With a housing shortage, home improvements and renovations have become the hottest choices for many homeowners. Instead of using credit cards and savings to fund those projects, HELOC and/or cash-out refinancing are excellent avenues to take using the equity of your home to improve the value and comfort. Mortgage rates are below credit card rates and inflation rates which makes cost of borrowing for a project much more favorable.
When you choose a cash-out refinance, you can choose the terms up to 30 years with the monthly payment amortized over 30-years. This monthly payment will be lower than borrowing from credit cards. You can free up money by saving a little extra every month.
If you opt in for a HELOC account, you can withdraw from the account whenever you want and only make interest payments on the money borrowed. The account is typically available to draw funds from for the first 10 years. After 10 years, known as the draw period, the line of credit is frozen and you’ll need to pay back everything you borrowed during the draw period with monthly amortized payments.
Should you like to explore further details contact me at (925)-216-3618 to find out which one would be best for you.
