Home Equity and Second Mortgage Loan Options for Cash or Debt Refinancing
Mortgage companies are blasting direct mail campaigns that are targeting many
homeowners in Southern California. You may not need to refinance your 1st
mortgage, but chances are, you will want to access cash in the coming months. A
fixed rate second mortgage or variable home equity credit line can get you cash,
and a tax deduction without requiring you to refinance you low interest
mortgage.
Second mortgage are effective financing vehicles for funding home construction, purchasing a second home or refinancing variable rate credit card debt. Home equity lines of credit are convenient, for people with changing plans. HELOC's
can improve cash flow because only the interest is due on the portion of the
line that you actually accessed.
This offers a financing arsenal for
borrowers needing cash on a whim for investing, and purchasing rental
properties. A homeowner armed with a home equity line of credit protects their
family with a safety net of cash reserves in case a emergency or tragedy arises.
I recommend to all of my clients to establish a home equity credit line whether
they think they need it or not. If they never use the credit line, then it never
costs them a penny. There are no crystal balls in the world, so you have to plan
for both opportunities, and financial hardships. Get a second mortgage or line
of credit, while your credit scores are high.
Why wait until you are late on a bill and your credit scores are low. Take
the small window of opportunity, and get your finance vehicles tuned up, because
when you wake up tomorrow the opportunity may have already passed.