Home Equity Finance

| November 5, 2011

Looking At Home Equity Finance

Do you need to make some home repairs? Perhaps you do not have money for things that you wish to do. You might wish to consider home equity finance. Here is why.

Your appraised value

If you wish to borrow money on your home, the present value is very important. You will need to pay for an appraisal. The appraised amount will be deducted from what you owe on the house. This is your equity. In some cases, it may be more than you think.

Suppose you buy a house for $100,000 with $10,000 down. That $10,000 is your equity. In ten years time, you might owe $85,000 on your property. Some may think that they now have $15,000 in invested in their property. This is not the case. In ten years, your property may appreciate in value. It may very well be worth $140,000. Your home equity would be $55,000. Do not assume your home value amount without an appraisal.

Another way to improve your appraisal is to make small improvements. It is a good idea to clean up the inside and outside of your property. Remember, the appraiser is human. He or she may be swayed by a messy yard or house interior.

Small improvements can be painting. A fresh coat of paint on walls and ceilings can make a big difference. It is also, not very expensive. The more that your property appraises for, the more money you can borrow for improvements and such.

Where to go

Are you unsure who to check with for your loan? The best place may be your current lender. You already have a loan with them. If you have make payments on time, you have a good reputation with your mortgage lender. Sometimes they have special offers for their current customers.

Another good source is your local bank. You also have a business relationship with them. They may be able to provide you with some attractive terms.

You can also check with local loan companies and mortgage brokers. Mortgage brokers provide a service to people for a fee. However, they are able to access all types of loans from many different lenders. They are not representing any one particular lender.

Make sure that you find out what fees you will need to pay. Perhaps you can find better deals elsewhere. However, you may find something that is well worth the extra fee.

You can also check out many online sources. Some may give you a quote in a few minutes. This is a good way to get a general idea of the interest rates and payment amounts. You may also find some very attractive offers. When dealing with any lenders, always check them out first. Visit the website of the Better Business Bureau. Also search for any online reviews of the services.


Are you looking into home equity finance? It is a good way to borrow money for things like home improvement. Make your property look good before the appraisal. A clean yard and a new coat of paint can make a big difference. You may be able to borrow more money, this way. Check all of the sources for lenders that you can. Look into your current mortgage lender and bank. Check out other sources like mortgage brokers. Do not forget the many online resources at your disposal.

Category: Home Loan

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