Home & Mortgage Advice Blog

Shut the Front door, home and mortgage advice with Renee West. Whether you’re looking to “Shut the Front Door” on your first home or your forever home check out our monthly blog spot for articles and tips on home buying, refinancing and home safety and maintenance reminders just to name a few.

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What is Home Equity?  It is your home’s value minus the amount you owe on your primary mortgage. Home Sweet Equity

  • Let’s say your home is valued at $500,000 and you have $300,000 still owing on your mortgage. Your home equity is the difference between your home value and what you still owe.  In this example that’s $200,000 in equity.
  • Equity can increase over time if your property value increases and/or your mortgage loan balance is paid down.

What is a home equity line of credit?

A home equity line of credit, or HELOC, is a second mortgage that gives you access to cash based on the value of your home. You can draw from a home equity line of credit for home improvements, debt consolidation, college, vacation, etc.

Why would you take out a second mortgage (HELOC) instead of refinancing your existing mortgage?

That’s an excellent question…..  A lot of your decision is based on the rates and fees.  Contact us for more details.  

Our HELOC rates recently dropped!  Click here to see our current rates.

 

October 2019

Appraisal vs. Home Inspection

Here are the key differences between an appraisal and inspection:

  • An appraisal is required by most lenders when purchasing or refinancing a home.
  • An appraisal determines the value of the property for the lender.

Home inspections are not typically required by lenders, but are highly recommended to the buyer of a home.

While an inspection deals with the conditions and components of the home (heating and electrical systems, plumbing, roof, windows, etc.)