What is a Equity Loan?
If you’ve built up some equity in your own home or investment property, an equity home loan could enable you to get a large amount of cash when you need it – at an interest rate that is possibly lower than that for personal or credit card loans.
An equity home loan could allow you to access a portion of the equity in your home. The equity you’ve accumulated is the difference between the value of the property and what you still owe on it.
Benefits of a Equity Loan
A major benefit of this loan is that you may be able to quickly obtain money to invest in property or other assets, pay for renovations, meet the cost of tertiary education, purchase a car, buy shares, consolidate debt or pay for any other assets or expenses.
With this type of loan, it could be linked to an everyday bank account and some loans don’t require minimum re-payments until you reach the limit of the loan. Some equity loans even allow additional payments or repayments without too many restrictions. Equity loans are variable rate loans so repayments could change depending on increases or decreases in interest rates.
Before taking out a home equity loan be sure you are well aware of all the benefits and fine print. It’s important that you know how these loans work and are aware of the features and charges involved including transaction and closing costs.
How Can Nicheliving Home Loans Help?
That’s where our finance consultants at Nicheliving Home loans can help. We can take you through all the details and explain everything in language you could undecided. That way you are prepared to make the best decision for your financial future. And if you decide to go ahead, we could support you through the entire process.