If you own a home in Eastpointe, Michigan, your home’s value may have risen since you bought it. If this is the case, you may be able to utilize a home equity loan. A home equity loan allows you to use your home’s equity to secure a new low interest loan. When compared to other loans on the market, a home equity loan often has the best terms by a significant margin.
With a Parda Home Equity Loan, current homeowners can borrow against their home’s equity. One way to think of home equity is the amount the homeowner would make if they were to sell, which means it is the difference between a home’s market value and the amount that is still owed to a mortgage company. It’s a combination of appraised value and what you’ve already paid down.
Most homes that are taken care of increase in value over time, so it’s quite common for homeowners to sell their home for more than they bought it. Home equity loans take advantage of this unused value, but without the homeowner having to sell. Instead, the equity is used as collateral to secure a new loan with a low rate.
Home equity loans come with several advantages. For starters, their interest rates are often much lower than personal loans or other loan products. This is because the loan is secured with such a valuable asset (the home), and the fact that the borrower already has a proven track with debt.
Secondly, the money from an Eastpointe home equity loan can be used for just about anything and is not limited to a specific use. While it can be used to renovate or improve a home, it can also be used for things like consolidating high interest debt, paying for college tuition, or buying a new car. How you use the money is up to you.