Refinance To Access Your Equity
As summer approaches, the thought of holidays or renovations might cause you to grimace because you feel restricted by your mortgage repayments.
It is a reality that once you have purchased your home you need to pay back your loan.
This doesn’t mean you have to live a bare minimum type of existence, but in all likelihood you will need to make efforts to adjust your spending habits to accommodate loan payments.
However, if paying back your mortgage is preventing your ability to save, refinancing to access your equity could well be the solution.
A line of credit loan can give you access to your equity which you can then use to finance purchases beyond your saving capacity with a mortgage - like a holiday, renovations or a second property.
The equity in your home is the difference between its value and the amount you still owe on your mortgage - essentially it is the proportion of your house that you own. Your borrowing capacity will be dictated by this amount.
Interest rates vary on line of credit loans, though they tend to be higher than standard home loans.
A mortgage broker can help find the best loan product for your refinancing needs.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.