Home Equity Loans

What is a Home Equity Loan?

A home equity loan is a type of loan where the lenders agree to lend a certain amount of money and the collateral for the loan is the equity found in the borrower’s home.

How Do Home Equity Loans Work?

If you are 55 or better, own your own home and can access up to 40% of the equity in your home you are eligible to apply for a home equity loan.

Based on your age, the age of your spouse, and the location and type of home, you can access up to 50% of the appraised value of your home. The funds you unlock will not be taxed as income and you are only required to pay back the full amount of the home equity loan once the house is sold or both homeowners move out (although clients have the option to repay the amount of the loan and interest in full at any time.) You can choose to receive funds as a lump sum or over time, and you can rest assured knowing that the house will still remain under your name and you will never be asked to move or sell in order to repay the home equity loan.

Home Equity Rates

Clients can choose either a fixed or variable rate with a variety terms. The interest is added to the outstanding balance of the home equity loan and is compounded semi-annually.

FAQs about Home Equity Loans

Q. Are there medical exams involved with applying for a home equity loan?

A. No, there are no medical, income or credit qualifications involved with application.

Q. Are regular payments required?

A. No, you do not have to pay back the principal and accumulated interest until the house is sold or both homeowners move out.

Q. Will I have any equity left in my home after I pay back the loan?

A. Yes. 99% of the time clients will have equity remaining in their home after the loan has been paid back. This is due to our affiliated lender’s conservative lending practices as well as the natural process of homes appreciating over time. On average, clients find that they still have 50% of the equity in their home upon repayment of their home equity loan.

Do you think a home equity loan might be right for you? Contact us and we can discuss the options that are available to you.