Minnesota Home Equity Loan Programs
Get a great interest rate with our Minnesota Home
Equity Loan/ HELOC Financing program. We can also refinance your
current Minnesota mortgage. Apply Online
or call one of our Minnesota brokers toll free at 888-694-0455
You may literally be sitting on a pile of cash. A
Minnesota Home Equity Loan can help get the cash out of the ground
and into your hands thanks to a little thing called equity.
What is home equity?
Home equity is the difference between the amount you
owe on your home and the amount your home is worth. Homes appreciate
in value over time as you continually pay off the principal of the
loan. These two factors increase the "equity" of your
home. There have been times where the value of a home has doubled
or tripled in value in a few short years. This can drastically increase
your home equity.
What is a home equity loan or HELOC?
A home equity loan or home equity line of credit (HELOC)
is a second mortgage that allows you to borrow the money tied up
as equity. What you do with the money is up to you. You could spend
it on improvements and further increase the value of your home or
put it into a high yield investment account and have it make you
even more money. It is also not uncommon to see the money go to
higher education costs or medical bills.
Home equity loan vs. HELOC, what is the difference?
A home equity loan is a one-time sum of money that
is paid back in fixed amounts over the length of the loan. A HELOC
is a line of credit and money can be withdrawn at intervals and
works much in the same way as a credit card. You can pay only the
interest, or you can pay off the principal as you see fit. Lenders
will often issue a credit card for a HELOC and it works the same
way. The difference is that you are borrowing money from your own
HELOC vs. a credit card?
If a HELOC works just like a credit card, why not
just continue to use credit cards? There are some key differences
that make a HELOC more attractive.
1.Interest paid on a mortgage is tax deductible; interest
paid on a credit card is not.
2.Interest rates are typically lower on a HELOC because it is secured
with your house as collateral. This makes it less of a risk for
lenders and they can in turn provide better rates.
3.Mortgage debt is considered good debt, if fact, it is the best
debt you can hold. Maxed out credit cards have and adverse effect
on your credit score while mortgage debt will actually help your
Is it difficult to get this type of financing?
The short answer is no, not with our help. You will
need an appraisal to get an accurate estimate on your property value.
You also will need to have your income verified, but since you already
have a mortgage out, it is not a big deal to secure additional financing.
As professionals in the mortgage lending industry,
we have built our reputation on providing outstanding service to
our clients. This means you can count on us to always look out for
your best interests, and to keep you informed throughout every step
of the lending process. Customer satisfaction is the cornerstone
of our business. Please do not hesitate to call if you have questions
about the information you find here on our web site.