the other hand, is money borrowed solely against the equity in the home.
Q: Are there restrictions on what a homeowner can use their equity cash for?
TexasLending.com: No, many homeowners choose to use their home equity for home-improvement products, to consolidate debt, to pay for medical or educational expenses, or to finance a dream vacation.
Q: What are the benefits of working with TexasLending.com?
TexasLending.com: Our clients are our number one priority. Our mortgage experts are always willing to answer questions and help clients decide which product is right for their situation. Our customer service and home equity consultants are available during regular business hours and can offer information on how to save up to $400 a month or more by consolidating credit card debt. We offer an E-signature loan application process which can shave weeks off the time it takes to start enjoying the financial benefits of a home equity loan.
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Dallas, TX 75244