Do you need cash for a major upcoming expense? You might be considering a home equity loan near Plano TX.
This is a type of mortgage that allows you to convert the value of your home into tangible money by borrowing against your home. The equity will be the difference between your home's market value and how much you currently owe. Therefore, if you have a $100,000 home, and you owe $40,000, you have equity worth $60,000. Whatever the expense, a home equity loan is a viable option to consider. There are innumerable ways by which you could benefit from the money. Before you decide, there are some details about this sort of loan you should consider before jumping in. Texas real estate law has some significant protections wrapped in a lot of complicated, legal language. There are some important things to note, such as debt limits. The amount you can borrow will also depend on your credit history and revolving debts, like any other loan. Your mortgage debts cannot, in total, be more than 80% of your home's market value, and you can only borrow 85% of your home's equity. You can also only hold one loan on your home at a time, and only one per year. You may be able to borrow in other ways, but you cannot convert the home equity loan into another type of loan, either. If your property is listed as agricultural land for tax purposes, you cannot use it as collateral for a home equity loan near Plano TX.
A good lender should always explain your loan options, both equity and non-equity, and you should be cautious when choosing a lender. You need to be well informed about interest rates, taxes, and fees. Lenders cannot charge fees worth more than 3% of the loan, and can suffer penalties for not abiding by this rule. They may not insist you mortgage any other assets, and they also cannot require you to use the loan to pay any off any other debt, except that in relationship to the home, or owed to another lender. There are many details involved in securing a home equity loan near Plano TX. Be thorough and prepared when you ask questions of your lender. It is essential that you proceed with all possible knowledge, and with a lender who will offer you all possible options, anticipate your questions, address all your needs, and help you choose the absolute best option. Summit Funding can help you through the home equity loan process. Call us at 972-864-3530 and let us help you decide what is best for your financial future.