Have some bills piling up? Need some money to renovate your home? Are you a homeowner? Bestmortgagerater.ca can help you get a home equity loan! A home equity loan is a loan where a homeowner is able to use the equity from their home as a collateral. The amount that you can take out is based on the appraised value of your home.
The amount of ownership built in a home that signifies the current market value of the house subtracted by the remaining mortgage payments. The value of the home is constructed over time as the owner pays off the mortgage as the market value of the property only increases! To calculate the amount of equity one has in their home all you do is take the value of your home minus the total of your mortgage and that gives you your home equity! From there you are able to refinance your home to pay off any bills, do some renovations on your home or even go on that vacation you’ve always wanted to go on.
There are two types of home equity loans, a fixed-term loan and a line of credit often referred to as a HELOC. A home equity loan is a one-time lump sum of money that slowly gets paid back monthly with a fixed interest rate, while a HELOC provides you with access to funds as you need them and you would pay it back as you would a credit card. When getting approved for a home equity loan, financial institutions will approve your request up to a specific amount based on the remaining equity of your home as your equity in your home will act as collateral. Although interest rates on a home equity loan are higher than on a first mortgage, they are typically much lower than on a credit card and at Bestmortgagerater.ca we are committed to finding you the best rate.
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