If You Own A Home And Need A Loan, Maxium Dsouza – Mortgage Broker Can Help You Get APPROVED!
Are you a homeowner interested in a loan? Then he can help you get approved using the equity you have in your home. As house prices have increased across parts of Canada, home equity loans are becoming a more attractive idea to many homeowners. Even if the price of your home decreased, you can still be approved for a home equity loan if you have enough equity built up in your home.
What Is A Home Equity Loan?
A home equity loan allows a borrower to use the equity in their home to secure a loan. The amount of available equity in a home is calculated by assessing the current value of the home and then subtracting the current mortgage(s) still owing on the home from the value. Maxium can help you get a home loan of up to 90% of the value of your home depending on a variety of factors. It is often easier and faster to get a home equity loan because in many instances they don’t even require a credit cheque or complicated application process.
What Are The Types Of Home Equity Loans?
There are two types of home equity loans offered by lenders:
- Fixed Rate Loan or a Second Mortgage: With a Fixed Rate Loan or Second Mortgage, the borrower is given the option to withdraw a total lump sum of cash up front and make monthly interest-only payments. The interest rate is set once the loan is agreed upon and can change only at the time of renewal. In many cases there are no credit checks and is ideal for people who either have poor or bad credit, or have lower income, or are self-employed and report their income in a less traditional way. Even if you are turned away by the banks, in many instances you can still qualify for a Fixed Rate Home Equity Loan or Second Mortgage as long as you have equity in your home.
- Home Equity Line of Credit (HELOC): With a HELOC, the borrower gets approved for a line of credit from which they are able to continuously withdraw cash from the pre-approved limit as needed. A HELOC is a more flexible borrowing option because the balance of the loan and the interest costs depend on how much the borrower uses on the line of credit. If you have outstanding credit and a high enough income, this can be the more appealing option because you are only required to pay interest on the amount of the HELOC you have actually used. Unlike a fixed rate loan, interest rates for a HELOC are usually variable and can change based on market trends.
What Are The Benefits Of A Home Equity Loan?
Home equity loans are a great option for homeowners with bad credit or low income, or in many cases people who are self-employed who report their income differently than those who are salaried employees of a company. Borrowers can use the sum of the loan for many different reasons such as for consolidating debt, funding home renovations, paying for a child’s tuition, or financing other purchases or bill payments. For many borrowers, their home equity can be the biggest asset they have and their best way to secure a larger loan.