Minnesota Mortgage Alliance
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Home Equity Loans and Lines of Credit
Your home equity is the
difference between the amount you owe on your mortgage and the market
value of your home. You build equity as this difference grows from you
repaying the principal and from the value of your home increasing.
You can borrow against that equity when you need cash, using either a
home equity loan or a line of credit. These usually have much lower
interest rates than other types of financing, such as credit cards and
personal loans. In addition, the interest you pay on a home equity loan
or line of credit is usually tax-deductible.
Consider your needs and use this helpful guide to compare home equity loans and lines of credit to find the options that is best for you.
Home Equity Loan
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A single lump-sum payment for a full loan amount
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To finance a single expense that has a definite cost
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Repay the full loan amount over a specific time period, with simple payment terms that will never increase
Home Equity Line of Credit
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A revolving source of cash that you can use as needed
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To finance ongoing expenses, much like you would use a credit card
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Make payments on the outstanding balance at a variable interest rate
Consolidating Debt
If you’re
overextended with credit and living month-to-month without the ability
to save for unforeseen events, debt consolidation might make your
payments more manageable and your life more stress free.
By using a home equity loan to pay off multiple credit accounts, you can
enjoy three valuable benefits:
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Simplicity. Rather than stressing out over receiving several credit card payments a month, with different due dates and different amounts, you will receive a single statement each month with a fixed amount so you can quickly and easily make payments.
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Lower payments. Home loans typically have lower rates than more credit cards or other loans because they are secured by your home. This allows you to have lower monthly payments and gives you a chance to put money into savings.
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Improving credit. Simplifying your debt situation and reducing your monthly payments can make it easier to keep up with bills. A solid payment record on your home equity account is a great way to boost your credit score.
Minnesota Mortgage Alliance also provides you with the information you need to make the decisions that are best for you. Review this informative guide and then fill out your quick and easy application with confidence.
Mortgage, Refinance and Home Equity Loan Information is available throughout MN: Albert Lea, Albertville, Alexandria, Andover, Anoka, Apple Valley, Arden Hills, Austin, Baxter, Belle Plaine, Bemidji, Big Lake, Blaine, Bloomington, Brainerd, Brooklyn Center, Brooklyn Park, Buffalo, Burnsville, Cambridge, Champlin, Chanhassen, Chaska, Circle Pines, Cloquet, Columbia Heights, Coon Rapids, Corcoran, Cottage Grove, Crookston, Crystal, Dayton, Detroit Lakes, Duluth, Eagan, East Bethel, East Grand Forks, Eden Prairie, Edina, Elk River, Fairmont, Falcon Heights, Faribault, Farmington, Fergus Falls, Forest Lake, Fridley, Glencoe, Golden Valley, Grand Rapids, Ham Lake, Hastings, Hermantown, Hibbing, Hopkins, Hugo, Hutchinson, International Falls, Inver Grove Heights, Isanti, Jordan, Kasson, La Crescent, Lake City, Lake Elmo, Lakeville, Lino Lakes, Litchfield, Little Canada, Little Falls, Minneapolis Condo Lofts Moving, Mahtomedi, Mankato, Maple Grove, Maplewood, Marshall, Mendota Heights, Minneapolis, Minnetonka, Minnetrista, Montevideo, Monticello, Moorhead, Morris, Mound, Mounds View, New Brighton, New Hope, New Prague, New Ulm, North Branch, North Mankato, North St Paul, Northfield, Oak Grove, Oakdale, Orono, Otsego, Owatonna, Plymouth, Prior Lake, Ramsey, Red Wing, Redwood Falls, Richfield, Robbinsdale, Rochester, Rogers, Rosemount, Roseville, Sartell, Sauk Rapids, Savage, Shakopee, Shoreview, Shorewood, South St Paul, Spring Lake Park, St Anthony Village, St Cloud, St Francis, St Joseph, St Louis Park, St Michael, St Paul, St Paul Park, St Peter, Stewartville, Stillwater, Thief River Falls, Vadnais Heights, Victoria, Virginia, Waconia, Waite Park, Waseca, West St Paul, White Bear Lake, Willmar, Winona, Woodbury, Worthington