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HOME EQUITY LINE OF CREDIT EXPLAINED

Are you thinking of adding an addition to your home? Want to put in new flooring? Are you finally starting your own business? Using the equity in your home is a great way to pay for expenses. Lisa Johnson Mortgage Services can help. As the Top Rated Local® Mortgage Services company in Prince George, we offer home equity loans, mortgages, and home refinances. Contact us today!

WHAT IS A HOME EQUITY LOAN?

A home equity loan (or a second mortgage) is a loan against your home. There are two types of home equity loans:

  1. Home equity line of credit (HELOC). This is a loan that works much like a credit card except your home is the collateral or security. The loan is for a certain amount that you can use at will and when you pay it down, that amount is available to you once again for use. Home equity lines of credit often have draw periods that these funds are available for use, typically 20 years. Then the loan expires and a new application process would begin if so desired. These loans are the most versatile of the two types of home equity loans.
  2. Home equity loan (second mortgage). This loan is your typical loan, meaning once you pay it off, it disappears with no funds available for use again. Your home is the security interest.

WHY A HOME EQUITY LOAN?

The advantages of a home equity loan are many:

  • Lower interest rate. Secured loans have lower interest rates than unsecured loans such as credit cards because if you default, there is physical property to take to recoup some of the financial lender’s losses. Thus, a home equity loan is a great way to access cheap money for use in other means.
  • Debt consolidation. Many people use home equity lines of credit or second mortgages to consolidate debt and save themselves money on interest.
  • No stipulation on use of funds. Home equity lines of credit and home equity loans are money you can use for whatever you want. If you need seed money to start a business, want to finally add a deck to your home, or want to take a dream vacation to Europe, these funds are for your use.

HOW LISA JOHNSON MORTGAGE SERVICES CAN HELP

With over twenty years of experience, Lisa Johnson has been helping people in the Prince George area with all their mortgage service needs. From buying a home to refinancing a home to taking out a second mortgage, Lisa Johnson can help navigate the murky waters of interest rates and financial institutions as well as governing laws to obtain you the best possible terms on home equity lines of credit and home equity loans.

Lisa Johnson understands the frustrations of qualifying for a home loan. Her mission is to make buying a home or obtaining a home equity line of credit seamless for you. She does the hard work while you plan your future. With compassion and commitment, Lisa Johnson will obtain the best home equity loan for you. Contact her today!