Home Equity
loans are very popular right now because of the low
interest rates available. They can be used to pay off
those high interest credit cards, remodel a kitchen,
or anything you need extra cash for.
Home Equity is the net value of your home
that you own outright. In other words, it is the fair
market value of your home minus what you owe on your
mortgage. For example, if your home is worth $200,000,
and the balance remaining on your mortgage is $150,000,
then your home equity is $50,000. You own $50,000 of
your home free and clear.
We have some more information about home equity loans
further down, or you can start the loan process by clicking
the pre-qualification link below. If you want to know
for sure where you stand, We have included the official
Uniform Residential Loan Application and Credit Release
form which can be printed and faxed to us.
We are available to help you every step
of the way. Just call at: 847-776-9800,
fax: 847-776-9810, or email at info@mdrmtg.com.
Click here
to Apply Online
Click
here to download the Uniform Residential Loan Application
Click
here to download a credit release form.
If you received an error message when
trying to download either of the above forms, you might
need to first download the acrobat reader.
Home equity
financing is when you borrow against
your equity by using your home as loan collateral. Your
property is pledged to the lender as security in case
you don't pay back your loan. Borrowing against your
home equity will reduce your home equity. So, for example,
if you borrow $10,000 against your $50,000 home equity,
your home equity is reduced to $40,000 until you pay
back the loan. You can use our online calculators and
calculate estimated monthly payments.
It is important that you consider your
complete financial situation, including your other debt,
to determine whether home equity financing fits within
your income and budget.
Before beginning the home equity process,
you should determine your exact need for home equity
financing. Homeowners use home equity financing for
a variety of different reasons, some of which may include:
- Paying off debt, such as credit cards
- Making home improvements to increase
a home's resale value.
- Putting additions on the house to make
more room for a growing family or a parent or relative
who is moving in.
- Upgrading kitchens with new cabinets
and appliances.
- Financing an education
Determine
the Nature of the Expense
Once you determine why you need home equity
financing, you will need to think about the nature of
your expense as well as your borrowing preferences.
This will help you to best meet your needs by deciding
which type of home equity financing makes the most sense.
Think about which of the following categories your home
financing need most likely falls into:
- Is your financing need a project or
expense where you will most likely need the entire
amount up-front that you can pay back in fixed monthly
payments?
-Or--
- Do you have a current expense or foresee
possible future projects or expenses, which may be
over the long-term or entail incremental payments,
for which you would like to have flexible funds available?
Once you have categorized your basic needs,
your next step is to start the loan
process.
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