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Home Equity Loans and Mortgage Refinancing Cedar Rapids IA

Home equity loans and home line of credit loans are often a good way to finance the purchase of a car. Refinancing your mortgage is another option. However, understand the benefits and the risks before making a decision.

Des Moines, IA
Wells Fargo Financial
(319) 377-8466
1100 Blairs Ferry Rd NE Ste 109
Cedar Rapids, IA
Beneficial Finance
(319) 396-4072
4334 16th Ave SW
Cedar Rapids, IA
First Choice Mortgage Inc
(319) 378-0120
373 Collins Rd NE Ste 209
Cedar Rapids, IA
Check 'n Go
(319) 396-9700
353 Edgewood Rd NW
Cedar Rapids, IA
Bank of the West
(319) 393-8693
5000 Edgewood Rd NE
Cedar Rapids, IA
Regions Bank
(319) 393-8745
4357 Czech Ln NE
Cedar Rapids, IA
(319) 396-1880
349 Edgewood Rd NW
Cedar Rapids, IA
Hills Bank and Trust Company
(319) 654-9595
3610 Williams Blvd SW
Cedar Rapids, IA
Peoples Advantage Mortgage
(319) 294-2914
5250 N Park Pl NE
Cedar Rapids, IA

Home Equity Loans and Mortgage Refinancing

Looking for a source of cash to pay for a new car? Use the equity you already have in your home. Home equity loans and mortgage refinancing are often good solutions for people who need money to purchase a car. However, to use this type of loan for a car purchase, you should have good financial discipline and a stable lifestyle — and understand how such loans work.

Two different kinds of home equity loans - which is better?
A home equity loan is a conventional loan in which you borrow against your net financial interest, or equity, in your home. Such loans are for a fixed amount, have a fixed interest rate and a fixed term. The loan is paid down with monthly payments that cover both principal reduction and interest expense. The primary difference between this type of loan and a traditional car loan is that your home is the collateral, not your car. Should you default, your home could be at risk.

In comparison, a home equity line of credit (HELOC) is a variable-rate loan that is set up for a specified maximum draw amount. You can use (draw) any or all of that amount over a specified period of time, usually 5 to 10 years. There is also a specified repayment period, usually 10 to 20 years. Typically, a borrower only pays interest during the draw period, but must pay both principal and interest afterwards. Up front costs are typically fairly low. Interest rates are tied to the prime rate which can vary day to day. In this sense, HELOCs are like a...

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