What is a Home Equity Loan? It is a Second Mortgage that offers borrowers considerably lower interest rates than those of credit cards and give the ability to tap into money in your property, without impacting the low rate on their first mortgage. Typically, they allow you to access up to as much as 95% of your house’s equity with up to a 10-year draw period that you can use, pay back, and replenish again and again. That’s why many people use these second-lien position options to consolidate their debt or make big purchases with lower interest rates!
We’re here to make getting a mortgage easier with our technology, tools, and expertise, that will guide you along the way. We’ll help you understand the differences between loan programs and options, empowering you to make the best-informed decisions on what is right for you. Use our Mortgage Calculators to estimate monthly payments and more.
A Home Equity Line of Credit can be an adjustable-rate tied to the market prime rate or a fixed mortgage. It allows you to access the equity in your house easily.
For example, you could take out a $150,000 HELOC, but choose to take an initial withdrawal of only $100,000, giving you access to $50,000 more later, and as you pay down the initial $100,000, it frees up additional cash. It works a little like a credit card, with the ability to borrow money (against the equity in their house) at different points in time and only pay interest on what they use until the draw period (usually 3 to 10 years) ends and full principal and interest repayment period begins.
This is a fully amortized fixed-rate 2nd mortgage providing a lump-sum payment at closing as opposed to a line of credit that you can access in the future repeatedly like a HELOC. Because of this they often have a lower interest rate than the HELOC option.
For example, if a borrower were to take $150,000 of the equity out of their house, they would receive that cash out payment one time only, regardless of paying it down later, they would not be able to access it again like with a HELOC. Similar to a fixed-rate cash-out refinance on a first mortgage , but in a second lien position.
Many homeowners have more cash equity in their house that every before that they can tap in to.
Use it to pay off debt, consolidate, cover unexpected expenses, make home improvements, remodel or renovate your property, invest in a second property, or future investments, or whatever your need or want, etc.
They also often fund faster than a 1st mortgage, have flexible terms from 5 to 30 years, and give you access to up to 95% of your equity without affecting your first mortgage rate.
Our HELOC options feature variable options to access the equity line of credit up to 10 years and competitive home equity rates.
Allows you to tap equity without refinancing the low rate on your 1st mortgage and you can access equity after the initial draw up to your predetermined limit again and again as you pay it down.
Estimate the equity available in your house that you can access as a line of credit or second mortgage for debt consolidation, remodel, renovation, pay off credit cards, invest, travel, pay for college, or whatever your like.
* Some qualifications, terms and conditions apply. Inquire for more details.
Educate. Empower. Execute.
We are a Denver Mortgage Advisor committed to empowering homebuyers and homeowners with smart financial moves to build happy homeownership. We’ve optimized the best in technology with our concierge-level service. Our easy process delivers a stress-free experience, whether for purchase or refinance. We’ve built solutions for real estate financing with the best mortgage lenders nationwide and the best interest rates. Designed to educate, empower, and execute to win.
Connect with us for strategies to Make Smart Financial Moves about Finance, Credit, Home Buying, Selling, and Refinance
Get Results that Work for You!
Hours: Mon – Fri 8:00am – 7:00pm and Sat-Sun 9:00am – 5:00pm
Best Denver Mortgage Broker
AIME, Brokers Are Better Network, Chamber of Commerce, Parker Chamber of Commerce, Edge Home Finance: Better Business Accredited Business A+ Rating
Association of Independent Mortgage Experts – AIME Award: Edge Home Finance – 2022 National Mortgage Broker of the Year
Optimized by Seraphinite Accelerator