How To Pull EQUITY From Your Home!
Today we meet with our trusted lender, Mike Weisberg, with Lend to America. This video discusses how to withdraw equity from your home for potential real estate investments. Your home equity has to be working for you right now in the current market, where inflation is at an all-time high and mortgage interest rates have doubled. Data demonstrates that holding investment properties is a significant hedge during periods of rising inflation. Rents climb in price as a result of inflation, therefore using the equity in your house to invest in a rental property will help counteract the inflation you experience in your personal expenses. We discuss which option is best for you: using a home equity line of credit or a cash-out refinance (HELOC). Whichever option you decide on, maximizing your home equity to buy additional properties is crucial right now. We are the team for you if you're interested in accumulating wealth through real estate.
Home Equity Line of Credit (HELOC) vs. Home Equity Loan
If you're a homeowner, you've probably thought about tapping into your home equity to finance a major purchase or home improvement project. But what's the best way to do that? Should you take out a home equity loan or get a home equity line of credit (HELOC)?
Home equity loans and HELOCs both allow you to borrow against the value of your home, but there are some key differences between the two. With a home equity loan, you borrow a lump sum of money and make fixed monthly payments for the life of the loan. A HELOC works like a credit card; you're approved for a certain amount of credit and can draw on that credit as needed. You only have to make payments on the amount you've borrowed, and you can borrow again if you need to.
HELOCs tend to have lower interest rates than home equity loans because they're considered revolving debt, like credit cards. That means if you only use a portion of your available credit, you'll pay less in interest than if you took out a home equity loan for the same amount. However, many HELOCs have variable interest rates that can increase over time, so it's important to understand the terms of your loan before you apply.
If you're thinking about borrowing against your home equity, it's important to understand the difference between a home equity loan and a HELOC. Both loans have their own pros and cons, so it's important to choose the one that makes the most sense for your needs. Generally speaking, a HELOC is going to be better for short-term borrowing or if you don't know exactly how much money you'll need upfront. A home equity loan is going to be better for borrowers who need to borrow a specific amount of money and want predictable monthly payments.
Book a meeting now - https://calendly.com/
Follow us on Instagram 📲 The Hernandez Team
Follow us on Youtube | Living in the San Fernando Valley