Getting a Home Equity Line of Credit Now to Avoid Using a Private Lender in the Future
Are you a homeowner with a mortgage, or even perhaps a second mortgage? Are you looking to secure your future and make sure that you don’t end up with more debt in the future than you bargained for? Then perhaps it’s time to start looking into getting a home equity line of credit.
Now, you may be thinking, “Why would I take out a home equity line of credit if I don’t need the money right now?” That is a very relevant question, and one that will be answered if you continue reading. First, however, we should discuss exactly what a home equity line of credit is and what it can do for you.
What is a home equity line of credit (HELOC)?
According to Bank of America, this is when you borrow against the equity of your house and it is used as collateral for the line of credit. It is a line of credit that gives you a revolving credit line. This can be used for large expenses, or it can be used to consolidate higher-interest rate debts or other loans. These loans often have lower interest rates than other types of loans and the interest may be tax deductible.
Why take out a HELOC if I don’t need the money right now?
Taking out a home equity line of credit now can help you in the future. With the uncertain state of the world right now due to Covid-19, what better time to procure extra funds than now? By connecting with a mortgage broker and discussing your options for taking out a home equity line of credit now, you may be saving yourself from having to seek out a private lender in the future.
While you may not truly need the line of credit right now, if and when times get tougher in the future, you may need the extra equity. That being said, what better time to do so than before it is necessary. Stay ahead of the game and avoid using a private lender in the future which could cost you thousands more in interest. Don’t wait for uncertain times to hit. Take out the credit line now and be prepared for the future.
Taking out a home equity line of credit can look like a secondary charge, or it can be issued as a primary charge. Discussing with a mortgage broker to find out which is best for you is your first step. Remember, even if you don’t need the cash right now, it could help tremendously in the future if times get tough.
Contact easyhouseloan.ca today and chat with a mortgage broker to find out your options. Remember, it’s better to be ahead of the game and it may be a good idea to take out a home equity line of credit now, even if you don’t need the money, so that you are prepared in the future if you ever do.