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Davie Home Finance, 115 Donna Rd NE, Palm Bay, FL 32907
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Using Your Home Equity
Home Equity Loans
These are a fixed rate second mortgage on your home. It is for a specific dollar
amount, just as with a regular first mortgage.
Home Equity Lines of Credit (HELOC)
These are credit lines that are secured against your home as a second mortgage.
Instead of a set amount, you are approved for a "limit". You can draw from this,
pay it down, draw some more. Rather like a giant credit card, but with much better
rates and benefits.
Some common Questions
Why a home equity line to replace my credit cards?
The stark reality is if we estimate how long it will realistically take to pay our cards
off, it would take decades, and the calculated interest over the years on the debt
will probably be astronomical. Now, with some credit card companies about to
double their minimum monthly payments , many of us may become overwhelmed.
With a home equity line, you can set you up a line of credit to pay your debt off.
You can also extend the line beyond your immediate debts. Use the balance for
home improvement or a major purchase, or simply leave the rest for a rainy day.
You can even 'lock in' the portion used into a fixed rate loan. You only pay for what
you use, not how much your line is
Why use my hard earned home equity instead of simply paying down
debt?
The home equity line is designed to put the home owner's budget back on track.
Most of us do not have the spare income to pay $1000 or even more a month to
put a dent into high credit card balances. By only being able to pay our minimum
payment, we end up paying tens of thousands of dollars in interest over the years ,
all to find our balances roughly the same. Instead, tidy up your debt into one
monthly payment that now fits into your budget. Now that you have regained a
noticeable part of your paycheck again , enjoy your quality of life . No more stress
and hassle remembering which card payment is due- and how much? No more
juggling one card to pay another. Remember, opening a home equity line is not
creating 'new debt'. Credit card and other consumer debt is debt. Home equity is
somewhat like a bank account with money in it , dormant, gaining no interest. Set
up a line to tap into that dormant cash -then repay it anytime you wish to regain the
equity. It's your money, and you can regain or spend it anytime you want.
Why pay interest on an equity line if we are already paying interest on our
debt? What's the difference?
Home equity lines have generally far lower interest rates than do credit cards. By
shaving all that interest off , you can cut your monthly expenses noticeably. With
the extra monthly income, pay down your principal much faster. Also, maxed out
limits or late payments on cards have extra charges that may go on month after
month which begets more and more debt. Many become frustrated at these
unpleasant credit card 'charges' and feel there is no way out.
What other benefits are there?
Unlike credit card and various other debt, the interest on home equity lines (up to
$100,000) is TAX DEDUCTIBLE which will more than likely give you a higher tax
refund. Use that extra return to pay down your line even faster! More importantly
than just the tax break, lower interest, manageable payments, and raised quality of
life, maxed out credit card debt LOWERS credit scores. Paying off your high
ratio debt raises your credit score .
I have no debt . I just need cash to start up a business or remodel our
home:
A home equity loan is designed to lend you not just what you estimate to need, but
the flexibility to take more out if unexpected expenses arise. It is always better to
be safe than sorry The beauty is that it is win -win situation. If you don't need the
extra cash -you only pay interest on what you use.
How long does it take?
Unlike conventional mortgages, home equity lines may be set up to close within
10 days of receiving all the paperwork. They are fast and streamlined so that you
can pay off your debt before your next billing cycle for your credit cards. This also
can save you money.
How do I qualify for a second mortgage or a home equity loan?
There are several factors. Every lender is different . However , most lenders will
qualify you on 3 basic components:
How much money you want to borrow in relation to how much your house is worth.
The higher the loan to value, the higher the risk
What your credit history shows. The higher the score , the less likely you are to
default on the loan, therefore better rates and terms.
How much money you make. The lender needs to see if you can afford the monthly
payment on the money they are lending you.
Home Equity Loans
These are a fixed rate second mortgage on your home. It is for a specific dollar
amount, just as with a regular first mortgage.
Home Equity Lines of Credit (HELOC)
These are credit lines that are secured against your home as a second mortgage.
Instead of a set amount, you are approved for a "limit". You can draw from this,
pay it down, draw some more. Rather like a giant credit card, but with much better
rates and benefits.
Some common Questions
Why a home equity line to replace my credit cards?
The stark reality is if we estimate how long it will realistically take to pay our cards
off, it would take decades, and the calculated interest over the years on the debt
will probably be astronomical. Now, with some credit card companies about to
double their minimum monthly payments , many of us may become overwhelmed.
With a home equity line, you can set you up a line of credit to pay your debt off.
You can also extend the line beyond your immediate debts. Use the balance for
home improvement or a major purchase, or simply leave the rest for a rainy day.
You can even 'lock in' the portion used into a fixed rate loan. You only pay for what
you use, not how much your line is
Why use my hard earned home equity instead of simply paying down
debt?
The home equity line is designed to put the home owner's budget back on track.
Most of us do not have the spare income to pay $1000 or even more a month to
put a dent into high credit card balances. By only being able to pay our minimum
payment, we end up paying tens of thousands of dollars in interest over the years ,
all to find our balances roughly the same. Instead, tidy up your debt into one
monthly payment that now fits into your budget. Now that you have regained a
noticeable part of your paycheck again , enjoy your quality of life . No more stress
and hassle remembering which card payment is due- and how much? No more
juggling one card to pay another. Remember, opening a home equity line is not
creating 'new debt'. Credit card and other consumer debt is debt. Home equity is
somewhat like a bank account with money in it , dormant, gaining no interest. Set
up a line to tap into that dormant cash -then repay it anytime you wish to regain the
equity. It's your money, and you can regain or spend it anytime you want.
Why pay interest on an equity line if we are already paying interest on our
debt? What's the difference?
Home equity lines have generally far lower interest rates than do credit cards. By
shaving all that interest off , you can cut your monthly expenses noticeably. With
the extra monthly income, pay down your principal much faster. Also, maxed out
limits or late payments on cards have extra charges that may go on month after
month which begets more and more debt. Many become frustrated at these
unpleasant credit card 'charges' and feel there is no way out.
What other benefits are there?
Unlike credit card and various other debt, the interest on home equity lines (up to
$100,000) is TAX DEDUCTIBLE which will more than likely give you a higher tax
refund. Use that extra return to pay down your line even faster! More importantly
than just the tax break, lower interest, manageable payments, and raised quality of
life, maxed out credit card debt LOWERS credit scores. Paying off your high
ratio debt raises your credit score .
I have no debt . I just need cash to start up a business or remodel our
home:
A home equity loan is designed to lend you not just what you estimate to need, but
the flexibility to take more out if unexpected expenses arise. It is always better to
be safe than sorry The beauty is that it is win -win situation. If you don't need the
extra cash -you only pay interest on what you use.
How long does it take?
Unlike conventional mortgages, home equity lines may be set up to close within
10 days of receiving all the paperwork. They are fast and streamlined so that you
can pay off your debt before your next billing cycle for your credit cards. This also
can save you money.
How do I qualify for a second mortgage or a home equity loan?
There are several factors. Every lender is different . However , most lenders will
qualify you on 3 basic components:
How much money you want to borrow in relation to how much your house is worth.
The higher the loan to value, the higher the risk
What your credit history shows. The higher the score , the less likely you are to
default on the loan, therefore better rates and terms.
How much money you make. The lender needs to see if you can afford the monthly
payment on the money they are lending you.
| Call Today!! (321) 373-4659 (866) 319-2998 toll free |