If high interest rates have you looking for debt relief,
it’s time to consider a home equity loan for your Markham home.
What Is a Home Equity Loan?
Equity is the difference between what you owe on your
mortgage and the market value of your home. It’s the amount you’ve paid off
plus the appreciation of your house. If you’ve been in your house for years,
you may have hundreds of thousands of dollars’ worth in home equity.
A home equity loan is a fixed-rate loan that provides a lump
sum of cash for your personal use. It must be paid back at a fixed monthly rate
for a set term. The interest rate remains the same throughout your loan, unlike
home equity lines of credit, where the interest rate is tied to the prime rate
and can fluctuate. Also, unlike a line of credit, the cash is totally yours
once the papers are signed. The bank can’t lower the amount of the loan or cancel
Benefits of a Home
Many people find a home equity loan is a great way to find
the cash for a one-time expense or to consolidate other debts.
Instead of moving, a home equity line of credit tied to your
Markham home lets you renovate the home you have. There’s no reason why you
can’t have the updated kitchen or granite bathroom of your dreams. You can also
splurge for a new car or dream vacation.
When you use a home equity loan instead of your credit cards or store credit cards, you benefit from a much
lower interest rate. In fact, with the current low interest rates, you can save
over 20% in interest alone.
is another benefit of home equity loans. With a loan, you can
combine different debts into one easy monthly payment. It makes your expenses
easier to track. With a low interest rate, you can put more toward the principal
and pay down debts faster. Without changing your lifestyle or spending habits,
you’ve found a way to pay off more each month or the extra cash you need to
prevent a slide further into debt.
If you find yourself with a huge bill for being in arrears
for your taxes, facing extra expenses due to illness or injury, or just falling
behind on bills, consolidating that debt can save you money on interest and the
hassle of dealing with bill collectors. It can also save you the sleepless
nights that come with staring at the ceiling and trying to figure out how to
pay off your credit cards and other bills.
This is a route for people who may have damaged credit
ratings but have built equity in their homes. By drawing from that equity, you
can make your monthly payments and help improve your credit rating.
Whether it’s for debt relief or the home renovation of your
dreams, a home equity loan for your Markham home can help you find the cash you