Home Equity Loans Plano TX: Make Your Home A Real Asset

Home Equity Loan Plano TX

Home Equity Loan Plano TXLife is expensive. Even the most solitary, self-sufficient soul needs to prepare for a rainy day. But some storms are bigger than we can ever prepare for. When disasters and emergencies bring us into stressful financial situations it is important to know that help is available when we take all of our assets into consideration.  Home equity loans in Plano TX are sometimes the very best way for people to keep their heads above water when the floods come up..

An equity loan is simply a loan up to the amount of money you have already paid toward the big asset you own. For a house, its the market value minus the amount you’ve already paid on your home. That means nearly every penny you’ve sunk into your house’s value can be attributed into a loan that you can then pay off after your crisis is over.  Home equity loans in Plano TX have been a real life preserver for many people who have proven that they are good home owners.

Keep in mind that a home equity loan is not for small amounts of money. You usually can’t take out smaller fractions of your home’s equity as loans, it’s often either all or nothing. This makes sense, as you know how much your home is worth to you as a financial asset and as your personal living space. You wouldn’t want to put it up for collateral for anything other than a real emergency, or a real investment. Often you won’t find any home equity loan even available for amounts less than $20,000. This means don’t risk your house as a way to pay off other debts. If you have extraneous debt on a credit card, heaven forbid, don’t take out a loan on your house to pay it off if you can help it at all. Your debt isn’t going away, and you still owe what you owe, only now the stakes may be higher if you can’t pay it off.

However, some things just came at you all at once, like health emergencies, and those things need to be taken care of as soon as possible. Other times, you need a large sum of money that you know will return higher rewards in the future, like on home renovation, or a necessary business car. In cases like that, look for a Home equity loans in Plano TX for you.

HOME EQUITY LOAN PLANO TX
Summit Funding
5700 Granite Parkway, Suite 410
Plano, Texas 75024
972.864.3530

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Home Equity Loan Near Plano TX: Here are Some Things you Should Know

Home Equity Loan Plano TX

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.

Home Equity Loan Plano TX
Summit Funding
5700 Granite Parkway, Suite 410
Plano, Texas 75024
972.864.3530