How Does a Home Equity Loan Work?
Here at Prohomeloan Solutions, we can arrange a valuation of your home, calculate what you owe, then determine how much home equity you have. You can then borrow a certain percentage of this equity, which is set up as a Home Equity Loan (Line of Credit).
It may sound complicated, but it’s actually a relatively simple process – especially when you are backed by an experienced broker. If you are considering taking out this type of home loan, talk to George. He will advise you as to which is the best loan for you, ensuring you acquire a loan that meets your personal situation.
Home Equity Loan options
Principal and interest
Line of credit, i.e. you may not choose to spend the money straight away, it’s just available for you when you are ready. You make no repayments on a line of credit, until you draw it and only make payments on the amount you use.
How to reduce your monthly repayments
Are you struggling to meet your monthly repayments? Are you finding your repayments aren’t leaving enough cash flow for day-to-day expenses?
As experienced mortgage brokers, we can review your situation and help you refinance to reduce your monthly repayments. It could be as simple as rolling your private school fees, or other loans, into your home loan. Speak to us today – there are many options available.
Want to reduce your loan balance?
Interest Only Repayments on a Home Equity Loan only cover the interest being charged. If you never make any extra repayments, you’ll be paying off the loan for the full term. And banks will only allow a certain period of interest only payments before you will need to swap banks.
Making extra payments – even small ones – can make a huge difference to the size of your monthly repayments … and your loan balance!
Use the money available in your Home Equity Loan
PLUS – as your loan balance reduces, your equity increases! Which means, you can redraw the money available in your Home Equity Loan for other projects.
Need a business loan to purchase property or help your business grow?
Using the equity in your home, we can arrange business loans at home loan interest rates.
If you are tired of researching home loans yourself or simply don’t know where to start, talk to the experts at Prohomeloan Solutions. Backed by many years of industry experience, we can help to ensure you are paired with the right loan.
We are open Monday through to Friday, 9am – 5pm and can also arrange out-of-hours appointments for your convenience. If you have any questions regarding our service – or loans in general – don’t hesitate to get in touch with us today. We’re always happy to help!
For more information, contact us today on 1300 637 102.