If you have owned your Central Texas home for at least a few years, there is a good chance that you have built up some equity in your property. You may be able to tap into this equity through a home equity loan. A home equity loan provides individuals with many benefits, and with a closer review of what these loans may offer you, you will see that now may be the right time to take advantage of these benefits by applying for a new home equity loan.
A Lower Interest Rate
With today’s still low interest rates, it is not a surprise to learn that lowering your interest rate is one of the most common reasons why homeowners refinance. Through a refinance, you can lock in a lower rate, and you may enjoy lower payments in the process. In addition, you may benefit from having more of your payments applied to principal rather than interest, and this means that equity will accrue at a faster rate.
Adjusted Loan Terms
You also may adjust your loan terms when you refinance. For example, you may have your current loan set up with a 30-year term, but you may want to pay off the mortgage more quickly. By refinancing, you may adjust your term to a 15- or 20-year term.
Access to Your Cash Equity
A final and important benefit associated with refinancing with a home equity loan is gaining access to your cash equity. Based on lender requirements, you may be able to pull tens of thousands of dollars or more out of your Austin home. This can be used to renovate your home, increasing its value. Although less-advised, you could also use the home equity to pay off debts, use for student loans, fund additional investments and more.
Contact Austin Lender Joel Richardson
Applying for a home equity loan makes sense for a lot of homeowners, but it is not the right move for all homeowners. Take time to explore the options with Austin lender Joel Richardson and consider how you could put these benefits to use for your own gain. If you discover that now is a great time to proceed with the application of a home equity loan, Joel can help you get started in the process too. Call (512) 637-0932 or fill out our online contact form to get in touch.