If you’re interested in debt consolidation but not sure
where to start, it’s time to research the benefits of taking out a home equity
loan with your Mississauga home as collateral.
Home Equity Loans
Many people don’t realize the wealth they have built up as
they pay down their mortgages. Equity is the term used to describe the
difference between the amount still owing on your mortgage and the market value
of your home. For some people, this equals to hundreds of thousands of dollars.
If you’re looking for debt relief, you can take advantage of this hidden wealth
to pay off debts faster and with a lower interest rate.
Home equity loans are fixed-rate loans that provide you with
a one-time payment into your accounts. Like other loans, it has a fixed term and
a fixed monthly payment amount. Since you are using your home as collateral,
you get a much lower interest rate than you would on many other types of loans.
Since it is a fixed loan, your interest rate remains the same throughout the
loan’s term. This is an advantage over home equity lines of credit, which have
fluctuating interest rates and can be cancelled
or reduced by the bank at any time. A home equity loan tied to your
Mississauga home has a fixed payment each month, so you can budget without
worrying about rising interest rates.
The Advantages of a Home Equity Loan
For people interested in renovating their homes or making a
large one-time purchase, such as a car or vacation, home equity loans are a
great alternative to credit cards.
Using a home equity loan instead of credit cards means paying a lower interest rate. In fact, with
today’s low interest rates, you can save 20% or more in interest alone.
is easy when you have a Mississauga home equity loan. When
you consolidate your debt with a home equity loan, you will get a lower
interest rate, meaning you have lower monthly payments. You can take advantage
of the lower payments to pay extra cash toward the principal and pay off your
debt faster. If you need a little more cash to cover the bills, you can use
that extra money for expenses to help stop the slide into even more debt.
Consolidating debt also makes managing your cash easier
since you will have only one monthly payment to track. It can take away the confusion
of waiting for multiple bills and payments to be taken out at different times
of the month.
Even those with a strict monthly budget can find their
savings gobbled up by tax bills, expenses due to illness or injury, or large
unexpected repair bills, such as a new roof. A home equity loan can help you
take care of those unexpected bills, so you don’t have the stress of dealing
with collection agencies.
If you’re tired of paying high interest rates on your debt,
consider consolidating your debts in a home equity loan in Mississauga.