If you’re among the millions of Americans who own their home outright or through a mortgage, you’ve already made a smart investment that will benefit you for years to come. But if you’ve always assumed that your home would only produce returns upon selling, think again. Every mortgage payment you make increases your home equity and that equity can benefit you today.
Homeowners with excellent credit should consider a Home Equity Line of Credit, (or HELOC). Since lenders consider HELOCs as “low-risk”, rates tend to be considerably lower than the average credit card. Closing costs are generally also low and turnaround can be as a little as a few days to setup a flexible line of credit that can be dipped-into whenever you need it.
Money-savvy consumers commonly use HELOC funds for:
For those who qualify (homeowners with excellent credit) a HELOC is a no-brainer. Compare HELOC rates here »
Another option for homeowners is a cash-out refinance, or “refinance with cash-out”. In a nutshell, this is a refinance for the amount of your current mortgage plus some additional cash that goes right into your bank account. Commonly, this extra cash is used for projects that add value to your home, like additions, upgrades or repairs. Why do so many homeowners use cash-out funds for improvements? Because financing a project with cash-out is usually a much lower interest rate than a credit card, and that interest is tax-deductible! Of course, like a HELOC, the cash is yours and can be used for any purpose you choose. Compare cash out refinance rates here »
For those of us with excellent credit but who live in city apartments or simply enjoy the freedom of renting, there is another way to free-up cash for necessary expenses. A personal loan secures as much as $35,000 to spend on whatever you like and funds are often available in as little as 24 hours. Compare personal loan rates here »
Established business owner in need of extra funding? Find out if you qualify for a business loan. Compare business loan rates here »
Homeowner looking to save money long-term? Shortening the length of your mortgage could shave tens of thousands of dollars of interest off the total you’ll pay for your home. Compare refinance rates here »