How to tap into home equity loans and HELOCs | Karen Daugerdas Coldwell Banker REALTOR®, PSA®, SRES®, SFR®, ABR® posted on the topic | LinkedIn (2024)

A redraw facility is synonymous with flexibility, but remember it's only going to be useful to you if you actually have a need for it. How it works:A home loan redraw facility allows people with a variable rate mortgage to access extra funds they have already paid off their home loan.Basically, you'd be making additional repayments and then 'redrawing' those funds as needed.The perk is that any additional repayments you make reduce the amount of interest you pay.However, there are of course fees and charges associated with this facility, so you want to make sure you're getting the most out of it.We can help you understand which features would make sense for your situation. Ask us how.👉www.prowestfs.com.au#australiansmallbusiness #homeloans #australianhomes #finance #applecross #canninghwy #perth #bicton #ardross#mortgagefinance #homeloanfacility #redrawfacility #flexibleloans #additionalrepayments #reducedinterest #facilitycharges #maximiserewards #understandfeatures #financeoptions

Are you making the most of your home equity? 🏡💰Almost half of homeowners are equity rich, but many are unaware of how to effectively leverage it. Here's a quick breakdown:### Understanding Home Equity Loans:- **What It Is**: A second mortgage allowing you to convert home equity into cash without refinancing your primary mortgage.- **Common Misconceptions**: 79% of homeowners can’t correctly define a home equity loan.### Financing Options:- **Home Equity Loan**: Lump sum payment with a repayment period.- **HELOC**: A revolving line of credit, similar to a credit card.- **Personal Loans**: Higher rates but lower than credit cards and not tied to your home.### Current Trends:- **Equity Awareness**: Around 21% of homeowners don’t even know how much equity they have.- **Popular Financing Methods**: - 61.4% out-of-pocket - 50.4% credit cards - 13% HELOC - 8% home equity loanUtilizing home equity can significantly enhance your home's value through improvements. Get informed and explore your options to make smarter financial decisions!#HomeEquity

Like a Home Equity Loan (also known as a “second mortgage”), a HELOC allows you to borrow money using the equity in your home as collateral. But the thing that differentiates a HELOC is that you can borrow on an as-needed basis, up to the loan’s limit, over the term of the loan. 💰 Keep reading to learn more.#chicagotitlegeorgia #titleinsurance #titlecompany #georgiarealestate #commonwealthlandtitle

The Only Reason You should Tap Into Your Home's EquityHey, let’s talk about something important – home equity loans. On paper, they might seem like a great way to get some extra cash. But before you jump in, you need to know a few things.A home equity loan is basically a second mortgage tied to your house, just like your first mortgage. It's not a 30-year fixed loan; it's structured differently. If you fall behind on payments, it can seriously hurt your credit and, in extreme cases, lead to foreclosure.So, when should you consider getting one? Only if you're using that money for something that will give you a significant return on investment. Think fixing up the kitchen, adding more rooms, or making another real estate investment.What you should avoid is using that money on things that lose value, like a car or a vacation. Trust me, you don't want to be paying off that interest for years on something that won't benefit you in the long run.Have questions or need more advice? Drop a comment below and let’s chat! And don't forget to follow for more tips on smart money moves. #HomeEquityLoans #RealEstateInvestment #SmartMoneyMoves #HomeImprovement #FinancialAdvice #InvestingTips #PropertyInvestment #WealthManagement #MortgageTips #FinancialWellness #SecondMortgage #HELOC #MortgageBroker #LUM #ArizonaRealEstate #ArizonaRealtor #Arizona #IndianaRealEstate #IndianaRealtor #Indiana

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🌟 Did You Know? 🌟Loan-to-Value (LTV) Ratio is a key factor in mortgages. It compares the loan amount to the property's appraised value.LTV=(Loan Amount /Appraised Value)×100Risk Assessment: Lower LTV means less risk for lenders.Interest Rates: Lower LTV can get you better rates.PMI: If LTV is over 80%, you may need Private Mortgage Insurance.Loan Qualification: Different loans require different LTVs.Example: For a $200,000 home with a $160,000 loan, the LTV is 80%.#DidYouKnow #MortgageTips #LTVRatio #HomeBuying #RealEstate

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A home equity loan is one way to tap into your home's value without having to sell it. As you make mortgage payments on the property and its value appreciates with time, the share of the home that you actually own — your equity — grows. By taking out a home equity loan, you convert that equity back into debt in exchange for cash. Home equity loans are a popular choice for homeowners who want to take on some kind of home improvement project. You can use your money however you see fit, but it’s recommended that you reserve it for expenses that help build wealth, like renovations that will grow your home’s value. Since your home is the collateral for an equity loan, failure to repay could put you at risk of foreclosure.You may read the whole article here: https://buff.ly/4bPaXNyCall us now for a 45-minute one-on-one free financial consultation session.1300 074 675 or message us on WhatsApp +61 488 859 637Have a successful day everyone!For more details and inquiries, follow us on social media:Facebook: Simply WealthInstagram: @simply_wealth_groupWebsite: simplywealthgroup.com.auTwitter: @SimplyWealthGrpLinkedIn: simply-wealth-group#successtips #millionairesmindset #propertyinvestment #simplywealth #simplywealthgroup #simplywealthaimstohelp #beaninvestor #investwithSimplyWealth #goals #DreamBig #home #homesweethome #realestate #buy #propertyinvestment #invest #market #property #business #opportunity #simplywealth #melbproperty #melbourne #melbournerealestate #melbourneproperty #melbre #realestateaustralia #melbournehouses #firsthome #firsthomebuyer

The Only Reason You should Tap Into Your Home's EquityHey, let’s talk about something important – home equity loans. On paper, they might seem like a great way to get some extra cash. But before you jump in, you need to know a few things.A home equity loan is basically a second mortgage tied to your house, just like your first mortgage. It's not a 30-year fixed loan; it's structured differently. If you fall behind on payments, it can seriously hurt your credit and, in extreme cases, lead to foreclosure.So, when should you consider getting one? Only if you're using that money for something that will give you a significant return on investment. Think fixing up the kitchen, adding more rooms, or making another real estate investment.What you should avoid is using that money on things that lose value, like a car or a vacation. Trust me, you don't want to be paying off that interest for years on something that won't benefit you in the long run.Have questions or need more advice? Drop a comment below and let’s chat! And don't forget to follow for more tips on smart money moves. #HomeEquityLoans #RealEstateInvestment #SmartMoneyMoves #HomeImprovement #FinancialAdvice #InvestingTips #PropertyInvestment #WealthManagement #MortgageTips #FinancialWellness #SecondMortgage #HELOC #MortgageBroker #LUM #ArizonaRealEstate #ArizonaRealtor #Arizona #IndianaRealEstate #IndianaRealtor #Indiana

Finance Tip: Use a Home Equity Loan to pay off your mortgage and put it in the first lien position.This strategic move can potentially lower your interest rate, reduce monthly payments and offer greater financial flexibility. By leveraging a Home Equity Loan, you can manage your finances more efficiently and take advantage of your home's value.

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If you're looking to secure a home loan in the near future, it’s a good idea to take extra care with your spending at least three months before you apply for a home loan.⠀⠀⠀⠀⠀⠀If, for instance, you’ve got a maxed-out credit card but are shopping up a storm on Afterpay, the lender may wonder why you’re not diverting this discretionary spending to paying off your debts.⠀⠀The banks are looking for evidence that you handle your debts well. If you're only making the minimum monthly repayments, or if you're behind on your repayments, it paints a picture that perhaps you're not on top of your money.⠀⠀They also want to see evidence of good savings habits. So if your nightly takeaway is getting in the way of your savings plan, then you may want to reprioritise your spending.⠀⠀Get in touch to find out more.Book a chat today: https://bit.ly/42vYv1j#lisabridgett #savvyfinancegroup #bankonabroker #financeexpert #sydneyproperty #mortgage #mortgagebroker #homeloans #finance

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Considering a jumbo home loan? 🏡 Here's a quick rundown of the pros and cons to help you make an informed decision:Pros:✔️ Higher loan limits: Finance your dream home without multiple loans.✔️ Competitive interest rates: Often lower than conventional loans.✔️ Flexible terms: Customizable loan options to fit your needs.Cons:❌ Stricter requirements: Higher credit scores and larger down payments.❌ More scrutiny: Detailed financial documentation needed.❌ Limited lender options: Fewer institutions offer jumbo loans.Weighing your options? Jeff Baum Loans is here to guide you through the process and find the best mortgage solution for your needs. Contact us today!#JumboLoans #HomeFinancing #JeffBaumLoans #CaliforniaRealEstate #MortgageAdvice #HomeBuying #FinancialPlanning