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Home equity lines are offered by Virginia Mortgage Bankers, LLC one of the top mortgage brokers in Virginia. Home equity lines are becoming increasingly popular these days, as interest rates are the lowest they have been in decades. In fact, it is entirely possible for consumers with good credit to get rates for home equity lines as low as four percent! That is great news for anyone who owns a home but needs to make a large purchase, consolidate debt, pay for college tuition in the near future or make home improvements. Home equity lines vary in repayment terms, typically 10, 15, or 30 year fixed terms. Most home equity lines come with very low rates and may have interest only repayment options for the first ten years. Replacing all high interest debt makes sense with home equity lines.
Home Equity Line Benefits
We have seen a growing real estate market, which means that the value of homes continues to rise every year. For homeowners, this is fantastic news because it gives them more leverage in terms of mortgage refinancing and / or home equity lines or lines of credit. Real estate tends to appreciate over time, which makes it a superb investment that will grow as the years pass. The money paid out on interest for home equity lines is tax deductible, which puts more money in your pocket at the end of the year. That is something to look forward to, which should put a smile on your face come tax time.
Home equity lines vs. traditional second mortgage loans
If you are thinking about home equity lines of credit, you might also want to consider a traditional second mortgage loan. A second mortgage provides you with a fixed amount of money repayable over a fixed period. In most cases the payment schedule calls for equal payments that will pay off the entire loan within the loan period. You might consider a second mortgage instead of home equity lines if, for example, you need a set amount for a specific purpose, such as an addition to your home.
In deciding which type of loan best suits your needs, consider the costs under the two alternatives. Look at both the APR and other charges. Do not, however, simply compare the APRs, because the APRs on the two types of loans are figured differently:
The APR for a traditional second mortgage loan takes into account the interest rate charged plus points and other finance charges. The APR for home equity lines of credit is based on the periodic interest rate alone. It does not include points or other charges.
Virginia Mortgage Bankers, LLC offers excellent competitive rates and super fast closings for equity lines throughout Virginia. If you have questions just ask! You may contact us at Virginia Mortgage Bankers, LLC for home equity line questions by email, phone 804.282.8808 or by appointment in our office or you can start now by filling out our secure online home equity line application! |