A home equity is the market value of your home minus any outstanding balances. A home’s equity will increase as the mortgage continues to decrease. In other words, the more payments that are put towards a property, the more value it will have.
With a HELOC, you’re borrowing against the available equity in your home and the house is used as collateral for the line of credit.Like a credit card, as you repay your outstanding balance, the amount of available credit is replenished.This means you can borrow against it again if you need to, and you can borrow as little or as much as you need.
With very little or no home equity, it becomes difficult to obtain a home equity loan or line of credit. This is why it’s important to have the right mortgage plan from the beginning – to avoid any potential financial disruptions or struggles.
Edward Barr understands the importance of home equity and the potential future impplications it may have in your financial circumstances. This is why he evaluates your current needs and analyzes which mortgage plan will be the absolute best to not only avoid future problems but gain benefits.