A Home Equity
Loan takes your home equity, which is the net value
of your home that you own outright. Basically, it's 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 $120,000, then your home equity is $80,000. You own $80,000 of your
home free and clear.
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 $20,000 against your $80,000
home equity, your home equity is reduced to $60,000 until you pay back
the loan. You can use our online calculators to see how much you can
borrow, check interest rates and calculate estimated monthly payment.
Calculate Your Mortgage!
use Home Equity Loans to:
- Pay off debt,
such as credit cards, vehicle loans, and other debts.
- Make home improvements,
room additions or to add a pool.
- Upgrading kitchens
with new cabinets and appliances.
- Financing an
type of loan that uses the equity in your home. It's a Home Equity
Lines of Credit: Similar to a Home Equity Loan, with a Home
Equity Line of Credit, you also borrow cash against the equity in your
home. However, there are a couple of differences to note.
- You're given
a line of credit that may be accessed by future draws up to a set
amount. Using a checkbook to access your account as many times as
you like during the access period up to your credit limit.
- The interest
rate is variable instead of fixed. This means the interest rate can
change depending on how the national interest rate moves.
Once you have decided
that a Home Equity Loan is right for you, you will want to organize
documentation that you will need to apply. Some of these documents
Your social security
number and current address information
Pay stubs covering
30 days, plus W-2 forms.
Name and address
of your current mortgage lender.
value of the property.
price of the property and date of purchase.
and balances of any checking, savings, IRA, CDs or Money Market accounts.
For a more complete list of documentation you will need to provide you
can print our Loan Preparation
Use our quote
form, a mortgage feature on California Mortgage & Home Equity
Loans, Co. to locate a lender in your area offering the mortgage product
that best suits your needs. The independent lender you select will work
with you to help find a low-cost mortgage that meets your needs. Apply