Is using your home for collateral on a loan a good idea? Well, before you think about refinancing take out a second mortgage or a home equity loan consider your options talk to an attorney or financial advisor before making any decisions about borrowing money using your home as collateral at high-interest rates. Credit card costs can make it very expensive to borrow money and loan costs can vary greatly. So it’s in your best interest to research what types of loans you would qualify for.
Read Also: Buying a Bank-Owned Property
Most creditors will give you a written, good faith estimate showing the charges and fees you would pay at closing the monthly payment the annual percentage rate, and other loan items. This helps you compare various loan options.
Keep in mind if you use your home for collateral on a loan and can’t make the
payments in the future. You could lose your home as well as any equity
you might have built up. So, make sure you can afford the loan before
making a decision.
Watch the video below:
One of the reasons to call the Agardi Team if you want to buy a home or have one to sell is:
Not only do we sell our clients’ homes for more money and faster than the average area agent, but your home is also more likely to sell. According to 2015 MLS statistics, only 71% of area homes sold during their listing term. Compare that to our 95% of homes listed that sold before the end of the listing term. YOUR HOME SOLD GUARANTEED OR WE’LL BUY IT*
To discuss the sale of your home, call The Agardi Team at 718-755-2882 and start packing!
*Agardi Team and the seller have to agree on the price and the closing date.