Going Back to School? Here’s How Home Equity Can Help

Posted onSeptember 19/2017By

University or college education doesn’t come cheap, but it’s an invaluable investment in your future. You may be deciding to go back to school so you can follow a new career path, further your existing skills and knowledge, or simply to enrich your life. It’s an incredibly worthwhile venture, but the question often arises of how to finance further education. Many homeowners end up using a home equity loan to finance their education or their children’s education. A home equity loan allows you to access the equity you have in your home and receive a cash loan that can be put towards education. As you make your mortgage payments over the years, the equity you have in your home grows. Your home equity will be the current market value of your home minus any remaining mortgage payments. Your equity will not only increase as you pay off your mortgage, but…

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What Is Home Equity?

Posted onJune 12/2017By

You may hear the term home equity, or equity mortgage, especially when discussing the assets or net worth of a homeowner. But what does home equity really mean? Home equity is, in short, the value of a homeowner’s interest in a home. This means that your home equity is the part of the home that you, the homeowner, truly own. If you have a mortgage, then your lender also has equity in your home, even though technically, you own the home. Until your loan is completely paid off, you will not have full home equity. Your home equity will increase over time as you pay off your mortgage, or as the property value increases. Some homeowners, however, use their equity as collateral in a loan, or equity mortgage, which we will discuss more further on. You can calculate your home equity by subtracting the amount owed on any mortgages from…

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Home Equity vs. a Loan: How to Choose the Best Option

Posted onMay 24/2017By

For many Canadian homeowners, their home is the biggest investment they will make in their lifetime. There are several options for loans for homeowners, and in this article we’ll look at two options: an equity mortgage versus a mortgage loan. Home Equity Mortgage A home equity mortgage is different than a regular mortgage loan in that it acts more as a line of credit. If you take out an equity mortgage, the bank will agree to lend you a certain amount, but with the equity in your home acting as collateral. An equity loan will usually have lower interest rates than a line of credit, and these rates will usually be variable, fluctuating with the market. An equity mortgage does not require a monthly payment like a traditional mortgage loan does. Rather, it works like a credit card where you will need to make a minimum monthly payment. Taking out…

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Five Tips For Increasing Your Home’s Equity

Posted onMarch 27/2017By

Equity is the magic word when it comes to homeownership. There are equity mortgages and other products that you can tap into when you’ve increased the value of your home. However, equity doesn’t grow on trees, so here are five tips for increasing your home’s equity: Pay off the principal: The quicker you pay off the mortgage principal, the more equity you build up. Look into acquiring prepayment privileges from your lender. Or if the prepayment penalty isn’t that great, it may make sense to pay off your principal as quickly as you can even if you’re penalized because you’ll be that much closer to getting an equity mortgage (or similar product). Hire an inspector: A certified home inspector will tell you how much your home is currently worth and what improvements are necessary to up its equity. Make upgrades to the kitchen and bathrooms: Get rid of old tiling,…

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Home Equity Line Of Credit Vs. Reverse Mortgage: What’s The Difference?

Posted onApril 24/2016By

There are a couple of options when it comes to using your home equity as collateral in a line of credit or loan. Home equity credit can be used the same as any other line of credit, while a reverse mortgage allows homeowners to delay further mortgage payments and access their home equity. While both options allow homeowners to access their home equity, there are some notable differences. Home Equity Line of Credit A home equity line of credit is similar to any other loan, except that the borrower uses their home equity as collateral. This is similar to refinancing your home or taking out a second mortgage. There are many reasons homeowners take out home equity credit, such as: To pay off existing debt. To make large payments, such as for children’s education. To renovate. To purchase other investments, such as property. Once you are approved for a home…

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