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Home Equity Loans and Mortgage Refinancing El Dorado AR

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.

Little Rock, AR
El Dorado
(870) 863-4066
1407 N West Ave
El Dorado, AR
Advanced America Cash Advance
(501) 753-3967
4714 John F Kennedy Blvd
North Little Rock, AR
Bodcaw Bank
(870) 533-4486
307 Thomas St
Stamps, AR
Bank of America
(501) 225-8087
8000 Cantrell Rd
Little Rock, AR
Thrifty Car Sales
(479) 636-5050
1810 So 8Th Street (Hwy 71B)
Rogers, AR
Farm Credit Services
(870) 863-7237
3400 W Hillsboro St
El Dorado, AR
Arvest Bank
(870) 453-5626
802 E Main St
Flippin, AR
Bank of America
(501) 224-4893
11315 N Rodney Parham Rd
Little Rock, AR
First Federal Bank
(479) 273-9091
307 N Walton Blvd
Bentonville, AR

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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