A home equity loan is a financial solution that has helped many home owners and families in Alberta pay for major expenses. Whether you need to pay for your child’s university tuition, want to pay off high interest credit cards or have a major home renovation that you’d like to get started on, a home equity loan may just be the solution.
What is a Home Equity Loan?
Home equity loans work by allowing you to use the capital or equity in your home that you have built up over time. Usually home owners build a certain amount of equity over time as they make their regular mortgage payments and the value of their home rises. Rather than taking out a traditional loan at the bank to pay for certain expenses or debt, using the equity in your home is a cheaper option. Essentially, you are using your home as collateral or credit for leverage to secure a low interest loan to use however you choose.
Another option is a home equity line of credit. One of the major benefits to using the equity in your home to use as major sources of funding for your big projects or expenses is the fact that you can pay back the line of credit when you see fit. Rather than adhering to a strict repayment schedule, as is the case with most traditional loans, you can decide how much you borrow, and how and when you decide to pay it back. You can borrow some or all of the line of credit, as your needs change. A line of credit provides a great deal of freedom in the loan process.
Is a Home Equity Loan Right For You?
If you have built up a substantial amount of equity in your home, and have major expenditures coming your way in the near future, than a home equity loan may be the perfect solution. If you need a large amount of capital and like the idea of having a flexible repayment schedule, you may consider a secured line of credit. You can also get a second mortgage as a home equity loan Alberta.
Everyone is different, and situations vary from one family to the next. In order to learn more about home equity loans, it’s best to speak with a knowledgeable mortgage broker, like Jim Black, AMP. Jim deals with a variety of mortgage situations, including home equity loans and debt consolidation. Call Jim and his award winning team today at (877) 394-9422 and find out how a home equity loan can be the perfect solution for you!